S&P/NZX50 ended the session in red as the index witnessed a fall of 0.28% on May 13, 2020 to 10,788 while S&P/NZX20 encountered a decline of 0.24% to 7,294. On the same day, S&P/NZX10 fell by 0.14% to 11,338.
S&P/NZX All Energy witnessed a fall of 4.33% while, on the other hand, S&P/NZX All Health Care encountered a rise of 1.62% on May 13, 2020.
Comvita Limited (NZX: CVT) and Evolve Education Group Limited (NZX: EVO) ended the session in green as these stocks have witnessed a rise of 6.52% and 4.71%, respectively. On the other hand, New Talisman Gold Mines Limited (NZX: NTL) fell by 12.50% on an intraday basis.
Serko Signalled Tight Cost Management
Serko Limited (NZX/ASX: SKO) has recently made an announcement that business travel disruption due to coronavirus significantly impacted the travel transactional revenue. However, SKO happens to be in the robust cash balance position after the capital raising in the month of October 2019.
The company implemented immediate cost reduction program which removed non-essential expenditure as well as scaled down the operating expenses, like cost of sales and hosting, in proportion to the reduced customer activity along with lower transaction volumes.
The company also stated that it continues to review all its costs and would be making additional cuts and reductions.
SCT Rose By 5% on May 13, 2020
Scott Technology Limited (NZX: SCT) recently released unaudited interim results for six months ended February 29, 2020 (or 1H FY 2020). The company stated that robust sales growth was witnessed in the USA as well as in parts of service business, and value was added by the acquired businesses, particularly Transbotics and Bladestop.
The release also stated that revenues in Australasia, Europe and China softened because economic slowdown along with uncertainty with respect to Brexit and global trade noted last year continued into 1H. Notably, revenue in Q2 was impacted by coronavirus restrictions, primarily in Asia with China shutdown in the months of January and February.
The Board of the company has also resolved not to pay interim dividend for the year to 31st August 2020.
In line with new strategy, SCT is transitioning to the streamlined, regionally focused business model with 4 regions i.e. 1) Australasia (New Zealand & Australia), 2) Europe, 3) North America, and 4) China. SCT stated that each would be led by the Regional Director and the local teams would be providing product expertise, sales as well as customer support.