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

 

Seeka Confirms Sale Of Australian Kiwifruit Orchards And Announces Lift To 2020 Expected Earnings Guidance

Te Puke, December 9 2020: Seeka Limited (NZX-SEK), a listed New Zealand produce handler, advises that the sale and lease back of approximately 100 hectares of its Australian kiwifruit orchard portfolio has been approved by the Australian Foreign Investment Review Board (FIRB).

Accordingly the AUD$26.5m sale is now unconditional and is scheduled for settlement on 15 December 2020. The funds from the sale will be used to continue the investment in Seeka’s Australian orchard portfolio and to reduce overall debt.

Guidance update

Seeka advises that its current year earnings guidance is for a profit before tax between $15m and $17m compared to previous guidance of between $9m and $12m.

The lift in earnings guidance reflects both an improvement in operational earnings, cost savings and the expected gain arising from the sale and lease back of part of its Australian kiwifruit orchard portfolio.

Seeka's Chief Executive, Michael Franks, said, “Seeka has concentrated on its core business operations and the growing parts of its business as well as focussing on cost management after a challenging COVID-19 and drought impacted harvest. In spite of these challenges with an estimated impact of $10m, Seeka’s operational earnings are ahead of 2019. Seeka did not receive any Government wage subsidy.”

The Australian sale and lease back continues the Company’s focus on reducing debt, with Net Bank Debt expected, at 31 December 2020, to be between $75m and $85m, compared to $116.8m at the same date in 2019.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>