Colonial Motor has trading profit lift

Press, 26 September 1989, Page 21

Colonial Motor has trading profit lift

Colonial Motor Company remained strong financially, said the chairman, Mr Gordon Gibbons, in announcing a 371 per cent increase in the group trading profit to $4.5 million. However, extraordinary profits in the previous year for the listed Well-ington-based motor vehicle dealer, reined in the increase in the total profit for the latest period to 15.1%. The improved profit was because the company had continually adjusted trading to suit the market, combined with higher sales in the second half, he said. Trading stock and debtors had been held, and shareholders’ equity was stable at 60% of total

assets. A final dividend would be paid in December and would be fully imputed at 33c to the $l, in effect a “tax-paid” dividend. The company’s annual report, together with the final dividend recommendation, was expected to be sent to shareholders by October 31. Mr Gibbons

said. The accompanying balance sheet shows that shareholders’ funds have increased $2.5M to $55.9M, including steady paid up capital of $15.4M. Working capital fell $3.9M to $33.1M and the current ratio eased from 2.6 to 2.3 to one. The net asset backing a 50c share firmed from 289 c to 302 c.

Colonial Motor unaudited result for year ended May 31 1989 1988 Change ($000) ($000) % Gross revenue 360,189 398,300 -9.6 Pre-tax profit 6361 2950 + 115 Taxation 1846 1736 +6.3 Net trading profit 4515 1214 +371 Minorities — —• — Equity earnings — — — Group net profit 4515 1214 +371 Extraordinary profit 308 2977 — Total profit 4823 4191 + 15.1