NZ sharemarket lower as Plexure falls 13%

The main New Zealand share index fell on Wednesday with mobile marketing firm Plexure posting a significant drop after it reported a hefty half-year loss this morning.

Wednesday, November 17th 2021, 6:49PM

by BusinessDesk

The S&P/NZX 50 Index fell 65 points, or 0.5%, to 12837.40. Turnover was $168 million.

Shares in Plexure Group dropped more than 13% to 45 cents as the company reported its net loss had risen to $8.5m in the six months ended September, up from $4.4m.

The company’s new management told investors it had been expanding its staff and operations to win customers who never materialised.

Now, the group, which recently merged with payment platform Task, intends to pivot towards selling an integrated version of the two businesses’ products and reducing Plexure’s overhead costs.

Some confusion occurred on a call with analysts following the result, with its chief financial officer telling investors the previously issued revenue guidance – $45m to $47m – had been withdrawn.

Plexure later corrected this in a note to the NZX, saying the comment had been in error.

A2 Milk chair David Hearn was playing defence at its annual general meeting today, facing up to shareholders with the company under threat of multiple lawsuits about poor disclosure.

Hearn said the company had offered “reasonable and appropriate guidance” in what he considered “difficult and unprecedented circumstances”.

Shares in the infant formula exporter fell 0.6% to $6.27 today, while its supplier Synlait Milk climbed 0.6% to $3.50. 

Meridian Energy announced it would buy back up to 418,000 of its own shares on-market, to hold as treasury stock for future performance incentive payments. The stock fell 0.9% to $4.66.

Fisher & Paykel Healthcare shares declined 0.2% to $31.50. The healthcare exporter announced it had released a non-invasive ventilation product which is available in the US, NZ, Australia and Europe.

Andrew Somervell, vice president of products and technology, said it was for patients who require higher levels of respiratory support but were comfortable enough to watch television while being treated.

Investore Property had the day’s biggest gain, climbing 3.8% to $1.93, as analysts retained a positive view of the stock despite its recent earnings miss.

Forsyth Barr said the stock was trading at a meaningful discount to its net asset value and had an attractive gross dividend yield of 6.2%.

The NZ dollar dipped below 70 US cents today, trading at 69.91 at 3pm in Wellington as stronger than expected retail sales and industrial production data out of the United States boosted demand for its currency.

Tags: Market Close

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