In case you missed it: News bites for the week.
Black Pearl Group has successfully completed a capital raise grossing total proceeds of approximately A$10.2 million ($11.7m), and trading in its shares will resume today.
The raise included a placement of fully paid ordinary Black Pearl shares, as announced to market on November 13. The offer closed on November 14. The shares are to be allotted on November 21.
The company said the offer was well supported by both existing and new institutional shareholders, as well as clients of retail broker firms.
"Blackpearl Group is particularly pleased to welcome several new Australian-based institutional investors, reflecting a key objective in planning the offer," it said in a statement to the market.
Bridget Coates.
Comvita’s scheme of arrangement has been terminated after the vote was struck down by shareholders.
Last week, shareholders voted against a takeover bid by Florenz, an entity owned by NBR Rich lister Mark Stewart, for 80 cents per share.
Voting required 75% of shareholders in each interest class to vote for the scheme, and more than 50% of the total votes for all Comvita shares to be cast in favour.
The latest voting results, displayed at the meeting, showed 54.34% of votes cast in favour of the scheme, representing 44.25% of total Comvita shares.
Meanwhile, 45.66% of votes were cast against the scheme, representing 37.19% of total votes.
Comvita chair Bridget Coates said the board was working with its advisers and banking partners to evaluate a range of funding options as part of its contingency planning.
Comvita’s annual meeting will be held on December 17.
Supermarket essentials continue to eat into household budgets.
Statistics NZ data today showed annual food prices rose 4.7% in the 12 months to October, after a 4.1% increase in the 12 months to September.
The grocery food group contributed most to the latest annual increase, followed by the meat, poultry, and fish category.
Instant coffee surged over 25% to $7.88 for 100g, while milk was up more than 13% to $4.78 for 2 litres, and cheese was up 30% to $12.71 for 1kg, compared with last year.
On a monthly basis, food prices fell 0.3% in October, when compared with September, helped by a drop in the fruit and vegetables category. Salad items, such as lettuce, tomato, and cucumber, were cheaper last month.
Meanwhile, the inflation data from Stats NZ also showed electricity prices increased 11.8%, and gas prices rose 14.4% over the 12 months to October.
Monthly prices also rose between September and October, marking 11 consecutive months of price increases for both electricity and gas.
The services sector has now been in “entrenched contraction” territory for 20 consecutive months, reinforcing the fragile state of the New Zealand economy.
The latest BNZ-BusinessNZ Performance of Services Index was at 48.7 in October, up marginally from September. A reading below 50 indicates the sector is contracting.
Despite the red ink, the activity and sales category recorded the highest value since January at 48.9, while new orders and business slipped slightly from September. The employment indicator recorded the highest value since March at 48.8.
The proportion of negative comments fell to 54.1%, compared with 58% in September, with the sector noting weak demand and lower customer spending.
On Friday, a similar survey for the manufacturing sector painted a more optimistic economic picture after a rise in new orders last month. Manufacturers reported a lift demand, helped by seasonal activity, new customers, and products, as well as signs of economic confidence returning.
NZ Steel expects to report a half-year underlying loss, as the business battles tough trading conditions and cost pressures.
ASX-listed BlueScope – which owns the New Zealand and Pacific Island business – provided a trading update at its annual meeting today.
The company said its New Zealand business is now expected to report underlying earnings before interest and tax in the six months ending December of negative $20m, which was in line with its second-half result in the 2025 financial year.
“While initial expectations for the business were for a breakeven performance, the operating environment remains challenged, and continued cost pressures, operational disruptions, and pricing pressures have hampered performance in the lead-up to [electric arc furnace] commissioning.”
The furnace, which was originally slated to start in December, is expected to come online early next year.
BlueScope expects its half-year underlying earnings to be at the bottom of its $520m to $620m guidance.
NZX- and ASX-listed AFT Pharmaceuticals has announced its chief financial officer, Malcolm Tubby, will retire at the end of March next year after a long career with the company. Under a structured handover, Simon Bosley will assume the role of CFO designate from November 24 and progressively assume responsibilities. Bosley joins AFT from Hirepool New Zealand. Before that, he was CFO of NZX-listed Rakon. Managing director Hartley Atkinson said AFT was grateful for Tubby’s contribution over the years as it transitioned from literally operating out of a garage to a publicly listed company operating around the globe.
A2 Milk has upgraded its revenue outlook for the year to June 2026 and confirmed plans for a $300 million special dividend. In a statement to the NZX ahead of its annual meeting on Thursday morning, the company said it expected percentage revenue growth in the low double digits, up from previous guidance of high single digits. The upgrade was due to stronger trading in its infant formula, other nutritionals and liquid milk product categories, it said. The earnings before interest, tax, depreciation and amortisation margin would be about 15% to 16%, up from 14.4% in 2025. In speech notes for the AGM, chair Pip Greenwood said details of the special dividend would be announced in the next 12 months.
Phil Luscombe.
Long-serving Allied Farmers director Phil Luscombe has disclosed his acquisition of 71,247 shares for $57,365, his first transaction since selling 80,000 shares in March 2020. The purchase, at an average 80.5c a share, lifts his holding to 86,804 shares. The acquisitions took place on-market from November 12 to 18 and followed Allied’s agreement to sell its livestock trading interests for cash of $7 million. The deal went unconditional on November 19. Allied has told shareholders it will deploy the proceeds into further investment opportunities or return capital to shareholders. Luscombe has been an Allied Farmers director since 2005. Chair Shelley Ruha was appointed in 2022, and managing director Richard Milsom in 2023.
NZX-listed Steel & Tube Holdings has had a challenging start to its financial year as difficult trading conditions impacted sales volumes, although improvement is expected in the latter half of the year. For the four months to the end of October, revenue of $145.2 million was up 2.4% on the same period last year, while normalised earnings before interest and tax (ebit) came to a loss of $7.2m, which was $2.2m lower than the same period last year. The company expected improved activity over the next 12 to 18 months, due to lower interest rates, government-funded infrastructure projects, manufacturing sector expansion, and increasing commercial and residential building consents. “We are seeing the initial stages of cyclical recovery with increased activity and early signs of margin improvement," CEO Mark Malpass said. Steel & Tube said its capital structure settings had been reviewed and remained suitable.
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