Radius hails occupancy rates as net profit triples

Source: Radio New Zealand

Kzenon

Radius’s net profit has more than tripled in line with expectations.

The aged residential care provider made $6.3 million in the six months ended September compared with $2m the year earlier.

Chief executive Andrew Peskett said occupancy levels were maintained at high levels, averaging 95 percent for the half year.

“Occupancy has remained above 95 percent during October and November,” he said.

“Continued improvements in bed mix, accommodation supplement growth, control of operating costs and the contribution of Cibus Catering assisted the strong first half year performance.”

He said the second half of the year was expected to be broadly consistent with the first half.

First half underlying profit was up 41 percent to about $15m, with total revenue up 17 percent to just over $100m.

The interim dividend rose to 2.2 cents per share from 0.7 cents per share the year earlier.

Peskett said record operating cashflow delivered a strengthened balance sheet and progress against the company’s capital management.

Net bank debt reduced to $63.7m giving the company headroom for development plans.

Radius Care was recently granted approval in principle by the Westland District Council to develop an 80-bed care home and a 55-villa retirement village in Hokitika, with broad support from the local community.

Peskett said 15 additional opportunities to develop new-build care homes around the country were now being actively pursued, with strong support from external property investors.

The company was also developing existing retirement villages, 12 additional villas to be built at Matamata and Clare House in Invercargill.

“The acquisition of St Allisa, a 109-bed care home in Christchurch, completed on 30 May, has been a successful example of capital light growth,” Peskett said.

He said Radius Care’s expansion into home care services required minimal capital, while helping to ease hospital congestion and expand Radius Care’s market reach.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Buying blind: Mystery packages tempting shoppers

Source: Radio New Zealand

Amid anemic consumer spending, some businesses are turning to novel ways of selling goods in mystery packages to boost sales.

Colloquially called “blind boxes”, the packages hide the contents so that consumers don’t know exactly what they’re buying.

It’s a concept with origins that can be traced back to Asia, with businesses stocking Asian goods among the adopters.

Chinese toy store Pop Mart immediately springs to mind, having made waves this year by stocking blind boxes of celebrity “ugly-cute” characters Labubu and, more recently, Twinkle Twinkle.

On social media, consumers have been sharing images of blind box meals they ordered from a couple of leftover-saving apps that launched in New Zealand last month.

Businesses have been selling clothes, jewellery and desserts in blind boxes, with one Auckland restaurant also providing mystery menus.

Eva Lian showcases her blind box desserts. RNZ / Yiting Lin

Auckland’s Fluffy Monsta Cakery has been selling blind box desserts for more than two years.

Their blind box sale every two weeks was so popular that many customers missed out if they failed to put their names down fast enough when orders were placed in the bakery’s WeChat group.

“We opened the orders on Monday at 8pm and closed them at 8:50pm,” said Eva Lian, the cakery’s founder.

“We got 400 orders in just 50 minutes,” she said.

“Had we left the queue open for longer, there would have been more orders, but we simply couldn’t handle any more than that.”

Auckland’s Fluffy Monsta Cakery in Burswood, East Auckland RNZ / Yiting Lin

The cakery typically offered a few flavour categories for consumers to choose from, including fresh fruit, durian, pork floss, taro and chocolate, but customers wouldn’t know what was inside the dessert box.

For example, a durian-themed blind box would contain four different pieces of dessert, all containing durian, but people won’t know what the specific items were, Lian said.

“Our goal is for customers to feel genuinely surprised when they open a blind box, with everything fresh and delicious,” she said.

“The thrill that comes from uncertainty” also prompted the purchase, she said.

“For families with children, there’s the added joy of wondering what type of blind box will arrive. This element of unpredictability makes the experience even more exciting.”

Gone Good allows people to grab mystery bags of unsold food at a low price. Supplied

Gone Good is one of the two apps available in New Zealand that allow consumers to grab mystery bags of unsold food at low prices.

General Manager Quinn Davis said the business had been “blown away by the response” after its launch in Auckland.

“The Auckland community embraced the concept immediately,” Davis said.

“We sold out on our second day of operations, reached number one in the App Store for Food & Drink and have had strong interest from other regions eager for us to launch there,” he said.

The idea wasn’t new, with a conceptually similar app named Too Good To Go proving popular internationally after starting in Denmark in 2015.

“The mystery box concept makes food rescue fun and effortless,” Davis said.

“Customers get the thrill of a surprise meal at a great price, while stores save time by not having to list or set aside exact items,” he said.

“It also ensures the platform stays true to its purpose – reducing real surplus rather than curating menus.”

Auckland woman Tiki Jiang and part of her Labubu and Twinkle Twinkle collections. Supplied

Auckland woman Tiki Jiang was among many who fell in love with blind box toys when Pop Mart’s Labubu went viral earlier this year.

Jiang now owns more than 20 of the “ugly-cute” plushy toys.

“Sometimes the official website would release new products without any notice, so back then I’d check Pop Mart’s official website every day on my phone, constantly refreshing it,” she said.

“Sometimes you’d get lucky and catch a new release.”

One of Tiki Jiang’s Twinkle Twinkle collections. Supplied

Several months later, Jiang discovered a new favourite Pop Mart character – the unconventional Twinkle Twinkle toy.

“I would always buy a whole tray of them,” Jiang said, explaining that a full set contained nine or 12 different designs depending on which generation of the toy people were getting.

Enthusiasts typically buy whole trays to increase the chance of collecting all the designs.

It’s common for a tray to include repeated designs, but Jiang managed to collect almost a full set of the first four generations of Twinkle Twinkle – spending more than $1000 in the process.

Jiang said she didn’t care enough to try to secure the only design in the series that was missing from one of the sets as she was not as frantic as she used to be.

“I think these [blind box toys] aren’t as popular as they used to be,” she said.

“Looking back, I honestly don’t know what I was thinking,” she said.

“I felt silly. Why was I refreshing the page all the time for that? Such a waste of time … I have passed that phase now.”

Dishes served as part of a $68 blind box menu at Auckland’s 81st Floor Restaurant. Supplied / Vivian Peng

Chinese diners have been sharing their experience at Auckland’s 81st Floor Restaurant, which offers mystery menus for a set price, on social media platform RedNote.

For $68 or $88, customers can order an assortment of Chinese dishes without knowing beforehand what they will receive.

RedNote user Pang Pang Da said they would visit the restaurant again after being impressed by the taste of the dishes served as part of the $88 package.

However, diner Vivian Peng was disappointed with the restaurant’s $68 package, which is designed for two or three people.

Although she felt the portions were large enough, Peng expected the dishes to be better in quality.

“If it was before, I would have thought it was good value for money,” she said.

“But the hospitality industry is tough now – competition is intense – so my expectations for something to be both affordable and high quality have gone up. That’s why I felt a little disappointed,” she said.

“People naturally come with a sense of anticipation with blind boxes. It’s different from regular products, where you know exactly what you’re getting and what the price is.

“With blind boxes, businesses can easily end up putting in a lot of effort without getting much appreciation in return.

“If a customer has high expectations, or if that day’s blind box isn’t as good as the items they have seen in other people’s social media posts – since the dishes change every day – they might feel a bit disappointed.”

The restaurant did not respond to RNZ’s request for comment.

Michael Lee, director of MBA in Marketing at the University of Auckland Supplied

Michael Lee, director of MBA in Marketing at the University of Auckland, said blind box experiences were believed to have started in Japan in the 1960s as a way for retailers to sell unsold products.

Retailers in Japan traditionally sell such sealed “lucky bags” of mystery products at a significant discount over the new year period.

“But the idea of a surprise has been around since humans started giving each other surprise gifts,” Lee said.

He said any product where customers buy a package without knowing exactly what they’ll get but were motivated by the excitement of the surprise fell into the category of a blind box.

Collectible sports cards, Kinder Surprise eggs or the small toys tucked inside cereal boxes were some examples, he said.

“The main driver is the element of surprise,” Lee said. “People love to be surprised, provided the surprise is a good one.”

He said another aspect of consumer psychology that would affect the success or failure of blind boxes was “expectation disconfirmation theory”, which turns on whether people’s expectations are confirmed or not.

If people received worse than they expected, it would lead to dissatisfaction, and vice versa, he said.

Lee believed blind box sales would be rare as New Zealand was a low-wage economy, and consumers would most likely want to know what they were buying.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

‘One good week’ not enough to sustain Auckland accommodation sector

Source: Radio New Zealand

123RF

Auckland hotels are sold out tonight as Metallica rocks Eden Park and the world’s largest indigenous education conference continues.

But a hotel association is warning that doesn’t mean the industry is suddenly thriving.

The city’s cultural and events agency, Tātaki Auckland Unlimited, said 40,000 visitor nights were expected from Metallica fans alone.

The World Indigenous Peoples’ Conference on Education at the Aotea Centre this week brought 3800 delegates from around the globe who will add another 16,000 visitor nights over the course of the five-day event, it said.

It means hotels are at capacity on Wednesday which would be a welcome boost for Auckland’s visitor economy, Tātaki Auckland Unlimited’s destination director Annie Dundas said.

“From metal militia to educators, everyone contributes to the vibrancy of our region and the strength of our visitor economy.

“The energy they bring before, during and after these events, is felt in our streets, our hotels and our hospitality venues.” 

The band Metallica. Metallica

However, Hotel Council Aotearoa strategic director James Doolan told First Up while there have been a few “full out” days in the last few years coinciding with major events, occupancy rates still haven’t recovered following the pandemic.

“So that means hotels have been doing it tough, moteliers have been mortgaging their properties to stay alive, and it’s far too soon to have one good week and for all of us to start acting like all of the problems have been solved,” he said.

“Hotels and motels and restaurants, they’re not only open for one or two days a year, they’re open 365 days a year including on cold winter weeknights.”

Doolan hoped to see more concerts at Eden Park, and looked forward to the long-delayed International Convention Centre opening in February.

But he wanted local and central government to invest more in marketing to attract major events to Auckland.

Dundas said the agency shared the industry’s ambitions, and a long-term funding solution was essential.

To bridge the funding gap it was relying on temporary sources like the targeted rate that pays for developing the city centre, a budget contribution from Mayor Wayne Brown, and the organisation’s own operating funds, she said.

They’ve also welcomed the government’s recent $70 million investment to boost events and tourism.

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Good vocational pathways ‘capped and trapped’ – tradie trainers

Source: Radio New Zealand

Students in Years 9-10 should be able to enrol in a trades academy or similar programme to gain basic vocational skills, say experts. File photo. Supplied/ UCOL

Secondary schools will have to work a lot closer with polytechnics and employers to realise the government’s goals for its new “vocational subjects”, say industry leaders.

The government has designated some subjects “vocational” meaning their curriculum and qualification will be developed by the Industry Skills Boards it is setting up next year to set trade training standards for apprenticeships and work-place learning.

Industry and school sector delegates to the Vocational Education and Training Research Forum run in Wellington this week by training providers the Skills Group and the Building and Construction Industry Training Organisation told RNZ the reform would require a huge step up in the availability of work experience placements and in schools’ use of training options like Trades Academies where students attended a tertiary institute for trade training.

Skills Group head of consulting Josh Williams said the changes could rebalance the school system to better recognise vocational and trades subjects, especially if teenagers could enrol in tertiary courses and get work experience at the same time as attending school.

“At the moment there is a lot of fantastic innovation and a lot of very good vocational pathways delivery happening, but it’s capped and it’s trapped in schemes like Gateway and Trades Academies, and there’s little pockets of money here and there,” he said.

“To make this systemic we really do want to promote more of that kind of dual-enrolment opportunity that’s already enabled, that doesn’t require legislation change.”

Williams said students could spend some of their time in school, some with a tertiary provider, some with an employer and seamlessly progress into an apprenticeship.

“I think that’s a fantastic vision and I actually think it can be done,” he said.

Williams said the main shortcoming for employers in terms of school-leavers’ skills and knowledge was not so much industry-specific skills but basic foundation skills, literacy and numeracy.

New Zealand Initiative senior fellow Michael Johnston advised the government on curriculum changes and advocated for a stronger vocational education in secondary schools.

He told the conference vocational subjects could use “skill standards” rather than unit standards in the new secondary school qualification that would replace NCEA from 2029, but the standards might have to be assessed on-the-job rather than in a classroom.

He said schools could not possibly teach vocational subjects on their own.

“A lot of these vocational subjects are going to require some work-integrated learning, that is students out in the workplace learning on the job. They’re going to have to be able to have dual-enrolments with polytechnics because schools are not set up to just teach across all of the vocational areas,” he told RNZ.

“They’ll need support from the ISB’s. They’ll need to be partnered with industry, with polytechs and other training organisations, and there will have to be some changes to the funding model to make that happen.”

Johnston said the ISBs could be tasked with arranging work placements for schools.

Engineering teacher Dave Brewerton said schools in small centres would certainly need help.

“Each school or each careers space within that school will need to go out and talk to local industry, build up those relationships, and effectively beg and promise to be able to gather those placements for those students,” he said.

“That’s quite a large ask not only for the schools, but it’s also a big ask for the local businesses and it makes it really difficult, particularly for more regional schools that don’t have the same access to those resources.”

The co-chair of the Construction Centre of Vocational Excellence and director of training provider Vertical Horizonz Phil Hokianga said he wanted to see more opportunities for rangatahi who needed direction in their first years at high school.

He said students in Years 9-10 should be able to enrol in a trades academy or similar programme to gain basic vocational skills.

“Then they go through the process of learning the skills required to then get to a stage where they can be doing taster programmes to see if they want to be a chippy, to see if they want to be an electrician, to see what tickles their fancy and do that in the comfort of being already in the system,” he said.

“They’re getting a pathway into a journey to be able to start an apprenticeship. I think that’s the part that’s missing.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Capital Gains Tax wouldn’t have raised much in recent years – Cotality

Source: Radio New Zealand

National median property values were flat in the three months to October and still 17.3 percent below their peak. Supplied / James Munro

A capital gains tax would not have raised much money in the last 4-5 years, property data firm Cotality says.

Its latest monthly housing chart pack shows national median property values were flat in the three months to October and still 17.3 percent below their peak.

Between October 2023 and October 2025, the national median price only lifted from $802,112 to $811,662.

Labour has proposed a 28 percent capital gains tax on residential investment and commercial property from a valuation day in 2027.

Cotality chief property economist Kelvin Davidson said the market was steady.

“The timing of Labour’s proposal is interesting,” Davidson said. “The market is getting busier, but remains a touch below normal, affordability has improved and investor participation is on the rise.

“Against that backdrop, the CGT debate naturally raises questions about behaviour, whether investors would hold properties longer to try and avoid the tax for a while, and how much revenue a tax might realistically generate.”

He said timing and the assumptions in the policy were important considerations.

“For such a system to collect meaningful revenue, property values would need to rise, yet recent years have seen only modest growth. Our data shows national median values up 10 percent since five years ago in October 2020.”

He said a capital gains tax would not stop prices rising. Other countries with a CGT still recorded house price rises.

“People were looking at the general vibe of the CGT policy and saying surely what Labour wants from this is for house prices never to grow again. It’s not quite true.

“Perversely, they’d actually need house price rises to keep rising for any tax to be collected.”

He said investors could dodge it for a while by not selling – but not forever.

“I do think it would reduce the expected return from property investment and you would think that might result in relatively fewer investors than otherwise, which could have implications.

“People say it might push up rents and it may a little bit, but at the same time, it might create some opportunities for people who otherwise would have been renting to actually buy. The houses don’t disappear.”

Sales volumes were up six percent in October, the 28th rise in the past 30 months. New listing numbers also increased.

Davidson said first-home buyers were still active in the market at 29 percent of purchases in October.

“First-time buyers are still getting in in record numbers in terms of market share, but we are also seeing investors out there, so I guess there is a bit for everybody.

“There is a bit of balance there. It is not cheap, but if you’ve got the finance, you’ve got the income, you’ll be able to get a decent property at a price that is still down 15-20 percent from where it was potentially.

“You might say the market is in some kind of equilibrium right now.”

He said investors had lifted to 25 percent of transactions.

“The predictability of current conditions is re-assuring for buyers, who are continuing to adjust to the recent experience of stable prices and slightly lower mortgage rates.”

“With affordability gradually improving and employment conditions set to strengthen next year, there’s a growing sense of cautious optimism.”

He expected prices to rise next year.

“The economy is not exactly racing away, but I guess we’re getting a wider range of indicators starting to improve course,” Davidson said. “Mortgage rates are down, so eventually that lagged impact of mortgage rates will come through and tend to push up house prices.

“Affordability is at its best level in several years, listings are set to ease lower and a large share of fixed loans are shifting onto cheaper rates. Provided employment holds up, those factors point to a gradual lift in both sales activity and values next year.”

“We’ll be watching the final months of the year closely, as they will show whether the steady rise in sales is strong enough to keep absorbing the normal seasonal lift in new listings.”

He said, normally, the impact of mortgage rate falls would have been felt earlier than it was this time.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

What will the Uber decision mean for drivers’ tax bills?

Source: Radio New Zealand

Jomon Perumayan Joseph was caught with a stun gun on the dashboard of his Uber vehicle. NZME

A Supreme Court decision to reject Uber’s appeal against an Employment Court decision that found four of its drivers were employees, not contractors, may raise tricky tax questions, one tax expert says.

Deloitte tax partner Robyn Walker said it would be interesting to see how Inland Revenue responded.

As contractors, Uber drivers had been handling their own tax bills, and could claim expenses such as the cost of fuel against their income.

They also might be registered for GST.

But as an employee rather than a contractor, their employer would be expected to handle all of those things.

“It begs the question as to whether the Supreme Court decision will be followed from a tax perspective. The Supreme Court decision applies for employment law purposes and it doesn’t always automatically follow that the tax answer will be the same, but it will have some influence.

“From a tax perspective it is not possible for employees to claim deductions for the costs associated with earning income. Similarly, employees are not able to be GST registered in respect of the services that they provide their employer.

“To the extent that Inland Revenue concludes the drivers are also employees for tax purposes it will be necessary to determine how to rectify tax positions previously taken and a sensible way forward. All parties involved ought to consider how the tax treatment of the drivers flows through to the amount they are paid, including how they are to be reimbursed for expenses like vehicle running costs.”

Anita Rosentreter, Workers First Union deputy secretary, said the judgement would have implications in future for drivers’ tax expenses and reporting procedures.

“As a union, we think it will become significantly easier, not harder for drivers, and they will get a much better deal overall.

“Uber drivers have to date been responsible for their own tax compliance. Where the contractor system allows expenses to be deducted from taxable income, an employment not only requires those costs to be borne by the employer, but also significantly boosts driver income as drivers enjoy the protection of a wage floor.

“Through the collective bargaining process, we hope to bring clarity to these kinds of issues with Uber as their employer, which will lighten the burden on drivers and demystify what can be an obscure and complicated process.”

She said higher base wages and protections such as a minimum wage, sick and annual leave would be more significant to drivers than the ability to claim expenses.

Inland Revenue said it had no comment to make at this stage.

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Two IKEA pop-ups give fans a glimpse of the goods before first NZ store opens

Source: Radio New Zealand

The first IKEA store in NZ opens in early December, alongside online shopping. TVNZ Seven Sharp

IKEA is opening two pop-up stores ahead of its first New Zealand store, but just for window shoppers.

The Swedish furniture giant’s Auckland showroom will open in early December at Sylvia Park. From Tuesday, Christchurch shoppers can browse what it’s calling a “curated collection of popular products” from Tuesday until 10 December.

The pop-up is in Cathedral Square and will also include original works from local artists such as Miranda Parkes, Adam Popovic and Dcypher.

On 28 November, another will open in Wellington at Odlins Plaza and that will feature movie-inspired posters and trailers, created by illustrators and VFX artists from the city.

IKEA has also released some details of products and the prices it will charge in New Zealand.

One of the first products IKEA says it will sell in NZ, a watering can for $4.99. Supplied/IKEA

IKEA will open at Sylvia Park on 4 December, with online sales to the rest of the country.

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What is workslop?

Source: Radio New Zealand

Workslop masquerades as meaningful, it may appear superficially polished, and yet requires others to interpret, fix, or even redo it.

It’s a growing source of frustration in the workplace, Dr Kate Niederhoffer a social psychologist told RNZ’s Afternoons.

She is vice president of Texas-based BetterUp Labs and co-authored a study on workslop when she started to hear anecdotal evidence of it. 

Kate Niederhoffer.

Photo courtesy BetterUp

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Serko sees strong revenue growth, while posting increased loss

Source: Radio New Zealand

Serko handles corporate travel management and expenses, and operates the Booking.com for Business platform. Unsplash

Travel software company Serko posted a bigger bottom-line half-year loss driven by one-offs, but its income surged, thanks to its partnership with US giant Booking.com.

Key numbers for the six months ended September compared with a year ago:

  • Net loss $9.5m vs $5.1m loss
  • Revenue $61.8m vs $42.7m
  • Operating expenses $65.1m vs $50.4m
  • Adjusted earnings (EBITDAFI) $6.1m vs $1.2m
  • Free cash flow $3.0 vs $1.3m
  • No dividend

Serko said the increased loss was driven by foreign exchange losses and a non-cash accounting loss on the sale of its InterplX expense business.

It said momentum in its Booking.com for business drove the result, with completed room nights up 32 percent to 2.1 million, while active customers increased 40 percent from a year ago.

“Our performance reinforces Serko’s continued track record and ability to deliver high growth and cost discipline as we execute on our strategic focus areas,” chief executive Darrin Grafton said.

Grafton said the company was also looking at opportunities from artificial intelligence.

“Serko is well positioned to unlock the full value of AI as a core pillar of our strategy and product roadmap.”

The company was co-designing AI-powered capabilities with customers in the US, and said it had received positive engagement.

It said Australasian travel revenue was stable, with online bookings up 2 percent and improved margins.

Serko reaffirmed its full-year income guidance of $115-$123 million, compared to $90.5m in the year ended March 2024.

Forsyth Barr senior analyst James Lindsay said the result was “solid” with total income slightly ahead of expectations.

He noted Serko’s balance sheet remained strong with net cash of $65m.

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Air New Zealand says cabin crew considering strike action

Source: Radio New Zealand

The airline says no formal notice of a strike has been received. Kai Schwoerer

Air New Zealand says it has been made aware by E tū union that staff have voted to take industrial action.

“We are aware that cabin crew represented by E tū union have voted to take industrial action,” Air New Zealand’s chief executive officer Nikhil Ravishankar said in a statement.

“However, no formal notice of a strike has been received.”

He said negotiations were scheduled to continue with the union later this week to “progress efforts to reach a fair and sustainable agreement that recognises the important work our crew do”.

More to come.

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