In case you missed it: News bites for the week.
Promisia Healthcare said it remained on track to deliver double-digit earnings growth for FY25. In a market update, the NZX-listed aged care provider reaffirmed its earnings guidance, saying that occupancy across the group remains steady at 87%.
All available retirement units at its villages in Cromwell and Christchurch are fully occupied with waitlists, while 12 of its 16 villas at its Ripponburn facility are occupied and the remaining four are under contract.
Promisia said it had received the green light from Te Whatu Ora for a 20-bed dementia wing at its facility in Fielding, with construction underway.
The company also announced the appointment of a new chief operating officer, Graeme Dodd. He will step into the role in June and has more than 20 years’ experience in the aged care and health sectors.
Promisia will release its preliminary full-year results at the end of May.
New Zealand’s services sector remains in contraction but there are positive employment signals emerging, according to the BNZ-BusinessNZ Performance of Services Index.
The PSI was 49.1 in March, up 0.1 points from February. A reading below 50 indicated contraction.
Activity and sales fell to 47.4 last month, while the new orders and business indicator recovered to the highest level since February last year. In addition, employment was back in expansion after 15 months of consecutive contraction.
The proportion of negative comments fell from February and January. Businesses still noted lower activity because of economic uncertainty, high interest rates, inflation, and weak consumer confidence, in addition to added pressures from global trade tariffs.
Separately, Statistics NZ data today showed retail spending using electronic cards declined 0.8% last month, when compared with February.
There was lower spending on durables, hospitality, fuel, and clothing, while more was spent on cars.
Nic Craven.
Fund manager Booster has announced its chief investment officer Nic Craven is “stepping away from his role” at Booster Investment Management with immediate effect.
In a statement to the NZX through its Private Land & Property Fund, Booster said Craven would continue to be involved in Booster’s investment governance through its investment committee.
Craven is one of five Booster executives targeted in legal action brought by the Financial Markets Authority last June alleging multiple breaches of the Financial Markets Conduct Act arising from investments made by Booster Investment Management in related entities.
The other four are Allan Yeo, Paul Foley, Brendon Doyle and David Beattie. Yeo and Foley remain on the board of Booster Investment Management as managing director and executive director respectively.
Booster said Craven’s investment work would be done by portfolio strategy manager Aaron Usher and head of direct investments Nic Williams until a permanent replacement was appointed.
Clorox Australia, which manufactures the Glad range of plastic bags, has been slapped with a A$8.25 million ($8.87m) penalty by the Australian Federal Court for making misleading claims.
The legal action was initiated by competition regulator the ACCC, which alleged claims that the Glad Green “50% Ocean Plastic Recycled” Kitchen Tidy Bags and Garbage Bags products were made from ocean waste were misleading.
Instead, the products were made from about 50% plastic waste collected from communities in Indonesia with no formal waste management systems, situated up to 50 kilometres from a shoreline, and “otherwise from non-recycled plastic, processing aid, and dye”.
Between June 2021 and about November 13, 2022, the packaging of Clorox’s small, medium, and large Kitchen Tidy Bags included the statements ‘50% Ocean Plastic Recycled Bags’ and ‘Made using 50% Ocean Plastic*’ around an image of a wave, overlaid on an image of a blue coloured waste disposal bag.
David Gibson
NZME board member David Gibson has resigned abruptly from his post for “personal reasons”.
The company provided no further details other than to thank him for his service and wish him well for the future.
His departure comes as NZME’s board faces a takeover attempt by Canadian billionaire and NZME investor, James Grenon.
Gibson joined NZME’s board in 2017.
He is also, according to his LinkedIn profile, on the boards of Contact Energy, Freightways, and Goodman Property.
Prior to becoming a professional director, Gibson worked for 16 years at Deutsche Bank.
Biosecurity New Zealand commissioner Mike Inglis says only one of 44 cruise vessels entering NZ waters this season has fallen foul of the country's strict biofouling rules. That's down from 11 vessels during the 2023 season and four last season. Inglis said that, of those, three completed their sailing itineraries after additional cleaning, with one vessel cancelling its voyage. Biosecurity NZ issued the update after recent criticism by the industry as to how the strenuous, and expensive, process was undermining ship visitation and had been a factor in cruise lines abandoning the route. NZ became the first country to roll out a national biofouling standard in 2014. Inglis, however, described hull-borne organisms as a "significant risk", given that about "90% of marine pests hitch a ride into NZ on ocean-going vessels". The agency was also layering new evidence requirements this month for all international vessels, including cruise, to prove they meet the rules.
Barry Kloogh.
Liquidators of fraudster Barry Kloogh’s financial advisory firm Financial Planning Ltd have reported the total recovery for 143 investors was 2.045 cents in the dollar.
With the liquidation “substantially complete”, the Official Assignee said the total loss for those investors was $16.75m and their recovery was just $339,575.
Dunedin-based Kloogh was sentenced to eight years and 10 months in prison in July 2020 after pleading guilty to running a Ponzi scheme for at least seven years. The court ordered a minimum period of imprisonment of five years and four months before he became eligible for parole.
Customs Minister Casey Costello helped christen two new observation drones in Devonport on Tuesday, which she said would help combat transnational organised crime. The uncrewed surface vessels (USVs) Tahi and Rua were jointly purchased at a cost of $3m, aimed at what Costello said was enhancing NZ's ability to patrol and protect its maritime interests and security, including stopping drug smuggling. The 7.45-metre, remote-controlled 'Bluebottle' USVs – built by University of NSW-based Ocius Technologies – use a combination of solar, wind, and wave power to operate – meaning they can remain at sea for months. A Customs spokesperson said the USVs were purchased after a seven-month trial by the Royal NZ Navy, during which they played a role in assisting with the recovery of seven kilograms of cocaine hidden in the hull of a commercial vessel headed to Auckland.
Key export commodity whole milk powder is at the highest average price level in about three years after gaining at the overnight dairy auction. The price rose 2.8% to US$4171 per tonne, while the broader GDT index increased to US$4385. Skim milk powder and cheddar cheese prices declined, while anhydrous milk fat, butter, lactose, and mozzarella prices rose. Last month, dairy cooperative Fonterra lifted its FY25 earnings guidance from 40-60 cents per share to 55-75cps. The forecast Farmgate Milk Price range narrowed to $9.70-$10.30 per kilo of milk solids, with the midpoint at $10kgMS. In the six months to January, Fonterra’s net profit was $729m, up from $674m a year earlier. Revenue rose to $12.59b.
Black Pearl Group.
Black Pearl Group reached annual recurring revenue (ARR) of $12.5m at the end of its fourth quarter – up 70% on the previous financial year, and up 13% on the 2024 calendar year. The NZX-listed sales lead generation software business had subscription revenue of $2.4m in the fourth quarter, reflecting an 81% year-on-year increase and an 11% increase from the third quarter of FY25. Gross profit margin was 57%, down from 72% in Q3 FY25 due to a temporary cost increase during the crossover to a new fixed-fee data supply agreement. ARR per employee was up 7% year on year to $245,000 at the end of March. Revenue churn was 5.3% as of the same date, improving from 9.4% in the third quarter. CEO Nick Lissette said the launch of its new product, Bebop, was a "resounding success" with "a high degree of product-market fit, right out of the gate", although a revenue breakdown between products was not included in the market update.
The Ministry for Regulation has announced it will review the telecommunications sector next, claiming that regulation in the sector has become outdated, resulting in stifled innovation and increased costs. Regulation Minister David Seymour and Media and Communications Minister Paul Goldsmith said they had decided to implement the review due to concerns raised by the sector.
“From education and healthcare, to e-commerce and entertainment, reliable digital infrastructure powers economic growth and daily life. But when regulation falls behind, innovation slows and costs rise," said Seymour.
“In a high-cost economy like ours, regulation isn’t neutral – it’s a tax on growth. That’s why it’s time to take a fresh look."
Seymour's ministry and the Ministry of Business, Innovation and Employment will work with industry leaders, consumer groups, the public, and regulators to develop terms of reference for Cabinet consideration.
Air New Zealand has welcomed back its first retrofitted 787-9 Dreamliner aircraft after undergoing the work over 184 days in Singapore.
The airline said the plane had been "receiving the ultimate cabin glow-up as it was retrofitted with all-new cabin interiors, including the new business premier luxe seat, and redesigned business premier, premium economy, and economy cabins".
Its 14 Dreamliners will undergo the same transformation - albeit on a shorter timeline - by the end of 2026.
The second 787-9 to be retrofitted is already in Singapore undergoing work, with a total of seven aircraft expected to be completed by the end of 2025.
All 14 aircraft will be reconfigured to have 272 seats: featuring four business premier luxe seats; 22 business premier seats; 33 premium economy seats; and 213 economy seats, including 13 economy Skycouch seats.
The first completed aircraft – ZK-NZH – will be put into service in mid-May, although the airline is still working through the flying schedule.
Paul Newfield.
Morrison partner and Infratil chief executive Jason Boyes on Thursday disclosed the on-market purchase of 73,177 Infratil shares for a total of $747,847, representing an average price of $10.22.
The acquisitions took place in equal tranches on three successive days from April 14 and follow his purchase of 50,601 shares the previous week for $497,905, or $9.84 a share.
Infratil is managed by Wellington-based Morrison, whose chief executive Paul Newfield has also been buying up its shares. According to NZX disclosures, Newfield has bought $5.3 million worth in the past two months at an average $10.07 a share.
Dairy co-op Fonterra says a dual-track process to sell its Consumer business is “now at the stage where some potential purchasers may pre-emptively seek regulatory approvals”.
In a brief update, Fonterra said it had also named former bank executive Anne Templeman-Jones as chair-elect of the unit’s audit and risk committee.
The Consumer business, dubbed Mainland Group, is up for a trade sale or a sharemarket float this year.
In a research note published on April 14, analysts from Forsyth Barr estimated Mainland Group had an enterprise value of $2.5 billion to $3b, “but believe the top end is likely only achievable via a trade sale”.
