Preliminary result & dividend

o Revenue for the year was $754.9m, down 17% on last year o Trading profit after tax at $17.3m, down 21% on last year o Dividend for the year of 32 cps The Colonial Motor Company has announced its preliminary results for the year ended 30 June 2020. Revenue for the year at $755m was down 17% on the previous year and Trading Profit after tax at $17.3m was down 21%. The Directors consider the trading profit after tax for the year at $17.3m to be very satisfactory given the challenges of the Covid impacted months. Chairman Jim Gibbons said revenue was down 37% in March, 87% in April and 27% in May. It was a very volatile six months, with most of the Company in hibernation in April, followed by a sudden and strong bounce back after the initial restrictions were lifted. Profitability suffered in March and April but recovered in May and June. Inventory, along with floorplan finance and bank borrowing is down on last year at balance date. Full year remuneration paid to employees, which includes the wage subsidy, was similar to last year. Mr Gibbons said that total profit for the year was affected by valuation and tax changes. The tax deductibility of depreciation on buildings will be resumed as part of the Governments response to the Covid crisis. This has an impact on deferred tax, reversing the tax loss recorded in 2010 when the depreciation deductibility was stopped, and creating a non-cash deferred tax gain of $6.58m. The Covid lockdown has delayed but not stopped the Company-owned developments at Cromwell, Wanaka, Christchurch, Lower Hutt, Manukau and Botany. Outlook Mr Gibbons explained that the volatility is expected to continue with uncertainty from the Covid shutdowns, consumer responses to this and the impact on the wider economy. It is currently not possible to make predictions with any confidence into the future. However, the Company has demonstrated that it can absorb and bounce back from adverse conditions. The balance sheet is strong, providing resilience in this environment. Dividend The interim dividend of 15 cps was cancelled on 24 March at the start of the level four lockdown. Post lockdown trading in May and June bounced back strongly. Consequently, the Directors have declared a fully imputed dividend of 32 cps, representing 60% of the full year trading profit after tax, to be paid on 5 October 2020 with a record date of 25 September. End CA:00358637 For:CMO Type:FLLYR Time:2020-08-26 08:30:03