The Colonial Motor Company (CMO) H2 2024 earnings summary

Executive summary

• Revenue increased 1.6% year-over-year to $1,012.9m, but trading profit after tax fell 41% to $17.9m due to margin pressure and higher interest costs on inventory.

• Profit attributable to shareholders dropped to $4.5m from $27.8m, impacted by a one-off $12.7m deferred tax adjustment following changes to building depreciation rules.

• Dividends for the year total 35.0 cents per share, down from 57.0 cents, representing 64% of trading profit after tax.

• The Group remains financially stable with total assets of $598.5m and shareholders’ equity at $296.4m.

Financial highlights

• Revenue: $1,012.9m (up 1.6% year-over-year).

• Trading profit after tax: $17.9m (down 41% year-over-year).

• Net profit attributable to shareholders: $4.5m (down from $27.8m year-over-year).

• Earnings per share: 13.9c (down from 85.2c); trading EPS: 54.7c (down from 92.8c).

• Dividend per share: 35.0c (down from 57.0c).

• Net tangible asset backing per share: $8.84.

Outlook and guidance

• Market headwinds expected to persist into the first half of the new financial year, with subdued vehicle demand and weak economic conditions.

• Interest rate relief has begun, but high living costs will continue to dampen discretionary spending.

• Inventory levels, especially in trucks, are expected to normalize as backlogs clear.