In case you missed it: News bites for the week.
Karen Chang.
A former charitable trust employee who stole more than $1 million has been sentenced to three and half years imprisonment after a Serious Fraud Office (SFO) prosecution.
Iesha Warren pleaded guilty in March 2025 to one representative charge of obtaining by deception and one charge of failing to appear.
Warren misappropriated funds from Te Roopu Awhina Ki Porirua Trust, which worked with whānau across Porirua to offer social services, including care and protection programmes for children.
During two years at the trust, Warren directed more than $1m into bank accounts she controlled using multiple methods, including substituting her bank account in place of genuine suppliers’ bank accounts, transferring funds directly from the trust to bank accounts she controlled, and using trust debit cards for personal use, mostly for online gambling.
“This case is a reminder that trust, while important in the workplace, is not a substitute for robust internal controls," said SFO director Karen Chang.
Inflation has nudged upwards because of higher council rates, according to Statistics NZ data today.
Annual CPI inflation rose to 2.7% in the year ended June, up from 2.5% in the year ended March. The increase is slightly below economist expectations, but above the RBNZ’s May Monetary Policy Statement.
Stats NZ said the biggest factor to the increase was local rates, which increased just over 12%. Petrol prices fell 8% over the period, which partly offset the increase in rates.
On a quarterly basis, consumer prices rose 0.5% compared with the March quarter.
Economists broadly expect the RBNZ to cut the official cash rate in August after the pause earlier this month at 3.25%.
Sounds Air.
Sounds Air will cease flying between Blenheim, Christchurch, and Wanaka from September 28, focusing instead on routes between Wellington and Blenheim, Nelson, and Picton, as well as between Paraparaumu and Blenheim and Nelson.
The airline’s managing director Andrew Crawford said he was "devastated" to be "forced" into the move after five years of "fighting for a solution" to "an escalating cost and supply chain structure", which has "threatened the viability of all regional airlines and the routes that they serve".
A 145% increase in the passenger service levy by the Civil Aviation Authority "is just one example of the endless additional costs being imposed on aviation businesses and their passengers," he noted.
Crawford said it was ironic that passenger demand had "never been stronger", but that the market would dry up if cost increases were passed on.
Sounds Air will sell its five Pilatus PC12 aircraft and expand its Cessna Caravan fleet given the shorter Cook Strait journeys.
The Commerce Commission has found no evidence of cartel behaviour by the country’s biggest banks’ involvement with the Net-Zero Banking Alliance.
The regulator said it found no evidence to support a complaint from Federated Farmers alleging potentially anti-competitive, coordinated, cartel-like behaviour. The complaint also raised concerns about access to capital and higher borrowing costs.
The Commerce Commission said it would be taking no further action after its investigation.
ANZ, ASB, BNZ, Rabobank, and Westpac hold about 97% of New Zealand’s rural lending.
Waikato University.
The coalition Government has approved a new medical school be established at Waikato University.
Health Minister Simeon Brown said the Cabinet had approved the business case for the medical school, which would have a strong focus on primary care and rural health. “With $82.85 million in government funding and over $150m from the university, supported by philanthropic investment, this is a substantial commitment to education and regional development in the Waikato,” Brown said.
He said the decision allowed the university to begin construction on the new teaching facilities later this year and start planning for clinical placements.
Today’s announcement would add another 120 doctor training places each year, starting in 2028.
The amount invested by angels fell 45% on the previous quarter to a total $1.49m, according to the latest NZ Angel Market Report.
Compiled by exchange Catalist, the report for the quarter ended June 30 showed activity remained solid, with 38 deals across 29 companies, up more than 50% on the previous quarter.
However, there were smaller individual investment sizes, with the average investment dropping to $8239, well below the 12-month average of $13,346. Some 23 deals also closed with three or fewer investors participating. The number of deals involving convertible notes leapt up this quarter to over 25%, suggesting founders are wary of setting a valuation in the current climate.
Deals are said to be taking longer to progress, with continuing international uncertainty and a slower-than-expected economic recovery.
There was a slight increase in new deals versus follow-on investment compared with previous quarters – 49.6% to 50.4% respectively.
Carpet maker Bremworth is inviting interested parties to submit proposals to purchase the business. The NZX-listed company began a strategic review of its ownership structure in February, after receiving a hefty insurance settlement related to Cyclone Gabrielle and approaches from potential buyers. In a brief statement to the stock exchange on Monday, the company told the market it was continuing to engage with “various parties” who had signed confidentiality agreements. “Bremworth’s shareholders are reminded that there is no certainty that the strategic review will result in any transaction,” the company said. While the strategic review continues, Bremworth’s new management team is planning to launch a new range of selected synthetic carpets that will be manufactured in-house. The company is also investing in its Napier plant to enable the production of wool-based yarns, to improve quality. Bremworth’s board was rolled earlier this year by a group of concerned shareholders.
The Government has passed legislation which it says will ensure ground-based space infrastructure will have appropriate oversight and safeguards. The Outer Space High Altitude Activities Amendment Bill has passed through all its stages under urgency in Parliament today. Space Minister Judith Collins said the legislation would apply to infrastructure such as satellite tracking stations and telemetry systems once it came into effect on July 29. “While all in-scope operators will be treated as having a transitional authorisation from the end of July, as the Minister for Space, I will be able to vary, suspend or revoke those authorisations on national security grounds,” Collins said. The Ministry of Business, Innovation and Employment will be the administrator and will be able to take action to stop malicious activity. She said regulations would be developed later this year setting out further requirements for ground-based space infrastructure authorisation.
The Government is going to stop people from enrolling and voting on election day. Instead, its Electoral Amendment Bill will require people to enrol before advanced voting begins, 13 days before the date of the general election. Justice Minister Paul Goldsmith said same-day enrolment put too much pressure on the electoral system. While the final vote used to take two weeks to complete, at the last election it took three. Goldsmith said the Electoral Commission would have plenty of time to run an education campaign to ensure people were aware of the early enrolment deadline. “I have every confidence New Zealand can manage within the 13-day deadline,” he said. The Bill will also reinstate the ban on prisoners voting, allow 12 days' advance voting at each election, and create a new offence that prohibits the provision of free food, drink or entertainment within 100 metres of a voting place while voting is taking place.
KMD Brands has appointed a new chief financial officer.
The NZX and ASX-listed outdoor retailer reported Carla Webb-Sear will take up the position in August, taking over from interim CFO Ben Washington. Webb-Sear joins KMD Brands from Qantas where she was chief financial and strategy officer of the loyalty division, and will relocate from Sydney to Melbourne for the position. Webb-Sear has more than two decades of financial leadership experience across consumer, media, and technology sectors, with deep expertise in driving transformative outcomes in complex, matrixed global organisations including ViacomCBS, Enero Group, and Fairfax. KMD chief executive and managing director Brent Scrimshaw said: “Carla’s expertise and proven track record of unlocking value, agile transformation, and disciplined financial management will be invaluable as we navigate a dynamic global market. I look forward to partnering with Carla to deliver long-term value for shareholders.”
Independent Timber Merchants (ITM) has posted a 3.5% dip in revenue to $62.2 million for the year to March, handing over $46m in rebates to its owner shareholders - down $3m on the prior year. Receipts from customers across the building supplier's 90 stores and 26 frame and truss plants came in at $697.1m for the 12 months, down on the $725.4m for the prior comparable period on the back of the slowdown in the residential build market. It listed its IT expenses at $2.8m for the year, about the same level as 2024, but a far cry from the $103m listed as part of 'transformation' costs recorded by its competitor, Mitre 10 group, over the past two years, as it moved to an SAP IT system.
Performance fee income for fund manager Milford Funds has come down with a bump after last year’s record, although management fees made up some of the difference. Milford, manager of a range of investment funds including more than $10 billion of KiwiSaver money, reported fee revenue for the year to March of $232.3 million, down from $269.3m a year earlier. The figure included just $1.1m of performance fee income, down from $83.5m the previous year. Milford Funds is a subsidiary of Milford Asset Management and paid fees to its parent company of $193.8m. After costs, the subsidiary reported a net profit of $16.9m, down from $19.5m in 2024. The company paid a dividend to its parent of $17.5m.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
