NZX names James Miller new chairman
Continued growth in the number of companies listing on the capital markets has pushed the New Zealand stock exchange's interim profit to $7 million.
And with a strong pipeline of listings still to come, as well as an expectation of more offerings to be announced, the NZX has a positive outlook on continued growth.
The exchange announced today its net profit was up 8.3 per cent for the six months ended June 30.
Strong growth in its capital markets and agri-information businesses saw revenue increase 2.8 per cent, to $31.2m.
Chief executive Tim Bennett said activity on the exchange continued to grow, with seven initial public offerings (IPOs) so far this year, as well as more to come.
The exchange also anticipated more listings would be announced this year.
"It's exciting that these companies have chosen listing over other capital-raising options available to them, and it's worth noting that listings have a broader benefit for New Zealand's capital markets, providing KiwiSaver funds with businesses to invest in, bringing new investors to the market, and continuing to generate interest in saving and investing," Bennett said.
In the half year Genesis Energy, Inturei Education Group, Serko, and Gentrack had all listed, while IkeGPS, Scales and Metro Performance Glass had also gone public since June 30.
A total of $3.52 billion was listed during the first half of the year, down slightly on the same period last year, when Mighty River Power was listed.
The NZX said listing fees associated with IPOs had pushed revenues up during the current period, but would also provide recurring listing, trading and clearing revenues for the exchange.
Its new market for small and mid-sized businesses would also probably launch in the fourth quarter of this year, it said.
The NZX's agri-information business saw revenue increase 5.4 per cent on the same period a year ago, driven by increased advertising revenue.
This demonstrated greater confidence in the sector following the severe drought in the first half of 2013, the NZX said.
But market operations revenue was down 14.8 per cent, because of reduced energy consulting work and the loss of a gas market contract.
Costs also increased 4.3 per cent to $19m, because of increased contractor costs, and more staff.
The NZX also announced its deputy chairman, James Miller, would replace outgoing chairman Andrew Harmos at the company's annual meeting next year.
The exchange announced an interim dividend of 3 cents a share.
A good pipeline of small to medium IPO candidates for the remainder of the year would see listing fee income grow, the NZX said.
The new growth market would have a limited impact on 2014 results, but would eventually provide a stream of companies that would migrate to the main board.