In case you missed it: News bites for the week.
Mark Robinson.
New Zealand Rugby chief executive Mark Robinson has announced his resignation at the end of 2025 after six years in the role.
Robinson became CEO in January 2020, and served on the NZ Rugby board for seven years prior to that. At that time he was also NZR's delegate to World Rugby, and helped lead the bid for New Zealand to host the 2021 Women’s Rugby World Cup.
He intends to relocate to Australia, where his wife is supporting their three children, who are all studying there.
In announcing his resignation, Robinson acknowledged challenging times and significant scrutiny during his tenure.
"The past six years have been a period of rapid change, or unprecedented challenges through the pandemic, and significant evolution across commercial, competitions and structures. I will reflect on that as I get closer to stepping away, but I firmly believe the foundations of our organisation are extremely strong and the game is well-placed for the future."
Tourism and Hospitality Minister Louise Upston has announced $13.5 million of extra funding for Tourism New Zealand to target Australia, the United States, and China over the next few years. The money is coming from the New Zealand International Visitor Conservation and Tourism Levy for the 2025/26 year. Upston said the marketing campaign was expected to attract an extra 72,000 international visitors. “We know how important marketing is to attract visitors, with around 14% of international holiday visitors directly influenced by Tourism New Zealand’s marketing activity.” She said this was the first investment in the Government’s tourism growth roadmap, which was aimed at doubling the value of international tourism by 2034.
Andy Borland.
Scales Corporation lifted forecasts for annual underlying net profit after tax attributable to shareholders to between $40m and $45m, up from between $37m and $42m. Scales said this increased guidance range implied underlying npat of between $55.5m and $61.5m. Its CFO clarified the difference between those two sets of figures was the share of earnings owed to minority interests (the share of its subsidiary Shelby's earnings relating to the Shelby minority owner). The guidance also implied annual underlying ebitda of $97m to $104m. Scales managing director Andy Borland said the group had a strong first half of the year. "Our horticulture division, in particular, has seen very good growing conditions, which have resulted in apple export volumes in excess of expectations." Mr Apple Whakatu coolstore had been sold and leased back to the business, with the $24m transaction expected to settle in August this year. Scales will hold its annual meeting this afternoon.
Legislation to stop large-scale farm-to-forestry conversions has been introduced to Parliament. Agriculture and Forestry Minister Todd McClay said the Climate Change (Emissions Trading Scheme – Forestry Conversions) Amendment Bill would stop better-quality land, classified LUC 1-5, from entering the ETS, and capping new ETS registrations on LUC 6 land. “For too long, productive sheep and beef farms have been replaced by pine trees in the race for carbon credits. That ends under this Government,” McClay said. He said that, as previously announced, the restrictions would retrospectively take effect from December 4 last year, with the bill expected to come into force in October. “This policy is pro-farming, pro-food production, pro-commercial forestry, and pro-rural New Zealand,” he said.
Pip Greenwood.
Westpac New Zealand board chair Pip Greenwood has been appointed to the Australian parent company’s board as an independent non-executive director. That is subject to regulatory approval and her addition should be completed by about August 1. Westpac chair Steven Gregg said Greenwood was one of New Zealand’s leading commercial lawyers before her non-executive career. “Pip’s appointment reflects the significant contribution WNZL makes to the Westpac Group and the importance of New Zealand as one of our core markets.” Her background includes more than 25 years in capital markets, mergers, acquisitions, telecommunications, and governance. During her 18 years with Russell McVeagh, she also served as board chair and interim chief executive.
Migrant arrivals to New Zealand continue to plunge compared to previous years, while departures are up on a year ago, according to Statistics NZ data. Provisional estimates for the year ended April showed a 27% drop in migrant arrivals to 145,000, compared with the previous year. Meanwhile, departures rose 15% to 123,700. Overall, New Zealand recorded an annual net migration gain of just 21,300. That’s well down on the previous year’s 90,900 gain. For context, Stats NZ said annual net migration peaked in the year ended October 2023, with a gain of 135,500. Meanwhile, tourism bounced higher in April, with 267,300 overseas visitor arrivals that month, up 42,200 from April last year. There were broad increases, including more holidaymakers from Australia, the UK, and the United States. Stats NZ noted tourist arrivals in April were still 87% of the 307,400 in April 2019, before the Covid-19 pandemic.
After repealing the previous Government’s direction to councils to identify significant natural areas, the Coalition is now backing the expansion of a voluntary nature credits market. Associate Environment Minister Andrew Hoggard said establishing a market that was durable, measurable and transparent would enable farmers, landowners, iwi and conservation groups to unlock new income streams for looking after nature on their land. Hoggard said international and domestic investors were looking for high-quality nature and carbon credits that met international standards. “New Zealand companies spent millions on carbon and nature credits, mainly offshore, last year. With the right framework, we can keep more of that investment at home.” He said privately funded pilot projects were already underway to test how nature credit markets could work in New Zealand. Details on the Government’s role and the design of the expanded market would be announced in the coming months.
A Kate Sylvester show at NZ Fashion Week.
The Giltrap Group has partnered with New Zealand Fashion Week to become its naming sponsor. NZFW signed a three-year partnership with Giltrap Group, and the investment will see NZFW return as an annual event. It's understood the production budget for the week-long event scheduled for late August exceeds $1.5 million, with projected revenue expected to total about the same. Giltrap Group chief executive Steve Kenchington said while the Giltrap Group was known for backing Kiwis in motorsport, from Formula One to Le Mans, "we’ve also long supported innovation and creativity across industries, including fashion ... We’re proud to help New Zealand’s fashion talent fly on the global stage." Giltrap Group's roots go back to 1966, when Sir Colin Giltrap co-founded Hamilton's luxury car dealership, Monaco Motors. The Giltrap family feature on NBR's Rich List, with a valuation of $400m.
NZX-listed age care provider Radius Care is forecasting a solid lift in its interim underlying earnings.
The company expects its underlying earnings before interest, tax, depreciation, and amortisation (ebitda) for the six months ending September to be between $12m and $15m, compared with $10.6m in the same period a year ago.
Radius also anticipates improved ebitda per bed and interest cost savings of more than $1m, which would boost its net profit.
The forecast lift is the result of occupancy levels hovering around the 94% range in the first 2.5 months of the current year, a more profitable occupancy mix, growth in accommodation supplements, and better resale gains for units.
Radius plans to provide more financial information about its first half at its annual meeting in August.
Milk processor Synlait has extended its $130 million loan from 62.3% shareholder Bright Dairy out to July 2026.
The one-year related party loan was approved by shareholders last July as the company sought emergency funding to repay bank debt.
Synlait said its current bank loan facilities were due for renewal by September 30 and refinancing work was under way.
As of January 31, Synlait had debt of $311.2m through working capital, revolving credit, and term loan facilities with its bank syndicate of ANZ, Bank of China, China Construction Bank, Rabobank, Kiwibank, Bank of Communications, and Industrial Bank of China.
Electricity distributor Vector has appointed experienced Australian infrastructure leader Vaughan Busby to its board. Busby is a current director of electricity distributor Energy Queensland, Netlogix Australia, and chair of infrastructure financier SFV. Vector chair Doug McKay said Busby was a “high-quality addition to our board, with industry-leading expertise and a track record of growth and innovation in the energy sector”. Busby will be classified as an independent director.
The coalition Government is changing the rules to make it easier to install solar panels on existing buildings and new homes. It is expanding the permitted voltage range for electricity networks so people with solar panels can send more power back to the grid; it is making it clear a building permit is not needed to install solar panels on an existing building; and it is requiring councils to process building permits within 10 days for new homes with solar panels, down from the standard 20 days. “New Zealand’s residential uptake of rooftop solar is lower than many other countries. This Government wants to change that so more Kiwis can generate, store, and send their electricity back to the market. This will allow them to save on their electricity bills and contribute to a more secure electricity system,” Energy Minister Simon Watts said.
New Zealand’s manufacturing sector fell back into contraction in May, dragged down by weaker orders and employment.
The BNZ-BusinessNZ Performance of Manufacturing Index fell to 47.5 last month, down from 53.3 in April.
A reading below 50 indicated the sector was in contraction rather than expansion. The sector had previously reported four consecutive months of expansion.
Four of the five main sub-indexes were in decline, with new orders down to 45.3, while employment fell to 45.7, which was the lowest level since July last year.
The proportion of negative comments increased to 64.5%, with manufacturers gloomy about falling demand, weak orders, and low business confidence.
BNZ senior economist Doug Steel said the PMI was another indicator that put pressure on the economic growth outlook.
Statistics NZ releases March-quarter GDP data next week and economists pencilled in 0.7% expansion, above the RBNZ’s 0.4% prediction in the May Monetary Policy Statement.
Otago gold prospector Santana Minerals has disclosed further delays in its application for fast-track resource consent.
In a statement to the NZX, Santana said although most of the consultant reports required for its application were completed, “a group of ecological reports are still awaiting consultant finalisation, holding up the final submission”.
The delay meant it would not be able to submit its application by June 30, as previously indicated, but it would work to ensure submission “at the earliest opportunity”.
The company had previously aimed to complete its submission by the end of April but said on April 7 the consultant reports would not be completed in time and it was working towards a June 30 submission date.
From August 18, 10 new trades occupations will be added to the Green List’s ‘work to residence pathway’. These are metal fabricator, metal machinist (first class), fitter (general), fitter and turner, fitter-welder, pressure welder, welder, panel beater, vehicle painter, and paving plant operator. Immigration Minister Erica Stanford said these changes would help bring in talent needed to keep the country moving. Small Business and Manufacturing Minister Chris Penk said while business confidence was recovering, some crucial roles were still difficult to fill. “We know these skill shortages must be addressed to support the sector’s recovery. Bringing in overseas talent will help lift productivity and ensure manufacturers across the country can seize opportunities to grow,” Penk said.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
