The Colonial Motor Company Limited Analysis

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 Half Year Results, released 26 February 2026:

The Colonial Motor Company Limited has released its results for the six months ended 31 December 2025, recording a trading profit after tax of $10.4m. This was significantly ahead of the comparative period, being up 50.0% on the 31 December 2024 result.

Together with the results announcement, the Board declared an unchanged, fully imputed, interim dividend of 15 cents per share to be paid on 30 March.

Chair, Ash Waugh, confirmed this to be an appreciably better result than was anticipated at the time of the 2025 AGM in November. He noted that, as was often the case, December could be a fickle month to predict, this year being no exception. Strong new and used car sales elevated December trading, resulting in this further positive impact on the half year.

Alongside the economy in general, the new light vehicle market continued its gradual recovery and the Company’s six-month result was evidence of that. Despite this trend, somewhat erratic vehicle supply and demand was an ongoing hurdle, something that could be further compounded by several vehicle model changes expected during 2026. Management across the Group had continued the refreshed focus on used vehicles within the dealerships and this had been a significant factor in the better than expected half year result.