In case you missed it: News bites for the week.
Asantha Wijeyeratne.
SaaS fintech PaySauce has received a total of $5 million after a just-completed share purchase plan raised $1.5m, alongside $3.5m in a placement in December.
The listed company said that helps to strengthen its balance sheet as it eyes growth opportunities in New Zealand, Australia, and other countries – in addition to responding to acquisition opportunities or market volatility.
Chief executive Asantha Wijeyeratne said the company was delighted with the strong support from existing and new investors. “We take it as a strong endorsement of our plans to continue our expansion in New Zealand and begin to offer our solutions to the 700,000 micro-businesses in Australia – a market that is largely under-served by existing payroll providers.”
Wijeyeratne said the company was now focused on the commercial launch of the PaySauce solution in Australia at the Australian Dairy Conference in Melbourne next month.
Michael Hill International is expected to report comparable earnings before interest and tax (ebit) of between A$27 million ($31.3m) and A$30m for the first half of its 2026 fiscal year.
The final figure could be up between 12% and 24% on last year's comparable ebit of A$24.1m.
Through a trading update this morning, the dual-listed jewellery brand reported sales figures ahead of publishing full interim results next month.
Group sales for the 26 weeks through to December 28, 2025 totalled A$370.3m, up 3.1% year on year from A $359.1m on a same store basis.
Meanwhile, gross margin was expected to be flat around 61.3%.
Michael Hill chief executive Jonathan Waecker said the group delivered "profitable quarter-on-quarter growth", driven by significant performance improvements in the half's final 10 weeks.
He said that resulted in a "materially improved trading trajectory" relative to the early trading update presented at the AGM.
Interim results will be published on February 27.
Cooks Coffee Company has expanded into the United Arab Emirates through a master franchise agreement with AT&T Group. The dual-listed food and beverage retailer behind the Esquires cafe chain said the agreement was for 10 years with a right of renewal. During the first decade, a minimum of 50 Esquires Coffee outlets were expected to be opened in the UAE. AT&T Group (UAE) Ltd is owned by two UK-based families who already operate multiple stores in the Southeast of England. Cooks Coffee Company chair Keith Jackson said the agreement marked another important milestone in the international development of the Esquires coffee brand. “The UAE represents an attractive, burgeoning market, and we look forward to rapidly building the brand in the region over the coming years.”
Listed automotive company Colonial Motor Company has benefited from a stronger summer trading period and raised its profit outlook. In December, it originally forecast that its pre-tax profit in the six months ended December would be at least 20% ahead of the same period in 2024. But after a stronger-than-expected December, Colonial today said pre-tax profit would be at least 30% higher. In February last year, Colonial reported a weaker half-year profit result after tax of $6.9 million, down nearly 24% on the previous period, amid subdued economic trading conditions.
Business confidence has eased back from a 30-year high, while inflation expectations have risen, amid increasing talk of interest rate hikes later this year.
ANZ’s latest monthly business survey fell 10 points to 64 in January, when compared with December. The bank’s economics team noted the overall confidence level was still at a strong level. Expected ‘own activity’ fell, while inflation expectations rose, with more firms expecting to raise prices over the coming months. Wage pressures were also building.
Chief economist Sharon Zollner has put bets on a Christmas rate hike. “We are forecasting the first OCR hike to come in December this year, but if these pricing intentions manifest in hard data, it’ll come earlier than that.”
The RBNZ will review the cash rate either side of the November 7 election, on October 28 and then again on December 9.
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