In case you missed it: News bites for the week.
Gentrack has seen its half-year profit rise 34.7% to $7.2 million on a 9.8% increase in revenue.
The NZX-listed utilities software provider said recurring revenues grew by 17%, but nonrecurring revenue was 12% lower than in the first half of FY24. It said it expected strong levels of non-recurring revenues going forward.
Earnings before interest, tax, depreciation, and amortisation (ebitda) was 5.1% higher the prior corresponding period.
It had cash of $70.7m as of 31 March – a $4m increase over the start of the year and up from $39.3m at the end of March 2024.
The company expected revenue at or above $230m in FY25 and earnings margin to be above 12%.
It remained "confident" of its mid-term guidance of growing revenue at a more than 15% compound annual growth rate and an ebitda margin of 15-20%, after expensing all development costs.
Listed insurance company Tower has recorded a first-half net profit rise after further improvements in business-as-usual claims and gross written premium growth.
Its profit in the six months ended March 31 was $49.7m, up from $36m last year. That included provisions for ongoing customer remediation-related costs and an increase in Canterbury earthquake costs.
Tower’s ‘large events’ costs were $3m over the period after Dunedin flooding in October last year. April’s Cyclone Tam will be recorded as a large event in the second half, with an estimated cost of $4m.
Elsewhere, customer numbers grew to 312,000, up from 309,000 last year.
Interim chief executive Paul Johnston said the results were positive as the company focused on “robust” risk-based selection and pricing.
“This year we will expand risk-based pricing to include sea surge and landslide risks, helping our customers better understand their risks and how these factors impact their insurance pricing."
Serko's Booking.com product.
Serko has reported a 27% increase in annual income to $90.5m, including $4.8m of income from the acquisition of GetThere, which settled in January.
Excluding GetThere’s revenue, Serko turned over $85.7m – only reaching the bottom end of its forecast income for the year, of between $85m and $92m. The NZX and ASX-listed travel booking software provider’s net loss after tax was $22m, increased from $15.9m in FY24. Its FY25 result was driven by continued demand in its Booking.com for Business (B4B) product, with completed room nights and active customers both increasing 29%.
B4B saw completed room nights jump from 2.5 million to 3.3 million in the year, and active customers rise from 172,000 to 222,000. In its managed travel segment, Serko said that, in Australasia, online bookings were up 6% and average revenue per booking was up 12%. It said it expects total income of between $115m and $123m in FY26, and total spend in the range of $127m to $133m.
Napier Port will add a special dividend of 2.5 cents to its half-year payment of 4c to shareholders, up from the 3c paid last year. The NZX-listed port upped net profit after tax by 40.8% to $20.2 million for the six months to March, from $14.3m for the comparable period, after banking the final insurance settlement of $7.5m for damage from Cyclone Gabrielle. Container volumes also improved by 13.9% on Pan Pac's return to full pulp and paper operations, as well as an earlier apple picking season and increased transhipment activity, the port said. Chief executive Todd Dawson said the port expected to sustain healthy volumes and earnings on the back of continued strong food and fibre export demand, with the underlying result from operations now forecast to be in a range between $59m and $63m, assuming a "continuation of current operating conditions". The payment of the interim and special dividends will be on June 26, to those shareholders registered on June 13.
NZX-listed payroll software provider PaySauce has reported its second consecutive annual profit before tax, up $270,000 on last year, to $460,000. The company’s after-tax profit dipped $550,000 to $680,000, due in part to $320,000 recognised as a deferred tax asset for prior losses carried forward. Earnings before tax, depreciation and amortisation (ebtda) grew $290,000 to $1.35 million, as total operating revenue rose 17% to $9m, from $7.7m in the prior year. Total customer numbers were up 11% at year-end compared with March 2024. Processing fee income was up 18% due to the increase in customers and average fee per user. Interest income grew just 6% due to easing wholesale interest rates over the year, particularly in the fourth quarter ending in March. Average revenue per user fell 5% to $86 at the end of the period, with the increase in processing fee income diluted by the fall in interest rate income.
The iconic Smith & Caughey's building.
Auckland retailer Smith & Caughey's will shut entirely, causing 98 job losses. Smith & Caughey’s acting chief executive, Matt Harray, said, "Every attempt has been made to achieve this and every feasible option investigated; no stone left unturned. However, it’s sadly clear it is no longer viable for us to keep the doors open." The department store with roots back to 1880 downsized its Queen St operations earlier this year, and closed its Newmarket store in September 2024. Harray said it was hoped the changes would result in an improved financial position for the company. "Unfortunately, this has not been the case." All operations will close by the end of July, with the online store closed from the end of May.
Zespri revenue has surpassed $5 billion in the 2024/2025 season. Global operating revenue for the kiwifruit marketer tallied $5.14b, up 22% from $4.21b during the previous corresponding season. Net profit after tax fell 10.4% to $155.2 million from $173.3m. Zespri sold a record 220.9 million trays of kiwifruit in 2024/25, up from 164.2 million trays in 2023/24. Zespri chief executive Jason Te Brake said, “2024/25 was a really positive year for the industry and we’re excited to build on this momentum as we progress further into our 2025/26 season."
NZX-listed Blis Technologies, a maker of probiotic dietary supplements, has reported net profit up 30% to $838,000 for the year to March. Revenue rose 9% to $13.2 million. In a statement to the NZX, the company said it was optimistic about the coming year. “While macroeconomic conditions remain mixed, demand for science-backed probiotics continues to grow,” it said. The company said a European customer had filed patent applications in September 2024 that it believed contained confidential Blis information and it was in talks to resolve the dispute. The annual report also noted supplies of fermented probiotic ingredients from Fonterra were becoming restricted and increasing in price, so Blis was seeking another supplier.
The Financial Markets Authority has issued a warning about a managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited (CPL). FMA response and enforcement executive director Louise Unger said, “We understand that Mr Vaughan, the sole director and shareholder of formerly registered company CPL, has offered investments in a managed investment scheme (MIS) operated by CPL. He did so without holding an MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.” Vaughan also told his investors in a newsletter that he had applied for an MIS manager’s licence, and that it was being reviewed by the FMA. Unger confirmed neither Vaughan nor CPL had ever applied to the FMA for any form of market services licence. The FMA is concerned "investors are likely to have experienced significant detriment" due to Vaughan's conduct, and urged those affected to contact them.
Savor Group's Bivacco restaurant.
Savor Group revenue fell 8% to $56.6 million from $62m, for the year ending in March. The Auckland hospitality group reported $7.3m in operating earnings, down from an ebitda of $8.8m, and a net loss after tax of $1.2m, down from an after-tax net profit of $700,000 in the year prior. The net loss was largely attributed to a one-time accounting write-off from its discontinued Seafarers venue. Operating cash flow rose to $7.1m for the year, up from $6.4m last year. Savor chief executive Lucien Law said, "With the market stabilising and our new bar and entertainment venue in Britomart under construction, we’re looking forward to growth again.” The trading environment remained uncertain with persistent economic pressures, the company said. However, it hoped gradual relief in cost-of-living pressures would benefit the business. "Our strengthened balance sheet, with improved cash reserves and declining leverage, provides flexibility to navigate challenges or pursue growth."
Paul Silk has been appointed interim chief executive of the company that will procure two new ferries for the Government. Silk was most recently acting chief executive at Christchurch City Holdings, the wholly owned investment arm of Christchurch City Council. Ferry Holdings chair Chris Mackenzie said Silk’s experience managing public-owned infrastructure, as well as capital and risk management in financial markets, made him the “ideal candidate” to lead the company during its establishment phase. The appointment is effective from May 26. Silk will be responsible for overseeing the commercial negotiations to procure the two ferries, as well as port infrastructure agreements with CentrePort in Wellington and Port Marlborough. The agreements are due to be completed by the end of this year, by which time the company hopes to have a permanent chief executive.
Electricity generator Meridian says it has completed construction of its battery storage system at Ruakākā, which will provide enough backup energy to power about 60,000 households for two hours.
It’s the country’s first grid-scale battery system and has a maximum output of 100MW, with storage capacity of 200MW.
The batteries were supplied by French company Saft, a subsidiary of Euronext-listed TotalEnergies.
Meridian said the development had been completed within the planned “$186 million cost envelope”.
Meridian’s general manager of development Guy Waipara said although commissioning was complete, “some steps remain before the [battery] is fully operational, including approval of final commissioning test results”.
Construction of Meridian’s neighbouring Ruakākā solar farm is due to begin in August.
Investment bank UBS New Zealand, part of Swiss multinational UBS, has reported a halving of net profit to $5.4 million for the year to December 2024.
Accounts filed to the Companies Office showed the business pulled in fees and commission income of $26.7m for the year, down from $38.2m in 2023.
Payments to key management personnel were the lowest in at least five years, falling to $3.2m from $4m in 2023.
UBS NZ has yet to match its pre-Covid profit of $15.1m in 2019.
