NZH The Business 30th October

October 30, 2015

Apartment

BLUES

Time to control body corporate managers?

Feature, p12-13

BIG ASK FOR WAREHOUSE BOSS Stock Takes, Christopher Adams, p7

CASH RATE CUT? KEEP ON WAITING p3

Deloitte Top 200 Awards 2015: The finalists p2

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2 |The Business

Friday, October 30, 2015

News Inside

Mad Butcher shops a hard sell P4 ANZ increases its market share P5 Rapid growth for tech companies P6 Apartment blues As multi-unit living becomes ever more popular, is it time to regulate body corporate managers?

Feature, P12-13

Regulars Stock Takes Media Economy Executive Success Markets The Insider Business life

P7 P8 P9 P11 P16-18 P19 P19

The Business NEWS SECTION Editor: Liam Dann Deputy Editor: Grant Bradley News Editor: Owen Hembry Email: business@nzherald.co.nz Phone: (09) 379-5050 Write: The Editor, Business Herald, PO Box 32, Auckland

Wide range in Top 200 Finalists named DELOITTE TOP200 FINALISTS for prestigious CEO of the year Mike Bennetts • Z Energy Jackie Johnson • IAG Christopher Luxon • Air NZ New Zealand awards

F

inalists have been announced for the Deloitte Top 200 Awards to be held at Vector Arena on November 26.

Now in its 26th year, the awards celebrate the top 200 largest New Zealand businesses based on revenue, as well as a separate list of New Zealand’s Top 30 financial enterprises based on asset value.

Judge Sandy Maier said the quantitative results of the Top 200 survey had this year “turned up an unusually broad range of credible companies and individuals this year.”

It had been a year when some companies had seen growth strategies maturing and producing results, he said. In other sectors volatility in currency and commodities had been an issue. The event will be held on November 26 at Vector Arena, hosted

by NZME Events in partnership with Deloitte.

Last year’s event saw more than 1000 guests from across the business sector attend, with a performance from the New Zealand Symphony Orchestra opening the night’s entertainment.

There are 10 categories this year including executive and young executive of the year, company of the year, chairperson of the year and most improved performance.

Judges include Forsyth Barr managing director Neil Paviour-Smith, independent director Maier, former

Most Improved Performance Comvita Zespri Refining NZ Growth Strategy Tourism Holdings IAG Z Energy Company of the year EBOS Z Energy Fisher & Paykel Healthcare

CFO of the year Andy Carroll • Chorus Jolie Hodson • Spark Rob McDonald • Air New Zealand Chairman of the year Joan Withers Mark Verbiest Rob Hewet Excellence in Governance Air NZ NZ Super Fund NZ Shareholders Association

Diversity Leadership Westpac Air New Zealand ANZ Young Executive of the year Taryn Hamilton • M2 Group Daniel Warsaw • Wellington Zoo Craig West • Downer New Zealand Herald graphic

QBE chairman of the year Alison Paterson, NZME business editorial director Fran O’Sullivan and chair of Minter Ellison Rudd Watts Cathy Quinn.

The lists include publicly listed and private companies, New Zealand

subsidiaries of multinational companies, co-operatives, societies and state-owned enterprises. Tickets for the event are available now at www.top200.co.nz.

A visionary leader award will also be announced.

— Liam Dann

FEATURE SECTION Editor: Mark Fryer Email: mark.fryer@nzherald.co.nz Phone: (09) 379-5050 Write: PO Box 32, Auckland ADVERTISING Darrell Denney 021 936 858 darrell.denney@apn.co.nz

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Friday, October 30, 2015

The Business | 3

Wheeler leaves OCR unchanged Economists say low interest rates likely for some time yet Jamie Gray

T

he Reserve Bank kept its official cash rate on hold but economists said it was only a matter of time before the bank resumed its easing bias, which means low interest rates will be around for some time yet.

The bank opted to leave its official cash rate (OCR) unchanged at 2.75 per cent, which was in line with market expectations, but said further reduction in the rate “seemed likely”.

Economists differed over when the next cut would occur, with some picking December and others opting for early next year, but the expectation was that there would be at least one more cut to build on the last three that have occurred since June.

In a departure from its recent statements, the bank did not try to talk the value of the New Zealand dollar down.

Instead, it directly linked the exchange rate to interest rates, saying a higher New Zealand dollar would require a lower interest rate path than would otherwise be the case.

Reserve Bank Governor Graeme Wheeler said inflation remained below the bank’s 1 to 3 per cent target range, reflecting a combination of earlier strength in the New Zealand dollar and the 60 per cent fall in world oil prices since mid-2014.

Annual CPI inflation was expected to return well within the target range by early 2016, as the effects of earlier petrol price falls dropped out of the CPI calculation and in response to the fall in the exchange rate since April, he said.

“However, the exchange rate has been moving higher since September, which could, if sustained, dampen tradeable sector activity and mediumterm inflation,” he said. “This would require a lower interest rate path than would otherwise be the case,” he said.

Annual inflation was just 0.4 per cent in the September year — well

The exchange rate has been moving higher since September, which could, if sustained, dampen tradeable sector activity and medium-term inflation.

Reserve Bank Governor Graeme Wheeler

Graeme Wheeler says says inflation remains below the bank’s 1 to 3 per cent target range.

Rate and risks ● Official Cash Rate unchanged at 2.75 per cent ● House price inflation in Auckland remains strong, posing a financial stability risk.

● Further reduction in the OCR seems likely. below 2 per cent mid-point of the Reserve Bank’s mandated 1 to 3 per cent. The last time inflation was near the mid-point was in 2011.

The challenge for the Reserve Bank lies not in keeping inflation low, but in restoring it back to more normal levels, and some economists don’t think the bank has done enough to achieve that.

“I’m not sure whether the path that they are articulating is sufficient to achieve 2 per cent [inflation] on

average, over the medium term,” Westpac chief economist Dominick Stephens said.

Westpac was not alone on that score. “Over 2016 we still see some risk that the Reserve Bank cuts the OCR further,” ASB Bank chief economist Nick Tuffley said. “We remain wary that a 2.5 per cent official cash rate will not be low enough to sustain inflation as high as 2 per cent,” he said.

The Reserve Bank, once again, warned about the perils of the Auckland housing market, and the risks that it posed to the country’s financial stability.

ANZ expects a rate cut in March.

“Our base case remains that one further OCR cut will be delivered next year [March] and the risk profile is for more beyond that,” the bank said.

Picture / Mark Mitchell

The Bank of New Zealand said the Reserve Bank was a “reluctant cutter” given its ongoing concern about the Auckland housing market.

“But we see it as likely the bank keeps the OCR at its 2.50 per cent low for a prolonged period.

“We see it as unlikely the Reserve Bank will raise the OCR again before 2017,” the BNZ said.

By this time, the BNZ expects to see CPI inflation back to within the Reserve Bank’s target range.

“Borrowers can expect to enjoy historically low floating rates for some time yet,” BNZ said.

The Reserve Bank’s statement followed a more upbeat assessment about the US and world economies from the US Federal Reserve, which also kept its rates on hold but left the door open for a hike in December.

4 |The Business

Friday, October 30, 2015

News Mad Butcher sale vacuum Veritas Investments says it has had no success selling Mad Butcher outlets currently for sale and that the cut-price meat chain continues to face a “challenging” environment.

However, it remains on track to meet profit guidance issued in June, in which it said annual profitability was expected to rise 28 per cent in the 2016 financial year — equivalent to its earlier expectation of results for the 2015 financial year. The company said then that it expected net profit of between $5.3 million and $5.5 million in the year ending June 30, 2016, up from the $4.3 million anticipated in 2015.

In an update to the NZX on first quarter trading in the 2016 financial year, chairman Tim Cook said Veritas was “exploring options” for its subsidiary Kiwi Pacific Foods, a supplier of beef patties for major client Burger King, through a joint venture with a subsidiary of Antares

Restaurant Group.

Antares this year sought to terminate its contract with Kiwi Pacific, a decision that Kiwi Pacific challenged and lost at arbitration and is now seeking to appeal, with the supply agreement scheduled to end in April next year.

Veritas said its Better Bar company, which owns bars in Auckland and Hamilton, was trading to expectations in Auckland but “the Hamilton bars continue to underperform and the board are proactively working on a number of potential solutions to produce a positive outcome”.

Nosh stores “remain on track to be profitable in the next quarter”.

Veritas was now seeking to appoint a chief executive and had made an interim appointment of John Hames as chief financial officer.

Veritas shares were unchanged at 43 cents.

— BusinessDesk

Veritas says the butchery chain continues to face a ‘challenging’ environment.

Picture / Richard Robinson

AgResearch says 78 staff to go Net loss 51 jobs as Govt pushes for value

A

gResearch will cut 78 staff, five fewer than first flagged a month ago, as the Government puts pressure on the science body to deliver more bang for its taxpayer-funded buck.

The Waikato-based crown research institute will lose 31 scientists and 46 science technician roles across different research areas, while hiring 18 new scientists and nine new technicians, taking the net loss of staff to 51, out of its 769 full time and 95 casual employees.

Chief executive Tom Richardson said after reviewing submissions from staff the CRI was able to reduce the net loss of staff from 56.

It had to balance shifts in its sector’s research needs, and therefore revenue, with the need to respond to emerging science opportunities to maximise the impact for New Zealand’s pastoral sector, he said.

“The challenge for us all is what is the balance between the science platforms and long-term investment in areas, versus work that is seen to be more relevant in the short-term.

“The Government, like every Government I am aware of on the planet right now, is saying we want to understand better how the investment we’re making is making a difference for the country. So this Government has been really clear that their priorities around research are to

Tom Richardson

increase the amount of private-sector activity and investment and to make sure the work we are doing is relevant,” Richardson said.

When news of the cuts first emerged last month, AgResearch scientist Doug Edmeades described it as a “pretty fatal blow” to agricultural research, representing a loss of about 19 per cent of its researchers.

Richardson said it was about balancing the research, and while some issues, such as greenhouse gases, would see a greater focus on product development than blue-sky research, other areas such as food and nutrition would see more in-depth, early-stage research.

“In our portfolio about a quarter of what we do is blue sky, about twoquarters of what we do is in the near applied space and a quarter of what

we do is in the near development phase, so we’ve got a product in mind, we’re developing it and it’s almost always with a commercial coinvestment, and . . . our challenge is constantly looking at that balance in quite specific areas,” Richardson said.

The balance after the staff cuts would remain about the same.

AgResearch earlier flagged a likely full-year budget shortfall, mainly thanks to a drop in revenue from Ministry of Business, Innovation and Employment and Primary Growth Partnership-related contracts.

It posted $63.7 million in revenue for the six months ending December 2014, down $5.2 million on the same period the previous year and below budgeted revenue of $69.9 million.

It made a net deficit after tax of $5.9 million.

— BusinessDesk

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Friday, October 30, 2015

The Business | 5

Market heft gives ANZ lift

Westpac offers refunds

Bank’s NZ arm reports 4% profit rise to $1.8b Christopher Adams

M

arket-share gains helped ANZ New Zealand drive a 4 per cent lift in annual profit to a record $1.8 billion.

Reporting the result yesterday, chief executive David Hisco said the bank had continued to grow its share of segments including home and business lending, credit cards, KiwiSaver membership and deposits.

ANZ had become the largest mortgage lender across all of New Zealand’s major cities, Hisco added.

The bank posted an 8 per cent lift in lending to $114.4 million for the year to September 30, ahead of the 5.9 per cent loan growth BNZ reported.

Customer deposits rose 11 per cent to $84.9 million. Cash profit, which excludes non-core items, was steady

David Hisco says ANZ New Zealand’s growing market share has contributed to its record profit. compared with the previous year at $1.7 billion, while operating income rose 3 per cent to $3.9 billion.

“Customers are happy with the proposition so we think we can continue to have steady growth across our core markets,” Hisco said.

A $76 million credit impairment provision, up from a $9 million writeback a year earlier, reflected a “normalisation” of impairment levels.

The bank was comfortable with the quality of its dairy loan book,

despite the dairy price downturn and its effect on rural customers.

Hisco said ANZ’s institutional business remained the market leader.

ANZ’s bumper result comes after BNZ cracked the $1 billion dollar profit mark for the first time.

ANZ, New Zealand’s Australian parent of the same name, reported a 3 per cent rise in profit to A$7.5 billion.

Its shares closed A$28.17 on the ASX last night.

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Westpac in Australia is offering refunds to more than 10,600 customers found to be paying for insurance they did not need.

The refunds come after the Australian Securities and Investments Commission found Westpac had collected premiums from some customers who did not have a loan or had already paid it off.

Westpac says the two credit insurance policies in question were designed to provide benefits in the event of death or illness as long as premiums were being paid, rather than for the life of a loan.

“ASIC felt that some customers may not be completely aware of this fact and we have been working with them since 2012 to come to this point,” a representative said.

Westpac will offer to refund any premiums that were paid before a loan had been drawn upon, after it had been paid off, or when a customer did not intend to be covered.

The amount to be refunded will not be known until the affected customers respond to the bank’s offer.

It is the latest instance of a refund from a major financial institution after the involvement of the corporate regulator.

Commonwealth Bank is currently finalising A$7.6 million ($8.1 million) in payments to 8400 regional customers who did not receive the lower fees and interest rates to which they were entitled.

— AAP

6 |The Business

Friday, October 30, 2015

Invenco more than delivering Secure pay tech company on track to again double revenue Holly Ryan holly.ryan@nzherald.co.nz

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eter Maire — who cofounded global GPS company Navman before selling up in 2007 — says his new tech business doubled its revenue last year and is on track to double again next year, “easily”.

Secure payment technology company Invenco is one of several fast growing local companies in the financial services technology sector along with the likes of Xero and Vend.

In the past year the company, which provides payment technology for petroleum companies, has doubled its revenue to $39.4 million, substantially increased its profitability and expanded its international presence with strong sales growth in its Asian and European markets.

Maire said the company was set to continue this growth with major opportunities globally, including a recent partnership with US company NCR, which has around 25 per cent market share of all of the petroleum retail business in the US. “I would expect we will at least double again next year — easily,” Maire said. “Just looking at the potential of [our next deal] alone it’s well north of US$500 million and the US is a mammoth opportunity for Invenco. There’s years of opportunity ahead of us in that market.”

Invenco was formed in 2009 by Maire and chief executive Dave Ritten, after Maire bought the Invenco portion of the bankrupted Provenco Cadmus business. The company was this week ranked 47th in the 2015 Technology Investment Network (TIN) report, which tracks the progress of New Zealand’s technology companies as well as the sector as a whole. The company also made the top 10 companies-to-watch list, which ranks companies by highest dollar revenue growth.

Maire said the success of Invenco was a reflection on the industry as a whole, adding that the payments space in New Zealand was quite well developed.

“New Zealand has been at the front edge of adopting secure payments technology from the very early days,” Maire said. “I guess it’s because we are small and isolated and certain banks chose to fund developing product in technology in New Zealand instead of buying it offshore, and now there’s a good platform in New Zealand and there’s very good depth of experience in payments here.”

Invenco is just one of a group of companies in the financial services sector that are fast growing and increasingly globally focused. This growth has been led by the big names like cloud accounting provider Xero and point-of-sale company Vend.

According to this year’s TIN100 report, the financial services sector is the fastest growing in the technology industry, employing 812 more people in the past year. The 11 financial services companies in the report grew their revenue by $129 million, or 58 per cent, in the past year.

Xero topped this list with revenue

Technology’s top 200 NZ’s 200 largest locally based, export-focused technology companies

Exports

$6.5b (up 7.5%)

Employees

$8.95b

37,333

(up 7.3%)

(up 6.9%)

The big 10 1 2 3 4 5 6 7 8 9 10

Total revenue

*Estimated

Fisher & Paykel Appliances Datacom Group Fisher & Paykel Healthcare Navman Wireless New Zealand Gallagher Group Temperzone Group Tait Communications NDA Group Orion Health Tru-Test Group

Household appliance manufacturer Computer services Medical device manufacturer Fleet tracking Animal management, security and fuel systems Air conditioners and heat pumps Radio manufacturer Manufacturing of industrial storage and process vehicles Clinical workflow and health sector technology Agritech products and services

Ten to watch

TIN200 companies that recorded the highest dollar growth in revenue 1 2 3 4 5 6 7 8 9 10

Fisher & Paykel Appliances Datacom Group Xero Fisher & Paykel Healthcare Diligent Corporation Gallagher Group Invenco Transaction Services Group Cubic Defence NZ Vista Group International

Home appliance manufacturer Computer Services Online accounting software Medical device manufacturer Software solutions for board management services Animal management, security and fuel systems Secure payment solutions for retailers Customer payment solutions Defence training and simulation capabilities Software for cinema management

Up and comers

Companies from the extended TIN200+ list of smaller businesses which recorded the highest dollar growth in revenue 1 2 3 4 5 6 7 8

Pushpay Vend Serko SimplHealth Solutions Pacific Edge Data Torque Snakk Media Straker Translations

9 ikeGPS 10 Connexionz

Revenue 2014-15 $1.13b $937m $672m $300m* $203m $173m $170m* $165m $164m $147m

Largest companies in the TIN200, by revenue

Mobile commerce solutions Cloud-based point-of-sale and retail management software Travel software IT healthcare solutions Cancer diagnostics Software developer Advertising campaigns targeting mobile devices Translation services delivered through the company’s technology platform and human resources GPS-laser technology and service Real-time passenger information systems for public transport

Revenue 2014-15 Growth $1.13b 9.2% $937m 6.4% $123.9m 76.7% $672.3m 7.8% $112.9m 51.2% $203m 1.5% $39.4m 100% $64m 43.2% $77.8m 31.8% $47.2m 54.2%

Revenue 2014-15 Growth $4.8m 1415.2% $8.4m 110.9% $11.8m 55.4% $6.1m 125.9% $4.1m 392.5% $9.7m 42.6% $ 9.9m 40.3% $8m $4m $5.1m

50.9% 113.7% 47.8%

Source: Technology Investment Network Ltd / Herald graphic

New Zealand has been at the front edge of adopting secure payments technology from the very early days.

Peter Maire

of $123.9 million — growth of 76.7 per cent for the year.

Most of the $9 billion revenue generated from the top 200 companies came from high-tech manufacturing firms including medical device manufacturer Fisher & Paykel Healthcare, electric fencing and animal management company Gallagher Group and fruit sorting machinery company

Compac Sorting Equipment.

According to TIN managing director Greg Shanahan, this year was the first in which revenue growth had occurred across all regions although growth was still predominantly led by Auckland and Wellington companies.

This year’s report also showed a record 19 companies that had revenue of more than $100 million each.

Friday, October 30, 2015

The Business | 7

Stock Takes

Christopher Adams

christopher.adams@nzherald.co.nz

Rally wipes out China losses Dream run ends with plenty still in reserve

T

he sharemarket’s October dream run came to an end on Wednesday.

The S&P/NZX 50 held its ground for most of the trading session, before dipping slightly into the red just before market close, scuttling what would have been its 13th straight day of gains. Still, this month’s rally has more than erased the losses suffered during the China-linked turmoil that enveloped markets through August into early September.

The S&P/NZX 50, which closed up 0.1 per cent last night at a new record of 6002.4, has now gained roughly 8 per cent in the year to date.

If sentiment holds up, it’s not too much of a stretch to imagine the local market notching up another year of double-digit gains, which was looking highly unlikely a couple of months ago.

Where to from here?

Maybe the bull market has some time to run yet.

There are, however, a few factors that could spark another bout of volatility, including the economic situation in China, the commodity price slump and the outlook for US interest rates. The US Federal Reserve held rates steady this week but it’s looking increasingly likely that they’ll lift them for the first time since 2006 in December.

On the plus side, the European Central Bank is dropping hints of providing more monetary stimulus for the eurozone economy.

In a research note published last week, Auckland fund manager Castle Point said markets had reached a crossroad and it was difficult to predict where they may go from here.

“Historically, market corrections take three months on average so we are possibly only halfway through this one. While it may be difficult to

New Warehouse boss has big task Downunder The shift from Chicago to Auckland will be a big move for incoming chief executive of The Warehouse Group, Nick Grayston. But a fews things about New Zealand’s biggest listed retailer should make him feel at home.

Since 2008 Grayston has held various executive roles with US retailer Sears Holdings, the operator of Kmart and Sears stores.

Like The Warehouse, Sears has taken a beating from the ever-increasing dominance of online retailing and has been accused of losing touch with 21st century American shoppers.

Even the star appeal of the Kardashians has failed to improve the retailer’s fortunes. In an attempt to reconnect with younger consumers, Sears launched a footwear and apparel collaboration with reality TV stars the Kardashians, and their Kardashian Kollection. However, it was dropped earlier this year, reportedly as a result of lacklustre sales.

English-born Grayston will replace Warehouse boss Mark Powell early next year. On Tuesday, chairman Ted van Arkel said Grayston had the experience to take The Warehouse “to the next level”. Warehouse shares closed down 1c at $2.79 last night.

NZX50

THE WAREHOUSE

Close=$2.79

$

3.20 3.00 2.80 2.60 Oct 29, 2014

Oct 29, 2015

Source: Bloomberg / Herald graphic

Incoming Warehouse Group chief executive Nick Grayston (inset) worked with Sears, whose Kardashian Kollection backfired. to their portfolios in the current environment.

Close=6002

Buy and sell

5900 5800 5700 5600 5500 Oct 1

Oct 29 Source: Bloomberg / Herald graphic

pick whether or not we are at the end of the bull market, any further highs from here are firmly in bubble territory.”

Castle Point notes that investors should be considering downside risk

A secondary market for trading shares in equity crowdfunded firms should soon be up and running.

Syndex, an exchange for proportionally owned assets, is looking to establish a market for buying and selling shares in companies that have raised money through the Equitise crowdfunding platform. It’s a significant development for the nascent equity crowdfunding market because, as things stand, it’s difficult for investors to get in or out of crowdfunded firms after the initial issue.

Equitise co-founder Jonny Wilkinson told Stock Takes that the timing of the secondary market’s launch was dependent on Syndex receiving a licence from the Financial Markets Authority (FMA) to operate as a licensed financial products market.

He said that should happen within the next few months.

Wilkinson said there would be a short period where Equitise would have an exclusive right to Syndex’s platform, but after that ended other crowdfunding platforms would also be able to access the secondary market.

AlphaCrowd, New Zealand’s eighth licensed crowdfunding provider, received the green light from the FMA a week ago.

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8 |The Business

Friday, October 30, 2015

Media

John Drinnan

john.drinnan@nzherald.co.nz

Hager case bad PR, not disaster Westpac clients unlikely to desert over privacy breach

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assing Nicky Hager’s banking records on to police has been a bad look, but in my view it’s not a public relations disaster for Westpac.

Customers looking for a mortgage won’t be avoiding the bank because of the reactions of journalists and the socalled chattering classes on Twitter.

Nor are people who are already wedded to Westpac likely to look elsewhere, given the notorious loyalty of bank customers.

Westpac was pilloried this week after the Herald reported the bank had given Hager’s records to police investigating the mysterious Rawshark, source for his book Dirty Politics.

But in my opinion there has been some minor brand damage for Westpac, because the incident goes to the heart of two key elements of all bank brands: trust and privacy.

The Westpac case has implications for everybody’s privacy rights but there are special issues for the media.

Journalists accept that police or other authorities can trawl through their bank accounts — if they can get a legal order. But in this case the decision fell to the subjective opinion of a staffer who, for all we know, knew nothing about the case beyond what the police told them.

Westpac appears to have been asleep at the wheel, not just with its privacy policy but also its communications strategy since the issue became public knowledge.

One competitor said any decision on such a request for information should have been automatically referred to the corporate office and the internal communications office.

Westpac has changed its policy so it will confirm that a named individual is (or was) a customer when it gets a request. Any additional information requested will require the appropriate order or warrant.

Westpac external relations manager Chris Mirams advised media of the new approach to police requests, but declined to give details on the Hager incident or respond to the subsequent bad publicity.

The Bankers Association — representing all the big banks — says it is taking the issue seriously.

Privacy Commissioner John

Concert plays on, amid Radio NZ changes Radio New Zealand plans to run more contemporary music on its online arm, but chief executive Paul Thompson insists it has no plans to duplicate commercial radio.

This column has previously reported that RNZ is taking a co-ordinated approach to music, which will have an impact on its fine music channel, Radio NZ Concert.

The online operation has been something of a star performer for Radio NZ. The broadcaster is not alone in that regard — online sources such as Spotify and iHeart Radio now provide a big part of

New Zealanders’ music diet.

But inside RNZ, changes to Concert are causing consternation. Traditionally, the station has attracted a small but passionate audience which has fiercely resisted change.

But the changes have have already begun. There will be some staff losses and more use of digital technology — but no more recorded material, says Thompson.

While some listeners will baulk at the changes, others will ask why the fine music audience gets treated so well, with

Edwards was unable to say whether he had received a complaint from Hager. The commissioner recently launched a transparency trial, under which organisations have to provide him with details when they have given information to police.

PLUG ’N’ PRAY Nicky Hager

A couple of weeks back I mentioned my latest trials and tribulations with new media technology as I use three streaming services — Lightbox, Neon and Netflix — as well as Freeview Plus. At any one time one of these will be suffering glitches in their software, the broadband service or some problem with the connections

$5 million in annual funding. They will ask whether other genres such as jazz, blues or country deserve a bigger piece of that pie.

Thompson acknowledges he has heard those arguments.

“RNZ Concert will continue to focus on classical music and on showcasing the live performances of the best NZ artists and orchestras,” he says.

Radio NZ says Concert has a weekly cumulative audience of 127,000 people aged 15-plus, compared with 439,000 for Radio NZ National.

between the various devices.

I was encouraged to discover from more expert sources that it was the technology at fault, not me.

Technology commentator Paul Brislen says digital entertainment media services are in a transitional stage, between a period when the industry was focused on the early adopters, to one where it is now attracting the fast followers.

But the real growth will come when everything is clean and simple enough for the vast rump of consumers.

Young people who have grown up with new technology have an advantage, but it is not just about old versus young.

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Radio NZ Concert will continue to offer live performances, the broadcaster says.

Picture / Supplied

Another veteran tech-watcher, Peter Griffin, says: “I think a lot of problems come from the use of WiFi. Ideally, people need to be plugging straight into the TV with a cable.”

The trouble, says Griffin, is that when problems occur, it’s hard to know whether they are in the device, the broadband service or — more likely — the links between them.

“We are at that in-between stage — it’s not easy to interact between devices in the home. The early days of web browsers were like that and there are more changes to come,” says Griffin. “But we are getting to the point in the US where people can just push a button to make sure the linkages work.”

Friday, October 30, 2015

The Business | 9

Economy

Brian Fallow

brian.fallow@nzherald.co.nz

New limits loom for landlords Latest lending rules aim to cool heated housing market

ILLUSTRATION / ANNA CRICHTON (illustrator@annacrichton.com)

F

rom November 1, people borrowing to buy a residential investment property in Auckland will need at least a 30 per cent deposit, the Reserve Bank has decreed.

This represents a tightening of the screws for this subset of borrowers within the regime of regulating loanto-value ratios (LVRs), which the bank introduced two years ago.

Why is it doing this? The short answer is in order to douse some demand in Auckland’s overheated property market.

“Demand” in this context is not physical demand — people needing roofs over their heads — but rather buyers in the market for houses and apartments. And especially in Auckland, those are two very different (albeit related) things.

Reducing demand by raising interest rates is not available as an option. In governor Graeme Wheeler’s words, that is the last thing the economy needs right now.

The case for targeting Auckland is straightforward. The median house price in the city rose 25 per cent in the year to September.

In the rest of the country the rise was 8 per cent and that was boosted by the “halo effect” — the spillover of demand from Auckland to neighbouring regions.

Deputy governor Grant Spencer in a speech two months ago pointed to how stretched Auckland house prices have become. The ratio of house prices to incomes has climbed from around six times in 2012 to nine, he said, a level seen in some of the world’s most expensive cities like London, San Francisco and Sydney.

At the same time, the debt-toincome ratio for the representative Auckland buyer has climbed from around 4.5 times to seven.

But why pick on investors in particular? The Reserve Bank cites two things.

First, investors represent a growing share of purchases of Auckland properties and also of mortgage debt.

And they are, the bank argues, riskier borrowers — more likely to default in the event of a house price crash than owner-occupiers, who would lose their homes as well as their shirts if they did.

A third reason (which the bank does not advance) is that investors have a disproportionate effect on house prices.

The would-be landlord is often the marginal buyer, the one who would leave the market if the price were any higher. He is the guy the owneroccupier has to outbid and if the price he is willing to pay is inflated by his expectations of enjoying all the benefits of leverage in a rising market until he is ready to collect his untaxed capital gain, then that is the price the

would-be owner-occupier will have to better.

Research published by the Reserve Bank this month shows that purchases by investors rose from around a third of the total before the introduction of LVR restrictions two years ago, to just under 40 per cent by July this year.

So whose share has been correspondingly shrinking? Initially it was first home buyers, as you might expect. But since mid-2014 their share has been trending higher and is now back where it was before the announcement of the LVR curbs, which hit them hardest.

Instead it is movers — owneroccupiers selling one home and buying another — whose share of property purchases has been declining.

And even though cash buyers are not affected by borrowing curbs, their share of the Auckland market has in fact declined (from around 23 to 20 per cent) since LVR restrictions were introduced.

Trawling through the data also reveals it is smaller investors (those who own two to four properties) who have been driving the increase in investor activity, as opposed to those with larger portfolios.

“This sort of profile — smaller investors who are reliant on credit — suggests that the new LVR restrictions on Auckland residential

The would-be landlord is often the marginal buyer . . . he is the guy the owneroccupier has to outbid. investors are likely to have an impact on overall demand,” Spencer said.

“This is especially so when we consider that over half of investor lending is currently being written at high LVRs, that is, LVRs of over 70 per cent.” How much impact is a moot point and the bank has been careful not to paint this policy as any kind of panacea, emphasising instead the importance of a supply-side response.

But that does not mean it is not worth doing. This issue is bedevilled by people mounting arguments along the lines “That’s not the problem.

This is the problem,” or “That won’t fix it. We need to do this other thing,” as though we were only allowed one problem and one remedy.

The Reserve Bank’s contention that lending to landlords is riskier than lending to owner-occupiers has not gone unchallenged, however, for example by Ian Harrison of Tailrisk Economics.

The Treasury sees some merit in some of the criticisms of the evidential basis for the policy, even though its bottom-line conclusion is to

support it, “given the consequences of doing too little too late”.

The level of risk to systemically important banks’ solvency is not the only risk that is relevant here. A bank failure and the associated need for a costly bailout is not the only potential danger to be guarded against.

A credit crunch is another.

It is not just a matter of what nasty things the real economy might do to bank balance sheets, but what the banks in turn would do to the economy in response to such a shock — a feedback effect.

Last year the four largest New Zealand banks were subjected to a stress test which postulated a 40 per cent drop in house prices combined with a severe recession and rising unemployment.

“While this test suggested that banks would maintain capital ratios above minimum requirements, [they] reported that they would need to cut credit exposures by around 10 per cent, the equivalent of around $30 billion, in order to restore capital buffers,” Spencer said.

Such a contraction in credit would only deepen the recession, leading to further falls in asset prices and even larger losses for the banks.

“A key goal of macro-prudential policy is to ensure that the banking system has sufficient resilience to avoid such contractionary behaviour in a downturn,” Spencer said.

10 |The Business

Friday, October 30, 2015

A Business Series

Broadening Horizons Change creates opening for NZ Sponsored by BNZ

D

ean Nikora has an analogy for the differences between doing business in China and New Zealand.

The group director for the Food Trust Alliance — a partnership between the New Zealand Government-owned AsureQuality and PwC — says when you get off the plane at a New Zealand airport it’s a fairly orderly process.

Everyone waits their turn to get off the plane, grabs their bag and wanders off, he says.

“You get off the plane in northern China, it’s a scrap.

“If there’s a gap, there’s a scrap for it.

“Everybody is crawling all over top of each other and if there’s a gap they’ll take it.

“My learning is, that’s just the way it is — this is China.

“And it’s like that in business.

“If there’s an opportunity or a gap they’ll take it and the fact that they’ve left you behind, they don’t think that’s unethical, and it’s not unethical in their mind — it might be in ours because we’re used to some sort of orderly way of doing things but these guys aren’t, so you’ve really got to think about how the rules are.”

Nikora is in China establishing the consultancy joint venture that is providing food safety advice to local food and primary production businesses.

Among his clients is COFCO, a state-owned food giant with production facilities both in China and around the world.

“They believe they’ve got supply contracts globally to supply China with a staple diet if there was a food safety problem.”

Nikora is helping COFCO implement new food safety regulations introduced at the beginning of the month.

The changes slash the number of regulations from 500 down to 50, and COFCO — a business with 1 million staff and operations in 140 countries — needs to understand the implications by Christmas.

China aspires to best practice in primary production and food safety, but what Nikora has seen since he’s been in the country is far below gold standard.

Production is being switched to large-scale farms but Nikora says that bar a couple of shining lights — Fonterra and Bright Dairy farms in China are rated highly — most have problems with environmental degradation, poor management and significant animal welfare problems.

“It’s not unusual to go in and see 30 to 40 per cent of the herd with physical disease problems.”

While the Chinese Government is throwing billions of dollars at creating safe and efficient food production systems, it is also encouraging companies to look outside its borders.

For nearly two decades, Scott Brown, managing partner at Redfern Associates, has been helping businesses break into the Chinese market.

But now it has flipped, he says, with Chinese coming to him and

China is working to lift food-production standards, but many farms still have a long way to go.

Picture / Bloomberg

In the last of six articles, the Herald, in conjunction with BNZ, unlocks the path New Zealand food and beverage exports take from the ports of China to the plates of Chinese consumers. Written by Helen Twose, the series debunks the myths, reveals the hidden dragons and shares the success stories of New Zealand businesses taking products to the giant Chinese economy.

A BUSINESS SERIES ES SPONSORED BY

asking for help in finding a farm.

“The process is still the same, it’s just heading in the other direction because China does have an aspiration to go out.

“It’s certainly cashed up enough and they have a Government directive to go out, but the only thing they haven’t done in 5000 years is to go outside China very well and they’re nervous about it.

“They don’t know how to do it and they’re making the same mistakes that New Zealand companies and foreign companies have been making coming in here for 20-odd years.

“It’s like groundhog day.”

Brown says China got rich making stuff for the world, but many of the people who did that are now retiring and the businesses are being run by their sons and daughters.

“They’re aspirational, they’re cashed up, they’re internationally

They’re [the Chinese] aspirational, they’re cashed up, they’re internationally educated and they don’t want to make your stuff anymore.

Scott Brown, Redfern Associates educated and they don’t want to make your stuff anymore.

“They want to make their stuff but they don’t know how to go out and they need some of your technology to do it.

“That does not mean ripping it off.

“They are quite genuine and have the same methods that you and I do about how we could partner on this.”

China is moving up the value chain, he says, and it wants technology, healthcare and assistance with aged care.

“New Zealand’s very good at that, we just haven’t packaged it the way we need to do for this market.”

Despite a huge number of foreign multinationals operating in China, the leading brands in the market are Chinese. Contributing to the success of a Chinese partner and then just “holding the tail” can be an effective strategy for international businesses, says Brown.

With Chinese e-commerce businesses providing the channel to market — giant Alibaba accounts for 9 per cent of retail sales and its head, Jack Ma, told investors this month that e-commerce will account for half of China’s consumption within 10 years — it’s these companies that are wanting to secure the supply chain, whether that’s beef or medical devices, says Brown.

“I have New Zealand food companies coming to me and saying ‘find me a distributor’.

“No, no, no, no. You only make 10,000 cases, that’s not enough for them, they’ll order it in one order.

“Give me 30 per cent of your company and I can have a very different discussion with a very different distributor who can do national and he’s going to give you the capital to buy up your four neighbour’s farms.

“We’re not big enough on scale.”

Brown says the Chinese companies he talks to aren’t interested in the land — it’s what comes off it that they’re after. “High level generalisation, and maybe I wouldn’t be popular in New Zealand to say this, but you can’t take the soil away.”

— Helen Twose travelled to China courtesy of the Bank of New Zealand.

Friday, October 30, 2015

The Business | 11

Executive

success

Helen Twose helen.twose@gmail.com

Making sure the money comes in Debt collecting needs good data and the right people skills

When you have access to a whole lot of data then you can see trends and do cleverer things.

Donna Cooper, Baycorp

W

hen Donna Cooper considered taking the helm of Baycorp’s New Zealand operation, she took a long hard look at herself.

Would the role align with her values and could she feel proud of a move into debt collection?

“What I learnt was the more I looked at it, the more I realised how critical it is that companies like Baycorp exist and are there to support businesses,” she says.

Bad debts have been good business for Baycorp for nearly 60 years, but Cooper, 41, says it also has an important role in ensuring businesses keep cash coming in the door.

“Everybody can think of someone they know who hasn’t been paid and how very much they feel for them.”

Baycorp’s long history has been its strength, contributing to the biggest default database in Australasia, but there have been changes during Cooper’s 18-month watch.

The most public was the announcement last month that USbased Encore Capital Group has agreed to purchase a 50.25 per cent stake in the business. The deal brings the technological heft of a global player, giving Baycorp a jump start on competitors in the development of data analytics, Cooper says.

“Part of it is about expertise but part of it is just that when you have access to a whole lot of data then you can see trends and do cleverer things because you can test on bigger volumes.”

“Effectively, what it does for Baycorp is rather than us developing all that ourselves we can open the door to some of the best people in our industry and some of the global best practice.” And the smarter Baycorp is

Much of Donna Cooper’s career has been overseas, working mostly for American Express.

Picture / Greg Bowker

with this data, the more successfully it can collect money on behalf of its clients, she says.

The deal not only provides Encore with a foothold in a new market, it also gives it a deeper pool of data.

While hard data helps track down debt dodgers, the soft touch plays an important part in ensuring bills are repaid.

Cooper says Baycorp acts as an extension of its clients’ organisations and needs to ensure it takes their reputation seriously and treats their customers well.

She has taken what she says is the “obvious but important” step of standing back and really understanding what clients are looking for from a collections company.

“We’re focused on being much more of a partner and listening to what clients want as opposed to just

being a provider of a service; of sharing some of our expertise so that they can put that into their business and improve what they’re doing.”

Cooper says she also wants her staff to feel proud of the job they do in what can be a challenging situation.

A new logo has been the outward sign of a fresh, modern and professional approach to its services, but Cooper says there has also been a behind-the-scenes improvement in the company culture.

“It’s not a nice situation to be in, whether you are the person who is owed the money or owe the money, so we’ve been thinking more about our business as being resolving problems.

“I think that’s been a big mindset change in our organisation but it’s delivering some really nice results for everybody.”

For Cooper herself, the Baycorp role marks a return to New Zealand

after a career spent, for the most part, overseas with American Express.

The former Rangitoto College head girl says postgraduate study in France gave her a taste for life abroad.

“I guess I’m a bit of an adventurer at heart.”

Her most exotic posting was two years in India from 2006, helping reestablish the American Express brand in the face of growth among credit card rivals in the rapidly developing market.

“It was probably one of the biggest learning opportunities from a career point of view for me as well because there is a very different culture; very hierarchical and . . . much fewer women in senior roles so I really got first-hand experience of what it was like to be in a cultural and gender minority.”

She went to India with a deep knowledge of American Express, but little understanding of the local market. Cooper needed to meld her skills with the abilities of the local team to carve out a niche for Amex as the premium credit card option in the market.

“I don’t know how to say this without sounding trite, but I believe leadership is how you empower a lot of smart people to do a great job, because if there’s a clear vision about what you want to achieve and you’ve got 100 people who are all empowered and going in the direction to deliver that, you get a much better outcome than if you’re one person trying to go somewhere, trying to pull everyone along.”

For now, Cooper, with her young family, isn’t going anywhere.

“I’m really happy here but I’m always an adventurer at heart and I’ll always remain open-minded to opportunities but for now I’m good.”

12 |The Business

Friday, October 30, 2015

Feature

Managing the

With apartment living becoming ever more popular, is it time for

M

t Wellington accountant Brent Murdoch is a worried man.

He says the management of a block of shops — he owns one and is also the body corporate chairman — illustrates precisely why there should be a change in the law on the administration of multiply-owned buildings.

Murdoch, of accounting firm Clark & Murdoch, had one body corporate manager looking after the Mt Wellington property for some years without much joy.

“After a number of incidents we changed managers and the new one proved a lot more proficient.

Unfortunately, that was sold and we got another new one. Our body corporate now has a substantial accumulation of funds for long term maintenance saved up and it is a concern to me that the system is unregulated,” says Murdoch.

He says he has a good reason for attending meetings of the Body Corporate Chairs’ Group: to remind himself never to buy an apartment.

“Kiwis haven't evolved into a shared accommodation situation that works,” argues Murdoch. “Most Kiwis come from a stand-alone home, so when you put a lot of people together, they don’t share too well — and the law doesn’t help.”

Murdoch is one of many people pushing for an overhaul of the Unit Titles Act, to beef up the system which governs properties held in multiple ownership.

In Auckland, apartment owners can pay anything from a few hundred to tens of thousands of dollars a year in body corporate fees.

But in what appears to be a bizarre sleight of hand, while bodies corporate are regulated, their managers are not. That has brought grief, particularly to Auckland’s rising number of apartment dwellers, many of whom assumed that buying an apartment had made their lives simpler, only to find themselves tied up in knots in the system.

In the words of house-dwelling Brian Keene, QC, president of the Auckland District Law Society and a skilled litigator with more than 37 years of experience: “I go home for peace and quiet, not to apply my skills to where I live.”

In Wellington, Neil Cooper enjoys living in an apartment in Victoria St, in the heart of the capital. But as national president of the Body Corporate Chairs’ Group, set up to support body corporate chairpeople, he doesn’t enjoy hearing stories of heartbreak and financial difficulties.

So Cooper wants managers regulated.

“Some body corporate management companies are a law unto themselves,” he says. “There is no regulatory body governing them, no code of conduct and no disciplinary processes available when one abuses their powers. At the same time,

though, they are effectively trustees of many millions of dollars of owners’ money, not all of which is well managed as this case shows.”

Cooper is referring to a Tenancy Tribunal decision reported on last month, in which adjudicator Brian Stephenson ruled against Body Corporate Administration, previously in charge of unit title businesses in two Auckland properties — the Heritage Hotel in Hobson St and the City Life building, Queen St. Nineteen claims, including issues involving accounting practices and over a sum of $43,246, prompted Stephenson to question the body corporate system and unit title owners' lack of redress to any official authority.

“Had the same facts arisen in the context of a solicitor's trust account, the inevitable result would have been an inspection of the trust account by the New Zealand Law Society, probably followed by disciplinary action. There appears to be no comparable regulatory regime overseeing trust accounts operated by secretary/managers for bodies corporate,” Stephenson wrote in his tribunal decision.

Cooper, of the Body Corporate

KEY QUESTIONS ■ If a body corporate manager says they use a trust account, check it is separate from their own business account.

■ Check whether interest on funds held is paid to the body corporate.

■ Check funds are clearly identified.

■ Ensure there is a current contract between the body corporate and the manager, setting out the tasks the manager is responsible for.

■ What is the degree of rigour around audit – is each account audited, or just spot audits carried out?

Source: Liza Fry-Irvine, Pidgeon Law Chairs’ Group, says the latest legislation failed to remedy existing issues.

“The group is aware of less than satisfactory practices from some body corporate management companies.

Bad practices have been there for years, and while the 2010 Act has addressed and reduced a number of issues, not all management companies are compliant with the Act, let alone with the intent of it,” he complains.

Most managers are doing well, Cooper acknowledges, but when issues do arise, they tend to be major ones, often involving millions of dollars.

“The Act has no teeth. While the chief executive of the Ministry of Business, Innovation and Employment (MBIE) has powers to investigate breaches, the Act also states that the chief executive is not obliged to perform or exercise any of those functions or powers.

“In practice, MBIE plays no part in enforcing the Act, and information of value to chairs is limited to what

is on their website,” he says, although he does concede that the site has been improved recently.

Andrew Porter is general manager of one of Auckland’s larger body corporate managers, Boutique Body Corporates, and shares concerns about the sector.

“We [Boutique] have a full accounting department headed by a qualified accountant. We hold all funds in a trust account but we get externally audited and we pay for that. That gives a high level of comfort,” he says. “But anyone can become a body corporate manager in the same way that anyone can become a property manager.”

Porter fears there could be a big failure, potentially with the loss of many millions of dollars.

Some bodies corporate keep control of their own finances, he says, which removes the potential for a manager to flee with the funds. But that system also brings potentially higher costs and more complications because, for a manager to pay bills, owners must give authorisation.

The ministry, however, says it is keeping an eye on the issues. “MBIE will continue to monitor behaviour and performance in this sector and hasn’t ruled out a regulatory regime for body corporate managers should the need arise,” says a spokesperson.

The Act provides rights and obligations on bodies corporate and unit owners to manage their unit title developments, with the state assisting

by providing a framework for the democratic process and, if necessary, a disputes process through the Tenancy Tribunal, MBIE says.

“MBIE assists bodies corporate and unit owners to manage their own affairs and exercise their property rights by providing online material and advice over the phone or via email.

“The issue of regulation of property managers and bodies corporate was carefully considered when the Unit Titles Bill was taken through the parliamentary process in 2009-2010. Further to this, in 2009 a review of the property manager sector conducted by the Ministry of Justice concluded that no new regulation was necessary.

“The review found that property managers are already subject to a range of obligations under general law, and that sufficient remedies exist for property owners who suffer loss when these obligations are breached,” MBIE says.

None of which offers much comfort to Milford lawyer Nick

Friday, October 30, 2015

The Business | 13

managers

better rules to protect residents? Anne Gibson reports Kearney, who also cites the lack of regulation of body corporate bank accounts.

“While yearly audits are enshrined in the legislation, members can pass a special resolution removing that requirement, and if so passed, these significant accounts, that can administer millions of dollars, remain largely unregulated, unlike real estate agents’ trust accounts which have a mandatory audit each year,” he says.

Another worry is the lack of information that must be provided to potential purchasers in a pre-contract disclosure statement, and the lack of remedy if one is not provided.

“All the juicy information is contained in the pre-settlement disclosure statement but a purchasing decision is usually based on information provided in the [pre-

contract statement]. Particularly, the pre-contract statement does not contain any information about longterm maintenance funds and purchasers can get a rude shock when this is given closer to settlement,” Kearney says.

The pre-contract statement goes to a potential buyer before an agreement is signed, whereas the pre-settlement statement must be provided at least five working days before settlement and contains much more detailed information.

John Gray, president of the Home Owners and Buyers Association (Hobanz), also wants to see a law change. He says the current situation is dangerous because body corporate chairpeople and their committees have failed to realise that the statutory role of secretary has been removed from the Unit Titles Act. So they have continued to engage their former secretaries who have morphed into body corporate managers.

“The change to the Act was to put the power

and control in the hands of the owners via their elected chairperson and committee, and all they perhaps needed was a book-keeper and for larger complexes a facilities manager.

The managers have inserted themselves into the operation of bodies corporate and in many cases in the absence of a proper management services agreement,” says Gray.

“Elected officers of the body corporate often don’t seem to realise that they still have all of the responsibility and body corporate managers require close supervision and proper decision making procedures.”

Many managers hold funds in their own bank accounts — another potential danger.

“This is an unacceptable risk, especially when large maintenance or contingency funds are built up,” says Gray. “It is arguably only a matter of time before a body corporate suffers as a result of mismanagement or misappropriation of funds.

“It also makes it very difficult if, for any reason, the body corporate decides to sack their manager and it does not have seamless access to their own funds.

“They are then dependent on their ex-manager to get around to

Neil Cooper

transferring the money.

“Chairpersons and committees have been conditioned into accepting that the random auditing of their managers’ accounts is an adequate substitute for a specific audit of the accounts of the body corporate, which it is not.

“When some bodies corporate have called for a specific audit, auditors have expressed some serious concerns about not being given adequate access to the accounting information and/or that proper records were not available.”

Licensing is unlikely, Gray admits, because government officials have no appetite for such a step.

“Accordingly, the elected officers of bodies corporate need to take control and be supported in their role by an independent organisation such as Hobanz.”

Liza Fry-Irvine, of Auckland law firm Pidgeon Law, believes New Zealand compares unfavourably with Australia.

“Various states in Australia

THE ISSUES ■ Body corporate managers in NZ are unregulated.

■ Only those in real estate agencies, operating under a real estate licence, are subject to oversight.

■ There is no mention of body corporate managers in the Unit Titles Act 2010.

■ In Australia, most managers join the voluntary Strata Community Australia, which has an accreditation system and a code of conduct. regulate body corporate managers,” she says. “Most join Strata Community Australia, a voluntary group with an accreditation system and a code of conduct, ensuring they are trained and equipped to do their job properly.

“Last year an Australian body corporate manager misappropriated $1 million of body corporate funds.

We are lucky nothing of that magnitude has happened here, at least that we are aware of.”

The Auckland District Law Society’s property law committee — of which Fry-Irvine is a member — this year tried to persuade MBIE to look again at the issue of regulation, but the bid fell on deaf ears, she says.

“Parliament seems to be taking a ‘don’t fix what is not broken’ attitude.

The Tenancy Tribunal decision is a reminder that not all managers are playing by the rules and attention should be put back on regulation.”

Body corporate managers handle hundred of thousands of dollars, rising to millions in some cases where they are managing repair work on a leaky building.

The Unit Titles Act put some controls on how these funds are handled but here are huge gaps, says Fry-Irvine.

“Often owners have no idea how their funds are supposed to be handled, which adds to the problem.”

14 |The Business

Friday, October 30, 2015

Comment

Best mates make the best workers Friendships can lift workplace productivity

Making friends is one of the most important things we will do in our careers.

I

once heard that a chief executive has the loneliest job because when you’re at the top, you can’t afford to be friends with people who work for you. I thought it was an odd notion — yes, you need to earn respect and lead by example but surely you can still build relationships with colleagues?

Years later, it seems this was indeed a workplace myth, along with the related: “We’re here to work, not to make friends.”

Making friends is one of the most important things we will do in our careers; it turns out the deeper our work friendships, the happier and more productive we’ll be.

A Gallup study found employees with a best friend at work tend to be more focused, more passionate and more loyal to their employer. They get sick less often, suffer fewer accidents and change jobs less frequently. Workplace friendships can even lead to more satisfied customers.

The numbers are quite staggering and the closer the friend, the better the numbers become. According to Gallup, more than 50 per cent of employees with a best friend at work

Team-building exercises make some people cringe, but there’s real value in bonding with co-workers.

Picture / NZME.

All Things Money Carmel Fisher Founder and Managing Director of Fisher Funds felt a strong connection with their company, compared to just 10 per cent of employees without a workplace BFF. In a 2013 survey of Australian businesspeople, those planning to stick with their current job cited “good relationship with co-workers” as the major reason (67 per cent) — ahead of job satisfaction (63 per cent), flexible working arrangements (57 per

cent) and salary (46 per cent).

One workplace psychologist claimed those we see daily at work have the potential to increase our happiness by as much as earning an additional $100,000 per year; not sure I’d go that far . . .

This might all seem common sense but it’s quite a challenge for employers to enable and sustain oldfashioned friendships in their workplace. Generations ago, workplace friendships were recognised as important and fraternising was encouraged, with company picnics and having colleagues to dinner.

But these days life is extra busy and our social interactions take place

in very different ways — who needs real human contact when you can maintain relationships via your phone or computer?

Employees tend not to stay with the same employer for life as they used to. If they don’t plan to stick around, they might not invest as much of themselves in their workplace relationships. They might be civil, professional and friendly but save real camaraderie for outside work.

I know some members of my team cringe at the thought of attending our company off-sites: games, teambuilding exercises and social activities with colleagues leave them cold. Others can’t wait to spend time with their colleagues in a non-work setting, getting to know them better and building deeper relationships.

Whether we bond at work is a personal decision but countless studies confirm the value in it for employees and employers, emotionally and financially.

One researcher summarised the concept: there’s nothing nicer than working with people who make Mondays feel like Saturdays.

This column is presented in association with Fisher Funds

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The Business | 15

Fleet Leasing

A New Zealand Herald commercial publication

Safety Act impacts fleet ownership More responsibility and penalties for offending, reports Paul Charman

T

o own your vehicle fleet or lease it?

Companies opting to own a fleet may be evaluating that choice in light of the Health and Safety at Work Act, which comes into effect on April 4.

As under previous legislation, workplace safety liability will extend to company vehicles, but there’s to be more responsibility on the person conducting the business or undertaking (PCBU) to ensure a safe work site overall.

Legal penalties will be extended for serious offending.

WorkSafe NZ says businesses can manage the risks to workers driving their vehicles.

These include ensuring vehicles are well maintained and roadworthy; that drivers have training, are licensed and are monitored for issues which might cause impairment (drugs, alcohol, fatigue); and that vehicles are used for the purposes they were designed for.

“If it was shown that a PCBU failed to take all practicable steps to

manage a risk that put at risk the health and safety of the workers they engage, influence or direct, or other people, this could lead to enforcement action — although enforcement is usually the last resort we use, not the first,” says a WorkSafe spokesperson.

The new Act allows for hefty fines, even imprisonment of up to five years for managers (or in some cases workers) whose reckless conduct or failure to comply is at the most serious end of offending.

“Companies could potentially pay up to $1.5 million upon conviction and those in authority will have more responsibility than ever to familiarise themselves with risks and manage them accordingly.”

Operating a fleet safely and efficiently is far more complex than most people imagine, says Bryce Grove, the general manager for trade operations at SG Fleet NZ. Companies would be better advised to leave it to specialists.

He points out that companies must ensure all employees are licensed to drive the vehicle they are

given, based on class.

“We check the status of the driver’s licence on an ongoing basis.

Transport New Zealand keeps us updated on status changes to drivers’ licences following speed camera infringements or licence expiry.

“If there is a change in the licence status we’ll let the employer know.

They may wish to institute an individual risk assessment, defensive driving course, or possibly counselling.

“Considering insurance issues and legal liability in the event of a crash, you must know the licence status of your employees.”

Another example of hands-on care

A fleet service company will always know the licence status of your employees.

taken by lease operators, would be — in addition to annual servicing — their willingness to make six-monthly vehicle safety checks.

This fills a gap following liberalisation of laws regarding Warrant of Fitness checks.

Now vehicles registered after January 1, 2000, require an annual WoF, while new vehicles (after the initial warrant) won't require another till the third anniversary of registration.

“This is a backward step, as an issue — such as a worn or damaged tyre — previously got picked up during the WoF check.

But a fleet lease company makes it their business to ensure no such issues arise.”

Grove expects increased responsibilities under the Health and Safety at Work Act to accelerate the trend to lease vehicles.

“For a company needing, say, 10 utes it would be madness to write out a cheque for $350,000 to $450,000 to buy them.

“A leasing company will — depending on the product — provide the fleet and manage all compliance, maintenance, fuel and accident damage better than they can, while charging a monthly rate to do so.”

Intelligent Fleet Management Whether you run a fleet of 5 or 1,000 vehicles, sgfleet is the answer.

Corporate fleets

Government fleets

Small to medium employees

Passenger and light commercials

www.sgfleet.com Ph: 0800 743 533

16 |The Business

Friday, October 30, 2015

Markets 0800 102 100

Personalised Investment Advice

69

5950

5900

5800

5700

5650

5500

a2 Milk EBOS Group Spark NZ Air NZ Kiwi Prop Contact Energy Meridian Energy Sky Network NZ Refining Co Fletcher Building

5500

5300

64

Oct 15

Share name

Jul 15

Apr 15

Oct 29

Oct 23

Jan 15

6100

Oct 16

▲ Falls

6100

Oct 9

+4.00

Rises

Top 10 TURNOVER

Oct 2

6002.98

A disclosure statement is available on request and free of charge

Last TWELVE months

Last FOUR weeks

Oct 14

NZX50

www.spicers.co.nz

Issues traded

Volume traded

Value traded ($)

181

60.70m

205.91m

s Official market statistics provided by the NZ Exchange. Closing data compiled at 5.30pm yesterday.

Shares

12,893,884 5,569,852 3,617,388 2,152,265 2,115,327 2,107,988 2,060,600 1,847,015 1,655,115 1,461,223

Top 10 VALUE

Share name

EBOS Group Spark NZ Fletcher Building Contact Energy a2 Milk Sky Network Z Energy Air NZ NZ Refining Co Ryman Health

Dollars

74,191,822.76 12,019,831.57 10,936,383.88 10,843,980.42 9,362,296.63 8,603,158.65 7,487,065.64 6,365,801.36 5,645,867.63 5,147,790.92

29/10

Biggest 10 RISES Share name

Percentage

Finzsoft Solutions NZ Oil & Gas ikeGPS Grp Intueri Edu Hellaby Holdings Freightways GeoOP Ltd Turners Limited US 500 Trust NPT Ltd Ord Shares

8.33 4.65 3.89 2.94 2.28 2.25 2.22 1.88 1.79 1.63

Biggest 10 FALLS

Share name

Percentage

Moa Ord Shrs Skellerup Serko Ltd TeamTalk Trilogy Colonial Motor SLI Systems Ltd Ords Metro Perf Glass Vital Healthcare Pacific Edge

4.65 3.84 3.57 2.77 2.77 2.63 2.59 2.53 2.51 2.17

Buoyant index hits fresh record Investor thirst for regular income helps deliver week’s second high The S&P/NZX 50 Index edged up to a fresh record, led by Freightways on an upbeat trading update.

MightyRiverPower and Argosy Property gained on demand for incomepaying investments.

The NZX 50 rose 3.39 points, or 0.1 per cent, to 6002.380, the second time it broke new highs this week. Within the index stocks were mixed as 19 rose, 20 fell and 11 were unchanged.

Turnover was $194 million.

Freightways led the benchmark index higher, up 2.3 per cent to $5.89.

The logistics and courier company reported a 10 per cent increase in operating revenue to $127 million in the three months ended September 30, once five extra trading days were excluded. Net profit rose 13 per cent to $13.5 million. Transport and logis-

tics group Mainfreight climbed 1.3 per cent to $15.50 on the upbeat sentiment for the sector.

The benchmark index’s run of 13 gains in 14 days has been bolstered by investor demand for investments paying regular income in a low interest rate environment. Yesterday, Reserve Bank Governor Graeme Wheeler kept the official cash rate at 2.75, saying there was room for more cuts and signalling he wanted to see the currency fall further.

This kept demand in for yieldpaying equities, but saw offshore investors sell their kiwi stocks to avoid any further depreciation in the currency.

“The market had pretty much priced in . . . both the decision of the Reserve Bank and his comments and

that’s why we’re seeing a bit of a flat market here,” James Smalley, director at Hamilton Hindin Greene.

Blue-chip stocks were mixed.

MRP rose 0.9 per cent to $2.83.

Genesis Energy fell 0.3 per cent to $1.89. Contact Energy gained 0.4 per cent to $5.15. Auckland International Airport fell 1.5 per cent to $5.30. Argosy Property advanced

Skellerup Holdings was the worst performer, down 3.9 per cent to $1.50.

Picture / Christine Cornege

0.5 per cent to $1.125.

Ebos fell 2.2 per cent to $13.55.

Long-serving directors Barry Wallace and Peter Kraus sold 4.5 million shares for a total $66.5 million, reducing their collective stake below the 5 per cent threshold deemed a substantial shareholder.

Skellerup Holdings was the worst performer on the benchmark index, down 3.9 per cent to $1.50, as investors booked profit after Wednesday’s 7.6 per cent gain. The rubber goods firm expects annual profit to grow as much as 19 per cent as its investment in the US market begins to deliver returns.

Outside the benchmark index, Turners rose 1.9 per cent to 27c. The company has built up a 7.6 per cent stake in Motor Trade Finances and is in talks with other shareholders after its offer to buy up to a fifth of the auto-lender closed earlier this month without yielding a blocking stake against a rival bid.

— BusinessDesk

Ebos directors reduce stake as company enjoys solid highs Suze Metherell Barry Wallace and Peter Kraus, directors of Ebos Group, have reduced their stake in the animal and healthcare products company as the share price trades near record highs.

Wallace and Kraus sold 4.5

>> The Dollar Trade Weighted Index

29 OCTOBER: 72.13

million shares for a total $66.5 million, reducing their collective stake below the 5 per cent threshold deemed a substantial shareholder, according to a notice lodged with the NZX. Their Whyte Adder No. 3 investment vehicle reduced its stake to 2.38 per cent from 4.63 per cent, and

>> Interest rates

74 71 68

The NZ dollar (Trade Weighted Index): Yesterday 72.13 -0.61 Primary Exchange Rates on the NZD: Currency Close Move US Dollar 0.666 -0.006 AUS Dollar 0.937 -0.007 Euro 0.61 +0.00 Japan Yen 80.36 -0.57 UK Pound 0.436 -0.003 Buy/Sell Rates on the NZD Yesterday: Currency Buy Sell Australian Dollar 0.9547 0.9218 US Dollar 0.6813 0.6554 Euro 0.6259 0.5991 Pound Sterling 0.4457 0.4294 Japanese Yen 82.24 78.89 Canadian Dollar 0.8995 0.8658 Swiss Franc 0.6753 0.6496 Danish Krone 4.6597 4.4527 Fiji Dollar 1.4862 1.3671 Hong Kong Dollar 5.2606 5.0727 Indian Rupee 44.2395 42.2663

their Herpa Properties sold its entire 0.88 per cent holding.

Ebos stock last week touched a record $14.05 and has advanced 41 per cent since the start of the year. The stock recently traded down 2.9 per cent at $13.45.

According to the company’s 2015 annual report, as at June 30,

3 MONTHS

>> Metals & Oils

3.1

1190 1135

2.7

Close 0.71 1.092 0.716 120.63

Sri Lanka Rupee 96.6766 Norwegian Krone 5.8505 PNG Kina 1.9339 Philippine Peso 32.4003 Solomon Is Dollar 5.8757 Swedish Krona 5.8299 Singapore Dollar 0.9529 Thai Baht 24.3493 Vanuatu Vatu 77.99 Samoa Tala 1.8026 CFP Franc 74.02 South African Rand 9.3248 Tonga Pa’anga 1.5199

Move -0.002 -0.011 -0.005 +0.29

91.1261 5.5910 1.5843 30.3480 4.6945 5.5794 0.9164 22.9727 70.26 1.6238 70.59 8.9538 1.3778

90-Day Bank Bills (%)

NZ rates at close yesterday: Yield % Overnight/Call 2.788 90 Day Bank Bill 2.94 180 Day Benchmark 2.94 2 Year Benchmark 2.525 5 Year Benchmark 2.715 10 Year Benchmark 3.3 World bank bill rates yesterday: Yield %

US Prime Bank US 90 Day US 10yr Bond US 30yr Bond Aus 10yr Bond UK 20yr Gilt Ger 10yr Bond Japan 10yr Bond

28 OCTOBER: 6,437.8 3 MONTHS

3.25 0.048 2.085 2.862 2.582 2.382 0.469 0.31

Change 0.00 +0.023 +0.046 +0.005 +0.006 +0.04 +0.015 +0.007

Metals

DAX

28 OCTOBER: 10,831.96 12000 9500

5800

7000

3 MONTHS

28 OCTOBER: 1,155.7

Change 0.00 +0.06 +0.03 +0.015 +0.015 +0.01

>> Frankfurt

6300

Gold ($US)

29 OCTOBER: 2.94

FTSE-100

6800

1080

3 MONTHS

Cross Rates: Currency AUD/USD EUR/USD EUR/GBP JPY/USD Source: Reuters

>> London

)

2.9

joined in 1993. Wallace was appointed to the board in 2001.

Ebos said it had “been advised that this sale is part of the management of the financial affairs of the Kraus Group”.

Ebos told shareholders it expected annual earnings to again grow at a “double-digit” rate.

Whyte Adder was the third largest shareholder, and Herpa was the 13th largest, and together were one of three substantial shareholders.

In 1990, Kraus’ Whyte Adder held a 55 per cent stake. Kraus was re-elected to the board at this week’s annual meeting having

>> Paris

3 MONTHS

CAC 40

>> New York

Yesterday 5pm ($US) Price Gold (ounce) 1,155.7 Silver (ounce) 15.92 Palladium (ounce) 677.75 Platinum (ounce) 998 Aluminium (tonne) 1,451 Aluminium Alloy (tonne) 1,640 Copper (tonne) 5,210.75 Lead (tonne) 1,729 Nickel (tonne) 10,380 Tin (tonne) 15,248 Zinc (tonne) 1,720.75

Change -10.85 +0.08 +3.25 +15.00 +9.50 -20.00 -18.25 -5.75 -105.00 -224.00 +0.25

Oil ($US a barrel)

Price

Change

25000

WTI Cushing WTI Sour Light Louisiana Brent Crude

45.88 45.11 46.76 47.51

+2.72 +2.72 +2.40 +1.82

22500

18500

20000

16000

28 OCTOBER: 4,890.58 5200

DOW JONES

28 OCTOBER: 17,779.52 18000

4650

16500

4100

15000

3 MONTHS

>> Hong Kong

3 MONTHS

Hang Seng

29 OCTOBER: 22,884.46

3 MONTHS

>> Tokyo

Nikkei

29 OCTOBER: 18,880.95

21000

3 MONTHS

Friday, October 30, 2015

The Business | 17

New Zealand 0800 102 100

Personalised Investment Advice Share Code

NZX Market Shares

Closing quotes Buy Sell

Last Sale

Move

1000s Sold

a2 Milk Abano Air NZ Airwork AlliedFarmrs AMP ANZ Aorere APN Argosy Arvida ASB No.2 Pref ASB Pref AsiaPacTrust AuckAirport Augusta Cap Aus Fin Index Aus Found Aus Res Indx AusDivIndxTrust AusPropIndxTrust AWFGroup Bankers Inv Barramundi BLISTech Briscoe Group Cavalier Corp CBLCorporation CDLInv Chorus LTD City of Lond Inv Coats Group Colonial Motor Comvita Contact Energy

73 825 295 333 5.5 617 3022 .2 53 112 84 86.4 89.1 176.2 525 95 754.1 625 306.4 167.3 123.7 235 1412 63 2.5 278 41.5 175 63 284 890 67 550 647 514

74 828 296 338 5.6 626 3100 .3 61 112.5 85 86.7 89.5 179.2 530 96 756.1 635 309.4 170.3 125.7 240 1435 64 2.6 280 42 177 64 286 905 67.5 555 655 515

73 828 295 338 5.6 626 3040 .3 61 112.5 84 86.7 89.5 174.5 530 96 751.3 628 312 172 121.6 230 1420 64 2.5 280 41.5 175 63 284 895 67 555 655 515

-1 -1 -.5 +3 +9 +7 +.5 -1 +.6 -.5 -8 +8 +10 +1 -.1 +1 -3 -1 +10 -15 -5 +2

12893 10.082 2152.265 9.288 29.213 31.347 533.852 43.508 69 15.443 579.401 5.427 19.13 4.904 61.79 440 21.961 8.75 14.355 8.036 211.918 12.085 60.691 5 6.17 2107.988

84 860 302 345 9.3 750 3825 .9 108 115 98 93.4 95.8 189.1 564 107 880 724 386 200.5 137.9 262.1 1560 71 2.8 310 94 180 67 319 985 68.5 670 700 730

46 685 199 300 4 551 2910 .2 50 104.5 82 76.5 80.1 167.4 381 93 733.6 615 295 166.2 118.8 210 1120 62 1.7 266 31 172 51.5 200 735 38 540 349 474

34.72 22.22 22.22 29.42 222.18 7.55 2.67 4.55 4.86 .67 20.28 6.57 11.42 28.56 2.97 5.23 20.82 16.94 6.09 20.14 3.06 33.42 45.83 18.06 99.72

DGL DIL EBO EMF MAD ERD EUF EUT EVO FIN FPH FBU FLI FCG FSF FCT FRE

Delegat’s Diligent EBOS Group Emerg MarktsTrst Energy Mad EROAD Ltd EuropeTrust European InvTst EvolveEduc Finzsoft Solutions Fishr&Paykl Health Fletcher Building Fliway Fonterra Fonterra Shrhlds Unts Foreign & Colonial Freightways

550 591 1355 106.1 4.2 260 157.4 1665 88 325 784 750 102 535 535 985 588

559 595 1375 109.1 4.6 265 159.4 1690 90 450 785 755 104 539 537 1010 589

560 595 1355 110.8 4.1 260 157.6 1659 88 325 784 755 102 535 535 990 589

-2 -30 +1 +25 +10 +1 +15 +13

5 18.401 5569.852 5.74 3.43 504.228 1461.223 393.297 280.259 5.702 88.978

563 640 1405 120.7 21.4 428 173.1 1895 115 660 792 901 122 630 631 1072 640

447 460 909 104.4 4 233 156.2 1420 81 225 538 671 91 459 458 793 520

GGL GNE GTK GMT GXH HLG HNZ HBY HFL IKE IFT IQE JFJ JMO

G3 Group Limited GenesisEgy Gentrack Grp Goodman PropTst Green Cross Health Hallenstein Glasson HeartlandNZ ords Hellaby Holdings Hendrsn Far East ikeGPS Grp Infratil Intueri Edu JPMorganJapan JPMorgan OS

79 188.5 200 119 267 373 124 308 655 76 310.5 140 600 2320

83 189 203 120 270 375 125 313 675 80 312 143 630 2365

83 189 201 119 267 375 125 313 655 80 310.5 140 601 2300

-.5 -2 -3 +3 +2 +7 +2 +3 -2.5 +4 -

1212.579 412.708 417.825 26.5 15.044 161.915 9.8 .925 19.989 187.068 206.765 -

88 240 249 127.5 270 397 142 347 765 103 340.5 300 725 2555

KMD KFL KRK KPG MFT MLN MMH MGL MEL MVN MET MPG MHI MRP MCK MOA

Kathmandu Kingfish Kirkcaldie & Stains Kiwi Prop Mainfreight Marlin Global Marsden Mari Mercer Group Meridian Energy Methven Metlifecare Metro Perf Glass Michael Hill Intl Mighty River Millennm&Copthrn Moa Ord Shrs

155 124 221 135 1545 85 281 6 224.5 104 442 152 102 280 142 40

157 125 230 136 1560 86 295 7 225 107 449 154 104 283.5 143 41

156 125 225 136 1550 85 288 6 225 104 448 154 104 283 142 41

+2 -.5 +20 -1 +3 -1 -1 -4 +2.5 -2

76.936 196.03 2115.327 36.548 105.422 1 2060.6 62 402.358 188.552 89.12 1300.119 6

324 144 229 139 1635 91 305 20 255 126 494 201 141 356 165 45

A-C

ATM ABA AIR AWK ALF AMP ANZ AOR APN ARG ARV ASBPB ASBPA APA AIA AUG ASF AFI ASR ASD ASP AWF BIT BRM BLT BGR CAV CBL CDI CNU TCL COA CMO CVT CEN

D-F

G-J

K-M

N-P NTL NPT NPX DIV NZO NZR NWF NZF NZX OGC OIC OHE PBG PEB PPP PGW POT PCT PIL PFI PPL PAY PGC

NewTalisman NPTLtd Ord Shares Nuplex Ind NZDiv Index NZOil & Gas NZRefining Co NZWindfarms NZFGroup NZXLimited OceanaGold (NS) Opus Intl Orion Health Pacific Brands Pacific Edge Pan Pacific Petrlm PGGWrightson Port ofTauranga Precinct Prop Promisia Prop For Ind Pumpkin Patch Pushpay Pyne Gould

.7 61 415 100.2 45 341 7.6 95 283 117 365 70 45 3.8 42.5 1835 120.5 2 153 11 715 -

.8 62 426 101.2 46 343 8.4 96 287 119 370 85 46 4.1 43 1854 121 3.3 154 11.5 740 -

.8 62 426 101 45 343 8.5 1 96 283 118 370 76 45 4.1 42.5 1836 121 2.8 153 11 716 24.5

+1 -3 +2 -3 +.9 +1 +1 +1 -1 +16 -.2 +1 -

200 28 191.523 317.969 1655.115 1456.245 165.575 36.914 179.899 13.068 207.512 316.181 30.752 833.966 433.396 12.658 1.553 -

52-week High Low

1.4 67.5 460 102.1 78 362 8.5 125 375 158 679 80 93.1 6.5 53 1838 126.1 4 162.3 39 840 44

Yld%

P/E Ratio

1.83 1.93 1.26 1.36 1.35 .66 1.29 2.48 1.17 5.71 1.27 1.36 12.77 1.19 1.31 2.48 1.65 1.63 2.34 .24

4.19 7.53 6.57 4.70 7.31 6.71 3.18 5.25 5.43 .38 3.83 6.84 1.52 4.55 1.73 4.30 9.05 1.19 9.51 7.19 4.85 3.73 8.26 2.76 19.36

10.08 10.92 47.22 16.9 11.28 13.92 61.65 28.24 7.74 21.35 14.06 19.12 11.27 6.57 9.58 14.69 11.57 12.79 16.23 10.31 21.49 28.4

15.28 52 1.75 .82 28.95 31.53 19.17 44.39 3.33 25 25 20.45 34.03

2.92 1.51 1.97 1.41 1.48 1.06 2.01 1.17 2.39 1.14

2.73 3.84 1.58 .52 1.75 9.70 2.44 5.88 3.27 4.67 4.67 2.07 5.78

17.41 39.61 19.14 29.15 19.34 10.16 38.47 19.24 21.16 18.35 20.22 21.02

80 163.5 175 108 182 300 99 275 583 48 280 105 420 1957

22.2 10.69 7.94 30.56 43.06 10.42 29.86 40.75 47.08 19.17 5.6 30.88

.66 .75 2.26 .50 .95 1.38 1.33 .90 2.01 .26 32.49 9.33

11.75 5.32 6.67 11.44 11.48 8.33 9.54 6.22 15.16 13.69 .93 1.34

18.03 35.03 8.12 24.49 12.8 12.11 10.94 17.86 4.55 39.34 3.3 7.98

125 119 158 118.8 1404 81 264 4 203.5 98 410 130 84 238 120 27

16.67 12.33 6.94 47.22 7.92 16.67 13.76 11.11 4.5 5 5 29.86 3.33 -

.85 .92 1.67 2.44 1.82 1.69 .80 1.01 12.88 1.60 1.66 .16 13.10 -

10.68 9.86 5.10 3.05 9.32 5.79 6.12 10.68 1.00 3.25 4.81 10.55 2.35 -

15.38 12.7 12.52 18.71 6.27 14.18 23.35 12.93 7.73 26.68 12.56 82.9 4.52 -

.6 58.5 277 94.8 41 169 4.4 94 199 116 320 30 44 3.6 38 1609 109.2 2.2 144.3 8 222.9 22

Dividend CPS t/c

4.11 27 1.79 6.94 8.33 5.3 15.28 5.56 72.22 6.83 8.9 -

1.10 1.33 5.26 1.55 2.14 1.95 1.06 1.12 2.05 2.74 -

6.64 6.34 1.77 2.02 8.68 1.87 12.95 13.07 3.93 5.65 5.82 -

15.72 11.87 13.05 10.31 24.89 5.5 10.07 31.53 10.95 7.73 582.21

www.spicers.co.nz

Share Code

Q-S

NZX Market Shares

RAK RBD RIS RBC RYM SAN SCL SCT SEA SLG SEK SKO SKL SKT SKC SLI SPY SCY SPN SPK STU STR SUM SML

Rakon RestaurantBrands RIS Group Rubicon Ryman Health Sanford Scales Corp ScottTech SeaDragon Sealegs Seeka Kiwifruit Serko Ltd Skellerup Sky Network SKYCITYEntGrp (NS) SLI Systems Ltd Ords Smartpay Smiths City South Port NZ Spark NZ Steel &Tube Stride Prop Summrst Grp HldLtd Synlait Milk Ltd (NS)

TGG TTK TLS TEM TEN TWF THL TWR TME TPI TIL TRS TRU TPW TNR USF USG USV USM USS VCT VIL VGL VHP WHS WDT WBC WYN XRO ZEL

T&G Global TeamTalk Telstra Templeton Tenon TotalWorldTrust Tourism Holdings Tower Trade Me Group Ltd Transpacific Trilogy TRS Investments TruScreen TrustPower Turners Limited US 500Trust US Large Growth US LargeValue US Mid CapTrust US Small CapTrust Vector Veritas Inv Ltd Vista Group Vital Healthcare Warehouse Group Wellington Drive Westpac Wynyard Grp Xero Z Energy

T-Z

Closing quotes Buy Sell

A disclosure statement is available on request and free of charge

Last Sale

Move

1000s Sold

52-week High Low

Dividend CPS t/c

P/E Ratio

25.5 420 .1 32.5 792 502 212 149 .9 9.5 332 81 150 465 401 75 16 53 435 332 274 208 395 230

26 25 424 422 .2 .2 33.5 33.5 796 794 503 503 213 213 150 151 1 .9 10 9.5 333 331 83 81 152 150 467 466 404 403 77 75 18 16.6 56 53 436 436 334 333 278 275 208.5 208.5 396 396 232 230

+6 +.5 -2 -2 +.5 -3 -6 +2 +6 -2 -1 -4 -.5 +1.5 -3 -

247.72 262.774 647.602 66.451 36.966 422 17.25 .9 421.426 1847.015 516.74 41.45 150 2 2.5 3617.388 42.089 275.511 106.381 138.491

40.5 453 .2 40 863 540 216 173.7 2.3 14.5 375 120 160 664 449 130 25 56 484 353.5 311 217.5 428 369

23 363 .1 27.5 705 455 135 125.1 .7 6.4 295 75 111 443 372 69 15 50 375 263.5 256 175.5 264 204

26.39 13.6 31.94 13.89 11.11 34.72 12.5 41.67 20.97 3.5 33.33 27.78 26.39 16.73 3.95 -

1.38 3.56 .94 2.21 1.71 1.42 1.26 1.47 1.10 4.34 1.23 1.02 1.28 1.76 8.66 -

6.25 1.71 6.35 6.52 7.36 10.49 8.33 8.94 5.20 6.60 7.65 8.34 9.60 8.02 1.00 -

14.97 16.06 93.73 16.4 23.28 9.62 11.04 9.33 13.19 10.57 18.34 18.16 3.49 14.78 16.37 11.34 9 11.58 31.9

198 70 562 975 265 180 219 211 374 176 .1 23 768 27 576.2 328.7 251 373.1 346.3 328 42 528 172 277 5.5 3380 141 1540 660

205 200 75 70 600 588 994 975 279 279 183 176.4 221 221 212 212 375 374 80 180 175 .2 .2 24 24 780 767 27.5 27 582.2 580 331.7 324.3 254 244.2 377.1 369.3 350.3 345 332 330 43 43 530 527 174.5 174.5 279 279 6 6 3470 3401 142 142 1550 1550 665 662

-2 -1 +5 -1 +1 +2 +5 -5 +.5 +10.2 -4.5 -1 +23 -3 -25 +7

7 16.095 4.175 .3 110.768 247.123 923.068 .25 8.223 225.2 .1 48.88 7.84 40 97.452 57.95 18.416 34.1 55.528 1133.488

210 180 735 1200 280 193.4 223 238 406 82 192 .6 32 840 37 595.5 342.3 261.6 400 375 345 133 605 200 324 8 4075.4 220 2649 668

173 55 558 895 171 174.2 147 189 300 80 64 .1 10 719 20 539.5 310.1 244.2 366.8 345 266 42 310 148 250 3 3123.5 110 1270 408

11.11 32.65 18.89 5 .92 17.92 16.5 22.5 1.63 5.09 51.11 1 3.39 1.04 1.92 4.37 3.64 21.53 5.23 9.09 23.61 215.89 33.61

.59 1.05 .97 2.69 1.19 .17 1.25 2.01 1.12 3.28 .95 2.15 3.54 .89 1.22 .07

15.87 5.55 1.94 1.79 .52 8.11 7.78 6.02 2.03 2.91 6.66 3.70 .58 .32 .78 1.18 1.05 6.52 12.17 5.21 8.46 6.35 5.08

13.21 14.78 17.08 53.21 20.71 12.36 74.96 18.51 23.77 16.66 8.23 22.49 5.29 99.48 6.16 18.46 13.75 378.29

Move

1000s Sold

Yld%

P/E Ratio

347.38

Yld%

NZAX MARKET Share Code

NZX Market Shares

Closing quotes Buy Sell

Antipodes

1.52.5

BFW BurgerFuelW’wide

305

AXG

2.5 318

Last Sale - 5

1.1 -

52-week High Low

--

Dividend CPS t/c

-

310

-

-

380 264

-

-

-

.6

-.1

552.238

15.7 .5

-

-

-

-

12.5

-

-

17 12

-

-

-

-

-

-

CRP Chatham Rock

.5

CGF Cooks Glob Fds

12.5

13.5

ENS Enprise Group

29

30

32

-

-

60 32

FFW FoleyFamWine

140

145

145

-

-

163 130

GEO GeoOP Ltd

45

46

46

+1

10

68 36

-

-

-

-

GFL GFNZGrp Ltd Ord

4.7

5.3

5.3

+.3

40

5.4 2.3

-

-

-

11.09

JWI JustWater

14

17

14

-

-

17 13.1

-

-

-

7.7

LAT Lateral Corp

12

15

15

-

-

30 10

-

-

-

-

395

410

400

-

.71

7.04

8.54 28.04

LIC Livestck Imprvmnt

.6

2.78

610 370

28.14

1.19

2.31

-

8.77

1.92

60.77

MYK Mykris Ltd Ord

7

20

7

-

-

7 7

-

-

-

OMG Orion Minerals

-

-

.2

-

-

.2 .1

-

-

-

-

PLE Pulse Energy

10

10.3

10.1

-

-

10.1 5.5

-

-

-

-

RIS RIS Group

.1

.2

.2

-

-

.2 .1

-

-

-

-

SNK SnakkMedia

5

5.5

5

-

150

9 4.3

-

-

-

-

130

135

130

-

-

130 50

2.08

3.83

1.60

22.65

4.80

6.61

4.38

SDL Solution Dynam SGL Speirs VML VMob Group WTL WindflowTech

10

21

21

-

1.027

33 15

1.39

31.5

34

34

+2.5

18.88

67.5 25

-

-

-

-

3

1.8

-

-

6.1 1.8

-

-

-

-

1

NZDX MARKET Share ANBHA

29/10

NZX Market Bonds

Coupon rate %

Maturity date

ANZ

5.28

-

Closing quotes Buy Sell

Last sale

1000s sold

Price/$100 face value

102.75

102.75

282

103.00

AKC050

Auck Counc

6.52

2017-09-29

-

CEN020

Contact Energy

5.80

2019-05-15

3.94

103.00 2.90

3.05

27

107.28

-

3.88

55

-

CASHA

CreditAgrico nts

5.04

-

87.60

88.00

87.60

122

88.00

RBOHA

Rabobank Perpet

3.49

-

95.75

96.00

95.75

372

96.00

TPW110

TrustPower

6.75

2019-09-15

4.65

-

4.45

337

-

ZEL030

Z Energy Bonds

6.50

2019-11-15

4.15

-

4.10

-

-

Disclaimer: All parties have endeavoured to ensure the accuracy of the information contained herein is correct. Neither this newspaper nor AAP, related companies nor any of their respective employees or agents make any representation as to its accuracy or reliability nor will they, to the extent permitted by law, be liable for any loss arising in any way from, or in connection with, errors or omissions in any information provided (including responsibility to any person by reason of negligence).

Please note: All products and services subject to change without notice.

18 |The Business

Friday, October 30, 2015

Australia 0800 102 100

Personalised Investment Advice

Rises

Falls

482

563

5625

5200

5250

5100

4875

5000

4500

Share name

Oct 15

Jul 15

Apr 15

Jan 15

5300

Atherton Res Raya Group Raya Group Jumbo Inter Resapp Hlth Telstra Corp Capitol Health Dourado Res Norwood Systems Argosy Mineral Oct 14

6000

Oct 29

5400

Oct 23

▼

Top 10 TURNOVER

Oct 16

-68.30

Last TWELVE months

Oct 9

5266.9

A disclosure statement is available on request and free of charge

Last FOUR weeks

Oct 2

ASX200

www.spicers.co.nz

Issues traded

Volume traded

Value traded (A$)

1,418

2,126,011,914

5,524,141,050

s Official market statistics provided by ASX. Closing data compiled at 5.30pm yesterday (AEST).

Share name

FlexiGroup Bega Cheese Blackmores Ltd BT Investment Estia Health SthrnCrossMedia Spark I. Group Syrah Resource Sigma Pharm News Corp

222,598,870 88,685,294 55,551,316 53,129,085 33,015,968 31,716,485 28,030,018 27,987,472 27,862,024 26,843,683

Top 10 VALUE Share name

Nat Aust Bank Woolworths Ltd Westpac Bank ANZ Banking Wesfarmers Ltd CBA Telstra Corp BHPBillitonLtd Origin Energy Suncorp Group

Biggest 10 RISES

Shares

A$

Biggest 10 FALLS

AAC ABP ABC AGL AIZ ALQ AHD AMC AMP ANN ANZ APE APA APN ARG ARA ALL ARI AHY AIO ASX AIA AZJ AFI AST ASB API BOQ BEN BYI BBG BKL BSL BLD BXB BKW BTT BWP CTX CAA CAR CBA CBAPD CBAPC CLT CQR CGF CHC CIM CCL COH CLH CPU CYG CMW CWN CSL CSR DVN DXS DJW DMY DMP DOW

Last Sale

AAC Ltd Abacus AdelBrtn AGLEgy Air NZ ALS Ltd AmalgHld Amcor AMP Ansell ANZBank AP Eagers APAGroup APNewsMed Argo Ariadne Aristocrt Arrium Asaleo Asciano ASXLtd AuckAirpt Aurizon AusFound AusNet Srvcs Austal AustPharm BankQld BenAdeBnk BeyondInt Billabong Blackmore Bluescope Boral Brambles Brickwork BTInvest BWPTrust Caltex Capral Carsales CBA CBAopt CBAppt Cellnet CH Retail Challenger CharterHG Cimic Coca-Cola Cochlear CollHouse Compshare Coventry Cromwell Crown Ltd CSLLtd CSRLtd Devine DexusProp DjerriInv DMYCapital Dominos DownerEDI

Percentage

1.20 0.165 24.70 1.46 0.775 12.72 2.06 2.78 10.36 4.73

INDUSTRIAL (A¢) Share Code

17.06 14.92 12.90 7.38 6.19 3.37 3.29 2.61 2.47 2.19

Share name

Metcash Ltd Ten Network Woolworths Ltd EvolutionMin Dick Smith Hld Newcrest Min Regis Res Northern Star Select Harvest Tabcorp

508,286,966 447,345,889 299,548,262 270,515,517 245,638,514 204,806,645 175,264,356 155,512,616 113,290,637 103,816,940

Percentage

2.91 5.70 175.51 11.35 7.20 0.920 2.04 3.14 0.830 20.98

10.45 10.33 9.76 7.89 7.74 7.63 6.36 4.79 4.60 4.44

Thursday, Oct 29, 2015 Move

100s Sold

149.5 -4 326 +1 414 -3 1668 -2 279 -1 515 +5 1405 +9 1355 -1 580 -3 1976 -23 2817 -58 1060 922 -1 51.5 -1.5 776 -3 36 907 -8 10.5 176.5 -1.5 756 4100 -14 497 -12 509 -2 589 -2 143 -1 218 -2 197 +6.5 1298 -53 1073 +4 119 +1 71.5 -2.5 17551 +2006 450 -1 538 -12 1030 +9 1462 -10 1135 +78 322 +2 3136 -9 10.5 -.5 977 -1 7717 -47 9124 +4 9990 -5 21 422 +2 808 -2 450 +1 2705 +38 911 -12 8816 +77 187 1075 +2 122 +2 100.5 -1 1147 -20 9294 -37 277 -5 60 779 -5 421 +3 2.7 4663 -25 358 +6

12945 3915 10770 16008 34 11524 267 32079 49306 13148 95110 401 17726 14985 1394 20918 39005 12444 17728 2996 1347 40858 2342 25355 5154 12580 28251 19451 301 12522 3136 27936 31599 36017 843 10395 8825 5022 715 4345 26372 210 235 10861 20836 7143 5413 12118 1504 6924 12634 81 13802 19044 8144 23390 115 13203 399 1923 25403

Last Move Sale

100s Sold

114.5 -1 250 +4 50 24.5 3 65 -2.5 64.5 -1 2347 -31 28.5 10.5 -.5 7.5 +.5 79.5 +1 34.5 146 -12.5 220 -5 5 151 +1 8.5 659 -4

100172 30 1039 55357 135309 65692 715 4707 33631 2215 107684 170373 822 10203

52-week High Low 169 341 496 1725 290 666 1445 1493 683 3040 3725 1089 988 108 850 41.5 937 34.5 207.5 875 4537 528 560.5 645 154.5 232 196.5 1473 1445 154 74 15714 578 690 1195 1584 1097 344 3881 17 1096.4 9616.8 9849 10740 33.5 467 824 539.5 2676 1100 9397 249 1356 234.5 120 1612 10243 443 107 825 492 3.6 4890 522

120 262 324 1255 176 433 939.1 1130 524 1828 2638 550 731 47 750 35 617 8.4 145 548 3499 340 436 561 122.2 118.5 75 1139 972 105 51 3160 270 476 933 1152 602 245 2905 9.5 928.6 7015 9350 10000 18 378 581 414 1890 816.5 6910 175 905 120 94 980 7601 269 53 688 400 .8 2130 323

Dividend CPS Yld% 8.5 12 34 8.5 10 37 28.5 14 31.19 86 12 20.5 15.5 .5 8 3 4 8.25 95.1 6.6 13.9 14 4.18 3 2.5 38 33 5 135 3 9.5 14 30 17 8.17 47 19.1 222 86.91 104.36 1 13.8 15.5 12.1 46 20 100 4.7 16 2.5 1.9 19 89.9 11.5 21.36 16 27.2 12

P/E Ratio

85.2 5.23 12.7 4.20 13.1 3.83 50.1 5.29 10.8 4.12 3.22 20.2 3.90 18.4 4.72 16.8 2.84 12.5 6.30 10.6 2.83 21.7 4.12 16.3 3.79 22.7 2.78 1.75 28.57 5.28 32.9 2.22 28.9 4.56 20 2.70 30.6 4.70 17.9 3.89 21.7 2.90 218.1 1.82 13.7 2.36 21.6 5.48 15.5 6.17 11.5 8.47 12.3 176.1 1.31 57.4 .67 18.5 3.27 16.7 2.74 21.0 3.06 27.9 3.41 25.2 4.95 9.7 3.08 36.6 15.9 3.47 22.6 5.41 13.9 3.95 4.31 4.76 7 6.55 9.6 3.70 14.7 5.39 13.6 3.71 14.0 4.55 25.7 2.17 34.1 4.87 10.8 2.89 29.8 5.63 7.79 11.8 3.17 22.0 1.76 24.5 7.09 11.3 23.3 5.23 11.6 6.22 19.4 1.10 63.1 6.82 7.5

Share Code DUE DLX EBT EBO EGP FXJ FRM FDC FPH FBU FLT GNE GMA GLB GMG GNC GOZ GUD HVN HSO HGG HIL HTA IAG IDT IKO IPL IFM IOF IFL IRE JBH JHX LGD LLC LNK MTU MAH MQA MQG MFG MCP MPL MEZ MYT MIG MLT MGR MYO NAB NWS NWSLV NRT NUF OEC ORI ORG ORGN ORA PBG PPX PPT PTM PMC

Last Move Sale

Duet Dulux Grp Ebet Ltd Ebos Group Echo EG Fairfax FarmPride FedCentres Fis&PayHc FletchBld FlightCtr GenesisEn Genworth GlobeInt GoodGrp Graincorp GrowthPro GUD Hldgs Harvey Healthscope Hendersn Hills Ltd Hutchison IAG IDTAust IMSISKIF IncitecPV Infomedia Investa IOOF Iress Ltd JB Hi-Fi JHardie LegendCor LendLease LinkAdm M2 Group Macmahon MacqAtlas MacqGroup MagellanF McPherson Medibank MeridianEn MightyRiver Migme Ltd Milton MirvacGrp MYOB Grp NAB NewsCorp NewsCorp Novogen Nufarm Orbital Orica Ltd OriginEgy OriginEgy Orora Ltd PacBrands Paperlinx Perpetual Plat Mgmt PlatCaptl

235 582 392 1270 510 95.5 61 292 734 703 3823 177 265 176 604 897 308 785 401 267 591 44 9.4 557 39 7618 392 73 406 918 929 1850 1819 25 1298 713 976 9.9 392 8401 2183 71 240 212 252 115 431 181 332 3046 2098 2093 14.5 830 60 1660 548 548 230 75 3.5 4411 721 190

-1 -8 +2 +63 -3 +1 -3 -6 -1 -61 -2 -4 -1 +3 -2 -7 -13 -1 +1 -2 -.1 +1 -39 +2 -1.5 -6 +9 -.5 -3 +1 +3 -.1 -3 +41 -15 +3 -2 +1 -4 -3 -126 +45 +55 -.5 -25 -10 -16 -5 -5 +.5 -.2 -13 -14 +2

100s Sold 61579 10300 50 17406 24641 71113 617 62834 4584 9941 2380 624 18584 21704 7047 1775 9294 43177 55414 31122 2620 1111 158459 2003 28 56756 2277 6562 8096 1710 8872 11406 1412 18889 28815 5090 40740 8085 9472 3727 153 106233 50 2146 1982 1485 63861 2203 164743 2512 46 1542 14370 32 12234 203832 1125 29029 36681 18536 1129 8656 1544

52-week High Low 258.9 688 410 1207 525 111 65 319 752 870 4738 245 401.8 180 670 1036 339 1018 499 315 626 136.5 11.5 661 42 8120 440 131.7 434 1098 1129 2237 2004 29.5 1772 720 1179 10 404 8620 2211.5 126 259 225 349 133 489 219 392 3915 2196 2242 44.6 872 77 2273 1276.3 609 246 75 6.6 5848 938.7 198

202 527 310 855 346 72.5 19 258 476 608 2988 145.5 221 62 540 767 270 663 321 244 356 36.5 5.4 472 13 6474 280 68 341 818 886 1456 1125.5 20.5 1209 705.5 769.5 3.1 287.5 5481 1326 51 199 141.3 219 33 403 166 298 2915 1684 1708 8 428 30 1475 528 537 161.5 31.5 1.4 3725 634.4 166

Dividend CPS Yld%

P/E Ratio

Share Code

8.75 11 14 20.2 6 2 8.5 7.1 17.2 97 7.31 31 4 11.1 7.5 9.9 22 11 3.7 6.7 2.1 16 69.2 4.4 1.95 9.7 28 16 31 63.0 1 27 17 10 200 37.8 2 5.3 9.9 9.6 10.3 4.9 99 9.6 9.6 6 40 25 4 2 125 20 6

69.6 23.8 7.6 19.2 25.0 27.2 6.5 11.5 36.9 20.2 15.2 19.2 4.4 19.6 8.7 66.7 12.0 17.2 16.8 31.1 19.0 17.8 23.3 17.3 13.9 19.2 29.6 13.4 21.2 8.2 11.5 24 33.9 15.5 20.1 7.3 23.2 25.3 83.1 21.6 10.9 12.5 73.0 10.6 21.5 16.1 20.0 9.7

PMP PPK PMV PRY PRT PGL QANDA QBE QUB RHC REA REC REH REG RMD RIC SCG SEK SLX SGM SRX SKC SKT SMX SHL SOL SKI SPK STW SPO SUN SDG SUL SYD TAH TAG TTS TLS TGG TEN TWR TPM TSE TPI TCL TWE UGL VED VRL WES WFD WBCN WBCHA WBC WOW WOR XRO ZNZ

P/E Ratio

Share Code

7.42 3.64 3.59 3.24 2.14 4.19 5.73 1.68 4.57 3.91 8.37 9.52 3.98 3.67 1.40 9.55 5.30 4.83 2.61 3.22 19.78 5.22 3.00 4.89 4.74 5.77 4.44 4.86 2.47 6.86 4.15 3.29 4.05 3.95 3.41 11.76 2.19 2.98 5.10 4.23 5.19 6.24 .47 .47 1.17 5.75 8.87 3.19 5.42 5.03 5.85

PMP Ltd PPKGroup Premier PrimaryH Prime MG ProgenPha QantasAir QBE Qube Hold Ramsay Rea Group RecallHoldgs ReeceAus REG Resmed Ridley Scentre SeekComm SilexSyst SimsMetal SirtexMed Skycity Ent SkyNetTV SMS Mgmt SonicHlth Soul Pat Spark I.Grp Spark NZ SPDR200 Spotless Suncorp Sunland SupaCheap SydAirprt Tabcorp TagPac TattsGrp TelstraCp Templeton TenNetwrk Tower TPGTeleco Transfeld TranspInd Transurbn TreasryWine UGLLtd VedaGroup VillageRd Wesfarmrs Westfield Westpac B WestpacB WestpacB Woolwrths WorleyPars Xero Ltd Z Energy

Last Sale

Move

100s Sold

51 20 1356 373 52.5 18 400 1311 220 6175 4796 768 3490 585 801 130 416 1263 44.5 998 3750 380 433 495 1890 1604 204 310 4987 215 1317 160.5 964 643 473 6 392 550 129 16.5 196 1085 102.5 65 1037 710 237 262 732 4018 1015 3091 10243 3192 2470 663 1465 629

-1 -24 -15 +2.5 +1.5 -3 -21 +1 -4 -39 +13 +12 +11 +7 -3.5 -18 -.5 -4 -44 +5 -7 +12 -24 -13 +6.5 -4 -66 +1 +1 -1 -3 -8 -22 -8 -8 -1 -1.9 +9 -26 +1 -7 -8 -3 -3 -8 -181 -7 -42 -1 -267 -15 -16 +7

214 2530 33126 396 1311 71236 55698 27065 5561 2792 3428 16 3807 58085 1343 215518 12085 877 4120 4216 8640 4100 1522 15829 451 57338 9812 739 23450 78678 2400 2278 55971 43621 330 21209 317164 1792 92414 .6 9246 31674 13824 30713 82461 5483 61355 1305 60782 23113 10508 36 93645 179422 11158 331 43

52-week High Low 58 75 1462 552 91 23 403 1500 305 6922 5138 809 3650 652 984 139.5 419 1899 77.5 1305 3995 418 615 543 2373 1641 229 335 5617 251.5 1495.4 202.4 1096 654 523 11 420 673.5 147.1 29 230 1112 193 94.5 1059 752 302.3 280 759 4695 1066 10485 3985 3600 1375 2560 625

37.5 20 930.4 365 48.5 14 146.5 1013 195.5 5124 3733 565 3005 375 581 84.5 338 1140 40 890 1480 336 415 312 1700 1218 170 235 4820 174 1188 142 670 431 365.6 6 325 527.5 123 16.5 168.5 605 91 57 802.5 420.6 131 199.2 508 3806 761 10242 2894 2411 581 1190 358

Dividend P/E CPS Yld% Ratio 1.8 1.5 21 11 3 20 2.8 60.5 40.5 10 52 17.6 2.8 2 10.45 17 13 20 7.8 13.4 10 41 30 6 9.9 71.0 5.5 50 2 21.5 12.5 10 7.5 15.5 4.1 6.46 6 .8 20.5 8 5 6 14 111 17.0 122.62 93 72 22 15.4

3.46 20.8 17.50 3.04 24.4 5.15 14.5 13.60 5.1 15.8 3.15 15.9 2.51 26.7 1.63 33.4 1.45 30.3 2.52 28.0 2.19 20.9 3.07 27.1 1.57 24.3 2.62 19.3 4.96 9.3 2.81 22.2 2.89 18.6 .53 53.1 4.26 19.2 6.35 11.2 3.52 19.7 3.66 21.1 3.09 46.4 5.95 38.2 5.97 17.7 3.90 25.3 4.67 16.4 5.78 14.8 1.24 9.5 4.14 23.4 3.76 105.5 4.04 11.6 4.13 22.9 5.47 16.1 3.15 81.2 6.78 89.4 1.04 39.4 10.6 1.23 3.83 1.95 60.3 3.77 28.4 3.78 26.9 4.76 19.4 3.21 18.8 5.79 13.1 5.08 16.0 8.26 3.59 361.6

MINING (A¢) Share Code AWC AGG AZZ AQP ARM AWE BPT BHP BOC CAA CUE DLS ERA EVN FMG HLX HFR HIG ILU

Alumina Anglogold Antares AquariusP AuroraMin AWE Ltd BeachEngy BHP Billiton Bougainvl Capral CueEnergy DsrchEngy EnergyRes Evolution Fortescue HelixRes Highfield Highlands Iluka Res

52-week High Low 210 339 53.5 33.5 4.5 182 133 3169.2 43 17 11 130 140.5 168.5 350 5.2 208 14.5 918

107.7 150 7.6 12.5 2.1 55.5 45.5 2161 19 9.5 5.9 46.2 29 40.7 158.2 1.9 50.5 4.7 557

Dividend CPS Yld%

P/E Ratio

6.4 .9 5 .5 87.7 1 2 6

36.9 50.8 15.9 1.2 11.5 16.9 -

7.32 .76 7.09 1.26 2.22 2.87

Share Code IGO KAR KCN LEG LNG MLX MIN NHC NCM NST OGC OSH OZL PDN PPP RRL RSG RIO SFR

Ind Group Karoon Kingsgate LegendMin LNG Ltd MetalsX MineralRe New Hope Newcrest NthStar OceanaGol OilSearch OzMineral Paladin PanPacPet Regis Resolute RioTinto Sandfire

Last Move Sale

100s Sold

52-week High Low

290 180.5 68.5 1.1 146.5 136.5 426 191.5 1272 278 265 752 451 23.5 3.6 206 40.5 5114 653

27753 7343 3297 1300 27547 8333 11470 699 77550 74282 6687 43354 18630 45003 400 36844 11675 15960 6390

621 340 86.5 1.3 500 159 869 262.2 1579 326 337 884.6 501 43.5 6.2 223 46 6573 680

-5 -5.5 -3.5 -1 +1 -8 -1.5 -105 -14 -3 -6 +4 -.5 -14 -3.5 -93 -2

249 162 60.5 .6 123 62 392 157.1 851 91.5 181 562 293 15.5 3.1 107 21.5 4593 374

Dividend CPS Yld% 2.5 5 2.95 15 6 3 3.8 8.6 6 6 144.91 10

2.88 2.18 5.18 3.37 1.71 1.43 2.52 3.58 2.73 5.72 1.98

9 2 13.7 63.3 19.3 18.8 7.5 20.3 12.5 12.6 22.1 14.8

Last Move Sale

100s Sold

52-week High Low

Dividend P/E CPS Yld% Ratio

STO Santos

598

-8

54488

1312 395

SAR Saracen

60

-.5

31144

61 20

SGM SimsMetal

998

-4

4120

1305 890

S32 South 32

149

-2

214915

245 133

- -

-

138.5

-5.5

23340

147 7

- -

17.8

314

+8

7348

470.3 239

- -

-

24.5

-

5.48

64 17.5

- -

-

SBM StBarbara SYR SyrahRes TAP TapOil TAW Tawana

15 4.95 - 13 2.89

42.9 18.6

.5

-

8741

1.8 .3

- -

TZN Terramin

18.5

-

2341

22.5 6.9

- -

WSA WestAreas

254

-8

16985

465 206

4 2.67

WHC WhiteHave

103.5

-1.5

22300

172 88.2

- -

WPL Woodside

2934

-30

19429

4110 2743

92.0 9.33

9.1

ZIM Zimplats

425

-

900 425

16.9 3.99

-

372

17.3 -

Disclaimer: All parties have endeavoured to ensure the accuracy of the information contained herein is correct.

Neither this newspaper nor AAP, related companies nor any of their respective employees or agents make any representation as to its accuracy or reliability nor will they, to the extent permitted by law, be liable for any loss arising in any way from, or in connection with, errors or omissions in any information provided (including responsibility to any person by reason of negligence). Please note: All products and services subject to change without notice.

Friday, October 30, 2015

The Business | 19

The Insider MOVING TARGET

CLOSER TO HOME

An old trick among government departments is to change their performance measures, so no one can really tell how well they’re doing. The State Services Commission’s annual report is the latest to employ the tactic; this year it replaces five old measures with this one: “stakeholders agree that SSC’s interventions are contributing towards improvement in the performance of the system”. To check whether it was hitting this target, the SSC wrote to ministers and chief executives, asking for their views. Embarrassingly, no ministers replied in time for the report’s deadline. Interestingly, the SSC lists this as one of its greatest risks: “Ministers bypass SSC and seek advice elsewhere, leading to SSC losing relevance as a leader of the State Services, and Ministers being unable to deliver on Government priorities.” Perhaps SSC’s fears are becoming real and ministerial indifference has already taken hold, if they can’t be bothered commenting on performance. Talk of merging the SSC with the Department of Prime Minister and Cabinet or Treasury has been around for a long time. Could it become a reality?

With Trade Minister Tim Groser in Europe, his understudy Todd McClay (below) is cutting his teeth in the Cook Islands this week, at the Pacific Islands Forum Trade Ministers Meeting. This isn’t the cushy number it might appear to be. Pacific Island nations are getting increasingly grumpy at New Zealand’s and Australia’s seeming lack of interest in advancing negotiations on the Pacific Agreement on Closer Economic Relations (Pacer) Plus. While the two larger countries have been pouring effort into the TPP and other negotiations, the Pacer talks have dragged on. Some Pacific Island leaders see us as not being a good neighbour, taking advantage of easy market access while offering little in return. Which is what New Zealand says in its trade talks with larger countries around the Pacific.

eyebrow over “uncertainties” in the valuation of property and assets held

by CERA. The meticulous boss of DPMC, Andrew Kibblewhite, will not be pleased.

SPEED WOBBLES

FULLY ENGAGED The Department of Prime Minister and Cabinet certainly got rave reviews from John Key about its performance and its staff are pretty happy — 93 per cent of them feel engaged or somewhat engaged. This is an incredibly high rate by public- or even private-sector standards.

However not all is perfect at DPMC. It quietly managed to breach the Public Finance Act, and no department likes to break the law. It failed to meet the requirement to provide its annual report to the Auditor-General within two months of the end of the financial year. Much of this was beyond DPMC’s control as it took over responsibility for the Canterbury Earthquake Recovery Agency and its books are a complex mess. The Auditor-General raised an

Treasury was another department that didn’t meet its own high standards, with just 44 per cent of significant new operating expenditure programmes in the Budget being subject to a cost-benefit analysis, less

than half the targeted 100 per cent.

Once again, this was a bit beyond officials’ control and underlines how much of the latest Budget was thrown together at the last moment, with Treasury noting cost-benefit analysis was not always completed by departments. “This was often owing to initiatives for new funding which were developed late, or outside of, the planned Budget process.” In translation, this means ministers were making it up as they went along and bypassing Treasury.

Dilbert

MP TURNS CRITIC When former National MP Jackie Blue (right) was given the job of Equal Employment Opportunities Commissioner, many observers thought it was another crony appointment and there would be virtual silence in the policy area.

However the cynics have been surprised at how enthusiastically Dr Blue has thrown herself into the job. Lately she has been lobbying hard on the Employment Standards Bill, which she describes as an improvement in law but still leaving too many loopholes and creating too much uncertainty for casual workers.

Divorce — the mid-life career booster Lucy Kellaway At dinner the other night with 50 partners in a corporate law firm, I looked around the room and noticed something alarming. I was one of the oldest people in it.

Where were all the lawyers in their late fifties and early sixties? I put the question to the man sitting next to me, who said they had mostly been eased out. The trouble with the law, he explained, is that it takes its toll on you, and if you’ve been at it for 30 years it is almost impossible to hold on to any sense of urgency.

There was only one exception to this rule, he went on, and that was lawyers in their fifties who had recently been divorced and were starting again with mortgages and young children. They had all the experience of their years — and all the drive of someone 30 years younger. They were propelled by the

Business Life need to make a vast amount of money but, instead of having a lifetime in which to do it, they had a mere decade. The combination of extreme wisdom and extreme hunger made them unbeatable.

I don’t think the man realised quite how well this divorce-is-greatfor-your-career argument was going down with me. In the past six months I have a) separated from my husband, b) bought a wildly expensive house, and c) been feeling more than usually keen at work.

Until that minute it hadn’t occurred to me that the three things were connected, but then I saw what was perfectly obvious: a) and b) have caused c).

Everyone will tell you that divorce is ruinous to a career. It makes you so unhinged that you can’t think

straight. But then again, people, marriages and divorces come in many varieties, yet all divorces have one thing in common — they make you poor. Or at least they make you poorer than you were before. To comfortable, middle-aged professionals, feeling a little short of funds can be an unwelcome shock, and the effect of it can, in the right circumstances, be agreeably galvanising.

For me, it has meant that any thought of sloping gently towards retirement is out of the window. And because there is to be no such sloping, I can no longer allow myself the luxury of mild disillusionment.

Instead, I am applying myself to the job, and, to my amazement and delight, find that instead of feeling trapped or sorry for myself, I’m rather enjoying it. The work itself has not changed a bit, but I am doing it with more conviction.

I am not saying that everyone in their sixth decade should ditch their spouse to give their flagging careers a bit more oomph. Neither am I suggesting that everyone who gets divorced can look forward to this kind of professional dividend. Some people are so poleaxed by the misery of it all that they can hardly crawl into the office, let alone feel relatively gung-ho once they get there.

Instead, what this proves is that the link between boredom, money and motivation is not what I thought it was. Almost all the scientific studies will tell you that money doesn’t motivate. Yet when you have just parted company with your nest egg and lost some of the financial security you thought you had, every pay cheque becomes a minor cause of celebration — and the same old, same old work suddenly seems as fresh and full of possibility as it ever did. (c) 2015 The Financial Times Ltd

20 |The Business

Friday, October 30, 2015

Auckland CBD’s best property investment launches this weekend!

• The freehold apartment investment at the heart of Auckland’s future: • $2.5 billion City Rail Loop under construction Nov 2015 • Wynyard Quarter revitalisation underway • The International Convention Centre opens in 2020 • $300 million Downtown Shopping Centre redevelopment planned • CONNECT apartments on Anzac Avenue complete end of 2017

• Priced from $390,000 • Indicative gross yield opportunities from 5.5%–12.6%* • Apartments with flexible media and study rooms for the business professional or student • Business lounge, including meeting and conference rooms, for residents and guests to broaden tenant appeal • Rooftop belvedere with alfresco dining, music and breathtaking views adds considerable value to your investment

DISPLAY SUITE OPEN

12–4pm, 7 days or by appointment

75 Anzac Ave

• Flexible Asset Management Service to maximise investor returns *This information is provided in good faith, it is also given on the basis that no persons using the information in whole or in part, shall have any claim against Colliers International, its servants, employees or consultants.

Colliers International NZ Limited. Licensed REAA 2008

P29/23554/NZHBoF

0800 702 6922 • connectanzac.co.nz