Monday May 18
Services sector firmly in contraction in April
Katherine Rich.
Negative sentiment persists within the services sector with smaller firms finding higher fuel prices difficult to manage.
The BNZ-BusinessNZ Performance of Services Index was at 48.9 in April, compared with 46.2 in March. A reading below 50 indicated the sector was in contraction.
More than two-thirds of the respondents commented on negative factors, especially higher fuel prices caused by the Iran war.
“With the continuing conflict affecting shipping through the Strait of Hormuz, it is difficult to foresee a quick return to expansion in the sector,” BusinessNZ chief executive Katherine Rich said.
The new order sub-index was in expansion at 51.2, while other indicators were weaker, especially supplier deliveries at 46.6.
On Friday, the BNZ-BusinessNZ Performance of Manufacturing Index showed the sector was only marginally in expansion territory in April at 50.5.
More investment in teaching the basics brilliantly
Education Minister Erica Stanford says next week’s Budget will include a $131 million investment in the next phase of 'Teaching the Basics Brilliantly'. Stanford said the changes had already started to deliver better outcomes in literacy and maths. These included maths hubs and centres of excellence, hands on maths resources and games for all year 0-8 classrooms, new curriculum-aligned writing books for years 4 and 5, new decodable books for years 3-10 and a 12-week programme of structured literacy for those who had fallen behind. “We are aspirational about what every child can achieve, no matter where they live or where they go to school. These investments begin to level the playing field, reducing costs for schools and backing evidence-led reforms,” Stanford said. She said the Government had promised to invest in these reforms year after year and next week’s Budget would deliver on that promise.
Tuesday May 19
Synlait appoints ex Sanford CFO as independent director
Katherine Turner.
Milk processor Synlait has appointed former Sanford chief financial officer Katherine Turner as an independent director.
The appointment restores Synlait’s board to the required complement of two independent directors after the departure of Paul McGilvary on Monday.
Synlait chair George Adams said Turner’s financial acumen and commercial experience made her an exceptional choice for the role.
“Her ability to drive operational performance alongside strategic transformation will be invaluable as we work to accelerate Synlait’s financial recovery,” he said.
Before joining Sanford as CFO in 2018, where she served for three years, Turner was a senior executive at Fonterra for nearly 12 years, latterly as commercial director for Fonterra Brands. At Synlait, Turner will also chair the audit and risk committee.
Electronic card spending falls across the board in April
Consumers put the brakes on spending in April as the high cost of living and war in Iran put pressure on households.
Statistics NZ data today showed retail spending using debit, credit, and charge cards fell 1.3% when compared with March. There were declines across the board, including on consumables, hospitality, durables, clothing, and fuel.
In actual terms, cardholders made 168 million transactions in April, with an average value of $55 per transaction. The total amount spent using electronic cards was $9.2 billion.
Yesterday, other data showed negative sentiment in the services sector with smaller firms finding higher fuel prices difficult to manage. Overall, the BNZ–BusinessNZ Performance of Services Index was at 48.9 in April, compared with 46.2 in March. A reading below 50 indicated the sector was in contraction.
Wairahi Investments invests $4.6m into AoFrio
Wairahi Investments, directed and owned by activist investor Mike Daniel, has bought 65,134,806 shares in AoFrio through a placement priced at 7 cents a share.
AoFrio, an NZX-listed refrigeration hardware and software provider, raised $4.559 million through the offer.
The company had previously said if it raised cash through a placement, shareholders would also get to acquire additional shares at the placement price. It plans to launch a pro-rata renounceable rights issue, with further details, including the ratio, timetable, record date and other material terms, to be released to the market in due course.
AoFrio said Wairahi was a long-term investor in the company and its investment, along with the upcoming placement, will give it the growth capital to carry out product development and innovation, as discussed at a recent investor day.
Wednesday May 20
Gráinne Troute quits THL board
Gráinne Troute.
Tourism Holdings independent director Gráinne Troute has resigned and will leave the board at the end of this month. She has been a director since 2015 and during that time chaired the remuneration and nomination committee from 2015 to 2023, and is a member of the health, safety and sustainability committee.
THL has appointed Barbara Chapman as a director, effective immediately, as Troute's replacement. Chapman, a former CEO and managing director of ASB Bank, is also the chair of Genesis Energy and a director of BNZ.
The board thanked Troute "for her dedicated service and significant contribution to THL since her appointment in 2015, and for the depth of experience and insight she has brought to the board".
Troute also sits on the boards of Summerset Group, Investore Property and Duncan Cotterill.
Infratil sells down Contact stake
Investment company Infratil has arranged to sell 5% of Contact Energy – more than a third of its stake – through an underwritten block trade.
The sale at $9.25 a share is expected to generate gross proceeds of $495.2 million and leave Infratil with 9% of Contact.
Infratil acquired an initial 9.5% stake in Contact Energy, representing 93.3 million shares, in Contact’s cash and scrip takeover of Manawa Energy, in which Infratil owned 51%.
The July 2025 deal was followed that October by Infratil’s acquisition of a further 4.9% from TECT Holdings, the former Tauranga Energy Consumer Trust, for $437.7m or $8.95 a share.
In a statement to the NZX, Infratil chief executive Jason Boyes said the company remained confident in Contact and the sector’s outlook.
“While we have no immediate funding requirements and our divestment programme is on track, we consider it prudent to reposition this capital now,” he said.
Peter Chrisp appointed to head the Department of Conservation
The current chief executive of New Zealand Trade and Enterprise, Peter Chrisp, has been appointed Director-General of Conservation and chief executive of the Department of Conservation. Deputy Public Service Commissioner Heather Baggott said Chrisp understood how conservation contributed to New Zealand’s wellbeing and economy. “Mr Chrisp brings extensive public and private sector leadership experience and a strong track record leading organisations,” Baggott said. Chrisp is also a director of Port of Auckland Ltd and has served as chair of Predator Free Wellington. He has been appointed for a five-year term starting on July 13.
Gull reports profit down 78%
Fuel retailer Gull, whose proposed merger with NPD received Commerce Commission clearance on May 8, has reported profit down 78% for the year to December.
Financial statements filed to the Companies Office for parent company GNZ Holdco report net profit of $2.8 million in 2025, down from $13.1m the previous year. Revenue fell 13% to $926.1m.
No dividend was paid during the year to private equity owner Allegro Funds.
Despite the reported profit, operating cashflow almost doubled to $98.5m, enabling debt reduction of $35m.
In a statement on the Iran war’s effect on fuel supplies, the company said: “Management considers Gull to have a resilient business model and has continued to actively co-ordinate with its primary supplier, Ampol, to fulfil future fuel imports into the Mount Maunganui terminal. At the date of this report there have been no confirmed supply issues.”
ASX-listed Ampol owned Gull until it was forced to divest the business to buy Z Energy.
Siren Gold mining application at Sam's Creek declined
An application for a mining permit at Sam’s Creek in Golden Bay by ASX-listed gold explorer Siren Gold has been declined.
In a statement to the ASX on Wednesday, Siren Gold said it was reviewing the decision by NZ Petroleum & Minerals.
After a trading halt put in place pending the announcement was lifted, Siren shares fell 33% to trade at A5.6c mid-afternoon Sydney time.
Siren’s exploration permit for the 3046ha area expired on March 31. Its application for a mining permit was subject to an application for judicial review by lobby group Save Our Springs, which argued it should not have been accepted as complete by the Ministry of Business Innovation & Employment.
Thursday May 21
Blis Technologies reports double-digit annual revenue growth
Blis Technologies has reported revenue up 16% to $14.7 million for the year ended March, but net profit after tax declined to $700,000 from $800,000. The listed probiotic maker reported strong growth in its business-to-business ingredient and private label revenue, and continued business-to-customer momentum. Its earnings were impacted by a one-off supply chain cost increase of $900,000. After adjusting for this, its underlying ebitda for FY26 totalled $1.8m. During the year, Blis resolved its patent issue with two customers, which resulted in the patents being jointly owned and a five-year extension to the existing supply agreement. Blis also revised its license and distribution agreement with Probi AB, which extended Probi's rights to two probiotic strains across North America and certain markets across Europe, the Middle East and Africa. Probi AB holds 13% of Blis and is the company's second-largest shareholder.
Scott Technology CFO Mark O’Malley resigns
Scott Technology chief financial officer Mark O’Malley has resigned after "deciding to take up another opportunity" and will finish with the company on July 3. O'Malley joined the NZX-listed robotics company in July 2023. A company announcement said he had "made a significant contribution across the group, including supporting the company’s financial performance, commercial governance and strategic priorities". Scott Technology CEO Mike Christman thanked O'Malley for his contribution to the business and support through the transition period. “Mark has played an important role across the group during his time with Scott, and we thank him for his contribution and wish him well for the future,” said Christman. The company said a process to appoint his successor would begin shortly.
