Monday July 29
2 Cheap Cars guides lower net profit in FY26
NZX-listed 2 Cheap Cars forecasts FY26 net profit to be lower than last year despite a rise in vehicle sales, based on first-quarter results.
It said today the first quarter was below expectations, with both sales volumes and gross margins falling short of targets. The company was able to cut costs, however, that did not fully offset the decline in margins.
“The company has seen an improvement in sales performance in July and expects to exceed its monthly budget for the first time this financial year. However, the market remains uncertain and inconsistent.”
2CC said its new flagship site at Sylvia Park was on track to open in August. That site is expected to boost performance in the second half of the financial year.
Its revenue in the year ended March 31, 2025, was down 6% to $82 million, while net profit slumped 41% compared with the previous year, to $3.6m.
Tuesday July 29
Fisher Funds profit, dividends hit three-year high
Fund manager Fisher Funds paid dividends of $70.4 million to its shareholders in the year to March as profits hit a three-year high.
Fee income for the year rose 9% to $221m, while reduced expenses helped boost net profit 57% to $62.8m.
The result is Fisher’s highest since 2022 when income was boosted by $77.2m in performance fees. The fund manager axed performance fees for its Growth Fund in April 2023 with effect from June that year.
Fisher Funds is 66% owned by Taranaki charity the Toi Foundation and 34% by private equity firm TA Associates.
Auckland Council chief of staff Jazz Singh stood down
Jazz Singh.
Jazz Singh, the longstanding chief of staff of the office of the mayor of Auckland, has agreed to move into another role at the council after failing to disclose relevant business interests in his role. Council chief executive Phil Wilson said Singh, who has been employed in the council offices for 14 years, had agreed to move, preventing "further distractions" for the office. Singh had failed to disclose that a property company he owns, Traxx Investments, had been liquidated owing $559,739 to Inland Revenue. Mayor Wayne Brown said Jazz has been an effective chief of staff, so it was disappointing to see this situation require him to step aside. However, for the sake of continuity, Singh will continue to do project work from the CEO's office, Wilson said.
Wednesday July 30
Sharesies to grab hold of the blockchain
Retail investment platform Sharesies has signalled its intention to roll out cryptocurrency trading to its customers.
The company announced this morning that it is planning a beta launch in August for customers who register their early interest. It anticipates that Bitcoin and Ethereum will be available to trade by then.
“Crypto has been one of the most popular requests from our customers for several years now,” Sharesies co-chief executive Leighton Roberts said, adding that the company wanted to reduce the complexity of crypto investors having to manage their own wallets and keys.
Sharesies said it was partnering with one of the world’s leading crypto platforms to bring cryptocurrency to its customers.
Roberts acknowledged that crypto can be volatile and is not for everyone, but said the company wanted to provide customers with more choice.
More details are due to be announced in due course.
Airways moderates price rises after industry consultation
Airways New Zealand has cut its planned price rise by 5 percentage points after consultation with an aviation industry that is facing ongoing impacts from the Covid-19 pandemic. The state-owned enterprise today confirmed an average price increase of 17.7% across three years for commercial airlines, translating to an increase of 7.8%, 6.5% and 2.5% in each year. In March, it proposed a 22.8% rise.
The new pricing will come into effect from September 1 but Airways will not look to recover the cost increase from July 1 to August 31, meaning the effective price increase for year one is just 6.5%.
Airways calculates an indicative price per seat increase over the three-year period of $1.20 for a Sydney to Auckland flight, $1.44 for Auckland to Christchurch, $3.62 for a flight from Auckland to Napier and 36 cents for a flight from Wellington to Nelson.
General aviation customers operating small aircraft will see a price increase of 11% over the period, or 6.8%, 2.3% and 1.9% in each year.
ANZ continues to predict more interest rate cuts
Business confidence edged higher this month, while inflation expectations eased, according to ANZ’s latest outlook survey. Business confidence lifted two points to a net 48% expecting better conditions in the months ahead, while expected ‘own activity’ was flat. Inflation expectations fell slightly to 2.68%. ANZ chief economist Sharon Zollner said most of the forward indicators were relatively unchanged. She noted the agriculture sector was strong, but construction and retail reported a significant renewed slump. “It appears residential builders are giving up on a recovery any time soon, with a sharp drop in construction intentions this month, to the lowest level in a year. We continue to expect that the RBNZ’s inflation concerns will gradually pivot from medium-term inflation being too high, to it potentially being too low.” She said that would mean more interest rate cuts from the RBNZ.
Thursday July 31
Southern Cross to pay $1.1m for fair trading law breach
Southern Cross Travel Insurance has been levied with a $1.1 million fine after admitting breaching fair trading laws. The company contravened the Financial Markets Conduct Act 2013 in offering a discount on travel insurance to Southern Cross customers, but misleading them into believing the discounts were applicable to the customers' entire premiums, when they were only applied to base premiums. The difference between the discounts they received, versus what they would have received if the company had honoured its promise, was $3.5m. The payment was made under an enforceable undertaking provided by the insurer to the Financial Markets Authority, and is in lieu of a pecuniary penalty. Southern Cross had also "remediated" customers impacted by the discounts, the FMA said.
Michael Hill forecasts flat full year
Michael Hill International anticipates flat annual results for the 12 months through to June 29, with a comparable earnings before interest and tax (ebit) in line with the previous year, and level sales. The NZX and ASX-listed jewellery company expects sales to total A$641.6m and anticipates a comparable ebit between $14 million and $16m for FY25, compared with $15.9m in FY24.
Across the year, total sales and same store sales were both flat, but same store sales improved 2.4% in the second half.
The company closed 14 stores and opened two new stores, while two locations were rebranded into stores for subsidiary brand, Bevilles.
Full year sales in the Australian market (including the Michael Hill brand and Bevilles) totalled A$363m, up 1% from A$359.7m year on year, while New Zealand sales for the year slipped 5% to $109m from $114.8m. Canadian sales improved 3.7% to CA$161.8m from $156m year on year.
Michael Hill will report its full annual results on August 22.
Friday August 1
Warehouse Group names Journee as new chair
The Warehouse Group has named John Journee as its next chair. Journee will take over the position from Dame Joan Withers on November 28 when the NXZ-listed company holds its annual meeting.He had been a director of the company since 2013 and, after the departure of CEO Nick Grayston in May last year, stepped into the CEO position while a permanent replacement was found. In May, Warehouse CFO Mark Stirton was appointed to the top job and took over from Journee today. Journee will resume his non-independent director position until the AGM, after which he will assume the chair. He has more than 30 years of retail experience including 15 years with the Warehouse Group, and was previously CEO of Noel Leeming.
Rules for biking and bungy jumping should be different: minister
There's a big difference in the level of risk with white water rafting and bungy jumping versus riding a bike on a cycle trail, according to Workplace Relations and Safety Minister Brooke van Velden. That's why she wants to amend the definition of adventure activities under current regulations, and is consulting on the change as part of Government's wider health and safety reform. The minister has also opened consultation on amusement device regulations so that only transportable high-risk amusement devices such as large Ferris wheels - which are frequently dismantled and moved - will require permits. She will also seek approval to clarify the obligations for volunteer organisations in the Health and Safety Reform Bill, to be introduced later this year. The changes are expected to kick-in from mid-2026.
Consumer inflation expectations hit 5.1% in July
Consumers are more pessimistic about the economy and have heightened risk about the inflation outlook – driven by higher food prices.
The ANZ-Roy Morgan Consumer Confidence Index fell four points to 94.7 in July. Inflation expectations rose to 5.1%, the highest since April 2023.
A net 11% of respondents expect to be better off this time next year, while a net 8% think it’s a bad time to buy a major household item.
Perceptions about the economic outlook fell three points to -16%.
ANZ chief economist Sharon Zollner said activity indicators had slipped, and it was possible that both GDP and employment went backwards in the June quarter.
“The RBNZ is forward looking, and we expect that easing inflation pressures will allow them to cut the official cash rate more than they currently anticipate in order to shore up the recovery.”
On Wednesday, ANZ’s business confidence survey improved, while inflation expectations eased slightly in July.
Vector sells HRV for $2.5m
NZX-listed electricity distributor Vector has sold its HRV business to a consortium of franchisees and management for $2.5 million.
HRV provides ventilation, heat pumps/air conditioners, water filtration and home electric vehicle charging services.
Vector bought E-Co Products Group, which trades as HRV, in March 2017. In 2019 Vector wrote off $46.6m in goodwill and intangible assets associated with the purchase.
In a statement to the NZX on Friday, Vector said HRV had “struggled to achieve its performance targets and needs a significant turnaround.
“We believe this is a positive outcome for HRV and Vector as we focus on our core business. We would like to thank HRV staff and management for their commitment and hard work for HRV customers.”
Home consents track up for first time in two years
Statistics NZ said there were 33,979 new homes consented for the 12 months to June 2025, up 1% on the prior year. In the first sign of annual growth in two years, statistical production lead Michelle Feyen said there'd been a lift of 6.3% in stand-alone house consents, which climbed to 15,858 for the period.
Sign-offs for multi-unit homes – including townhouses, apartments, and retirement village units – by contrast, dipped 3.2% to 18,121 for the year. Auckland accounted for 14,295 new home consents, up 3.2% overall, while Otago topped the list for the biggest jump, with the 2637 consents up 48% on the prior year.
Westpac senior economist Satish Ranchhod said while the numbers reflect a "stabilising" of construction activity, there was no indication of a turn-around just yet. Ranchhod said while house sales had been lifting, house price growth was still limited, while both developers and occupiers remained hesitant to bring new projects to market.
Christchurch Casino agrees to $5m AML compliance settlement
Christchurch Casino has reached agreement with the Department of Internal Affairs for alleged breaches of its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, agreeing with the recommended penalty of $5.06 million. The casino, owned by Queenstown based Skyline Enterprises, was found to have breached a number of compliance obligations under the AML/CFT following a DIA investigation between May 2023 and September 2024. Specifically DIA found that the casino had failed to establish or maintain a compliant programme between December 2018 and December 2023. DIA and Christchurch Casino have now recommended to the High Court that the matter now proceed to a penalty hearing for the court to determine the appropriate penalty. The casino, however, is not alleged to have been directly involved in money laundering or the financing of terrorism, the DIA said.
