Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Warehouse shares fall after $100 mln share sale

Warehouse worst performer on NZX 50 Index after trading resumes following share sale

By Tina Morrison

March 7 (BusinessDesk) – Warehouse Group is the worst performer on New Zealand’s benchmark NZX 50 Index today after the shares resumed trading following a discounted stock offering to raise money for the retailer’s expansion into financial services.

Shares in Warehouse dropped 3.6 percent to $3.48 after the retailer yesterday raised $100 million selling shares at a discount of $3.23 apiece. The shares closed at $3.61 on Wednesday before the company issued a trading halt ahead of the announcement of its earnings and the expansion into financial services.

New Zealand’s largest listed retailer said yesterday it plans to pay $3 million for the Diners Club New Zealand business to beef up its financial services offering, as part of a plan to get half its earnings from areas other than its core ‘Red Sheds’.

Warehouse is following retailers including Target Corp and Tesco as it aims to boost earnings from selling financial services and help the estimated 1.5 million people who come through its doors every year buy more products.

The company expects to have $600 million of receivables by the 2020 financial year, which it anticipates could add $30 million to earnings. The company currently generates about $400 million of receivables for third parties and its joint venture, from which it receives a small share of profits.

“To bring it in house and try and get a little more margin out of that seems perfectly logical,” said James Lindsay, who helps manage about $400 million in equities at Tyndall Investment Management. “It’s obviously another leg for operations, a strategic area.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news