Gentrack shares soared after the company returned to profit in the first half. Photo / file
Gentrack shares soared after the company returned to profit in the first half. Photo / file
Sanford to sell fishing business
Seafood company Sanford is looking to sell most of the inshore area of its wildcatch division to Moana New Zealand through a long-term agreement valued at $11 million to $13m for five years.
The company announced the conditional sale while reporting its half-yearresult which saw its profit almost double to $11.1 million in the six months to March, although profitability overall is still not at pre-Covid levels.
Sanford announced an interim dividend - 6c a share - after not paying one in the previous comparable period.
Subject to various conditions, including approval from the New Zealand Commerce Commission, Moana will acquire Sanford’s Annual Catch Entitlement (ACE) for much of its quota of North Island inshore species.
“While the deepwater part of the business is stable and profitable, unfortunately, the inshore area of Sanford’s wildcatch division has been underperforming for some time,” chief executive Peter Reidie said.
“Following a review into this division, we have now agreed to sell much of our North Island inshore Annual Catch Entitlement (ACE) to Moana New Zealand through a new long-term agreement.”
Moana is the half-owner of Sealord, with the other half held by Japanese firm Nissui Corporation. The arrangement would be for a minimum term of approximately 10 years.
Kiwi Property: Three malls star drawcards
Revenue was up at one of New Zealand’s largest listed landlords partly from more sales at its malls but bottom-line profit turned to a loss after property devaluations hit.
Kiwi Property Group, with $3.1 billion of assets, declared a $227.7m net loss after tax for the year to March 31, 2023, a turnaround from last year’s $224.3m net profit, mainly due to unrealised devaluations.
Revaluations added $128m to last year’s result but this year that became a negative $352m devaluation.
But the business was upbeat about record sales at its shopping centres.
It made $1.7b in sales at Sylvia Park, LynnMall and The Base, up 28.5 per cent. Sylvia Park’s performance was particularly strong with $889m sales.
Shareholder dividends will rise from last year’s 5.6cps to 5.7cps and Kiwi forecasts it will pay 5.7cps in the 2024 financial year.
Kiwi Property made $1.7b in sales at Sylvia Park (pictured), LynnMall and The Base, up 28.5 per cent. Photo / Supplied
Chairman Mark Ford and director Mark Powell are retiring, to be replaced by Carlie Eve and Peter Alexander.
On the outlook, Ford said: “We are clear on our way forward and confident of our ability to turn our strategy into reality. By doing so, we will drive the company’s operational results, promote growth in our share price and help create greater recognition within the market of Kiwi Property’s value.”
Gentrack shares soar after strong first half result
Gentrack chief executive Gary Miles. Photo / Michael Craig
Gentrack shares soared after the company returned to profit in the first half on the back of a near 50 per cent jump in revenue driven by strong growth in its utilities division.
The stock climbed 75c, or 22 per cent, to $4.16 in morning trading on the NZX.
Gentrack, which makes software for airports and energy companies, reported net profit of $7.9 million in the six months to March 31 compared to a $5.8m loss in the previous corresponding period.
Revenue climbed 47.7 per cent to $84.3m and earnings before interest, tax, depreciation and amortisation (ebitda) was up by $14.8m to $16m.
“We continue to win new customers as well as deliver against recent wins and expand services with existing customers,” the company said.
“We have strong net people growth and employee engagement is high, with staff turnover at an all-time low.”
The strong revenue result was driven by a 51.2 per cent increase in the utilities business to $73.9m for this half, including $19.7m of from Bulb and other insolvent UK customers.
Gentrack’s Utilities and Veovo businesses both operate in markets with strong growth potential, the company said.
“The Board continues to believe that the best use of the company’s capital is to continue to invest in growth. We have therefore decided not to pay an interim dividend.”
The company is forecasting full year revenue for FY23 in the range of $157m to $160m with ebitda for the year of approximately $22m.
