New Zealand Coastal Seafoods Limited - Quarterly Activities Report for Q4 2023
NZS (NZS) Share Update July 2024 Tuesday 9th
New Zealand Coastal Seafoods Announces Quarterly Activities Report
New Zealand Coastal Seafoods Limited (ASX: NZS) has released its quarterly activities report for the period ending December 31, 2023, detailing significant operational updates and financial metrics.
Instant Summary:
- New premises at 56A Comport Street, Portsmith QLD 4870.
- Customer receipts totaling A$328,000.
- Liquidation of New Zealand based subsidiary, NZCS Operations Ltd.
- Retraction of previously announced cost-saving measures.
- Collaboration with Australian Northern Seafood at new facility.
Operational Overview
New Zealand Coastal Seafoods Limited (NZS) has announced several key updates in its quarterly activities report for Q4 2023. The company has moved to new premises at 56A Comport Street, Portsmith QLD 4870, in collaboration with Australian Northern Seafood (ANS). This state-of-the-art facility will support the company's operations and help streamline its business activities.
Notably, the company reported customer receipts of A$328,000 for the quarter, reflecting its ongoing business performance. However, the company also disclosed that its New Zealand-based subsidiary, NZCS Operations Ltd, has been placed into liquidation as of April 18, 2024. Ryan Eathorne of Insolve Partners Limited has been appointed as the liquidator.
Financial Metrics
In terms of financial metrics, the company reported the following expenditures for the quarter:
- Staff costs: A$180,000
- Product Manufacturing: A$242,000
- Administration and Corporate: A$168,000
- Leasing: A$0
- Advertising and Marketing: A$0
Additionally, related party payments totaling A$11,000 were made to directors as fees.
Retraction of Previous Statements
The company has retracted statements made in previous reports regarding the potential divestment or disposal of NZCS Operations Ltd and expected cost savings from restructuring. Investors are advised not to rely on these retracted statements as the company no longer has control over the subsidiary and has no reasonable basis for disclosing the previously mentioned cost savings.
Strategic Moves
Due to the prolonged importation ban of Australian lobster by the Chinese government, Nine Ocean Fishery Pty Ltd (NOF), a subsidiary of NZS, has refocused its activities to the Coral Sea. To conserve cash and cut costs, NOF has surrendered the premises at 13 Redden Street, Portsmith, upon completion of the lease.
The liquidation of NZCS Operations Ltd and the retraction of previous cost-saving statements may negatively impact investor sentiment. However, the move to a new state-of-the-art facility and collaboration with Australian Northern Seafood could provide long-term operational benefits. The reported customer receipts indicate steady business activity, which may help stabilize the stock price in the short term.
Investor Reaction:
Investors have shown mixed reactions to the announcement. While some are concerned about the liquidation of the subsidiary and the retraction of cost-saving statements, others are optimistic about the new premises and ongoing customer receipts.
Conclusion:
Investors should closely monitor New Zealand Coastal Seafoods' strategic moves and financial performance in the coming quarters. The company's ability to adapt to market challenges and leverage its new facility will be crucial for maintaining investor confidence. Stay informed and consider subscribing to our newsletter for regular updates.