One of New Zealand’s biggest retailers of cars, trucks, agricultural equipment and motor bikes – Colonial Motor Company – has just reported that it’s total revenue for the year is up 14% to $699.3 million on the previous year’s $614.4 million.
Colonial operates dealerships in the North and South Islands, and represents Ford, Mazda, BMW, Peugeot, Citroen, Isuzu Utes, MINI, Kenworth Trucks, DAF Trucks, Case IH, New Holland, Norwood agricultural equipment.and Susuki bikes.
Trading profit after tax for the year was $18.2 million – up a remarkable 31% on last year’s $13.9 million.
Total profit for the year was $20.2 million, up 37% on last year’s $14.8 million.
Colonial says total assets stand at $246.6 million ($222.6million in 2013). Inventory of $92.5 million ($80.2 million in 2013) represented a large proportion of current assets, and reflects the throughput of products and, in particular, the number of heavy trucks awaiting delivery to customers.
In his report accompanying the annual report, Colonial motor company chief executive Graeme Gibbons says the financial year saw a strong performance across the dealership group in cars, heavy trucks, and tractors.
“The benefit to our dealerships of the higher new vehicle industry have been the efficiencies that come from better utilisation of our dealership fixed overhead structure, including facilities,” says Gibbon.
“However, while our new vehicle business has grown, used car retailing for us has stood still and service operations have reflected the growth in new vehicle preparation rather than in purely retail work.”
Gibbons says that Colonial has acquired a property in Gore to expand its New Holland and Norwood agricultural equipment product presentation, and it has also leased a small facility in Cromwell to represent Case IH tractors.
An expansion to Southpac Trucks Manukau facility to increase the parts warehouse and truck preparation facility is close to completion, and Gibbons says the company has plans for a new parts showroom supermarket and sales office currently in the consent process.
Because of its size and diversity, Colonial’s financial performance is often regarded as an indicator of the overall health of the retail vehicle industry in NZ..
It was Colonial’s 96th annual report.
