Goodson said the New Zealand financial results season has been sound with more companies beating, rather than missing, their guidance. "But overall we've seen a net downgrade in forecasts which is not surprising given the economy is slowing and cost pressures are rampant."
Sky Network Television gained 3c to $2.62 after reporting a 40.5 per cent increase in net profit to $62.2m on revenue of $736.1m, up 4 per cent, for the year ending June. But the broadcaster is forecasting slightly weaker profit in the 2023 financial year.
Subscriptions grew 4 per cent to 990,761 and Sky TV is reinstating its dividend, paying 7.3c a share paid on September 23, as well as making a capital return of $70m to shareholders.
Manuka honey supplier Comvita, gaining 9c or 2.73 per cent to $3.39, recorded its second best ever result with net profit increasing 35 per cent to $12.78m on revenue of $208.9m, up 9 per cent, for the 12 months ending June. Comvita is paying a final dividend of 3c a share on October 7.
Air New Zealand was down 1c to 66.5c after reporting an expected annual loss before tax of $810m, up from $415m on the previous year. The airline's revenue increased 8.8 per cent to $2.74b for the year ending June, mainly through its cargo contracts, and expenses blew out to $2.738b, from $2.18b. It has available liquidity of $2.36b.
Goodson said Air New Zealand's issue was the impact of the weaker currency on fuel and labour costs – the airline had signalled a $400m reduction in capital expenditure in the next financial year.
SkyCity Entertainment, down 4c to $2.92, also had an expected annual loss of $33.6m on revenue of $639m that was hampered by the extended lockdown in Auckland.
Goodson said the result was solid enough but Sky City has conflicting drivers – a weakening economy and increased business through reopening the border.
Freightways continued to leap forward after announcing it was expanding in Australia, rising 66c or 6.48 per cent to $10.84.
Fast food operator Restaurant Brands gained 28c or 3.45 per cent to $8.40; a2 Milk increased 6c to $5.42; wine exporter Delegat Group improved 3c or 2.61 per cent to $1.18; and Scales Corporation rose 25c or 5.56 per cent to $4.75 after telling the market its global pet food division was performing well.
There was a recovery in the property sector with Property for Industry gaining 4c to $2.665, and Vital Healthcare increasing 6c or 2.22 per cent to $2.76.
Heartland Group Holdings, up 4.5c or 2.45 per cent to $1.88, has opened its $70m share purchase plan for shareholders at $1.80 a share. Earlier, the banking group completed a $130m placement to institutional shareholders.
Fisher and Paykel Healthcare was down 5c to $20.20; Mainfreight declined $1.10 to $76.40; and Summerset Group Holdings fell 30c or 2.61 per cent to $11.20.
In the energy sector, Contact decreased 11c to $7.77, and Meridian was down 9.5c or 1.86 per cent to $5.005. Manawa Energy, down 6c to $6.24, has raised $100m worth of five-year bonds with a fixed rate of 5.36 per cent a year.
Ventia Services Group, unchanged at $3.09, has gained a 10-year contract worth $250m to maintain the Gold Coast water and sewerage networks. Ventia reported a net profit of A$105 ($117.4m), up 163 per cent, on revenue of A$2.51 billion for the six months ending June. It has A$17.3b of work in hand.
Medicinal cannabis company Cannasouth has obtained a Good Agricultural and Collection Practice certificate for its controlled environment greenhouse facility in Waikato. Its share price was unchanged at 39c.
