Gareth Vaughn: Tower head-to-head with Budget, Star Wars

Question: What do Finance Minister Michael Cullen, Star Wars baddie Darth Vader and Tower chairman Olaf O'Duill have in common?

Answer: All three will be in the news, to varying degrees, next Thursday.

Cullen will deliver his sixth Budget, an election-year one to boot. The long-awaited sixth and final Star Wars film, Episode III: Revenge of the Sith, opens. And last, but not least, insurer and fund manager Tower releases half-year financial results.

Tower's results cover an eventful half-year with the spin-off of its Australian Wealth Management unit to the Australian Stock Exchange and the unexpected exit of managing director Keith Taylor.

Given the timing, no doubt many of Tower's 86,000 New Zealand shareholders - the bulk of the firm's 116,000 shareholders - will be more focused on the Budget. As will most business journalists.

It is not the first time Tower has released significant information at a less-than-perfect time. Its last annual report, notice of annual meeting and notice of special meeting on the AWM spin-off were issued on Christmas Eve when shareholders' minds were focused elsewhere.

The annual report confirmed a $351,822 one-off payment to Taylor that lifted his annual salary from $716,923 in 2003 to $1.1 million last year.

Grant Samuel, Tower's independent spin-off appraiser, said the summer holiday timing of the AWM rights issue process was not ideal.

Such events at less-than-ideal times for shareholders might create a perception that Tower was trying to slip under the radar screen. That would be a shame given the company posted its first annual profit in the year to September 30, 2004, since 2000-01.

Just this month, Standard & Poor's revised its outlook on Tower to positive from stable and affirmed its BB+ credit rating. S&P also said although 2005 earnings were expected to remain relatively modest, they should show significant improvement by 2006-07 due to management actions to grow the Australian business and make New Zealand operations more efficient. Tower could be upgraded over the medium term.

Philippa Ellis, Tower's general manager of investor relations, said the date for the half-year results announcement was set last September, before Cullen gave his Budget date in February. The annual report must be released within three months of the September end to Tower's financial year, which was achieved, just, with the December 24 release.

Ellis said the results announcement was co-ordinated to suit Tower's nine directors. Surely some tinkering could be done so the announcement could be made at a time also convenient to Tower's owners - its shareholders - rather than clashing with an election-year Budget.

That way at least O'Duill, Tower's new managing director, Jim Minto, and one of New Zealand's most widely held listed companies would not have to compete for attention with Cullen. Oh, and Darth Vader.