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Monday December 15
PGG Wrightson upgrades profit outlook
Farming supplies and livestock trading company PGG Wrightson has increased its profit guidance for the year to June 2026, citing ongoing strength in the agriculture sector.
In a statement to the NZX, PGG Wrightson chair John Nichol said operating earnings before interest, tax, depreciation and amortisation were now expected to be about $64 million.
Previous guidance given at the annual meeting in October anticipated earnings “above $60m”.
On Monday the company said first half trading had been “slightly above expectations”.
“While dairy commodity prices have softened in recent weeks, most farmers will head into the Christmas period with confidence, supported by strong farmgate returns across beef and sheep meat,” it said.
“Beef schedules are at record highs, lamb prices remain elevated, and wool pricing has also shown positive signs with improved export values. This positivity is flowing through into on farm and orchard investment decisions."
Fletcher joined as defendant in leaky pipes claim
Fletcher Building says it has been formally joined as a defendant in a claim brought by Western Australian building group BGC over alleged defects in pipes made by its subsidiary Iplex Australia.
BGC initially filed proceedings in August 2024 against Iplex Australia.
The dispute follows widespread problems in WA with bursting Pro-fit pipes made by Iplex. BGC has alleged the problems relate to a change in resin used by Iplex, while Iplex has blamed faulty installation.
In a statement to the NZX on Monday, Fletcher said it would “defend the attempted extension of responsibility to Fletcher Building”.
Iplex Australia is also defending similar claims from a class action.
In November 2024, Fletcher agreed no-fault remediation of plumbing defects under an industry response deal with the WA Government. Iplex has provisioned $170m for the expected costs of the scheme. BGC is not part of the industry response deal.
Air NZ says E tū union withdraws December 18 strike notice
Air New Zealand says its negotiations with the E tū union representing a portion of its cabin crew staff have progressed to a point that the union has withdrawn its strike notice for December 18.
"Our negotiating teams have been working hard to reach an outcome that recognises the vital role our cabin crew play while supporting the long-term health of the airline," the airline's chief people officer Nikki Dines said in a statement.
"We're grateful for the patience and understanding customers have shown as we've worked through the bargaining process, and we appreciate the constructive engagement from the unions and our team."
The company had previously said the December 18 strike involved “around half of the crew who work on the narrowbody fleet”.
On December 4, it said it had reached “agreements in principle” with two unions that had issued strike notices for December 8 on behalf of its regional turboprop and widebody cabin crew, meaning those strike notices were withdrawn.
Promisia Healthcare simplifies debt funding arrangements
Small-cap aged-care operator Promisia Healthcare has consolidated its debt funding arrangements into a single facility, which it says will simplify the company’s capital structure.
It told the market this morning it has replaced the multiple debt facilities it had at each of its sites with a single $31.1m facility with BNZ Bank.
“This simplification provides more efficient liquidity control, improved cashflow forecasting, and a treasury framework appropriate for a multi-site aged care operator,” it said.
The company now plans to enter into a new interest rate hedging programme, which would cover 80% of its drawn debt over a two to five-year period.
Once the hedging is in place, Promisia said it could reduce its weighted average interest rate from 6.8% under the existing structure to 5.7%, which is expected to deliver cost savings of about $350,000.
PaySauce launches $4m capital raise to fund Aussie expansion
Asantha Wijeyeratne.
PaySauce has announced a $4 million capital raising to help fund its expansion into the Australian market, as its founder and CEO Asantha Wijeyeratne moves to Melbourne to drive business across the Tasman.
The raise will comprise of a placement of approximately $3m to institutional and other investors and a $1m share purchase plan (SPP) available to investors residing in New Zealand.
The offer will be undertaken at a fixed price of $0.26 per share, representing a 7.1% discount to the closing share price on December 12, of $0.28 per share.
PaySauce expects to advise the market of the capital raised under the placement on December 17, while the SPP will be open from December 17 to January 23.
Wijeyeratne said the capital raise would help push its payroll solution for micro-businesses into the Australian market, where there are about 700,000 microbusinesses that remain "largely underserved".
Service sector contraction overshadows economic recovery
New Zealand’s services sector is lagging other key indicators, which suggests a patchy economic recovery.
The BNZ-BusinessNZ Performance of Services Index fell 1.5 points to 46.9 in November, compared with the month before. That marked the lowest level of activity since May.
A reading below 50 indicated the sector was in contraction and it overshadowed improving manufacturing and retail sales data released on Friday.
All five service sector sub-index values were in contraction, with activity and sales at 45.8, while new orders and business at 49.3 still hovered below the ‘no change’ mark.
Service sector businesses acknowledged low consumer confidence, high living costs, inflation, interest rates, and reduced spending behaviour.
Seeka lifts guidance again
Higher returns from kiwifruit sales and good operational performance has led Seeka to increase guidance.
The NZX-listed horticulture and post-harvest company expected annual profit before tax guidance to total between $44 million and $48m, up from its previous estimate of between $39m and $43m.
That previous estimate was forecasted in September, after Seeka lifted its guidance from between $35m and $39m.
Seeka said the new forecasted earnings would be a record for the company.
A net profit before tax of $29.7m was recorded in its 2024 financial year.
Seeka is expected to report full year earnings in late January.
DGL appoints BDO its new auditor
ASX-listed chemicals and logistics company DGL has appointed BDO its new auditor, effective December 15.
The ASX suspended trading in DGL shares in October after a delay in the company lodging audited financial statements for the year to June 30. DGL has since disclosed it discovered an internal fraud it did not tell its auditor about, while keeping the fraudster employed and, at last month's annual general meeting, 78.18% of shareholders voted against DGL’s remuneration report.
BDO will replace PKF Melbourne Audit and Assurance, who has resigned following the consent of the Australian Securities and Investment Commission.
BDO will conduct a full audit of DGL's half-year results to December 31, 2025, rather than a review, and ASX has confirmed trading in DGL shares will resume if that report does not contain any modifications of a pervasive nature.
"DGL currently anticipates this will occur by the end of February 2026 or in March 2026," the company said.
Tuesday December 16
Fletcher appoints NZ-based deputy for Australia-based chair
James Miller.
Fletcher Building has appointed James Miller to the new role of deputy chair, with effect from Monday. The company said it was important to have a New Zealand-based deputy chair to support chair Peter Crowley, who lives in Australia.
“Establishing a New Zealand-based deputy chair role is intended to further strengthen the board’s connection to our New Zealand operations, and to provide additional on-the-ground engagement, including with local stakeholders,” said Crowley.
Miller joined the board in June and was formally elected at the annual meeting in October.
Fletcher said Miller had also been appointed to the board’s People and Remuneration Committee, alongside committee chair Jacqui Coombes and Tony Dragicevich.
Miller, a former chair of NZX, currently serves as chair of Channel Infrastructure and director of Ryman Healthcare and Vista Group.
Meridian reports high lake levels, warmest November on record
Operating data published by electricity generator Meridian has reported the warmest November on record and the highest total hydro inflows since 1988/89.
Meridian said rainfall was above average for the month and national hydro storage was 153% of historical average, as of December 8.
Hydro storage in the company’s Waitaki system was 172% of historical average.
Meridian said the weighted average price it received for its November generation was $57.90 a MWh, almost double the $29.90/MWh it received in the same month a year earlier.
Latest figures from Contact Energy reported hydro storage on its Clutha scheme at 125% of average, as of December 11. The company’s hydro generation for November was 588GWh, up from 391GWh in November 2024.
Contact said the average November temperature of 15.9⁰C was 2.2⁰C above the 1991 to 2020 November average.
Govt sets up new super ministry
The Coalition Government is setting up a mega ministry to combine the roles of the Ministry for the Environment, the Ministry of Housing and Urban Development, the Ministry of Transport and the local government functions of the Department of Internal Affairs. The new agency will be called the Ministry of Cities, Environment, Regions and Transport (MCERT). Housing and Transport Minister Chris Bishop said it would be at the heart of tackling some of New Zealand’s greatest economic and environmental challenges, including housing affordability, infrastructure and adaptation to climate change. Bishop said the Government had a clear agenda to drive growth and raise living standards. “We do not believe the current structures of government can deliver effectively on this strong mandate and change is required. The system is too fragmented and too uncoordinated."
Wednesday December 17
Winstone mill worth $34.5m, says Oregon Group
The mill assets of Central North Island wood processor Winstone Pulp, shut down by owner Oregon Group in September last year, were valued at $34.5 million in June, accounts show.
Oregon blamed high electricity prices and “other challenging factors” for the closure, which cost 230 workers their jobs.
Financial statements for the year to June, filed to the Companies Office this week, classify Winstone’s assets as held for sale, although no buyer had been found as of the signing date on December 10.
Oregon reported that Winstone had revenue of $33.8m for the three months it operated during the year. After expenses and a $51.6m impairment charge, the operation reported a loss of $70.2m for the year.
Oregon’s continuing operations, including forestry group Ernslaw One, reported a net profit of $10.2m for the year from revenue of $315.1m.
The result compared to a profit of $0.9m from revenue of $605.5m the previous year.
Consumers end 2025 feeling less downbeat
Consumer pessimism has softened at the end of 2025, as households feel more optimistic about the year ahead. The Westpac-McDermott Miller Consumer Confidence Index rose 5.6 points in the December quarter to 96.5. A reading below 100 indicates pessimism. While the reading was below its long-run average, the index reached its highest point this year. The proportion of people who thought now was a bad time to buy a big-ticket consumer item – traditionally the best indicator of household sentiment – fell to 3.5% from 10.6% in the prior quarter. Westpac senior economist Satish Ranchhod said falling retail interest rates had buoyed households as they headed into the new year. “Large numbers of borrowers have already rolled on to lower fixed mortgage rates, and that process will continue as we move into the new year.” Sentiment improved in most regions, with Aucklanders the most confident; however, it slipped in Waikato and Southland. This was attributed to easing dairy prices.
Zenno awarded AI-driven satellite software project in Germany
Zenno Astronautics has been awarded a contract by Germany’s Federal Agency for Breakthrough Innovation, known as Sprind, to use its Supertorquer magnetic propulsion technology to develop a new generation of autonomous satellite operation software.
The project, titled 'Autonomous Fuel-Free Agility in Space', focuses on creating artificial intelligence-assisted control algorithms and simulation environments that enable precise close-proximity satellite operations without chemical propulsion. Using Zenno’s compact superconducting magnets, spacecraft will be able to safely and efficiently perform close-proximity operations such as docking, servicing, and in-orbit assembly, all without fuel consumption. The project will run for nine months. The contract value has not been disclosed.
Zenno has also founded its European entity in the Space Area Munich and wants to grow the company and its strategic role there.
Thursday December 18
Fonterra cuts milk price forecast
Dairy co-op Fonterra on Thursday lopped 50c off its milk price forecast for the 2025/26 season, reducing the forecast range to $8.50-$9.50 a kg of milk solids.
Chief executive Miles Hurrell said strong milk flows in New Zealand, Europe and the US was putting downward pressure on
commodity prices.
“Combined with a rising New Zealand dollar since the last milk price update in November, we are required to further adjust the forecast range for the season and lower our midpoint,” he said.
However, the new mid-point of $9 a kg remained within its initial forecast range of $8-$11 at the start of the season.
LawVu acquires European firm ClauseBase, lifts valuation
Tauranga-based legal tech company LawVu has acquired European firm ClauseBase for an undisclosed sum.
ClauseBase provides intelligent contract review, drafting and automation and will be rebranded to LawVu Draft on LawVu’s platform for in-house legal teams.
LawVu has also raised US$6 million from existing investors Movac and Insight Partners, valuing the 10-year-old company at $400m. LawVu said it had achieved over 50% growth globally year-on-year, with the US and UK being the fast-growing markets. It now has 160 staff.
It has also announced the launch of LawVu Lens, an AI-powered contract analysis engine built directly into its platform.
Transpower sign off for $193m South Island grid upgrade
Transpower says it has received draft Commerce Commission approval for upgrades to its upper South Island electricity transmission network, at a cost of $193 million. The operator of the country's national energy grid, said the investment would allow areas north of the Mackenzie basin to access lower cost and reliable electricity produced by the major hydro generation schemes lying southwest of the island. Those hydro schemes include the Manapōuri power station in Fiordland, Amethyst Hydro near Hari Hari and the Waitaha Hydro project, south of Hokitika, being developed by Westpower and Poutini Ngāi Tahu. Transpower executive general manager grid development Matt Webb, said energy demand had risen consistently in the South Island in recent years, particularly during the summer months on the back of irrigation use. The capital expenditure includes $7m to identify and implement transmission alternatives such as demand response strategies, he said.
Friday December 19
Fruitful year for kiwifruit and apple exports
New Zealand’s November trade deficit narrowed as imports outpaced exports.
Statistics NZ data today showed goods exports rose $588 million to $7 billion, while goods imports rose $301m to $7.2b in November, compared with the same month last year. That resulted in a trade deficit of $163m.
On an annual basis, Stats NZ said fruit exports were valued at $6.1b for the year ended November. That was the second time that fruit exports reached the $6b mark. The result was driven by a rise in kiwifruit and apple exports.
Gold and green kiwifruit had a strong season between March to November. China drove demand for gold kiwifruit, while the EU was the leading destination for green kiwifruit.
China was also a key destination for New Zealand apples.
Macquarie Securities agrees to A$35m penalty for various failures
Macquarie Securities (MSAL) has admitted to misleading conduct after misreporting millions of short sales over several years because of repeated failures in its systems and processes.
Regulator Australian Securities and Investments Commission and MSAL will ask the New South Wales Supreme Court to impose a penalty of A$35 million ($40m) and to make other orders.
The penalty and orders are subject to consideration and approval by the Court.
MSAL admitted it failed to correctly report at least 73 million short sales between December 2009 and February 2024. It is estimated that MSAL misreported between 298 million and 1.5 billion short sales.
In addition to the misleading conduct, MSAL also admitted it failed to have appropriate supervisory policies and procedures, organisational and technical resources, and have adequate risk management systems.
