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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news