Company News COLONIAL MOTORS

Press, Volume CII, Issue 30289, 15 November 1963, Page 23

Company News COLONIAL MOTORS

6 Per Cent Fall In Profit (N.Z. Press Association) WELLINGTON, Nov. 14. Net profit of the Colonial Motor Company, Ltd., Wellington, fell £11.698 or £5.9 per cent to £186,580 in the year ended May 31. The previous year profit rose 16.9 per cent. The latest result is reached after provision of £ 64.895 (up £8182) for depreciation and £194,621 (up £20,535) for taxation. It represents an earning rate of 20.7 per cent on capital. Recommended final dividend is 7J per cent making 10 per cent for the year, compared with last year’s 11 per cent on lower capital. The directors say that total sales were £8,759,759. against £8.417,467 the previous year. Greater sales in the services and parts section accounted for most of the increase. Sales of new vehicles in units were less than the previous year as a result of a reduced supply of new cars. Sales under the nonremittance scheme were maintained. The announcement of more funds for importation of cars did not affect supply till after May 31, 1963; since then sales have much increased. Reduced sales of new and used cars accounted for some reduction of profit. On about equal sales of tractors profits were reduced by £BO6O with the result that there was no profit on tractor business.