Preliminary result & dividend

Trading profit after tax at $22.1m, down 10.9% on last year Total dividends for the year 45.0 cps, down 5.0 cps The Directors consider the trading profit after tax for the year at $22.1m was a very satisfactory result in a changing industry. It was in line with the $22.0m recorded in 2017. 2018 was an exceptional year, capping nine years of continuous industry growth. This year, however, the new vehicle industry slowed to a growth of 1% in the first six months of the financial year then declined by 5% in the second half. Southpac Trucks, with Kenworth and DAF, continued to perform strongly. The new vehicle industry remains at historically high levels and the Company's balance sheet enables it to adapt to changes. Developments In May there was a fire at Macaulay Motors' new facility at Queenstown which was contained in the workshop and was fully insured. The dealership has been able to continue operating while waiting for repairs. Southern Lakes Motors, representing Mitsubishi and Nissan, has opened at Macaulay's previous site on Glenda Drive, Queenstown. The process of establishing a hub and spoke model for the wider Wellington region continues. The hub for both Ford and Mazda will be at the expanded Stevens Motors site in Lower Hutt following the acquisition of additional properties. The Company has purchased a Honda dealership at Pukekohe to add to its stable of brands in South Auckland. The redevelopment of Team Hutchinson Ford at Tuam Street in Christchurch to accommodate the 'greenway' is progressing and will include new Ford retail branding. Outlook The range and depth of potential challenges to our industry and the NZ economy, from both offshore and domestically, have increased. The outlook is for continued uncertainty. Dividend The Directors have declared a fully imputed dividend of 30.0 cps, to be paid on 21 October 2019 with a record date of 11 October 2019. This takes the total dividend for the year to 45.0 cps. The 2019 Annual Report will be published in late September, including notice for the 101st Annual General Meeting to be held at midday on Friday 15 November at the Harbourside Function Venue, 4 Taranaki Street, Wellington. End CA:00339116 For:CMO Type:FLLYR Time:2019-08-14 16:24:20