23 Jul 2015

Business Briefs

5:01 pm on 23 July 2015

A round-up from Radio NZ's business desk - today, featuring the NZ Institute of Sport, Livestock Improvement Corp, Chatham Rock and Air NZ.

Intueri Education to buy New Zealand Institute of Sport

Intueri Education says it will buy the New Zealand Institute of Sport for about $19 million.

The private education provider says the purchase is conditional on obtaining regulatory approval and includes the sport institute's subsidiary - the New Zealand College of Massage.

The final purchase price will be 5.5 times the businesses' underlying profit in 2016, which is expected to be $3.5 million.

Intueri chief executive Rob Facer said the company would make an initial payment of $17.6 million, funded by debt, followed by a potential interim payment in March 2016, and a final payment in March 2017.

Mr Facer said the businesses were a good fit with the company's existing portfolio of private education providers and vocational training centres.

The sport and massage facilities have almost 1000 student enrolments a year, which would boost Intueri's overall student numbers to more than 13,000.

"The ability to offer sports-based programmes will offer significant opportunities to further increase our international student numbers," he said.

Livestock Improvement's full year net profit falls 24 percent

The Livestock Improvement Corporation says its full year net profit has fallen by 24 percent, reflecting the increase in spending needed to keep its core technology and infrastructure up-to-date.

The farmer-owned co-operative's net profit was $13.7 million in the 12 months to the end of May. Revenue rose 10 percent to $232 million.

The company said it had returned 60 percent of its underlying profit in dividends to its 10,500 dairy farmer shareholders.

Livestock chief executive Wayne McNee said it was a good result in the face of the downturn in the dairy sector.

He said the company would continue to make investments in research and development, to ensure the co-op's technology was up-to-date and able to provide a stable platform for delivering new products to farmers.

The company's total assets, including cash, software, land and buildings, and bull teams, rose by $17.7 million to $302 million over the previous year, with an equity ratio of 73 percent. Bank loans were $10 million at year end.

Air No's passenger numbers grow

Air New Zealand says passenger numbers rose 5 percent in June to over 1.3 million, compared with the same period a year earlier.

A key indicator - revenue passenger kilometres - also rose 10.5 percent on higher capacity, which was up nearly 12 percent.

Short haul passenger numbers rose 3.5 percent, while long haul numbers rose 17 percent in June, compared with the year earlier.

The airline also announced it had completed the sale of its subsidiary, Safe Air, to Airbus Group Australia.

Chatham Rock Phosphate

Chatham Rock Phosphate says it has entered into a conditional agreement with Antipodes Gold in a bid for a backdoor listing on the Toronto stock exchange.

Antipodes will make a full takeover offer for all shares on Chatham Rock's shares under the new agreement.

Chatham's shareholders will be satisfied in full by an issue of Antipodes shares.

Chatham Rock has said the listing will put it in a much stronger position to raise the cash it needs to resubmit its consent to mine the Chatham Rise.

PGG Wrightson buys Australia's Grainland Moree

PGG Wrightson says it will buy the assets of Australian seed business Grainland Moree for an undisclosed sum.

Grainland is a seed production, cleaning and wholesale seed marketing business based in Moree, New South Wales, which is one of the biggest wheat receiving points in Australia.

PGG Wrightson chief executive Mark Dewdney said the acquisition fit with the company's strategy to grow its Australian business through the purchase of assets.