Sunday March 1
KiwiSaver changes to benefit rural communities
The Government is making further changes to KiwiSaver rules to enable farm workers and others to use their KiwiSaver accounts to buy their first homes. Under current rules farm workers, rural teachers, country cops and defence personnel have been locked out of making a first home withdrawal because they live in employer-provided housing. Finance Minister Nicola Willis said that was not fair and a technical change was being made to the KiwiSaver Act to enable workers in service tenancies to use KiwiSaver for a first home purchase without having to live in it. Commerce Minister Scott Simpson said the law would also be changed to allow people to use their KiwiSaver accounts when a farm was purchased through a company or trust. “This reflects the commercial reality of modern farm ownership,” Simpson said. He said these were targeted, practical changes which protected KiwiSaver’s core purpose, while making it fairer for rural communities.
Monday March 2
Synlait gets debt relief pending asset sale
Milk processor Synlait has agreed revised terms with its lenders ahead of a $307 million boost from the expected sale of its North Island assets on April 1.
In a statement to the NZX, Synlait said the amendments included a delay to a $50m ‘step-down’ in its revolving credit facility, which was due to occur on February 28.
The step-down will now happen on the earlier of April 30 or three business days after the settlement of its asset sale.
A minimum earnings threshold for the half year to January 31 has been waived, as has the interest cover ratio for the same date. Other amendments include a suspension of the net senior leverage ratio for the year to July and an extension of a credit facility.
Synlait is due to announce its half-year results on March 23. On February 4, the company said it expected to report a net loss of $77m to $82m.
Teak Construction moves into liquidation, 20 jobs at risk
Teak’s Quattro appartments.
Teak Construction moved into liquidation today after shareholders appointed PKF Corporate Recovery liquidators Steve Lawrence and Chris McCullagh.
Sister firms Teak Builders, TDL Ltd, TGL 19, and TCL Management were also listed as being in liquidation.
The company, which dates back to 1992, has counted more than 550 residential and commercial projects on its books. It's understood to have about 20 employees.
Lawrence said the liquidators had today visited the company's four active Auckland sites and one in Hastings. Client payments have been cited as a primary issue.
The directors and shareholders of the company are listed as Wayne Birchall, Sam White, and Stuart Charlton.
The company's recent project base has included the 204-unit Victopia Apartments in Auckland, a $30m ‘leaky building’ remediation on the corner of Victoria and Nelson streets. It was also the initial builder on the failed $85m Beachcroft Residences project in Onehunga, leaving that project in April 2022.
CentrePort lands $8.7m net profit, no further detail given
Wellington's CentrePort says it is "broadly on target" to meet its end-of-year forecast, after posting underlying profit of $8.7 million for the half year to December. CentrePort chair Lachie Johnstone said this was about $500,000 ahead of last year, while net revenue was also "marginally" ahead of budget. That, he said, was driven by increased trade volumes for containers, logs and bulk fuel although no actual figures were provided. In a thin report, Johnstone said while it was a positive first half, there was no room for complacency if it wanted to continue the growth trajectory "ahead of the plan we have set." Following the start of site preparation work in late 2025, the port said it was "rapidly progressing design and material procurement" and expected to begin major construction on the marine infrastructure needed for the Cook Strait ferry replacement programme. The port is 76.9% held by the Wellington Regional Council. The Horizons Regional Council holds the remainder.
Foley wines profit doubles in challenging period
Foley Wines vineyard.
Foley Wines reported an after-tax profit up 112% to $2.3m for the six months ended December 31.
Despite the rise, profitability had been impacted by a "significant investment" in advertising campaigns for key customers, as a way to combat the discounting of New Zealand wines, protect distribution, and maintain stock balance.
However, chief executive Mike Higgins said the investment couldn't be quantified until the end of the fiscal year.
Higgins said the case-by-case investment into promotional campaigns wasn't "detrimental" to profit, "because if you didn't do it, you wouldn't make the sales."
Revenue from bottled sales increased 0.5% to about $32.5m, while case sales declined 2% to 290,000 cases.
Higgins described the half as solid but acknowledged the challenging environment. "We're fighting really hard and working really close with distribution partners, domestically and globally, just to make sure we stay in balance ... We only produce what we know we can sell."
Tuesday March 3
Higgins roading contracts lift Fletcher sale proceeds
Fletcher Building is set for a lift in the sale price of its Construction division after the Higgins Contractors subsidiary won 10-year road maintenance contracts for East Waikato, Bay of Plenty, and Hawke’s Bay.
The sale for $315.6 million to Vinci Construction was announced in January, with a potential increase of up to $18.5m from contracts under negotiation at the time.
In a statement to the NZX, Fletcher said the companies were working on the exact amount of price adjustment and would announce the outcome separately.
The Higgins contracts with NZ Transport Agency start in April.
Fletcher managing director Andrew Reding said the contracts were a significant milestone for Higgins. “These contracts provide a strong platform for the business over the next 10 years,” he said.
Fletcher bought Higgins for $315m in July 2016.
Synlait executive resigns
Milk processor Synlait has announced the resignation of its director of on-farm excellence, business sustainability, and corporate affairs Charles Fergusson.
The company said Fergusson was leaving on May 31 to take up a new opportunity.
“Charles has been a valuable part of the executive that guided Synlait through multiple challenges,” said chief executive Richard Wyeth.
“He led last year’s successful project to secure the company’s milk supply and has been closely connected to our farmer suppliers since he joined the business in 2023.”
He also served as Synlait’s acting chief financial officer from April 2024 until the appointment of Andy Liu in August that year.
Fergusson joined Synlait in February 2023 from Fonterra, where he was latterly its regional head of Farm Source for Canterbury, Tasman, and Marlborough.
Building consents up 1.9% in January
New Zealand building consents increased in January, with the sector expecting pent-up demand to result in more activity this year.
Statistics NZ data today showed the seasonally adjusted number of new dwellings consented rose 1.9% in January, after falling 4.5% in December.
Overall, there were 2528 new properties consented at the start of the year, with 1190 stand-alone houses; 1004 townhouses, flats, and units; 189 retirement village units; and 145 apartments.
On an annual basis, the number of new dwellings consented was 36,944 in the year ended January, up 9.3% from the year before.
NZ Certified Builders Association chief executive Malcolm Fleming told NBR there’s enough pent-up demand in the residential construction sector to keep many builders going this year. “The ‘noise’ around the election won’t be as influential as it possibly has been in the past.”
Andrew Bayly will not stand in Port Waikato seat this election
Andrew Bayly.
National MP Andrew Bayly will not contest his Port Waikato seat in this year’s election but has not ruled out standing on the party list.
Bayly said he and his wife intend to move to the South Island later this year and it was important people in the Port Waikato electorate were represented by someone who lived there and maintained a strong day-to-day connection with the community.
Bayly, who resigned as a minister early last year after placing his hand on a staff member’s upper arm during an animated discussion, said he was considering continuing to serve as an MP after the election by going on National’s party list.
He said his move to the South Island would take several months and he would continue to represent Port Waikato until the election.
Bayly was confident the National Party would select a strong candidate to replace him in the seat.
CEO Paul Johnston sells shares in Tower Insurance
Tower chief executive Paul Johnston has sold a large chunk of shares in the listed insurance company.
Filings to NZX today showed Johnston sold 87,872 shares for $162,154.70. That has taken his holding from 222,858 to 134,986 shares.
“A portion of shares was sold to meet PAYE obligations associated with the vesting of shares under Tower’s long-term incentive scheme,” a spokesperson told NBR.
In June last year, Johnston was appointed CEO on a permanent basis. He had earlier replaced Blair Turnbull in February on an interim basis, after the latter's resignation.
Last month, Naomi Ballantyne replaced Michael Stiassny as chair of Tower’s board, after he retired as a director following the annual shareholder meeting.
Bank gives green light for Savor's dividend
Savor's banking partner ANZ has given approval for the listed hospitality group to pay a dividend.
ANZ stress tested Savor's target leverage forecast and agreed it would be reached by the end of the 2026 calendar year.
When the group’s gross leverage hits the expected ratio of 1.5x, the bank has agreed Savor can pay a dividend of 2 cents per share in January next year.
Revenue for the year ended March 31 2026 is expected to range between $55 million and $56m, while operating earnings for the same period are expected to range between $7m and $8m.
The group has forecasted operating earnings in the 2027 fiscal year to range between $9m and $10m.
Continued cost out initiatives and debt repayments has led to an improved cash flow throughout the year, and Savor does not expect to use its overdraft facilities. It would consider reducing its facility in future.
Savor continued to seek growth opportunities where they presented high value, low capital cost returns.
Aramex, GoSweetSpot fined $1.2m over courier cartel conduct
Courier companies Aramex and GoSweetSpot have been ordered by the High Court to pay a combined $1.225 million after a Commerce Commission investigation into cartel conduct. The companies agreed settlements in October, as previously reported.
Aramex was fined $700,000 and GoSweetSpot $525,000 after each admitted to contractual arrangements that allocated customers and fixed prices with other competitors in the courier services market.
ComCom said while the companies did not enter the agreements with each other, the behaviour undermined competition in a sector critical to New Zealand’s economy.
Nine additional courier businesses will receive warnings for conduct the Commission believes likely breached the Commerce Act.
Commission chair John Small said the penalties send a clear signal that behind-the-scenes agreements that restrict competition will not be tolerated.
Thursday March 5
Government books still in better shape than forecast
After seven months of the financial year, the Government’s books continue to be in better shape than forecast in the December half-year economic and fiscal update. The operating balance before gains and losses and excluding ACC recorded a deficit of $6 billion for the seven months to the end of January, but that was $1.9b lower than expected. The overall operating balance recorded a surplus of $4b, compared with a forecast $500 million deficit. Net core Crown debt was $1.1b lower than forecast at $184.3b, and gross debt $3.6b lower at $220.6b. It helped boost the Government’s net worth, which was $183.5b, $4.6b higher than the Treasury forecast in December.
Country Road weighs on South African parent company
The Australasian retail fashion operation owned by South African-listed Woolworths Holdings continues to underperform in the company’s portfolio, with trading conditions softening over the Christmas period. Woolworths owns the Country Road Group, which includes the New Zealand operations of Country Road, Witchery, Politix and Mimco, and while profits improved 4.2% to A$14.8m ($17.6m) for the six months to December, expenses rose and margins were still weak. The Country Road Group, which also includes stores in South Africa, comprises just over 15% of the company’s revenues. Chief executive Roy Bagattini said the Australasian market was characterised by heavy discounting and the fashion business had “a lot of inventory, particularly in discretionary categories.” Woolworths Holdings announced an unaudited adjusted operating profit of R1.8b, ($185.3m) an improvement of 3.5%
Former charitable trust CEO pleads not guilty to fraud charges
A former charitable trust chief executive has pleaded not guilty to multiple charges related to just over $2.1 million of alleged fraud.
Matekino Marshall is accused of misappropriating the money from two trusts and a third entity.
While CEO of the Ngāti Tamaoho Trust, Marshall misappropriated $547,408, the Serious Fraud Office alleged. He faces three charges of obtaining by deception, one charge of accessing a computer system for a dishonest purpose, and four charges of dishonestly using a document.
As chair of the Port Waikato Community Health and Support Services Trust, Marshall accessed a computer system for a dishonest purpose and misappropriated $1,454,895, the SFO also alleged.
Marshall also faces charges in relation to the misappropriation of $120,000 from another entity, which was subsequently repaid. He is also charged with using a forged document to maintain his VIP Black Card membership at SkyCity Casino.
His trial is scheduled for up to six weeks in July next year.
