THL prunes NPAT guidance
6.5.24 A weakening economy has led to Tourism Holdings Holdings now expecting net profit after tax (NPAT) in FY24 to be between $50m and $53m This compares to earlier guidance set in February 2024 for NPAT to be around $75m. The weakening economy has impacted most regions and business divisions negatively and lowered expectations into Q4. Vehicle sales have been a major factor globally, with sales volumes and margins now declining more quickly than expected in most markets. Over 50% of the...
Trading halt in Westpac pre interim results
Westpac Banking Corporation sought – and received – a trading halt on NZX in the company’s shares this morning, pending the release of Westpac’s 2024 Half Year financial results announcements in New Zealand. The trading halt has been requested so that there is no trading in New Zealand before Westpac’s results are announced to ASX. The trading halt is due to the requirement to receive confirmation from ASX prior to the release of information to NZX. The trading halt can be lifted once...
Delegat has quality harvest but smaller quantity
Delegat Group has concluded the 2024 harvest which has delivered excellent quality grapes in all regions. However, the group’s 2024 harvest is 34,150 tonnes, down 24.7% on the 2023 harvest of 45,340 tonnes. Marlborough, Hawke’s Bay and Barossa Valley experienced cooler spring growing conditions resulting in a significant, region-wide reduction in yield for the 2023/24 growing season. The group’s harvest is in-line with regional industry results. The vintage outcome has delivered excellent...
Sales perk up for Resturant Brands
1.5.24 The equity market reacted positively to Restaurant Brands Q1 sales results today. The share price improved by 12c to $3.12. RBD total sales for 1Q24 (to 31.3.24) at $333.0m, were up a strong $24.4m (+7.9%) increase on the pcp. Strong sales growth in the New Zealand and Hawaiian markets offset slowing sales growth in Australia and negative sales growth in California. Cost of living pressures, driven by inflation and elevated interest rates, continue to impact consumer spending in all...
George Adams elected as Synlait chair
1.5.23 (9.30am Synlait Milk’s board has elected George Adams as chairman with Dr John Penno, the company’s Co-Founder and board appointed director stepping down. Adams was appointed as an independent director of Synlait in March 2024 to fill a casual vacancy. His transition to the chair role follows the previously signalled plan that acting chair Paul McGilvary would return to his position as an independent director once a permanent successor was found and elected. George Adams was elected...
David Mair to lead Sanford
1.5.24 (8.55am) Seafood exporter Sanford Ltd has pulled off a management coup by appointing a current Sanford director David Mair as its new Chief Executive Officer. "The appointment follows a thorough process to identify and consider suitable candidates," said Sanford. David Mair has significant leadership experience. He was a highly regarded CEO of NZX-listed Skellerup Holdings Lid from 2011 until earlier this year. He was also involved in a2 Milk from 2008 until the company listed on the...
Serko signs 5-year deal
30.4.24 Travel platform Serko has signed a 5-year partnership renewal with booking.com This is regarded as a significant milestone for Serko’s growth ambitions. The five-year term will run from April 2024 to March 2029 Serko also provided unaudited FY24 trading update ahead of audited full-year results Both Booking.com and Serko remain committed to scaling Booking.com for Business, providing an easy-to-use business travel platform for businesses and business travellers globally. Serko CEO and...
Auckland Airport considers bond offer
29.4.24 Auckland International Airport is considering an offer of fixed rate bonds maturing in November 2030 to New Zealand retail investors and to institutional investors. Any such offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as Auckland Airport’s existing quoted debt securities. The bonds are expected to be quoted on the NZX Debt Market. It is expected that full details of the bond issue will be released the week of...
Westpac provides market update
23.4.24 Westpac provided a head’s up for the market this morning that reported net profit after tax in 1H24 will be reduced by A$164 million due to Notable Items. All Notable Items relate to unrealised fair value gains and losses on economic hedges and net ineffectiveness on qualifying hedges, which reverse over time. Westpac also advised that operating segments have been restated following the establishment of separate Consumer and Business & Wealth operating segments and the dissolution...
AoFrio upbeat in trading update
23.4.24 AoFrio opened the business day by proving an update on trading performance for the three months ended 31 March 2024 (Q1-2024). Revenue for Q1-2024 was $16.6m, a 13% increase compared to $14.7m for Q1-2023. EBITDA improved by $0.6m to a surplus $0.2m (loss of $0.4m in Q1-2023). Cash at 31 March 2024 was $2.1m ($2.9m last year at 31 March) and the company had borrowed $3.9m under its $5m trade finance facility ($4.1m last year at 31 March) Other details: IoT revenue was $9.9m compared...
Move to delist Just Life
22.4.24 Just Life Group have called a Special Meeting of shareholders to be held at 11:00am on Monday, 13 May to vote on resolutions proposed by JLG’s major shareholder, The Harvard Group, to delist the company from the NZX Main Board. It will be proposed that the company list on the Unlisted Securities Exchange (USX) to enable shareholders to continue to publicly trade their shares. If shareholders approve the resolutions to delist from the NZX Main Board and list on USX, the company intends...
Blackwell advises of director’s arrest
22.4.24 A surprise statement from Blackwell Global Holdings today advised the market that one the company’s directors, Michael Chai, was arrested in January 2024, and has been incarcerated in the Philippines on matters unrelated to the company. Blackwell Global Holdings are seeking clarification of the exact details of the charges. The independent directors Sean Joyce and Craig Alexander stated that they are “extremely disappointed to learn of this development at such late notice.” The...
Ryman Healhcare to seek new CEO
Ryman Healthcare CEO Richard Umbers has resigned his position as Group CEO and will be leaving the company. Umbers is leaving Ryman in accordance with his contractual terms. Chair Dean Hamilton is to act as Executive Chair and a search for the next Group CEO will commence. Hamilton said “Richard has led the company through an unprecedented time during the COVID pandemic, maintaining Ryman’s commitment to outstanding care, at the same time as progressing a number of significant changes. “On...
Air NZ slashes earnings guidance
Earnings turbulence for Air New Zealand trims guidance 22.4.24 Economic conditions and tough competition on international routes are among the negative currents impacting Air New Zealand, which has today slashed earnings guidance. In February 2024 Air New Zealand issued guidance for FY24 earnings before taxation in the range of $200 million to $240 million. This range included the benefit of $65 million in Covid-related credit breakage for the year, with $45 million recognised in the first...
Sena moves to CEO of 2 Cheap Cars
22.4.24 2 Cheap Cars Group CEO, Paul Millward has resigned, with founder and majority shareholder David Sena taking over as CEO from 1 June 2024. At the September 2023 Annual Shareholder Meeting, shareholders voted overwhelmingly in favour of a transaction which saw David Sena and his Family Trust increase its shareholding to approximately 76%. 2CC chair Michael Stiassny noted that with such a significant shareholding, it was logical that Mr Sena would eventually step into the CEO role. “David...
New gas supply critical to energy security
22.4.24 9.39am Energy security remained critical for New Zealand during the energy transition of the country, Genesis Energy chief executive Malcolm Johns said in releasing a market update today on third quarter electricity sales. The Huntly Portfolio demonstrated its value in challenging conditions providing generation flexibility through a period of gas market uncertainty and declining hydro storage during FY24 Q3. Customer growth continued with 1,537 customers gained in the period. Retail...
Subscription kick for ikeGPS
19.4.24 A fourth quarter leap in subscriptions was the highlight of quarterly and FY24 results posted by ikeGPS this week FY24 Highlights: + Revenue of ~NZ$21.1m (-31% pcp). + Subscription revenue of ~NZ$10.7m (+22% vs pcp). + Transaction revenue of ~NZ$7.3m (-61% vs pcp). + Gross margin of ~NZ$12.7m (-23% vs pcp), with a gross margin percentage of ~60% (up from pcp of ~53%) + Total cash and receivables as of 31.3.24 of NZ$15.4m comprised of NZ$10.2m cash and NZ$5.2m receivables, with payables...
Cautious outlook by PGG Wrightson
18.4.24 The rural sector services group PGG Wrightson has revised its operating EBITDA guidance to be around $43 million (from $50 million) for the June year. PGW chair Garry Moore said conditions have deteriorated because of market conditions that are impacting the whole of the agricultural sector. Features that are contributing to the restrained spend patterns include: Drought conditions with soil moisture deficits against historic averages across much of the East Coast, Tasman and Northland...
Tower upgrades earnings guidance
Tower Limited (NZX/ASX: TWR) has today updated its earnings guidance on underlying net profit after tax (underlying NPAT) for the year ending 30 September 2024. Full year underlying NPAT is expected to be greater than $35m. Previously Tower had advised that it expected underlying NPAT to be at the top end of or exceeding a range of between $22m and $27m. This updated guidance assumes full utilisation of the FY24 large events allowance which is conservatively set at $45m. No large events have...
CPI down but unconvincing
Annual CPI inflation has decelerated from 4.7% to 4.0% y/y in the first quarter of 2024 but the decline has its limitations. ANZ Bank economists noted that the mark was in line with ANZ’s forecast, and above the RBNZ’s November MPS forecast of 3.8%. “But the details presented a much less convincing story of underlying disinflation than meets the eye,” say Miles Workman and Henry Russell. Non-tradables inflation came in at 5.8% y/y, above ANZ’s forecast of 5.5% and well the RBNZ’s forecast of...
Revenue increase for Scott Tech
Automation and robotics manufacturer Scott Technology has increased group revenue by 11% to $141m, with margins maintained at 26%, in the six months to 29 February 2024 (H1 F24). Sales and service in Scott’s three core sectors delivered 85% (+8ps) of group revenue. Operating EBITDA increased 14% to $17m, outpacing revenue growth. However, net profit after tax was down 42% to $4.5m due to one-off strategic review costs, higher lease and financing costs. Net profit after tax (NPAT) of $4.5m for...
Fletcher appoints interim exec
Fletcher Building has appointed Haydn Wong as interim Group General Counsel and Company Secretary. Mr Wong joins Fletcher Building from law firm Bell Gully until a permanent Group General Counsel and Company Secretary is appointed. This follows the earlier announcement that incumbent Group General Counsel and Company Secretary, Andrew Clarke, is transitioning to a newly created Commercial Director role. Mr Wong is a senior Partner at Bell Gully in the firm’s corporate/commercial department,...
Surge in new listings on market
16.4.24 A surge in new listings has helped to boost turnover in the housing market, but is putting downward pressure on prices, notes Westpac House sales* Monthly % change: -2.1% (Prev: +17.9%) Annual % change: +8.0% (Prev: +37.9%) House Price Index* Monthly % change: -0.2% (Prev: 0%) Annual % change: +2.6% (Prev: +3.2%) * Monthly figures based on Westpac seasonal adjustment The New Zealand housing market remained soft in March. While sales have picked up from their lows, prices remain...
No rate cut of no surprise
10.4.24 The decision by the Reserve Bank of New Zealand (RBNZ) today to leave the official cash rate (OCR) unchanged at 5.5% was no surprise, noted CoreLogic NZ Chief Property Economist, Kelvin Davidson “Given the incoming flow of economic data released since their last decision in late February hasn’t emphatically moved in either direction,” he added. “In particular, most inflation measures are generally trending lower, but they remain ‘too high’, and the pace of decline in price pressures is...
Fibre connections slow over summer
The latest connections update from fibre network operator Chorus for 3Q24 to 31 March notes slower connection activity through January but fibre uptake has now reached 71%. Chorus also reports a general slow-down in greenfield growth “consistent with broader macroeconomic trends.” Fibre connections grew 12,000 in the quarter, slightly higher than growth of 11,000 fibre connections in Q2. This more than offset the 8,000 lines reduction of copper broadband connections within the Chorus fibre...
Revenue growth for TradeWindow
10.4.24 8.34am TradeWindow (NZX: TWL), a global trade software company, today announced a strong finish to the financial year ending March 31. TradeWindow delivered trading revenue of $6.2 million (unaudited), the top end of a previously narrowed guidance range of $6.1million to $6.2 million. This result represents a 26% increase on the previous year’s result of $4.9 million. Total revenue including grants and other income came in at $6.7 million for the full year up from $5.7 million in the...
Heartland raises $131m in first step
Heartland Group Holdings has successfully completed the institutional entitlement offer component of its NZ$105m underwritten 1 for 6.85 pro-rata accelerated non-renounceable entitlement offer and its NZ$105 million underwritten placement announced yesterday. A total of NZ$210 million will be raised under the Entitlement Offer and Placement. The Placement and Institutional Entitlement Offer closed on 9 April 2024 and raised gross proceeds of approximately NZ$131m with strong support...
Positions reshuffle at Synlait
9.4.24 9.05am. Synlait Milk’s Chief Finance Officer Rob Stowell has been appointed to the newly created position of Chief Commercial Officer. He will retain responsibility for the Information Services, Risk, Legal, and Governance functions. In addition, he will assume responsibility for several critical strategic workstreams, including the sale of Dairyworks, the North Island strategic assets review, a potential equity raise, and the banking syndicate relationship. Synlait’s said Stowell’s...
New launch from F&P Healthcare
9.4.24 9 9.00am Fisher & Paykel Healthcare Corporation has launched a new product - the F&P Nova Micro™ nasal pillows - mask in New Zealand for the treatment of obstructive sleep apnea (OSA). “Weighing less than 40 grams (1.4 ounces), the new compact mask features minimal, easy-adjusting headgear and a soft MicroPillows™ cushion that nestles gently within the nostrils and inflates to conform to the patient’s nose,” says FPH. “The design provides stability and freedom of movement,...
Better sales start for Summerset
9.4.24 8.56am Summerset Group has had a stronger start to the New Year with reported 255 sales for the March quarter comprising 134 new sales and 121 resales. “Total sales for Q1 this year were 21% higher than the same time last year, with both new and resales increasing year-on-year,” says Summerset CEO Scott Scoullar. “Our highest selling villages of the quarter were Te Awa (Napier), Papamoa and Bell Block (New Plymouth). All three villages have had their main building open in the last six...
