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

 


South Island listed companies experience phenomenal growth

Media release

8 July 2014

South Island listed companies experience phenomenal annual growth in market cap

Deloitte South Island Index achieves 35.3% growth for year to 30 June 2014

South Island listed companies have achieved phenomenal growth in market capitalisation during the past year, according to the annual review of the Deloitte South Island Index presented today in Christchurch.

The Index, which tracks the quarterly performance of 32 listed companies with operations in the South Island, gained a remarkable $2.92 billion (35.3%) in the year ended 30 June 2014. This growth comes in spite of a modest decline of 3.0% in the most recent quarter to June 2014, the Index’s first quarterly decline in two years.

Half of the 32 companies in the Index grew during the past year and the 35.3% annual growth was more than double the growth of the nearest comparable index. The NZX 50 achieved a growth of 15.8%, the Dow Jones 12.9% and the ASX All Ords 12.7% during the year to 30 June 2014.

Scott McClay, a corporate finance partner at Deloitte’s Christchurch office, says the performance of the Deloitte South Island Index during the past 12 months is a reflection of consistently strong performances from industry leaders.

“Consistency among top companies has clearly been the key to the growth of the Deloitte South Island Index. Since September 2012, the Index has grown quite rapidly, largely through the continued success of top performers like Ryman Healthcare and EBOS Group,” says Mr McClay.

Unsurprisingly, once again Ryman Healthcare was the standout performer for the year with an impressive $1,090 million increase (34.2%) in market capitalisation on the back of its twelfth successive year of record underlying profits. EBOS Group was knocked down to the third ranked position on the Index by Meridian Energy even after gaining $871.4 million (138.5%) in market capitalisation, while Meridian Energy increased its market capitalisation since its listing in October 2013 by $300.8 million (24.0%) in the year to 30 June 2014.

Conversely, the company with the largest fall in market capitalisation was Bathurst Resources, dropping $43.7 million (48.1%) over the year to 30 June 2014 amidst the drastic actions taken after reassessing its operations in light of the weak price of coking coal. Both Scott Technology and Moa Group also had a disappointing 12 months, dropping $23.7 million (25.1%) and $21.2 million (61.8%) respectively in the year to 30 June 2014.

Perhaps the most positive story from the past 12 months is that every sector gained market capitalisation during the year to 30 June 2014. The star performer for the year on a percentage basis was the Manufacturing & Distribution sector producing a remarkable 93.7% growth rate on the back of EBOS Group’s share issuance to enable them to acquire Symbion.

Mr McClay says the outlook for the Deloitte South Island Index over the next year is mixed. After a sustained period of growth, the quarterly growth rate of the Index has reduced in each of the last three quarters, culminating in the modest decline recorded in the June 2014 quarter, making any further prediction particularly difficult.

“What is very heartening however is that growth has been spread across all the sectors tracked by the Index. While the Manufacturing & Distribution sector has led the way over the last 12 months, it has been ably supported by 53.1% growth in the Bio-technology sector, led by Pacific Edge and BLIS Technologies, and 37.2% growth in the Primary sector, led by Synlait Milk and PGG Wrightson. In addition to the breadth across sectors, it is pleasing to see growth across companies representing both the traditional and emerging faces of the South Island economy,” concludes Mr McClay.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news