The Colonial Motor Company Limited

Overview

CMO originated in 1859 from a coach-building operation at 89 Courtenay Place Wellington. In 1881 it merged into Rouse & Hurrell, a partnership that formed into a limited liability company in 1902. The Ford Motor Company agency for New Zealand was acquired in 1908, and in 1911 the company name was changed to The Colonial Motor Company Ltd. In 1919 a new company was incorporated introducing additional capital from Hopeful Gibbons to fund expansion. In 1936 the Ford Motor Company took over the assembly and distribution side of the business, enabling CMO to focus on the retail dealership operations.

Today CMO owns and operates twelve Ford Dealerships with each holding a franchise in its own right from the Ford Motor Company of New Zealand Ltd. Seven of these Dealerships also have Mazda franchises. All Dealerships sell new and used vehicles as well as providing parts and service. Recent diversification has introduced other brands and motorcycles to the mix of products. The Company is involved in the distribution and retailing of Kenworth and DAF heavy duty trucks, and in the retailing of New Holland, Kubota and Case IH tractors and equipment in Southland.

Descendants of the subscribers of the original 1902 company remain shareholders, and the current major shareholders in CMO are descendants of Hopeful Gibbons. In 1995 Guinness Peat Group secured a 34% shareholding which it sold two years later to MBM Resources of Malaysia. MBM gradually sold down its holding and in 2003 sold its remaining shareholding on market, introducing over 300 new shareholders.

In addition to operating the car, truck and tractor Dealerships, CMO's philosophy is to own the properties from which its subsidiaries operate. Land and buildings continue to make up a significant proportion of CMO's assets.

Performance

The following information was extracted from The Colonial Motor Company Limited's Full Year Results, released 14 August 2026:

• Trading Profit after Tax (TPAT) at $18.7m, 4.7% ahead of the prior year

• Total Dividends for the year 40 cps, 70% of the TPAT, ahead of the 35 cps and 64% in the previous year

Trading conditions

On 26 February we indicated in our Half Year Report that positive growth in some vehicle segments and strong used vehicle trading had delivered a solid result for the Company, and that our aim was to hold onto and ideally build on those gains in the second half. That was not to be the reality, as the geopolitical environment abruptly shifted two days later with the beginning of the Middle East conflict. The resulting oil shock and supply disruption significantly impacted the sales mix in the light vehicle market and this shift continues. Demand for diesel vehicles slowed and the desire for New Energy Vehicles (NEVs) dominated the market, as customers quickly reacted to ballooning fuel prices and oil supply uncertainty. Understandably, the timing of this shock was unfavourable for our businesses, falling as it did in a window where vehicle supply, model changes and our inventory mix were not positioned to take advantage of the demand shifts. There is some better news. Management across the Group acted quickly and decisively, revaluing inventory to meet the market and by doing so, limiting potential impacts and maintaining sales momentum. While margins were inevitably affected, the ability to finish with an improved profit after tax position relative to last year is a satisfying and respectable outcome in what was a disrupted trading environment. Our balance sheet is strong, particularly relative to the two previous years. This is the result of significantly lower inventory levels and reduced external borrowings