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 inventory interest costs.

• Profit attributable to shareholders dropped to $4.5m from $27.8m, impacted by a $12.7m one-off non-cash deferred tax adjustment.

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

• The Group remains financially stable with robust sales and service revenue, despite operating in a recessionary environment.

Financial highlights

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

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

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

• EPS: 13.9c (down from 85.2c year-over-year); trading profit EPS: 54.7c (down from 92.8c).

• Total assets: $598.5m (up from $548.4m year-over-year); shareholders' equity: $296.4m.

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

Outlook and guidance

• Market headwinds expected to persist in the first half of FY25, with subdued new vehicle demand across all segments.

• Service and parts business remains strong; dealerships are prepared to endure current challenges.

• Southpac Trucks expects inventory levels to fall as backlogged orders are delivered.

• The Group's fundamentals remain strong, positioning it to capitalize on future opportunities.