Latest / Best of Business / Shane Solly: Harbour Asset Management expert on Fletcher Building posting a 'gloomy' quarterly update

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Shane Solly: Harbour Asset Management expert on Fletcher Building posting a 'gloomy' quarterly update · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks'd be follow
• 0:12
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• 0:16
  Speaker 2: And Shane solely harbor Asset Management is with us as
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  Speaker 2: Shane ill like you.
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  Speaker 3: That all right?
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  Speaker 2: So what did you make of the economic data out today?
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  Speaker 3: Yeah, unfortunately is a more self data. We saw the
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  Speaker 3: New Zealand Performance Service Indextens, a lead indicator for service
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  Speaker 3: sector in New Zeon. It was up to forty eight
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  Speaker 3: point three in September from forty seven point five in July,
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  Speaker 3: which is good, but it's still below fifty. But that's
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  Speaker 3: that means the services sector still contracting. Our economy is
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  Speaker 3: still struggling. The Grant gain traction net migration for August
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  Speaker 3: was a whole four hundred and sixty people, well below
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  Speaker 3: the rate of two thousand and seen in June and July.
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  Speaker 3: Other side, we're seeing a little bit of improvement and tourism.
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  Speaker 3: Short term vis is up stre and a half percent
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  Speaker 3: and August net was up. July was also positive, So
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  Speaker 3: we are still lagging though they visiting numbers, we're still
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  Speaker 3: at ninety one point seven percent of pre COVID, so
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  Speaker 3: many in that international tourism still a bit of a
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  Speaker 3: drag on the economy. Good news is Bord of Airline
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  Speaker 3: Representatsu is on. They're saying international services coming in the
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  Speaker 3: next six months. They're going to see us starting to
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  Speaker 3: grow again. So tourism could be starting to boost the
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  Speaker 3: economy again. If we're here, if we look forward twelve.
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  Speaker 2: Months, Wow, what does the market make? By the way
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  Speaker 2: of today's Fletcher Building a quarterly update.
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  Speaker 3: Yeah, unfortunately a bit of below expectations. The first quarter
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  Speaker 3: for Fletcher Building. The light building products were weaker than expected. Sorry,
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  Speaker 3: they're slightly better than the fourth quarter of twenty twenty five,
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  Speaker 3: but below expectations. Heavy building that was the real hip.
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  Speaker 3: That was where the material has really dropped away. Some
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  Speaker 3: margin had two in terms of things like some of
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  Speaker 3: the retail parts their business things. A bit of pressure.
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  Speaker 3: Flitcher Building a pretty cautious outlook statement from management talking
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  Speaker 3: about market conditions remaining challenging for the rest of twenty
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  Speaker 3: twenty six given us uncertainty of time when they recovery
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  Speaker 3: and residential sector. They have gone another notch in terms
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  Speaker 3: of cost saving. They're now targeting another one hundred million
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  Speaker 3: of cost savings with fifty mil and the first half Unfortunately,
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  Speaker 3: the Fletcher Building ship price down two percent on the
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  Speaker 3: data three dollars twenty two.
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  Speaker 2: And pre sing property. I announced that new equity capital
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  Speaker 2: raise today. What is the take on that?
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  Speaker 3: Yeah, look, it's actually been taken pretty well by the market.
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  Speaker 3: They're raising three hundred and ten million dollars to really
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  Speaker 3: help kickstart their three point seven b in development portfolio.
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  Speaker 3: Some of the three hundred mil will be used to
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  Speaker 3: fund a six hundred and thirty eight bid purpose built
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  Speaker 3: student accommodation building in Orpen's Queen Street. About two and
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  Speaker 3: eighty five mil. Heather was raised by institutional investors at
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  Speaker 3: a dollar twenty three. It's been pretty well supported retailing listeners.
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  Speaker 3: They've got the opportunity to buy into the share purchase
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  Speaker 3: plan at the same price if they own shares before
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  Speaker 3: the announcement today. So yeah, big, big day for the
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  Speaker 3: New Zealand share market. I've watually the market down zero
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  Speaker 3: point eighty five percent on a combo of all the above.
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  Speaker 2: Shane, it's good to talk to you mate, Thanks very
• 3:01
  Speaker 2: much for running us through the Shane Sally Harbor Asset Management.
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