22 May 2015

Business Briefs

4:05 pm on 22 May 2015

A round-up from Radio New Zealand's business reporters:

Consumer confidence eases

Consumer confidence has eased, but remains buoyant.

The ANZ-Roy Morgan monthly index declined 5 points to 123.9 in May from the previous month. A reading above 100 indicates optimism.

The survey found consumers feeling less well off financially than a year ago, and fewer expecting to be better off next year.

Respondents were also less optimistic about the economy's prospects over the next 12 months.

Expectations for consumer price inflation over the next two years rose to a four-month high of 3.6 percent, from 2.8 percent in the previous survey.

Ryman Healthcare lifts profit

Ryman Healthcare has lifted its full-year profit, thanks to strong demand for its new villages in its target markets of Auckland and Melbourne.

The retirement village company's net profit rose 24 percent to $241.9 million in the year to March compared to the previous year.

Stripping out property revaluation gains, its underlying profit rose 15 percent to $136.3 million.

Revenue rose 12 percent to $227.1 million.

Managing director Simon Challies said demand for its Melbourne property was stronger than expected and the company now had plans to open five more villages in Melbourne over the next five years.

Rate of return for Christchurch airport still too high - Commission

The Commerce Commission said Christchurch Airport had improved its level of disclosure on pricing plans, but still thinks its rate of return was too high.

The corporate regulator said it now better understands the airport's pricing strategy over the next 20 years, from 2012 to 2032.

But the Commission said the airport's target of 8.9 percent is above what it considers is an acceptable range of 7.6 to 8.5 percent.

Executive director of the Board of Airline Representatives, John Beckett, agrees the rate of return is too high, and says the regulations need to be changed so airlines can negotiate fairer charges with the airport.

International passenger arrivals up in April

Auckland Airport says international passenger arrivals rose 7.6 percent in April, while numbers at Queenstown Airport rose 25 percent.

Auckland Airport says the Australian and New Zealand school holidays, as well as Easter and Anzac weekend helped boost numbers compared with last year.

Across the Tasman, international passenger numbers at the Cairns Airport rose almost 22 percent.

Serko reports loss

Serko has reported a full-year loss, but expects to begin turning a profit in 2017.

The corporate travel software firm lost $6.4 million in the year to March.

Revenue rose 55 percent to $10.4 million, though that fell short of earlier forecasts due to the delayed launch of its mobile service, and some revenue falling into the next financial year.

The company is forecasting lower revenue of between $7.5 and $8 million in the first half of the financial year, compared with its prospectus forecast of $8.3 million.

Cooks Global Foods reviews capital position

Cooks Global Foods says it is carrying out a review of its capital position and has appointed Miro Capital and Duncan to help it carry out the review.