9 May 2019

Today's business news: What you need to know

5:05 pm on 9 May 2019
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Photo: 123RF

Latest - ANZ's Truckometer indices, which follow light and heavy truck movements as indicators of growth were up in April.

The Heavy Traffic index, which points to current activity rose 3.6 percent on the month before, with the annual rate at the strongest level in six months.

The Light Traffic index, which looks six months ahead, edged marginally higher but still suggests a broad loss of momentum, and softer activity going into the third quarter.

Geo to miss revenue expectations

The mobile workplace software company says its annual revenue growth will miss expectations, but underlying profit is still tracking to guidance.

The company still expects its underlying profit to break-even, even though it thinks revenue growth will fall between 21 and 23 percent, which is as much as a third behind the previous guidance.

Geo said revenues for its Geo for Sales client product have lagged behind expectations, with fewer customers taking up additional product features to be incorporated this month and next.

South Island businesses' outlook positive

Meridan Energy Wellington.

Meridian Energy is one of the South Island's largest companies. Photo: RNZ / Alexander Robertson

The Deloitte South Island Index, which tracks the value of public listed companies, rose nearly 14 percent in the first three months of the year by just over $3.2 billion.

That compares with other indices, such as the NZX Top 50 Index, which rose 10.5 percent and the ASX main board which rose nearly 10 percent in terms of market capitalisation over the period.

The growth was led by the power company, Meridian Energy, followed by the retirement village operator, Ryman Healthcare, diversified investor, EBOS Group and dairy company, Synlait Milk.

The other top performers included Foley Wines Limited, Pharmazen and King Salmon.

Tilt Renewables holding onto profit for upcoming project

The wind farm operator won't pay shareholders a final dividend as it seeks to hold on to cash for its upcoming South Taranaki development.

The company's net profit was $AU12.2 million, down from $AU16.9m last year.

Although underlying earnings, which the company considers a better measure of its progress, were up 30 percent based on stronger revenue.

Tilt Renewables' chief executive Deion Campbell says the company's going through a transition phase with two new wind farms in the works - Dundonnell in Victoria and Waverly in South Taranaki.