It’s been a rough year for unit-holders in Fonterra Shareholders Fund, with the unit price slumping from $5.12 to its lowest point ever at $3.15. Chairman John Shewan didn’t mince words when he told the Fund’s annual meeting this week Fonterra’s financial performance had been “very poor” in 2019.
Not only had the unit price fallen markedly but no distribution had been paid, he said.
“This is disappointing and frustrating…Fonterra’s decision to not pay a dividend, and therefore a distribution to unit holders, as well as significantly impairing a small number of significant assets, no doubt came as a surprise to many of you. I understand and share the frustration that you rightfully feel, and the impact that Fonterra’s decisions have had on the unit price”.
Institutions and private wealth funds have fled the stock, the former declining from 25% to 15% and private wealth falling from 14% to 7%. Continue reading “John Shewan goes out to bat for Fonterra’s disappointed unit-holders”
Fonterra’s board, under heavy fire for the losses racked up in the last two years, may at last be getting something right. Its recruitment of Mercury’s CEO Fraser Whineray to the newly created post of chief operating officer puts him in pole position to drive innovation, efficiency, and sustainability in the co-op.
When he joins Fonterra next year he will bring with him the credentials of having transformed Mercury, simplifying the business through the divestment of overseas interests and developing a compelling strategy for sustainable growth.
Harbour Asset Management’s Shane Solly said Whineray adds “a bit of grunt to the front row at Fonterra”.
In that context, Point of Order notes, Whineray would be following the example of his renowned uncle, the late Sir Wilson Whinerary, who not only captained the All Blacks from the front row, but subsequently had a successful career as a businessman and company director. Continue reading “Fraser Whineray: a results-oriented business leader with a track record on decarbonisation”
David Kirk, who skippered the All Blacks to capture the World Cup at the first tournament back in 1987, could be on to another winner, this time as chairman of Kathmandu Holdings.
The company sees itself becoming a global player in the outdoor clothing and leisure business as it outlays $368m to buy iconic surf brand Rip Curl.
The move replicates the audacious spirit which marked out Kirk on the Rugby field.
Coincidentally, Kathmandu was launched as a company in 1987. Continue reading “Captain Kirk is setting Kathmandu on a course to make it a global player in the leisure business”
Is Plexure the next rising star on the NZX, ready to follow the trajectory of Xero?
It’s a mobile marketing company, using an intelligent technology platform which powers customers’ mobile marketing activities. The platform incorporates Artificial Intelligence (AI) and Machine Learning (ML) features which augment Plexure’s capabilities in the areas of personalisation, advanced analytics and platform security.
Plexure’s trading performance has improved dramatically. Customer usage is at record levels and accelerating with 30m new users downloading its apps. This has driven revenues to a new high of $16.9m for the year ended March 31, when it had $7.3m in the bank.
Revenue guidance for the current year is in a range from $21m to $23m. By comparison with the FY19 revenues of $16.9m, this represents a 24.3% rise at the lower end of the range and a 36.1% rise at the upper end of the range. Continue reading “Looking for a star? We have the Plexure of suggesting it might be found in the cloud”
Jacindamania is again raging in NZ media as the PM, after extracting what she could from rubbing shoulders with Shinzo Abe and the All Blacks in Japan, is high-fiving it with President Donald Trump, the UK’s Boris Johnson, and UN Secretary-general Antonio Guterres in New York.
But a fresh outbreak of Jacindamania may not overcome growth-sapping business pessimism about the way the government is steering the economy.
Surveys of business confidence in the government have show consistent pessimism about the economy since Labour took office in 2017.
The most recent ANZ Business Outlook found 52% of businesses surveyed expected economic conditions to deteriorate. And the news that the country’s all-important construction industry is contracting is hardly likely to reverse the trend. Continue reading “Jacindamania rages again but pessimistic businesses need stimulation from something else – like a tax cut”
The Cabinet will meet today without Prime Minister Jacinda Ardern. She has arrived in New York to join other world leaders at the United Nations General Assembly – and to meet with some of them.
A meeting with Donald Trump will be among the highlights. Trade is likely to be top of the agenda. She will meet with Britain’s Boris Johnson, too.
Back on the home front, Winston Peters will chair today’s Cabinet meeting.
We can only conjecture on how many other meetings will be conducted around the country during the day, but in the US – according to an item on the Freakonomics website – 55 million meetings a day are held.
Most of them are woefully unproductive, and tyrannize our offices. The revolution begins now — with better agendas, smaller invite lists, and an embrace of healthy conflict. Continue reading “The science of meetings: the experts find most of them tyrannise our offices and are woefully unproductive”
Although the governments in Canberra and Wellington declare they are both committed to advancing the Single Economic Market (SEM) agenda, building on the success of the Closer Economic Relations (CER) Trade Agreement, the recent meeting of the respective trade ministers in Auckland didn’t produce much more than an array of platitudes, and certainly left business lobbies on both sides of the Tasman yawning.
Continue reading “The Single Economic Market: do the governments in Canberra and Wellington really want to advance the agenda?”