Latest News

Scales expanding proteins business

27.9.22 Scales Corporation has entered into two agreements to expand its Global Proteins division in Australia. The agreements are: • The subscription for a 33% interest in a newly established petfood processing operation to be based in Melbourne. Scales will be partnering with two recognised industry participants who bring extensive supply relationships • Concurrently, Scales has entered into an agreement to purchase 50% of the Australian operations of Fayman International, including a 42.5%...

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Synlait back on track

27.9.22  Synlait Milk marked a return to “robust profitability on track: with FY22 EBITDA up $91.8m to $129.1m and NPAT up $67.0m to $38.5m. Revenue is up 21% to $1.66 billion. The balance sheet returned to normal metrics (net debt to EBITDA ratio of 2.6x) enabled by strong operating cashflows and inventory reduction. Operating cash flows are up $214.5m to $232.9m. The only blemish on a big recovery is the Impairment charge of $12.2m due to continued idling of Temuka cheese plant. FY22 also...

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Market report 22.9.22

The New Zealand sharemarket resisted the temptation to follow the US markets into a sharp decline when it opened today. Overnight events in the geopolitical situation over Ukraine led to a rise in risk sentiment, while the higher interest rates set by the US Federal washed through the US market. The Dow Jones sank 522.45 to 30,183.78. In New Zealand the market held firm and after a quiet session with few movements up or down, the market index NZX50 gained 19.37 at 11,518.32. Mainfreight fell...

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Fonterra holds profit level

22.9.22 Fonterra today announced a strong set of results for the financial year ending 31 July 2022, reflecting a 2021/22 Farmgate Milk Price of NZ$9.30 per kgMS and normalised profit after tax of NZ$591 million. With a total dividend of 20 cents per share to our fully shared-up farmers – comprising of an interim dividend of 5 cents per share and a final dividend of 15 cents per share – the final cash pay-out for farmers is $9.50. Total Group normalised Earnings Before Interest and Taxes...

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Strong sales for Air NZ

Air New Zealand has continued to see strong forward sales over the first three months of the financial year, particularly for travel through to January 2023. The airline said it continues to operate approximately 70 percent of FY19 capacity. On the basis that this forward sales strength continues over the coming quarter, with similar capacity and assuming an average jet fuel price of approximately US $130/bbl, the airline currently expects earnings before taxation and other significant items...

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MOVE walks from Fluidex deal

20.9.22 NZX-listed transport and logistics group, MOVE Logistics Group has terminated the proposed acquisition of the business and assets of bulk fluids and dry powder transport firm Fluidex Transport. Move told NZX that the $15.2 million sale and purchase agreement is now at an end. MOVE’s explanation to the market is that the vendors had sought to vary certain commercial terms of the transaction under their shareholder approval condition. “The variations sought are not acceptable to MOVE,”...

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KMD Brands sales up but Covid impacts

20.9.22   KMD sales up but COVID impactsThe adventure outdoor clothing and equipment retailer KMD Brands has posted COVID-impacted profitability for the year ended 31 July 2022 but a highlight of the year is a record level of dividends.  FY22 key highlights (vs FY21): Group sales up 6.2% to $979.8m, a record for KMD Brands o Continued growth in Rip Curl sales, highest-ever Kathmandu sales in Q4, and record order demand for Oboz products “Although impacted substantially by COVID lockdowns and...

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Surprise step-down by My Food Bag CEO

16.9.22 My Food Bag Group shares were unchanged on NZX today after the company told the market that overnight it has received notice of resignation from the company's Chief Executive Officer, Kevin Bowler. The shares sat at 64c. Mr Bowler joined My Food Bag in June 2018 as its first independent CEO and has overseen a period of significant change. Only last week, Bowler had appeared on an NZX webinar outlining the business growth strategy – and The Headliner reports on that briefing in our...

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Nothing to see here says Air NZ

16.9.22 Air New Zealand spent part of the morning batting back speculation out of Australian media that it had entered into some form of merger talks with Virgin Australia. The airline advised NZX that it has not been approached, “and is not in discussions with any parties, regarding a potential merger transaction,” said chair Dame Therese Walsh Air New Zealand stated that it remains in compliance with its NZX continuous disclosure obligations.

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August flows ease for Auckland Airport

14.9.22 Auckland International Airport (AIA) has released its August monthly traffic update, showing total passengers (international and domestic) at 1,124,343 was 38,164 lower than in July. The international passenger recovery continued in August with passenger movements for the month recovering to 54% of the pre-COVID equivalent, an increase from 50% in July 2022. Compared to the prior month, passenger movements were marginally down in August reflecting the school holidays falling in the...

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Briscoe holds the high ground

14.9.22 National retailer Briscoe Group saw its share price rally after delivering another exceptional result – this time for the July half-year. Briscoe reported  a net profit after tax (NPAT) of $45.62 million for the half-year ended 31 July 2022 compared to $47.46 million achieved for last year’s first half. The interim dividend was also increased from 11.50cps to 12 cps. Briscoe shares gained 11c at $5.46 – going against the tide on NZX today. Dame Rosanne Meo, Briscoe Group chair said,...

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TradeWindow upbeat at AGM

14.9.22 TradeWindow chairman Alasdair MacLeod told shareholders attuned to today’s AGM that the company has a clear strategy for FY23 and beyond. The company, which listed on NZX in 2021, has a particular focus on continued revenue growth in New Zealand and Australia, alongside the building of a global trade platform, he said. The tone of the meeting was fairly upbeat and recent guidance was upheld, which may be of some relief to investors who have szee TWL's shares slip in recent weeks. ...

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Mercury confirms new wind farm

14.9.22 A new 43MW wind farm to be built by gentailer Mercury NZ at Kaiwera Downs south of Gore with contracts already executed for the procurement and construction of the first stage. Mercury says the new renewable generation will help to move the dial towards a decarbonised New Zealand. The wind farm will cost $115m (excluding capitalised interest) and lifts Mercury’s total commitment to new renewable wind generation to almost $600 million since 2019. This wind farm is part of a significant...

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Airport CEO to lead Genesis Energy

12.9.22 The chief executive of Christchurch International Airport, Malcolm Johns. has been appointed Chief Executive of Genesis Energy.  He will commence the role on March 13 2023. Genesis chairman Barbara Chapman said, “After an extensive global search, the board is pleased to have appointed Malcolm as chief executive. This is an exciting time for the company which has an important role to play in New Zealand’s energy transition.” “Malcolm brings experience in leading large organisations...

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Fonterra guidance shoots higher

  9.10.22   Fonterra Co-operative Group has revised its 2023 forecast earnings guidance to 45 to 60 cents per share, up from 30 to 45 cents per share. It has also revised its forecast milk collections for the 2022/23 season down from 1,510 million kgMS to 1,495 million kgMS. Fonterra CEO Miles Hurrell says the lift in forecast earnings is a continuation of the ongoing strong demand for dairy that saw Fonterra confirm its FY22 earnings were at the top end of the guidance range. “The...

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Kiwi Property to sell Northlands

7.9.22 As part of its ongoing strategy to focus on the development of mixed-use town centres, Kiwi Property has secured a conditional agreement to sell Northlands Shopping Centre and 43 Langdons Road (Northlands) in Christchurch. The acquirer is MP Holdings 5 Ltd, an entity managed by Mackersy Property (Mackersy), for $160m. The final sale price represents a property level internal rate of return of 10.9% since inception. The purchaser will retain $9m to complete seismic works (noting that...

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Reserve Bank of Australia walks ‘narrow path’

6.9.22 The Reserve Bank of Australia (RBA) has raised the official cash rate by 50 basis points (0.5 per cent) to 2.35 per cent – a 7½ year high. This is the fifth straight rate hike, and the fourth time in a row the RBA has raised rates by 50 basis points. The RBA board said it is committed to returning inflation to the 2–3 per cent range over time. “It is seeking to do this while keeping the economy on an even keel. The path to achieving this balance is a narrow one and clouded in...

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RBA rates hike slows ASX sharemarket

6.9.22 Following the Reserve Bank of Australia’s (RBA) unprecedented decision to raise rates for a fifth straight month, the Australian sharemarket edged lower despite starting trade in positive territory, notes CommSec. The ASX 200 fell by 25.7 points or 0.38 per cent, to 6826.5. The Tech sector rose the most (+0.67 per cent) and was followed closely by an 0.5 per cent rally in the Energy sector after the OPEC+ group of oil producers agreed to a production cut. Losses however in the...

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MARKETWEEK:     Local equities market displays some stoicism

Wall Street dislikes good news Warren Head While financial markets in several countries are looking somewhat beaten up, the domestic market is not over-reacting to the current adjustment upwards of interest rates from their deep discount during the opening years of the decade. The first week of spring has seen the NZX market finish 19.96 points up on a week prior, at 11,628.25.   There has been a lot of cross-field tracking rather than much go-forward and the points have mostly been scored by...

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Acquisition by Third Age Health

1.9.22   8.46am Third Age Health Services confirms the acquisition of a majority share of EastMed Doctors (“EastMed”), a medium sized family general practice in Saint Heliers Bay Road, East Auckland. TAH had announced on 4 August 2022 that it had entered into a conditional contract to purchase a majority interest which had been subject to due diligence and Board approval. These conditions have been met. EastMed is an established and professional general practice with an experienced and...

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New campus for F&P Healthcare

1.9.22  (8.40am) Fisher & Paykel Healthcare Corporation has entered into a sale and purchase agreement, conditional on Overseas Investment Office (OIO) approval, to acquire a 105 hectare site in Karaka, Auckland for $275 million. The company will construct a second New Zealand campus on the site to complement its existing location at the Highbrook development in East Tāmaki, Auckland. “With our current site nearing capacity, we are pleased to take this step towards securing additional land...

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Chorus prices Euro 500 million bond

1.9.22 Chorus has today priced a 7-year issue of EUR500 million notes under its existing Euro Medium Term Note (EMTN) programme. The notes carry a fixed coupon of 3.625% per annum and mature on 7 September 2029. Chorus Acting CFO Andrew Carroll said the proceeds from the new notes will be used to refinance the existing EUR500 million notes due to mature in October 2023. A tender offer for the October 2023 notes is currently underway and results from that process are expected on 6 September...

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AFT to develop birthmark medicine

1.9.22 AFT Pharmaceuticals has reached agreement with Massey Ventures, the commercialisation company of Massey University, and the Gillies McIndoe Research Institute, to license intellectual property to allow the development of a topical treatment for strawberry birthmarks (infantile haemangiomas) in children. The agreement covers the intellectual property emerging from Massey Ventures and Gillies McIndoe research that demonstrated the synergistic action of two well-known heart medicines (beta...

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Improving year for Harmoney

31.8.22 Harmoney Corp posted full June 2022 year results showing that the company’s net loss for the year of -$20.2m was 25% smaller than FY21’s net loss of -$27m). The company delivered profitability on both a pro forma and statutory basi Combined with the economies of scale from automation, the company has delivered FY22 Cash NPAT profitability on both a pro forma and statutory basis. FY22 Highlights: • Achieved profitability in FY22 on both a statutory and pro forma Cash NPAT basis, with...

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Radius Care buys lodge

31.8.22 Radius Care has entered into an agreement to acquire the assets and business of Matamata Country Lodge along with three neighbouring properties for NZ$17.1 million. The acquisition is planned to be funded by a $10 million payment from debt facilities, $2.1 million of vendor finance and the issue of $5 million of RAD shares issued at the market price on completion. Matamata Country Lodge provides a full continuum of care from retirement village units, to high acuity care beds and a...

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Evolve selling NZ business

30.8.22 Evolve Education Group today announced a significant strategic realignment of its operations Evolve has entered, through its wholly owned subsidiary Lollipops Educare Holdings Ltd (the Vendor), into a conditional sale agreement relating to Evolve’s New Zealand business dated 29 August 2022 with Shine BidCo Limited (BidCo), an acquisition vehicle for funds managed by Anchorage Capital Partners (Anchorage) (the SPA). Under the terms of the SPA, the Vendor will sell 100% of the shares in...

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Enprise back in the red

29.8.22 Hi-tech software and services investment company Enprise Group today reported unaudited revenue for the year ended 30 June 2022 of $18.7m, up from $16.1m (up 16%). Total comprehensive income for the year ended 30 June 2022 was a loss of $2.1m (down $2.9m from a profit of $0.8m). This decline was due to several factors including; the need to significantly increase salaries months earlier than we were able to pass on price increases to customers. • costs in relation to the Kilimanjaro...

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Bremworth gains in transformational year

29.8.22 Carpet and rug manufacturer, Bremworth has emerged from a “transformational” year with a 29% increase in NPAT to $2.2m  in the June year. Total revenue for FY22 was $95.5m, down 14% on the prior year which benefitted from the sell down of synthetic inventory. Wool carpet and rugs revenue of $73.0m was in line with the prior year, and comprised 100% of Bremworth’s FY22 carpet and rug sales, compared to 79% in FY21. The flat year-on-year sales were mainly due to the exit from the low...

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Cost increases clobber RBD half-year

29.8.22 Restaurant Brands New Zealand’s group net profit of $15.3 million for the six months ended 30 June 2022 (1H 2022) is down $19.2 million on the last half-year’s reported result. Group sales were $584.9m, up $44.3m on 1H21,  growth was assisted by the inclusion of 17 additional stores and a stronger US dollar. The company says worldwide inflationary pressures resulted in significant cost increases across all regions. Also, the prior period result included recognition of $11.4 million of...

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Red screen for Vista half but upbeat

Vista Group International reported a strong recovery in the global cinema industry and a sales lift, but impairment charges kept the business in the red in the June half-year. Kimbal Riley, Vista Group Chief Executive, commented: “We are very pleased to present a return to good, solid growth in our interim results. The increase in recurring revenue is a welcome indication of the cinema industry’s renewed strength and, after pandemic challenges, it’s heartening to see continued box office...

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