Highlights

  • Trading profit after tax reached NZD 10.4 million, up 50% from last year.
  • Interim dividend maintained at 15 cents per share, fully imputed.
  • January 2026 new vehicle registrations rose 8.9% year-on-year.

The Colonial Motor Company Limited (NZX:CMO) has reported its financial results for the six months ending 31 December 2025, posting a trading profit after tax of NZD 10.4 million. This represents a 50% increase compared to the same period in 2024, highlighting a notable uplift in both new and used vehicle sales across the country. Alongside the profit announcement, the Board confirmed an unchanged interim dividend of 15 cents per share, payable on 30 March 2026.

Sales Momentum in a Fickle December

Chair Ash Waugh stated the results exceeded expectations set at the 2025 AGM. December proved to be a particularly active month for both new and used vehicle sales, which positively influenced the half-year performance. The gradual recovery of the new light vehicle market supported these outcomes, although supply and demand fluctuations continued to present challenges for the business.

Tractor and Agricultural Segments Show Uptick

The Company’s tractor operations benefited from improved conditions in the agricultural sector, including stronger dairy returns and higher demand in the red meat market. Agricentre South divested its Kubota business in November to focus on New Holland and Case IH franchises. This strategic move also included the sale of the North Road property in Invercargill, allowing the business to concentrate on its core heavy tractor offerings.

Commercial Truck Sector Remains Challenging

Southpac Trucks experienced subdued national volumes in the heavy commercial truck market. Despite this, management highlighted growth opportunities through parts and service networks. Two new ‘Truck Related Parts’ stores opened in Nelson and Dunedin to support both fleet operators and service dealers in the regions, indicating an ongoing focus on operational expansion within this segment.

Property and Dealership Developments

Hutchinson Motors opened a new leased facility on Detroit Place in Christchurch, replacing the previous inner-city location on St Asaph Street. Branded as ‘Team Hutchinson All Makes,’ the new facility provides additional capacity for used vehicle sales and new vehicle preparation, supporting the Company’s broader sales and operational goals.

While the first-half momentum may be challenging to maintain, early 2026 data indicate continued growth in new vehicle registrations. With ongoing developments across its dealership network, agricultural machinery, and truck service segments, Colonial Motor Company is positioned to continue leveraging opportunities across New Zealand’s automotive market.

FAQs

Q1: What was Colonial Motor Company’s profit for the first half of 2025-26?
A1: The trading profit after tax was NZD 10.4 million, up 50% from the previous year.

Q2: Will shareholders receive a dividend?
A2: Yes, an interim dividend of 15 cents per share, fully imputed, will be paid on 30 March 2026.

Q3: How did vehicle sales perform in the first half?
A3: Both new and used vehicle sales increased, with January 2026 new vehicle registrations 8.9% higher than January 2025.