Bosses Rebuilding: Recent Episodes
Newstalk ZB
A podcast series from Newstalk ZB hosted by Heather du Plessis-Allan. New Zealand is experiencing the biggest economic downturn in a century. But never waste a crisis! The country's biggest names in business are rebuilding their operations, re-thinking how we work, and pushing boundaries to become better, faster, and more sustainable. Raw, honest and personal - this podcast series tells the story of the bosses leading Kiwi companies out of the Covid-19 crisis.
The final boss we're revisiting this week before this programme wraps up for the year is Auckland International Airport CEO Adrian Littlewood. It was during the level three lockdown in May that Adrian appeared on Bosses in Lockdown. Back then, as it is now, it was brutal stuff for his business. He joined Heather du Plessis-Allan on Bosses Rebuilding to weigh in on where things are now. LISTEN ABOVE
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It has been a rollercoaster year for one of our iconic retailers. The first lockdown decimated revenue at Briscoes Group, but Kiwis more than made up for it with a shopping boom over the rest of the year. Briscoes Group managing director Rod Duke returned to Bosses Rebuilding to reflect on the year with Heather du Plessis-Allan. LISTEN ABOVE
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First, we had Bosses in Lockdown, and then we had Bosses Rebuilding. Now, it's coming to the end of this crazy, crazy, year and we thought it would be great to touch base again with some of the Kiwi bosses we spoke to earlier this year. It was mid-May, during level three, that Eden Park's Nick Sautner told us his industry was in a bad place. He joined Heather du Plessis-Allan on Bosses Rebuilding to look at where the industry is now. LISTEN ABOVE
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If there's one story you might not have predicted during the thick of the Covid lockdown this year, it's the story of the housing market. Back in April, headlines were talking about house prices coming well off the boil, as New Zealand stared down the barrel of what it was thought would be a serious recession. Peter Thompson, the managing director of Barfoot and Thompson is our boss we're revisiting tonight. LISTEN ABOVE
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First, we had Bosses in Lockdown, and then we had Bosses Rebuilding. Now, it's coming to the end of this crazy, crazy, year and we thought it would be great to touch base again with some of the Kiwi bosses we spoke to back in March and April. Tourism Holdings boss Grant Webster is back to give us an update on how the industry is holding up post-Covid-19. LISTEN ABOVE
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First, we had Bosses in Lockdown, and then we had Bosses Rebuilding. Now, it's coming to the end of this crazy, crazy, year and we thought it would be great to touch base again with some of the Kiwi bosses we spoke to back in March and April. Jason Paris, the CEO of Vodafone, was one of the first guests on Bosses in Lockdown. He rejoined Heather du Plessis-Allan to discuss what's changed over the last months and how the company is bouncing back. LISTEN ABOVE
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Covid threw a serious curveball to the world's movie industry this year, including local listed cinema software company, Vista Group. But instead of retreating, Vista doubled down, and they believe it's now ending the year in a stronger and more competitive position So how did they do it? Kimbal Riley is the CEO of Vista Group, and is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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Many of you will know Les Mills, the New Zealand gym chain. But what many of you might not know, is that Les Mills is also a super successful export product. Les Mills International exports workout programmes to 100 other countries and to tens of thousands of gyms around the world. Naturally, in the post Covid world, home workout programmes have become more important than ever, and the company has just secured powerful backing. ACC has bought a 18 percent share in Les Mills international. Chief executive Clive Ormerod is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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This time last year, the tourism industry was talking about needing an extra 40,000 workers. Such was required from the influx of international visitors this country was basking in. So Matt Stenton set up a new support service called 'go with tourism'. He even got $5.2 million in funding from the new visitor levy to help attract people to tourism jobs. They were all set to launch in March, hen lockdown hit, and the business was turned on its head. Matt Stenton is the programme director for 'Go with Tourism', which is now focused on helping displaced tourism workers to find jobs. He joined Heather du Plessis-Allan to discuss his work on Bosses Rebuilding. LISTEN ABOVE
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The story of Waikato company Fiasco is nothing short of an extreme Covid pivot. Before the pandemic, they were making those really cool road cases that bands use for all their stuff on tour, but then Covid hit, and they turned their attention to producing amazing flat pack home desks, and specialist screens to help businesses protect staff and customers. Joe Bradford is the Head of Operations at Fiasco and is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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Fisher and Paykel Healthcare said its first-half net profit shot up by 86 per cent to $225.5 million, driven by demand for its respiratory products arising from the Covid-19 pandemic. The company said that based on stronger hospital hardware sales to date its net profit for the full year was forecast to be $400m to $415m, up from its August forecast of $365m-$385m. F&P Healthcare said the result was driven by increased demand for the company's hospital hardware, in particular its "Optiflow" and "Airvo" systems. "This reflected a shift in clinical practice toward using nasal high flow therapy as a front-line treatment for Covid-19 patients in hospital," it said. In the hospital product group, which includes products used in acute and chronic respiratory care and surgery, operating revenue grew 93 per cent over the first half of the previous financial year to $681m. Hospital products made up three-quarters of the company's operating revenue. "Sales in hardware and consumables continued to track surges in Covid-19 globally, as the virus moved across Europe, North America, South America and South Asia," chief executive Lewis Gradon said. In the homecare product group, which includes products used in the treatment of obstructive sleep apnea (OSA) and nasal high flow therapy in the home, operating revenue grew 5 per cent to $226.2m. Gradon said since the pandemic started, many sleep clinics have been closed, resulting in a reduction in new patient diagnoses. He said the company's "F&P Evora" and "F&P Vitera" masks for OSA had yet to reach their full potential. A reduction in gross margin for the six-month period to 61.7 per cent was due to the increased use of air freight and the elevated costs associated with it. Excluding these additional freight costs, gross margin was in line with the first half of the previous financial year in constant currency terms. F&P Healthcare declared an interim dividend of 16 cents per ordinary share, up 33 per cent on the interim dividend last year. Gradon said the company could not predict the course of Covid-19, the effectiveness or adoption of preventative measures, the progress of a vaccine and its outcomes, the impact on future hospitalisation rates, or the investments countries may make in treatment measures. He said the full-year forecast was based on the following assumptions:
Hospital hardware sales return to normal levels from January 2021. The use of its hospital hardware returns down to approximately normal rates for the second half of the financial year. OSA diagnosis rates are reduced for the second half of the financial year, due to limited access to customers. Freight costs remain elevated, resulting in a reduction in gross margin of about 200 basis points.
F&P Healthcare - New Zealand's biggest NZX-listed company by market capitalisation - designs, makes and markets products respiratory systems. The company's shares last traded at $35.18, up $1.13 or 3.3 per cent from yesterday's closing level. The stock has rallied by just over 63 per cent over the past 12 months.
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One of the first businesses to fall victim to Covid in New Zealand was Bauer Media. In early April, the German magazine giant closed iconic magazine titles, including North and South. Now, like a phoenix from the ashes, the current affairs magazine is returning to shelves under new ownership. Rachel Morris has returned to New Zealand after working for five years for the Huffington Post in Washington to take over the reins of the magazine. With features-writing experience and her investigative background, Morris says her magazine will be willing to ask the "big questions". She joined Heather du Plessis-Allan alongside the magazine's new co-owner Konstantin Richter for tonight's episode of Bosses Rebuilding. LISTEN ABOVE
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Like many sectors, the Covid pandemic has turned the global insurance industry on its head. On one hand, there's been a surge in health, travel and business interruption claims. But on the other, this new Covid-world has also brought opportunity. Ian Pollard is the managing director of Delta Insurance and is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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Farmlands Co-operative has announced a $7 million net profit for the 2019-20 financial year - a result chairman Rob Hewett says could have been "a damn sight worse". Profit was down from last year's $8.4 million result, while turnover was $2.6 billion and revenue was $1.1 billion. The impact of Covid-19 was most keenly felt in April when there was a drop in revenue of more than 30 per cent, chief executive Peter Reidie said. The co-operative - which has 72,000 shareholders - would have incurred a substantial loss without the response it initiated, which included the Government's wage subsidy ($8.8 million), rent relief, staff remuneration sacrifice, supplier support and other austerity measures, Reidie said in a statement. LISTEN ABOVE
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For almost 30 years, kiwi footwear exporter Bobux has laid claim to making the world's best shoes for little people. The bobux brand is all about science and style and making podiatrist-approved shoes for babies and toddlers. Bobux is finishing up this covid year with online sales up 65%. Their forward-order book is up 15%. How have they done it? Andrew Sharpe is the CEO of Bobux and is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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During this rollercoaster of a year, it's no secret that many of us have probably had a few more drinks at home than usual. Not least, of course, because hospitality has been hit hard by the lockdowns. So how has all of this played out for Lion, New Zealand’s largest alcohol beverage company? Rory Glass, the managing director of Lion, joined Chris Lynch on Bosses Rebuilding to discuss how lockdown has affected the alcohol market. LISTEN ABOVE
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An incredible milestone today for a Kiwi company that's crowdfunding its effort to make the world’s first biobead Covid vaccine. This is the Covid vaccine corporation - or CVC - and their campaign on Pledgeme has got off to a dream start today. Dr Claire McGowan is the CEO of Pledgeme, and she is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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The story of Lewis Road Creamery is now the stuff of urban legend. Back in 2014, the company caused a sensation when it teamed up with Whittaker's and made that chocolate milk. Supermarkets had to employ extra security guards it was so popular and there was even a secondary market on Trade Me. Fast forward to 2020, and the company has been growing its high-value exports, cashing in on the lockdown baking frenzy. Nicola O'Rourke is the general manager of Lewis Road Creamery and is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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It’s not often Bosses Rebuilding focuses on a global business giant, but Unilever has a big footprint in New Zealand. The company owns household brands like Lipton, Dove, Rexona, Vaseline and Persil, amongst others. But when Covid hit this year, the head of Unilever's New Zealand operation says suddenly, they had to think like a small business. Nick Bangs, the managing director of Unilever New Zealand, joined Heather du Plessis-Allan on Bosses Rebuilding about how they pivoted. LISTEN ABOVE
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Sometimes, success in business can mean being in the right place at the right time. Enter the chnnl app. It's a workplace well-being app for medical staff that launched at the end of 2019. And then covid hit, and suddenly, demand was off the charts. Dr Liz Berryman is the founder and CEO of chnnl app. She joined Heather du Plesssi-Allan on Bosses Rebuilding. LISTEN ABOVE
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The cold, hard Covid-19 reality of this year has been tough for a lot of Kiwi workers. Thousands of people have been made redundant, others have lost businesses, and many are taking stock of their working life. But it's not all bad news. Business is booming for one Kiwi firm that's helping people find new careers in the Covid downturn. Kaye Avery is the principle consultant at CareerEQ. She joined Heather du Plessis-Allan on Bosses Rebuilding to discuss being a career coach during these times. LISTEN ABOVE
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It has been a hell of a year for most of our tourism businesses, thanks to the Covid-91 pandemic which has ravaged most if not all forms of trade. When the borders closed back in March, Hobbiton, near Matamata, was forced to let go of around 250 staff. Fast forward seven months, and some of those have been rehired as the business looks ahead to what it hopes will be a busy domestic summer. Hobbiton co-founder and CEO Russell Alexander told Heather du Plessis-Allan business is going well, depending on how you look at it. "Once we got our head around it in March of what is the new morn and what you're going to be... yeah we're very happy, but if you go back and compare it to a year ago, you don't really want to do that. "Probably [down] a little more than a wee bit." Mr Alexander says if things continue to trend well over summer, they should be able to rehire more staff.
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The story of marketing company "Reach Media" is not unlike other Kiwi businesses who were smacked in the face this year by covid. Back in level four lockdown, revenue fell off a cliff as advertisers withdrew their campaigns. Fast-forward seven months, and the company has halved its office staff numbers, but it's also on track to have its best month in 18 months. Struan Abernethy is the CEO of Reach Media and joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how they pivoted during and after lockdown. LISTEN ABOVE
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Has the Covid crisis forever changed the fashion industry? It’s not just about trackpants and activewear sales going through the roof, there are calls for a new type of fashion revolution. Designer Kate Sylvester is one of the names behind "mindful fashion" - it's a collective which aims to make sure our local fashion scene is sustainable. Kate Sylvester joined Heather du Plessis-Allan on Bosses Rebuilding to discuss the future of the fashion industry. LISTEN ABOVE
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What if it's not a business that needs rebuilding because of Covid, but in fact an entire industry? Arrowtown-based Sam Brough has just launched a new tourism venture called Kiwi Welcome. It's an online membership programme that gives discounts to tourists, but the upshot is, all the profits go back into the local community and environment in Queenstown, Wanaka and Central Otago. Brough joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how it all works. LISTEN ABOVE
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The Covid recession has driven huge changes in the way people choose to make their living, with lots of people turning towards freelancing and self employment, to boost their income. The good news is, that's meant busy times for one of New Zealand's fastest-growing accountancy firms. James Fuller is the CEO Hnry, and he joined Heather du Plessis-Allan on Bosses Rebuilding. LISTEN ABOVE
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It's no surprise the local hotel sector has been turned on its head. Hotel chains are either relying only on domestic travellers to fill occupancy, or they're taking up a new income stream as a managed isolation facility. But here's the good news, amidst the uncertainty, there's optimism. Stephen Mansfield, chief executive of Quest Apartment Hotels NZ, joined Heather du Plessis-Allan on Bosses Rebuilding. LISTEN ABOVE
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A cool innovation story for you tonight, it's called Upstock, and it's an app which is making waves in the hospitality sector. It's an online stock ordering system for bars, restaurants and cafes, which replaces the pretty-medieval pen and paper systems many use, reducing mistakes, waste and cost.Philip Fierlinger is Upstock's co-CEO and also the co-founder of Xero. He joined Heather du Plessis-Allan for tonight's episode of Bosses Rebuilding. LISTEN ABOVE
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When the first lockdown hit this country, Kiwi tech firm Joy Business Academy lost a monthly revenue stream of a million dollars, overnight. At the same time, CEO James Coddington had 46 staff wanting to know if they still had a job. So what did he do? He went to the bank and asked for a million dollars to cover their wages for six months. What happened next is the amazing story of what his staff then did for him. Joy Business Academy CEO James Coddington joined Heather du Plessis-Allan on Bosses Rebuilding to discuss his story. LISTEN ABOVE
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The social enterprise 'Eat my Lunch' has undergone an incredible overhaul since the first lockdown, when suddenly it had no-one in offices to buy their lunches and no kids at school to deliver to. This story is the type of nimble thinking we all can learn from. Kellie Burbidge, general manager of Eat My Lunch, joined Heather du Plessis-Allan to discuss how they were able to pivot. LISTEN ABOVE
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The business of retirement and aged care has been thrown into uncertainty with the Covid pandemic. There's the physical issue of keeping residents safe, a closed border affecting its workforce, and the impact on some operators property values. Earl Gasparich, CEO of Oceania Healthcare, joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how the pandemic has affected their business. LISTEN ABOVE
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Sky TV has reported a net loss of $156.8m for the year to June 30, including a non-cash impairment of goodwill of $177.5m - but raised its guidance for FY2021, saying the faster-than-expected return of sport will see a return to net profit, and at a higher level than it previously forecast. Sky shares fell about 8 per cent to 15.3c as the NZX opened, partially reversing sharp gains made over the past two trading days. Net profit excluding the write-down was $20.7m. Ebitda was $164.2m, at the midpoint of revised guidance issued in May. Revenue decreased 6 per cent to $747.6m, at the upper end of revised guidance issued in May, as a 35 per cent increase in streaming revenue was not enough to offset a 6 per cent decline in the company's larger pool of satellite revenue. The pay-TV broadcaster forecast it would be back in black for its 2021 financial year, with a net profit of $10m to $20m and $125m-$140m ebitda on revenue in the range of $660m to $700m. The numbers were all ahead of Sky's initial 2021 guidance, issued in May, which had assumed a gradual return of sport from January. There was no full-year dividend, as previously flagged, but management commentary with today's result said, "The Board currently intends to reinvest available free cash flow during FY21 and will re-evaluate the commencement of dividends following the completion of that period." Total subscriber numbers for 2020 increased 27 per cent to 990,000, in part due to Sky's purchases of the Lightbox and RugbyPass streaming services, but average revenue per user dropped. The number of streaming customers increased 153 per cent from 160,000 to 404,000 - albeit with 52 per cent of its entertainment streaming subs accounted for by a wholesale agreement with Lightbox's former owner, Spark, which runs through to January next year. Sky broke out an average revenue per month figure for its streaming customers for the first time - $19.80 versus the $82.08 spent by the average satellite customer. That was reflected in streaming's modest contribution to Sky's accounts. Streaming contributed 8 per cent of total revenue, up from 5 per cent in 2019. There had been a small decline in streaming numbers from May to June due to Sky losing some of the "sugar-hit" subcribers that Neon received during the March and April lockdowns, and not all Spark customers who were paying for Lightbox signed up to the merged Lightbox-Neon platform, CFO Blair Woodbury said. On a conference call, chief executive Martin Stewart said only 8 per cent of satellite customers cancelled their sports package as Covid hit. Damage was limited by free entertainment channels being used as a loyalty incentive. A "majority" of those who cancelled Sky Sport had now re-subscribed, Stewart said. Despite the generally bullish comments around streaming and the less-bad-than-anticipated sports outlook, the value of RugbyPass was written down by $27.5m to $11m on ongoing uncertainty about the global game. Sky bought the international streaming player in November last year in a deal worth up to US$40m including a potential US$10m earnout in 2022. RugbyPass's former owner claimed around 20,000 paying subs. Sky has not broken out a paid sub number. A $3.2m provision was also made a potential holiday pay issue. The fourth quarter also saw a $7m in one-off redundancy costs. Sports rights renegotiated Stewart said the impact of Covid was mitigated by a $9m saving from renegotiating sports rights, and $9m saved from production costs as various local sports events were scrubbed, and around $4.5m from cuts to executive remuneration. Sky was also able to screw its satellite provider down to a better deal after delays to the launch of its next-generation "bird". The chief executive said there could be further clawbacks from contracts, following overseas precedents, if Covid had further impact on sports coverage in the months ahead.
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Pushpay is a Kiwi success story. The company provides digital payment and operations services to the religious sector in the US, think those giant mega churches. Covid-19 has meant people have been staying away from churches recently, so the company has been turning to Pushpay for people to make their donations, and still take part in services online. Pushpay CEO Bruce Gordon is tonight's guest on Bosses Rebuilding. LISTEN ABOVE
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Cancelled holidays seem to have boosted profits for the company that owns Briscoes, Rebel Sport and Living and Giving. It's made a net profit of nearly $28 million dollars for the half year ended July 26, just 1.3 percent down on last year. Briscoe Group managing director, Rod Duke told Heather du Plessis-Allan there's extraordinary demand in the suburbs after 50 days in lockdown. "There's a bit more money in households from cancelled holidays, so people are spending it on their home." Briscoe Group had put dividends on hold because of Covid-19. But directors have now decided to pay an interim dividend of nine cents a share, up from 8.5 cents last time. LISTEN ABOVE
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SkyCity Entertainment Group's net profit fell 60 per cent from $164.6 million last year to $66.2m this year and the company won't pay shareholders a final dividend. But the result was still at the upper end of the target range the company released when it projected the result in June. Revenue rose 37 per cent from $822.3m to $1.1b in the year to June 30, 2020.
The company said it had been a "challenging year" due to conference centre fire and Covid-19, with significant operational and financial impacts. "Group normalised ebitda and NPAT were negatively affected but at top end of guidance range provided at time of equity raising," it said. SkyCity said it had a strong balance sheet and was "able to withstand further downside shocks and/or Covid-19 disruptions". Its big Adelaide expansion is on-track, and expected to open this year. Auckland's conference centre and Horizon Hotel reinstatement is progressing satisfactorily. The company's online casino business has grown rapidly despite operational constraints. It has more than 35,000 customer registrations. Graeme Stephens, chief executive, said the 2020 financial year had been complex and challenging for SkyCity."A wide range of strategic decisions and actions have had to be taken to mitigate the impacts of, first, the fire and then the impacts of Covid-19. We have rapidly restructured our New Zealand workforce, downsizing it by around 25 per cent to ensure SkyCity is positioned to be sustainable in the short to medium term; we have undertaken a capital raising and debt restructure to ensure that SkyCity has sufficient liquidity and funding capacity; and significant operational effort has been focused on closing and reopening our properties with rigorous health and safety measures in place," he said."SkyCity was able to move quickly but with care in response to these events and is well positioned to deal with the foreseeable future. The wage subsidy in New Zealand and Australian JobKeeper scheme have been helpful and partially mitigated the impact of property closures and ongoing negligible international customer activity."Our domestic businesses in New Zealand and Adelaide have recovered more quickly than anticipated post reopening which has been encouraging, although the outlook remains unpredictable as we adjust to new social and economic settings," he said."The other aspects of our business that are more reliant on international visitors, including VIP gaming, hotels and restaurants, can only fully recover when country borders reopen. Our International Business activities should recover once travel restrictions are lifted, but the parts of our business driven by corporate travel and by tourism, such as our hotels and the Sky Tower will take longer."SkyCity's strategic plan is focused on managing the post-Covid-19 recovery and completing its major projects in Adelaide and Auckland, which will underpin medium-term earnings and cash flow growth," he said.
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You have got to love stories of businesses who are clever enough to not just move with the times, but actually get ahead of the curve. They're thinking smarter, and innovating. Amongst those companies includes Pita Pit, the quick service lunch franchise that has about 90 stores across the country. Pita Pit is venturing into the world of virtual restaurants, utilising its Pita Pit kitchens, along with Uber Eats, to launch a new brand called Bowl'd. Duane Dalton, the co-founder of the Pita Pit franchisees in New Zealand, joins Heather du Plessis-Allan on Bosses Rebuilding to discuss what a virtual restaurant actually is, and how it is changing their brand. LISTEN ABOVE
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Kiwibank's profit has taken a big hit from Covid-19 impairments and lower interest rates. The state-owned bank today announced its net profit after tax was down 47 per cent to $57 million for the year to June 30. Kiwibank chief executive Steve Jurkovich said the result reflected the impact of Covid-19 and lower interest rates. The bank recognised $51m in credit impairment provisions, up from $12m in the previous financial year, because of Covid-19. Operating expenses also increased from $375m to $428m and its interest income fell from $933m to $894m. But Jurkovich said the bank continued to grow at a faster rate than the market, with lending growth of 9 per cent and deposit growth of 13 per cent while the market grew at a slower pace of 5 per cent and 9 per cent respectively. "As a result, we are growing our lending and deposit rates faster than the market to help more New Zealanders into homes, more Kiwis to save, and support more businesses – living up to our purpose of Kiwis making Kiwis better off." Loans and advances by the bank rose from from $20.4 billion to $22.2b and deposits and other borrowers grew from $18.2b to $20.6b. Jurkovich said the bank had provided support to more than 8000 personal and business banking customers for loans totalling more than $2.6b. It had also moved to support businesses by switching from paying suppliers on the 20th of the month to paying accounts on a weekly basis. "We will continue to play our role in New Zealand's economic recovery by offering a better banking alternative that's committed to being fair and easy for Kiwis, the businesses they own, and for future generations," said Jurkovich.
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Port of Tauranga has posted group net profit of $90 million and increased container volumes, despite the pandemic storm that lashed global shipping and trade in the final months of its financial year. New Zealand's largest port said net profit after tax was $10.6m down on the previous year while revenue also fell to $302m from $313m as log exports slumped by nearly 22 per cent and imports and exports were buffeted by the global Covid virus. The company will pay a final dividend of 6.4c a share but has suspended the special dividend scheme to reserve funds to accelerate capital expenditure for growth. The full year dividend is 12.4c a share, 90 per cent of underlying net profit after tax. The average annual compounding total shareholder return has been 23.34 per cent over the past 10 years, the company said. Container volumes increased 1.5 per cent to total 1,251,741 for the year ended June 30. Also up, by 18.5 per cent, were earnings from subsidiary and associate companies at $14.1m. Group ebitda fell 8.1 per cent to $166.5m. Total trade of 24.8m tonnes was slightly down on FY19's 26.9m tonnes. Exports decreased 8 per cent to 15.8m tonnes and imports fell 7.8 per cent to 9m tonnes as NZ Inc. struggled to keep business flowing in local and international Covid shutdowns. Log export volumes were squeezed in the first half of the financial year by lower international prices and demand. By March positive signs were emerging from New Zealand's main log market China as business there returned to normal after Covid shutdown disruption, but then forestry was deemed a non-essential industry during New Zealand's level 4 response. Logs already on the Tauranga wharves could be shipped but it was May before trucks could start bringing in fresh supply. Overall log volumes fell 21.5 per cent to 5.5m tonnes. Dairy exports increased 1.7 per cent to nearly 2.4m tonnes and meat exports surged by 15.4 per cent. Kiwifruit exports held steady with a continuing trend to containerisation. Transhipped containers remained nearly a third of total containers handled. Transhipment is when containers are transferred from one ship to another. Highlights included a 15.3 per cent reduction in the port's overall carbon emissions and the company's land and buildings portfolio value swelling by $43.5m. The port remains Australasia's most productive container terminal with the average net crane rate increasing 8.8 per cent to 35.8 moves per hour. Chairman David Pilkington said the pandemic impacts included shipping cancellations, reduced cargo volumes, operational challenges and increased costs, with a resulting economic recession in New Zealand and overseas. "We are better positioned than most, due to our track record of strong capital discipline, our conservative balance sheet and capacity headroom," he said. "Our diversity of cargo gives us some resilience in terms of revenue, while the strength of our people and processes has really shone through in keeping New Zealand's most efficient port operating." Chief executive Mark Cairns said the port was now planning for the next stage of cargo growth in response to customer demand. It would add another container vessel berth to the south of the Sulphur Point wharves. A ninth container crane had been introduced during the year. The port team had put in an "outstanding performance" to keep essential imports and exports flowing through the Covid lockdown. Cairns said the short and medium term impacts of the pandemic were still uncertain. "We expect cargo volumes to slowly recover over the next three years, with dairy product and kiwifruit exports likely to be the strongest performers in terms of growth. "We are still confident of growth over the long term and given the lead time required for any investment, we continue to pursue capacity expansion. "Our track record means we have a strong credit rating...
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NZ King Salmon has held operating earnings within guidance despite its sales revenue falling by 50 per cent during the level 4 lockdown response to Covid-19. The world's biggest producer of premium king salmon posted operating ebitda of $25.1m for the year ended June 30, the lower end of its half year guidance of $25-$28.5m. Net profit of $18m was 59 per cent up on the previous year. Revenue at $155.3m was down 10 per cent on the previous year and sales volumes fell 16 per cent at 6331 tonnes. Pricing strengthened to $24.54/kg, up 7 per cent. No final dividend will be paid because of Covid-19 uncertainty, higher inventory levels and to ensure prudent cash availability. Trading was now around 20 per cent below pre-Covid levels but managing director and chief executive Grant Rosewarne said there were encouraging signs in export markets, particularly the key US market, which had been hit hard by the virus. The company qualified as an essential service during lockdown so was able to keep harvesting and selling, but harvesting volumes fell during the response and sales were impacted by a slump in the food service and hospitality sectors in its key export markets. Chairman John Ryder said the year had been one of the most challenging in his business career. He thanked staff for seeing the company through the difficult period and said much of its resilience was due to the support of customers, partners, suppliers and shareholders. Rosewarne said with the help of the wage subsidy, the company had been able to keep its 550 staff employed. The company's application to establish New Zealand's first open ocean farm in Cook Strait, 7km north of Cape Lambert, was progressing well with a resource consent hearing expected by the end of the year. With the departure of chief operating officer Alan Cook, a Canadian who returned home after less than a year in the job, the company had decided to split the role to enable more focus on aquaculture and processing operations respectively. Internal appointment Grant Lovell would become general manager aquaculture. The company paid an interim dividend of 2c per share.
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Spark has reported across-the-board full-year growth, in spite of the tough economic times. Net profit for the year to June is up 4.4 percent, to $427 million. Covid has been a mixed bag for Spark. There's been increased demand for mobile, broadband and cloud services. But that's been offset by the loss of global roaming revenue, extra helpdesk costs, and good-will measures like unlimited data for fixed-line customers, free Spark Sport, and the suspension of late payment disconnections. Spark chief executive Jolie Hodson joined Heather du Plessis-Allan to discuss the results on Bosses Rebuilding. LISTEN ABOVE
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TVNZ has plunged into the red, reporting a $25.8 million net loss for its year to June 30 - against its year-ago profit of $2.9m and its first loss since 2010. But even before the pandemic hit, or the first lick of flames had crept along the roof of the neighbouring International Convention Centre, forcing an extended relocation, Kenrick had been predicting a tough time of it for the state broadcaster's 2020 financial year. Around this time last year, the chief executive predicted a $17.1m loss for FY2020 as his company restructure for more online content, and more local content, in the face of rising competition from the likes of Netflix, Disney+ and Amazon Prime. Kenrick pushed ahead for that plan, and he says it accounts for a lot of the red ink. Operating revenue was stable year-on-year at $310.8m due to advertising revenuegrowth pre Covid-19 and $5.9m government relief partially offsetting revenue declinesincurred from April 2020. Advertising revenue was down $7m for the year to $286.3m. Kenrick says TVNZ recovered quickly from -34% revenue declines in April to -16% in June. Digital advertising revenue grew 19% year-on-year. Operating expenditure increased by $34.5m year-on-year to $320.6m - primarily because of the local content production increase and $30m in one-off charges - including $22.6m for "onerous contract impairment" (which Kenrick says is essentially a write-down of the value of content rights brought pre-Covid, which could now bring in less revenue); a $3.9m change to amortisation of content; and $3.6m redundancy costs. Kenrick said it had been a "booming" first nine months of TVNZ's financial year with ad sales up 5 per cent but a "bruising" final three months with ad sales down 25 per cent. But although brusing, things did pick up faster than expected over the quarter. Ad sales were down April 33 per cent, May 27 per cent, and June 16 per cent, Kenrick said.
The CEO said TVNZ was in a strong position in terms of cash-on-hand. The state broadcaster has an existing undrawn bank facility of $20m; and an "uncalled share subscription facility of $30m" - a mechanism to get a $30m leg-up from the Crown. Including cash in the bank, that meant TVNZ had access to $100m in capital, Kenrick said. Kernick offered no forecast for the year ahead, saying with pandemic uncertainty "the only certainty would be that I'd be wrong." He said early indications were that the current lockdown was not as bad as the first - partly because it was regional, and partly because advertisers had got more savvy at online sales since the first lockdown.
Wendy Petrie: departure as co-presenter of OneNews delayed because of Level 3. Photo / Supplied By June, there was talk of 100 jobs going in a belt-tightening effort to save $10m. The Herald had already been tipped-off that OneNews would be going solo-presenter - a development confirmed the following month as TVNZ said Simon Dallow would present alone from August 14 (although the move back to lockdown saw a temporary reprieve for Wendy Petrie). On that OneNews cull This afternoon, Kenrick said OneNews was up for a restructure because it had two presenters. Other news shows, like Midday and Te Karere were solo-presenter already. And while Breakfast is multi-presenter, Kenrick said "Breakfast is more of a personality-led, it's a three-hour conversation and it's hard to have a conversation with yourself." RNZ merger recedes into distance In one area, the threat of disruption seems to have receded, at least in the immediate sense. This time last year, Broadcasting Minister Kris Faafoi was mooting the merger of TVNZ and RNZ. But in January, the government shelved legislation that would have established TVNZ and RNZ in favour of a single supersize public broadcaster. And in February it commissioned PwC to assess the business case for such a move - and the...
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At a time when global demand for high quality produce is only growing, New Zealand exporters are well-placed to capitalise. Gareth Edgecombe is the CEO of T&G, which used to be known as Turners and Growers. He joined Heather du Plessis-Allan on Bosses Rebuilding to discuss the demand for their products during the pandemic and how the horticulture sector will fare going forward. LISTEN ABOVE
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Construction has been hammered by Covid-19, with delays to projects to foreign workers unable to come in to advance projects. So where to from here for the sector? And what happens when the current pipeline of activity finishes up? Rick Herd is the CEO of Naylor Love, one of the country's top performing commercial construction companies. He joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how they are coping and what work they have coming up. LISTEN ABOVE
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Mercury Energy has kept the faith with thousands of its mum and dad investors by eking out an increased final dividend for the June year and predicting another increase in the payout in year ahead. Drought and disruption from the Covid-19 pandemic helped drive Mercury's operating earnings down by 2 per cent over the year to June, but the company increased its dividend for the 12th year in a row. Operating earnings, (ebitdaf) of $494 million in the year were down $12m on the previous corresponding period but the company reported a 15.8cps dividend for the year, up 2 per cent on 2019. Despite uncertainty surrounding the planned closure of the Tiwai Point aluminium smelter and the impact of Covid-19, Mercury forecast ebitdaf of $515m for the 2021 year and a 17 cps dividend for the year. That would make it a 7.6 per cent increase on the 2020 dividend total - good news for the 70,000 shareholders with fewer than 5000 shares. Grant Swanepoel, director of equity research at Jarden, said the result and earnings outlook reflected the quality of Mercury's mostly North Island assets and the confidence of its board. "It does show the board's confidence in its assets and its ability to navigate its way through the next few years," Swanepoel said. "It's the one stock that appears to be the most bullet-proof under changing circumstances," Swanepoel said. It was Mercury's first full year without earnings from the Metrix smart metering business, which was sold last year.
Mercury's net profit after tax of $207m was down by 42 per cent on the previous year's record profit of $357m, which was inflated by the $177m gain on the sale of Metrix. Adjusting for the sale, Mercury's net profit was up $27m, primarily because lower interest and tax charges more than offset the effects of lower rainfall. Mercury said its overall performance was strong in a testing financial year affected by drought across the Waikato catchment from September, and then disruption from Covid-19. The company said in July that it was well placed to respond to Rio Tinto's move to wind-down Tiwai's operations. Mercury chief executive Vince Hawksworth said the effects of the Covid-19 pandemic on the economy and on customers would "continue to be felt for some time". He added the announced closure of Tiwai, and decisions around timing of the closure, would lead to increased volatility in wholesale electricity markets. The closure of the plant - which uses 13 per cent of New Zealand's power - would have transmission pricing implications, and market and investment implications for Mercury and others. Mercury's renewable generation assets in the North Island are close to load centres and largely free of major transmission constraints. South Island generators Contact and Meridian are expected to bear the brunt of Tiwai's closure. Mercury's share price rallied after the result. The stock last traded at $5.03, up 15c.
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Taking your business global is maybe not what comes to mind when you think about rebuilding your operations during a global pandemic. But plenty of businesses do, and you only need to look at the likes of Zespri, Fonterra and Xero to see the value in going global. NZ Trade and Enterprise is the government's international business development agency, with around 600 staff they help New Zealand businesses who want to take their ideas and products to the world. Chief executive Pete Crisp joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how the country’s trade is faring during the pandemic. LISTEN ABOVE
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When Covid-19 hit, there was one Kiwi company which you might say was tailor-made to succeed. Fine Wine Delivery has long been an industry leader when it comes to trading online. Before lockdown, it was already doing 42 percent of its business online. Now, post Covid, that's risen to 55 percent. Jeff Poole is the founder of Fine Wine Delivery and joined Heather du Plessis-Allan on Bosses Rebuilding. LISTEN ABOVE
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New Zealand's primary industries believe its unrealistic to replace all migrant workers with unemployed Kiwis. With the borders still shut due to Covid-19 restrictions, the flow of overseas workers have come to a halt. Fonterra CEO Miles Hurrell told Heather Du Plessis-Allan there are pockets of the industry hiring Kiwis but not enough. "We're talking to the Government, we'd like to see a bit of relaxation to ensure we could get those workers through." Listen to the full interview on Bosses Rebuilding above
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Running a successful restaurant is a tough business in the best of times, but in the worst of times, it's a whole new ball game. Chef Nic Watt is the man behind three Auckland restaurants, SkyCity's Masu, Akarana eatery in Okahu Bay, and Newmarket’s Inca. He joined Heather du Plessis-Allan on Bosses Rebuilding. LISTEN ABOVE
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Kiwi Property CEO Clive Mackenzie believes kiwis will increasingly rent instead of buying, and the Covid-19 pandemic will not impact this. Mr Mackenzie told Heather du Plessis-Allan currently, just over 50 per cent of Aucklanders rent. "At the moment most of that is provided by Mum and Dad owners, and there's really a mixed quality of product out there and we see that as a huge opportunity for professional institutional landlords to come in and provide quality product whit services such as gyms, such as co-working and 24 hour concierge, and also long tenures. "We want our tenants to stay as long as possible." Mr Mackenzie says regardless of the global pandemic there will always be a portion of the population who want to rent. "It actually takes about 13 years for most people or couples to save for a deposit to buy a house, so there's this significant segment of the population that renting is really a necessity while they're saving for a deposit or a lifestyle choice." Mr Mackenzie says the lockdown proved tough for his business as well as tenants. "We've been really working closely with them, providing assistance and really helping them get back on their feet." LISTEN ABOVE.
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Opening the country's tallest building during a pandemic, on the rare occasion it happens, is unheard of. But that's what CEO Scott Pritchard and his company Precinct Properties did, building Commercial Bay in Auckland's CBD with both retail and businesses dwelling inside. Mr Pritchard told Heather du Plessis-Allan the idea for construction started eight years ago, but it did not factor in a pandemic. "That wasn't really identified then, but having opened the retail seven weeks ago and then opened the tower this week, look we couldn't be happier to have it open and have people in there experiencing it." Monday was moving day for PwC who will take up six floors in the office block. Mr Pritchard admits there was worry that after the pandemic, people would be more inclined to work from home and businesses would not be using the office space within the tower. "The risk there is for how long people are stuck at home. "Here in New Zealand the fact that we were only in lockdown, I say only but only in lockdown for five and a half weeks, we've now seen a large degree of the businesses return to their office space." LISTEN ABOVE.
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The Covid-19 pandemic likely showed the New Zealand public just how good their fibre internet is. It is so good, Chorus CEO JB Rousselot says it is one of the best in the world that makes other countries envy kiwis. Mr Rousselot told Heather du Plessis-Allan the country was well-prepare for the nation-wide lockdown with strong internet. "It's been 10 years in the making, it's been a very successful public private investment mechanics that's delivered superior fibre network." However, not all kiwis who can have fibre are hooked up. "80 per cent of people can order fibre, 40 per cent of the people who could haven't yet... and that's a big surprise." Mr Rousselot says they experienced a rise in activity on their network during lockdown that created pressure, however they were able to manage it. "Overall the infrastructure in New Zealand was able to cope with it, which is good news." But it is not all good news for Chorus, who will increase their prices for fibre from October, a move that is being criticised by telecommunication retailers. Mr Rousselot says it was a hard decision to make. "We're a regulated business so there's only a number of times, it's once a year that we can go and put a price increase. We already delayed it by three months to help cope with the impact of Covid-19. "We need to be able to have enough cash flow to continue to invest, to make sure that we can cope with Covid-19 and we can cope with the next one. "We raised the price of certain products, we dropped the price of others." LISTEN ABOVE.
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If it was not for Covid-19, the Olympic Games would be getting underway tomorrow from Tokyo. They are not derailed, just delayed. The Games are set to start one year later in 2021, which means we are now exactly one year out from the opening ceremony of the Tokyo Games. The New Zealand Olympic Committee (NZOC) are one of many organisations needing to adapt. NZOC Chief Executive and Secretary General Kereyn Smith told Heather du Plessis-Allan it has been an incredibly emotional time. "It's been a real rollerocaster for everybody, and most particularly the athletes who have had these days etched in their minds for four, eight, 10 years now." Ms Smith says their focus quickly altered. "I think the President Thomas Bach described the other day - the Olympic Games are the most complex event on the planet. There's just so many things there to then be thinking about." Ms Smith says the one year delays has presented financial challenges. "All of these things [sport and business] have been thrown into a form of disarray.
"In some regards almost doing two years of activity on a single year's revenue. So it has put pressure on, but we're really delighted that most of our partners are really committed to the New Zealand team."
Ms Smith adds while there is uncertainty surrounding the world in regards to Covid-19, they are not entertaining the possibility of the Games needing to be delayed further.
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When the Covid-19 pandemic began, it seemed that nobody could get their hands on sanitiser, PPE, or ventilators. One of the things you couldn't order was respirator hoods. If you haven't seen these before, they look a little bit like a see-through plastic bucket that fits over the head, used to help people with their breathing. The situation needed some classic Kiwi ingenuity. Enter Chris Hopkins, who founded SouthMED to build the hoods - from scratch! He's now got 200 being built, soon ready to be used by our DHBs. He joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how this came about. LISTEN ABOVE
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Just about every boss in the country has faced the following question: Can I hold on to all of my staff? And if not, how do I handle redundancies and restructures? Samantha Gadd is the chief executive at HR company Humankind. She's been advising companies on how to deal with the Covid-19 crisis. She joined Heather du Plessis-Allan on Bosses Rebuilding to discuss the issues the HR world is facing. LISTEN ABOVE
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If Covid has taught business anything, it's the importance of being able to operate online. Whether it's a website, e-commerce or being able to operate remotely, having a digital presence is now more important than ever. Romi Dexter, director and co-founder of digital agency Hype and Dexter, joined Heather du Plessis-Allan on Bosses Rebuilding to discuss the business of strengthening your digital presence. LISTEN ABOVE
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The school holidays have marked the return of some of the biggest cinemas, but with the rest of the world still reeling from Covid-19, new releases are few and far between. Jane Hastings is the CEO of Event Hospitality & Entertainment, who run cinemas and hotels in New Zealand and Australia. She joined Heather du Plessis-Allan on Bosses Rebuilding to discuss being able to reopen their cinemas and how the ongoing Covid crisis is affecting new releases, as well as the future of the hotel sector. LISTEN ABOVE
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Our latest Bosses Rebuilding guest is a prime example of the importance of research and development in the post-Covid world. E-Road is in the business of road transport. They have managed to wane truckies off the manual logging of driving hours and breaks taken, and introduced them to a digital solution to help to keep to rules and regulations and make sure drivers stay safe. The company's revenue lifted by a whopping 32 percent in the year to March, and its latest brainchild is an on-board computer to detect driver fatigue and crashes. Chief executive Steven Newman joined Heather du Plessis-Allan to discuss how it all works. LISTEN ABOVE
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It's hard enough to lead a company through Covid-19, but imagine taking over as the new chief executive during these volatile times.Neeraj Lala took over the reigns at Toyota New Zealand at the end of last month. He's faced with a car industry that's down by almost a third in sales nationally for the first half of the year. Neeraj Lala joins Bosses rebuilding to talk about what it's like taking over the helm of a company during a time like this. LISTEN ABOVE
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In a pandemic, your mind wanders quite naturally to the question, what if I die? Usually Kiwis are notoriously bad at confronting the end of their life. Naomi Ballantyne is the Managing Director for Partners Life. Not only was she leading her company and staff through the Covid fallout, she also faced the real worry and panic of her customers who couldn't pay their premiums anymore. Ballantyne joined Heather du Plessis-Allan on Bosses Rebuilding to talk about how they helped customers get through Covid-19. LISTEN ABOVE
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So far on Bosses Rebuilding, we have told you many stories of businesses who are regrowing after the Covid lockdown. They have been hit hard, but many of them have told us they're regrowing bigger and better. Simon Pound is the managing director of Auckland-based fashion label Ingrid Starnes. He had just invested in a new store in Auckland's Commercial bay and set up a seasons worth of clothes before the world shut down. And now, due to the hurdles being too high, the company will close all stores by the end of August. He joined Heather du Plessis-Allan on Bosses Rebuilding to discuss their situation and how they realised they were in trouble. LISTEN ABOVE
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When Covid-19 effectively shut down global travel, Kiwi corporate booking platform Serko saw its bookings and revenue fade away too. The good news is though that business is beginning to bounce back. Serko founder and CEO Darrin Grafton joined Heather du Plessis-Allan on Bosses Rebuilding to discuss what it was like seeing business slip away during lockdown, and how they are bouncing back. LISTEN ABOVE
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One thing that Covid-19 has brought to countries around the world is a revolution in the classroom. Tonight, we're delving into local education tech business Kami, which has seen exponential growth these past few months. Founder and CEO Hengie Wang joined Heather du Plessis-Allan on Bosses Rebuilding to discuss how their app has helped move education online. LISTEN ABOVE
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The health response to Covid-19 has been well documented. But what about the business of health - the industry on the front line in every sense of the word? Entrepreneur Sam Hazledine is the founder and managing director of MedWorld, Australasia's largest medical recruitment company. He joined Heather du Plessis-Allan to discuss about the retired doctors they recruited during lockdown, and how the health system is tackling Covid. LISTEN ABOVE
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While the sharemarket took a deep dive at the start of the Covid-19 pandemic, for those who were courageous enough there were some great bargains to be had. And with a little more time on our hands than usual, the time of the lockdown saw a spike in first time investors. About 80,000 new investors joined online investing platform Sharesies during lockdown. Co-founder Leighton Roberts joined Andrew Dickens on Bosses Rebuilding to discuss their booming business. LISTEN ABOVE
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Car park operators are hurting following the Covid-19 lockdown, as more people decide to stay away from New Zealand's city centres and work from home. Ryan Orchard is the chief executive of Wilson Parking NZ. He joins Andrew Dickens as part of our Bosses Rebuilding series to talk about the significant hit the car parking operator is taking. LISTEN ABOVE
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The global Covid pandemic is showing no signs of abating, but overseas, demand for New Zealand agriculture and food products is holding up. So what does that tell us about the value of New Zealand inc at this time, and how can that be protected in the future? Rachel Taulelei is the CEO of Kono, a whanau-owned, Maori food and beverage producer, selling food, wine, and produce all around the globe. She joined Andrew Dickens for our Bosses Rebuilding series. LISTEN ABOVE
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The Covid-19 crisis has brought with it an enormous shock to the New Zealand racing industry, a sector which was already facing financial troubles before the lockdown. Now, the focus is on recovery. Paul Wilcox, CEO of Auckland Racing Club and Ellerslie Event Centre, joined Andrew Dickens on Bosses Rebuilding to discuss how the industry has been hit and what the budget boost means for them. LISTEN ABOVE
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In a rarity for business at the moment, the country’s fourth largest businesses: a case of Covid-19 not being as bad as feared. Mainfreight has been pleasantly surprised at the pickup in activity it's seeing. Managing director Don Braid joined Heather du Plessis-Allan on Bosses Rebuilding to discuss the level of activity they’ve seen. LISTEN ABOVE
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New Zealand's film industry is taking bold new steps despite covid-19 uncertainty. Film and lighting company Xytech has launched its biggest and newest X3 film studio in Auckland. Chief Executive Stephen Pryor says New Zealand's low-covid status has given them an advantage in acquiring film production companies. "You have to look at it in a different way and just as what was exactly a slight negative for us, it has become a positive from an industry perspective." Listen to Pryor speak with Heather du Plessis-Allan above for Bosses Rebuilding
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Let's take a closer look at one of our most important local travel businesses. Intercity buses usually carry about 1.5 million passengers a year, on more than 100 daily services around the country. They connect up all of our local towns, with 85 percent of their customers domestic travellers. John Thorburn is the CEO of Entrada Travel Group, the parent company of InterCity. He joined Heather du Plessis-Allan to talk about how the company is rebuilding post Covid-19. LISTEN ABOVE
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The country has been warned that another wave of unemployment might yet be upon us, as businesses make tough decisions, and the wage subsidy scheme comes to an end for some. Simon Bennett has a unique perspective on the job market, heading up the country's largest recruitment firm, AWF Madison. He joined Heather du Plessis-Allan to discuss how Covid-19 has impacted the job market, and what people out of work can do to find a new job. LISTEN ABOVE
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Zespri has a lot to celebrate. The kiwifruit company has reported a 12 per cent increase in annual profit - returning almost $2 billion to the industry. Zespri was regarded as an essential service and was able to keep business going during the lockdown. CEO Dan Mathieson told Heather Du Plessis Allan the results are pleasing. "We're really happy, and in fact we're feel very fortunate to be releasing these results in current environment. "It's been another successful season for the kiwifruit industry." Listen above as Mathieson talks with Heather as part of our Bosses Rebuilding series. LISTEN ABOVE
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There have been a few big hits to our retail sector over the past few weeks. The news about Max Fashions today, The Warehouse and Bunnings are also closing stores, and then there's H&J Smith, the list goes on. One man who knows the temperature of retail right now, is retail veteran Gary Rohloff. He's the founder and managing director of laybuy, and he joined Heather du Plessis-Allan to talk about the current state of retail in New Zealand. LISTEN ABOVE
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Businesses are continuing to steer their firms through financially tough times due to the Covid-19 Pandemic. AA Insurance CEO Chris Curtin, who has held the position for 25 years, told Heather du Plessis-Allan the pandemic has been one of the more unusual challenges in his career. "First thing we had to do was try and get 750 people working from home with not too much notice. "It was quite interesting because we've never had to deal with anything like this before, it was actually quite quickly that we saw customers being affected by the economic impacts - people losing their jobs, reduced incomes and things. We had to really rally around that sort of stuff." Mr Curtin said when claims related to accidents were dropping, they knew they needed to make changes... some they have never made before. "We strongly felt that we needed to do some different things to help customers. The first thing we did was we set-up a $2 million hardship fund, so that we could help customers that were in genuine financial hardship. "Secondly, and bear in mind we've never done this ever, we froze premium increases to reflect the alert levels that had people staying at home. "When the claims plummeted, we realised that we'd actually charged too much premium for people during the period of level three and level four lockdown. "We've essentially overpriced our car insurance so we said 'right, we need to give that money back." Mr Curtin said they will refund that money at the end of the current financial year, a sum they still need to work out. He added it will be a significant amount of money.
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While the number of Covid-19 cases in New Zealand may be dropping, businesses are still bearing the brunt of the pandemic, effects that are set to continue for some time. Many chief executives are at the pointy end of businesses right now, making big decision in order to navigate their companies around the Covid-19 pandemic and the recession. But for one boss, her company experienced a sudden rise in workload while others were struggling to keep theirs up. Socialites NZ CEO Wendy Thompson told Heather du Plessis-Allan the effect of Covid on her business has been "full on". "Social media was up 60 per cent across the country, and we're dealing with tens of thousands of people everyday. Our workload massively increased, and a lot of clients had to change what they were doing very quickly." Ms Thompson believes her company's work rose due to a rise in demand to connect online. "[social media] At the end of the day it's all about connection, so everyone jumped online. So we're talking to each other, talking to our brand."
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Sport returns under level two, but business life is still very tough for the large events industry. ZB’s Boss in Lockdown tonight is Nick Sautner, the CEO of Eden Park. He joined Heather du Plessis-Allan to discuss their plans for level two, how they'd adapt to having no crowds, and life under lockdown with a newborn. LISTEN ABOVE
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In-store retailers are preparing to open their doors, but that doesn't mean its over for online shopping. While physical shopping was off the cards, many Kiwis moved online to satisfy their retail craving. Hallensteins and Glassons boss Mary Devine told Heather Du Plessis-Allan there will be a shift in New Zealand toward online shopping. "Any retailers moving forward, you really have to be conscious of what your digital expertise is, and how you manage your supply chain to accommodate." LISTEN TO MARY DEVINE ON BOSSES IN LOCKDOWN ABOVE
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Level 2 will mean back to business for Skyline's luge and gondola operations - but it'll be smaller operation. The Rotorua and Queenstown tourism operator is planning to open by this weekend. But chief executive Geoff McDonald says they're having to rethink staffing, shifts, and operating hours. He told Heather du Plessis-Allan they're expecting a short spike in business - which will level off after a few weeks until there's a trans-Tasman bubble or more open borders. "We think it's important to get out there. There's a symbolism in it as much as anything else, saying that we're back and getting on with it."
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Netball New Zealand has confirmed that the ANZ Premiership will return when the country moves to Covid-19 alert level 2 – but all games will be played at one venue. The Government has confirmed that professional sport, including netball, will be allowed to return at level 2 with necessary public health guidelines in place – including no crowds being allowed. Netball NZ chief executive Jennie Wyllie welcomed the Government's decision, and revealed that the ANZ Premiership will comprise of a 10-week competition to be played at one venue. Jennie Wyllie joined Heather du Plessis-Allan to talk about their plans to resume in level 2. LISTEN ABOVE
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The time is nearly hair for you to head along to your local hairdresser or barber and finally get that long-awaited tidy up. Prime Minister Jacinda Ardern has given the green light to reopen but only after the country made the move to alert level 2. However, your local would not look the same as the last time you were able to get a trim more than a month ago before the lockdown began. Staff would be forced to wear appropriate protective equipment, maintain good hygiene practices and minimise contact as much as possible. A robust contact tracing system would also be implemented to ensure people could be contacted should they need to be. Specific guidance was being developed by the Ministry for Business, Innovation and Employment and WorkSafe. All measures would be put in place to mitigate the risk towards staff and clients, Ardern said this afternoon. "This is an area where we have given specific advice because it is virtually impossible to do this job without being in very close proximity to your clients and to having a large number of clients in any single day," she said. "For hairdressers and beauticians, it means wearing appropriate PPE because of the close proximity [to] customers throughout the day, because we want to protect you and your clients." New Zealand Association of Registered Hairdressers chair Niq James said the industry was excited about the prospect of heading back to work but he wanted to remind the public to be patient. Hairdressers and barbers were preparing to be inundated with customers following the move to level 2 but restrictions might mean businesses could only fit in a limited number of people each day. And they did not want salons to end up like fast food outlets which had people breaking level 3 restrictions as soon as they opened. "We know that there's going to be a backlog of people to do but there's might only be a certain amount of people that we can," James said. "We're doing everything we possibly can to get back to work ... but we're asking people to please bear with us and not put extra pressure on an already pressurized business. "All we want to do is make people look good and feel good again and get some kind of normality." Earlier today, Director-General of Health Dr Ashley Bloomfield announced one new Covid-19 case which was linked to the Matamata cluster. The Waikato DHB was calling for anyone in the area to seek advice if they want to be tested, he said. The total number of confirmed and probable Covid-19 cases was 1489, and 1332 people - 89 per cent - had recovered.
Malls, cafes, bars, barbers and schools can open under alert level 2, Prime Minister Jacinda Ardern says. Kiwis can expand their bubbles to include friends and family and travel "safely" around the country, Ardern said.
Two people remained in hospital and the death toll from Covid-19 in New Zealand remained at 21. Testing was higher than 7000 yesterday for the first time and Bloomfield said it was a good sign as DHBs were getting ready for surveillance testing. He said a review had been completed into the use of masks by the public, and there were risks and benefits. Meanwhile, hairdressers and barbers up and down the country were sharpening their scissors in preparation for an influx of customers after the lockdown. They could be the next hottest thing in town after supermarkets and fast food outlets were all inundated at the start of levels 4 and 3 respectively. Miss Fox salon in Wellington had received a flood of frantic messages from clients with patchy lockdown DIY cuts and dyes. A lot of blonde women had tried to patch up their regrowth and had turned their hair orange at the roots and white blonde at the tips, co-owner Loren Svensek said. "It's fun hearing about those stories but obviously it will be a little more difficult going back into it, but we're excited to get...
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ZB’s Boss in Lockdown tonight is Frances Benge, the CEO of Cure Kids. Cure Kids is a charity which is one of New Zealand’s largest funders of child health research. Benge joined Heather du Plessis-Allan to discuss how the lockdown has affected donations and how the impending economic recession will affect them. LISTEN ABOVE
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Auckland Airport's boss says exploring options for a trans-Tasman bubble is critical. Jacinda Ardern and Scott Morrison have confirmed Australia and New Zealand are committed to introducing a trans-Tasman travel zone as soon as it is safe to do so. Airport chief executive Adrian Littlewood says it's up to officials to estimate when it could be introduced. But he told Heather du Plessis-Allan more people are recognising the economic impact of closed borders and a lack of tourism due to Covid-19. Littlewood says we have to ensure economic impacts can be tackled as well as the virus. "Seeking to get that safely restarted as soon as we practically can. Recognising that we have to not forgive the gains that our country has made is critically important, so we can crush the economic curve as well as the virus curve."
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The office lights are off, but Kiwis are still using almost the same amount of power. Energy companies have been forced to adapt as power usage migrates from the inner cities to the suburbs. Our Boss in Lockdown tonight is Vector Chief Executive Simon Mackenzie. He told Heather du Plessis-Allan they had to reconfigure their entire field crew operation so they could still respond to power outages. LISTEN ABOVE
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Our Boss in Lockdown tonight is Freightways chief executive Mark Troughear. He joined Heather du Plessis-Allan to discuss how the company's work has changed under levels 3 and 4. LISTEN ABOVE
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ZB’s Boss in Lockdown tonight is Tim Lightbourne, CEO of Invivo Wines. The wine business was assigned essential status during level four, and appears to be holding up pretty well. Lightbourne joined Heather du Plessis-Allan to discuss how they’ve adapted to the lockdown. LISTEN ABOVE
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A large chunk of the construction industry is finally back on the tools, getting used to a new normal at level three. Our Boss in Lockdown tonight is Peter Reidy, the CEO of Fletcher Construction. He joined Heather du Plessis-Allan to discuss how they are keeping building sites safe and how it feels to have work underway again. LISTEN ABOVE
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The latest entry in ZB’s Bosses in Lockdown series is David Banfield, the CEO of Comvita. The Manuka honey company is perhaps one of few which has seen some good silver linings from the Covid-19 crisis. Banfield joined Heather du Plessis-Allan to discuss life in lockdown and how it has affected his company. LISTEN ABOVE
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It’s no secret that one of the sectors doing it toughest during lockdown is retailers, and that’s even if you've got the privilege of having being able to sell essential items. Our boss in lockdown tonight is Briscoe Group Managing Director Rod Duke. LISTEN ABOVE
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The head of NZME is welcoming the government's media relief package, but wishes more had gone to print and digital media. $50 million has been put aside to help the industry stay afloat. A massive drop in advertising revenue has caused job losses and closures. NZME chief executive Michael Boggs told Heather du Plessis-Allan he is pleased the Government has recognised the support the media needs. "While we employ the most number of journalists and broadcasters in the country, I'm really disappointed actually that the money doesn't target that substantially. "About two-thirds of it, really, has gone to the TV networks." He says that there are some values that the company can get from it, such as the offer of targetted relief.
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Gym giant Les Mills has asked those who have put their memberships on hold during lockdown to start making payments again. Headlined "Back us to restart", an email to customers says the company is "facing the biggest hurdle of its 52-year history" and while it was hoped the clubs, which boasted some 60,000 members in March last year, would only be closed for a month, "that's regretfully not to be". Under alert levels 3 and 4, Les Mills and other gyms throughout New Zealand have been required to cease operations. Only when the country is deemed safe to move to level 2 will fitness centres be able to return to business as usual. Les Mills applied and was granted two wage subsidy payments under the government's Covid-19 scheme: Just over $2.34 million for 376 staff under Les Mills New Zealand Limited and $233,347 to pay 34 staff under Les Mills International Limited. For Les Mills members willing to return to making payments, the company has offered a sweetener of sorts: three months free membership for a friend or family member. During the lockdown, Les Mills has provided free workout sessions via TVNZ morning classes and offered free trials of its Les Mills On Demand app which features workouts and classes in strength, cardio, HIIT, dance and flexibility. Founded in 1968, last year Les Mills Auckland City, on Victoria St, underwent a massive makeover. When the Herald toured the revamped digs in March last year, $18 million out of a $30m budget had been spent. Les Mills' Philip Mills responds to the email in Bosses in Lockdown above
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In ZB Drive’s Bosses in Lockdown series, Al Keating, CEO of Coffee Supreme, joins Heather du Plessis-Allan to discuss what effect the lockdown has had on one of the country's most iconic coffee brands. LISTEN ABOVE
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In ZB Drive’s continuing Bosses in Lockdown series, Heather du Plessis-Allan spoke with Tony Burt, CEO of East Imperial, an artisan beverage company. Burt is a former CEO of M&C Saatchi, and has a unique perspective on the hospitality industry during this Covid crisis. LISTEN ABOVE
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SKY Television are reporting steady subscriber numbers despite the absence of live sport. CEO Martin Stewart has told Heather du Plessis-Allan streaming services Neon and Lightbox is keeping the company afloat. Meanwhile, ensuring that sports subscribers stay entertained, remains a top priority. "We have worked hard with our sport subscribers to make sure they are getting some compensation from us with our entertainment channels, and free movie and pay to view channels as well." LISTEN ABOVE
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The story of tourism during the Covid crisis reads like a nightmare. With our borders effectively closed for the foreseeable future, the industry is planning for zero tourists - and zero revenue. Our Boss in Lockdown tonight is Grant Webster, the CEO of Tourism Holdings. He joined Heather du Plessis-Allan to discuss how he and the company are dealing with such a seismic change to their industry. LISTEN ABOVE
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New Zealand’s property market has shifted quite dramatically in the past two months, with forecasters moving from predictions of a lift in house prices, to warnings of a downturn. Our Boss in Lockdown tonight is Peter Thompson, the managing director of Barfoot and Thompson Real Estate. He joined Heather du Plessis-Allan to discuss how real estate can still function during the lockdown and what this all means for the property market. LISTEN ABOVE
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When it comes to the economy, our retail banks are on the frontline of the Covid-19 crisis, both in their dealings with business customers and mortgage holders. Bosses in Lockdown tonight centres on Vittoria Short, the chief executive of ASB. She joined Heather du Plessis-Allan to talk about her lockdown set up, how work has ramped up in certain areas for the the bank, and what role ASB and other banks have in our recovery. LISTEN ABOVE
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Our Bosses in Lockdown continues with Russel Creedy, the Chief Executive of Restaurant Brands. Under the level four restrictions, the company has closed its entire New Zealand operation - 148 stores across its KFC, Pizza Hut, Carl's Jnr and Taco Bell brands. Russel joined Heather du Plessis-Allan to discuss how their business is coping with the lockdown. LISTEN ABOVE
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We're continuing our series of checking in with the country's CEOs, how they're going working from home, and how this crisis is affecting their business. CEO of Z Energy Mike Bennetts joined Heather du Plessis-Allan to discuss how he's faring at home, and how the lockdown is impacting Z's business. LISTEN ABOVE
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As the country nears the halfway point of the lockdown, ZB Drive is going to start looking in on some of the country's big bosses, CEOs and leader to find out how they're coping with running their businesses from home during the lockdown. First up is Vodafone's CEO Jason Paris, who told Heather du Plessis-Allan about how he’s running the telco out of his son’s bedroom, and how the company is dealing with the increased demand. LISTEN ABOVE
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