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...
Trade Window opens SPP
Trade Window Holdings has opened a share purchase plan to raise up to NZ$200,000. This SPP is further to the announcement on 26 March 2024 in respect of TradeWindow's placement of newly issued ordinary shares to existing and new institutional and other select investors forming part of TradeWindow's aggregate capital raising of up to NZ$2,200,000. The SPP is open to TradeWindow shareholders recorded on TradeWindow's register as at 5.00pm (NZ time) on 25 March 2024 Eligible shareholders will...
Heartland gets approval for takeover
Heartland Group Holdings announced pre-NZX call today that it has received indicative regulatory approvals from the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of New Zealand (RBNZ) for Heartland Bank Ltd’s acquisition of Challenger Bank Ltd from Challenger Ltd (ASX: CGF). Heartland also announced a NZ$210 million equity raise, comprising an NZ$105 million underwritten institutional placement (Placement) and a NZ$105 million underwritten 1 for 6.85 accelerated...
Heartland raising capital – enters trading halt
NZ RegCo has approved a trading halt application from Heartland Group Holdings Ltd (“HGH”). Trading in HGH’s ordinary shares and its subsidiary HBL’s quoted notes (“HBL1T2”) will be halted pre-market open today. Further to the announcement released on 20 March 2024, HBL’s quoted 3.55% fixed rate bonds (“HBL020”) are already suspended pending the maturity of those bonds. Heartland is proposing to raise NZ$210 million of new capital by way of an NZ$105 million placement (Placement) to be...
Exchange urges caution over Being AI
NZ RegCo today urged investor and potential investors to exercise caution when dealing in the shares of Being AI Ltd (BAI). The share price of BAI has risen from $0.017 on 2 April 2024 to $0.075 currently. On 4 April 2024, NZ RegCo Surveillance issued an Issuer Price Enquiry to BAI asking it to confirm that it was not in possession of any material information which had not been disclosed to the market, and that it remained in compliance with the continuous disclosure provisions of the NZX...
Market chasing the scent of A.I.
4.4.24 What value is there in a name? A good deal if it has anything to do with the arcane world of artificial intelligence A month ago Ascension Capital was a very small cap at 1.7c looking for a home. It found a party ready to make a reverse takeover of the shell company that it essentially was and since then matters have been rather exciting. Newly renamed Being AI has had an upwardly mobile share price since the first trade it made after relisting via the reverse takeover. This was...
Impairments impact Synlait half-year
2.4.24 Canterbury-based Synlait Milk has dropped sharply into the red in the opening half of its FY24 year, on higher revenue up 3% at $793.5 million. EBITDA for the period is $19.9m, and on an adjusted basis $36.1m. Gross profit was down 47% to $43.6m. The company reported a net loss of -$96.2m, and an adjusted net loss of -$17.4m. The half-year result was impacted by a less favourable market environment for the Ingredients business, unfavourable FX, lower Advanced Nutrition volumes, and...
WasteCo raises $3m note issue
WasteCo announced the successful issue of convertible notes, raising $3m from a number of wholesale investors. This strategic funding will bolster WasteCo’s operations, specifically aimed at: - Expanding Recycling Capabilities: Enhancing our facilities to increase recycling throughput and efficiency - Investing in Technology: Increasing our capability to divert waste from landfill - Operational Growth: Extending our reach with customer service improvements. The notes, maturing on 15 October...
Me Today rights issue full
Me Today has raised $3.1m from the rights issue which closed on 22.3.24. The rights issue was fully subscribed to the target raise level of $2.8m with the company accepting oversubscriptions of $300k (an 11.9% oversubscription). Of the total subscriptions $2.35m was raised from largest shareholders, trustees of the Baker Investment Trust No 2 and the trustees of the Sinclair Investment, the remaining $750k was raised from existing and new shareholders. The raise was also well supported from...
