Can Summerset's growth continue?

NIKO KLOETEN
Last updated 08:11 12/08/2014

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What you need to know on Tuesday morning, August 12.

- NZX50 down 5.569 points (0.11 per cent) to 5049.633

- NZ dollar at US84.56 cents, A91.29c, 86.39yen, 50.38p, 63.17€c

- Brent crude oil at US$104.61 a barrel (down US51c)

- Spot gold at US$1307.50 an ounce

What's on today

- Statistics NZ accommodation survey for June

- Summerset half-year results due

- PGG Wrightson full-year results due

- ANZ Truckometer, July

- Infratil AGM, 2.30pm, Level 4 Lounge, South Stand, Eden Park, Gate P5, Reimers Ave, Mount Eden, Auckland

Stocks to watch

- PGG Wrightson: The agriculture company announces its full-year results today. In its latest trading update it forecast its operating profit in the year ended June 30 would be in the $56 million to $58m range, slightly up on the guidance range indicated in February and up by more than $10m from last year's full-year operating profit of $45.8m.

- Summerset: The retirement village operator announces its half-year results today, giving investors an early indication of whether it can continue its profit growth from 2013, when its underlying profit was up 46 per cent to $22.2 million and its net profit after tax was up 131 per cent to $34.2m.

Top international news

- Moscow's sweeping sanctions on European food have sent Russian restaurateurs, retail chains and food producers scrambling for alternative supplies and bracing for Soviet-style shortages.

The tit-for-tat trade restrictions, a response to US and EU sanctions imposed over Russia's actions in Ukraine, have hurt farmers in the West for whom Russia is by far the biggest buyer of EU produce.

But they will also hit consumers at home, isolating them from world trade to a degree unseen for more than two decades.

Creamy French cheeses, Australian ribeye steak and seafood risottos are going off the menu at restaurants after the ban on imports of all fish, meat and dairy produce. New Zealand is exempt - so far - and has been singled out as a potential supplier.

"Prices will go up and certain food stuff will disappear," said Alexei Paperny, whose mid-priced Moscow cafe the Children of Paradise, named after a classic French film, was still packed on Friday evening.

"We'll do our best to survive. I can't imagine how some restaurants and cafes can exist under the circumstances."

He described the year-long ban on products from the United States, the EU, Canada, Australia and Norway as "Russian sanctions against Russians", a frustration shared by many customers at his cafe.

Something else for your morning

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- More than 4100 workers at The Warehouse Group will start receiving more in their bank accounts as the retail giant moves into the second stage of its "career retailer wage" policy.

But the convenor of the living wage movement thinks The Warehouse should consider going further and reward not just its long-serving staff.

The new wage band will raise the wages of staff who have done the required training for their jobs and have at least 5000 hours (about two and a half years) experience in their roles.

- Stuff

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