Job Summit Head Slashes Labour Costs 25%
Job Summit Head Slashes Labour Costs 25%
That's your Monday morning headline.....missed it didn't you?
Monday's announcement of an increase in Q1 profit of NZX was greeted with the sophistication of analysis by business journalists belonging somewhere between New Idea and News of The World. Most just cut and paste gushingly from Weldon’s own press release and said "well done". Wel-don indeed. Welcome folks to the Weldonfairy that casts its spell over the financially illiterate every reporting period. Even senior reporters are just too darn afraid to question him.
Such laziness or fear has no place in business journalism when in a period of economic gloom, any publicly listed company, increases their profits by not just double digits but 40% in any given period compared to 2008. Questions must be asked. But here the Weldonfairy has struck again and you have been hazed with his magic spell into spitting out the numbers his PR and handler "Lucy" gives to you. I remain immune to the Weldonfairy.
“Chief executive Mark Weldon said around half the improvement could be attributed to higher revenues and about half to discipline on the cost side”.
If any business journalist had taken half an hour to open the linked spreadsheets they would find an increase in profit for the NZX Group of $862,000 (40%) from not the period 1 April 2008 to 31 March 2009, but the March quarters, March 2008 being the lowest performing quarter of the 2008 year. It’s not an annual result, but two comparative snapshots.
Of that increased $862,000 earnings after tax, $593,000 or 69% (less tax effect) can be explained away as Weldon slashing staffing, the largest cost in any business. “Employee and related costs” at NZX Markets slashed from $2.3 million to $1.7 million (a 25% decrease on the same period in 2008). Add to that the decrease in professional fees from $178,000 to $108,000 and you are looking at a slash and burn of 77% (less tax effect) of the 40% gains.
Yes statistics are fun aren't they? When you actually flex them, rotate them, think about them and interpret them without mindlessly just cutting and pasting.
You too can create positions that the Weldonfairy does for the cut and pasters of the business journalism school of laziness and fear.
At the NZX Markets Statement of Performance the following core activities have disintegrated with the market conditions as would be expected so this cannot be blamed solely on Weldon:
Listings: Initial, Secondary down 42%
Listings: Annual down 9%
Trading: down 15%
NZ Market Services: down 23%
The two interesting results were:
Fees: Participant fees actually up 4%. When core activity is down?
"Information": was up 39%
Information includes real-time core business data across the managed funds, agriculture and media industries. Such as Agrifax, Fundsource, Newsroom, Dairy Week and Profarmer. In other words the drop in cash at the bank (and interest income related) for a concentrated acquisition of FARMING publications. Added to that Country-Wide that includes The NZ Farmers Weekly, Country-Wide North and Country-Wide South, NZ Dairy Exporter, Deer Farmer and Young Country.
Pleasing a Director of NZX, Henry van der Heyden, also Chairman of Fonterra? I think so. See now NZX own the editorial content of every publication that FOC (Father of Cactus) wades through and trusts as the primary trusted source of rural information. Watch for these publications to cement a firm pro-listing editorial view for Fonterra. The Fonterra Chairman is already on the NZX Board and a Fonterra listing is the NZX's wettest dream.
The key to the future. And cashing out those share options that they all seem to have a hand in the pie with respect to as listed in great detail in the accounts.
No information was linked to see detailed intercompany transactions, possible expenditure items written to the balance sheet that may have to be written back at some stage (ie. contingency for AXE's Australia market license) and we cannot see items such as "Equity Accounted Earnings" or TZ1's detailed operating revenue and expenditure (the carbon credit trader that they are preparing for sale to be paid for in shares of the buyer even though it's meant to be a goose that lays endless golden eggs - wouldn't you keep it?). These two line items on the Statement of Financial Performance providing the largest percentage changes up and down respectively on Earnings. Questions folks? Asking them from your position in the newsroom? Nope.
“Chief executive Mark Weldon said the result was due to the success of the company's strategy. That strategy included strengthening the core NZX markets, cementing a broader integrated base from which to grow, and continuing to reshape the NZX business”.
Weldonspeak for moving away from core activity that as a regulator we should be focusing on, slashing professional fees and employment costs, splashing cash on investments gained using a dominant monopoly market position to position one's self for the El Gordo of a Fonterra listing.
The regulatory and compliance arm of NZX should now be put up for competitive tender. It's clear that this is now a secondary activity to Weldon's attempt to be the next Sir Humphrey Michael Fay.
Weldon slashed and burned his own company to get this extraordinary profit figure., no problem with that but this is the guy fronting the JOBS SUMMIT folks.
As a non-believer in the Jobs Summit we like this. If he wasn't preaching the opposite.
Rather than attack him for this prima facie illusionary position of his own company that is now acting more as a merchant bank with profits skimmed off a monopoly position than that of a stable and fair market regulator, I can think of one position in the current National administration that he would be perfect for.
Head of The Razor Gang
A 25% cut in employment costs and 39% in professional fees for the public sector would be a fine beginning.
Reporters don't question Weldon thoroughly about anything these days therefore he would simply glide through the process unnoticed. Teflon Mark would be an excellent acquisition for an assault on the public sector. Perhaps NZX Markets can lease him out for some more "Information" revenue?
Little wonder John Key can see potential in him.
That's your Monday morning headline.....missed it didn't you?
Monday's announcement of an increase in Q1 profit of NZX was greeted with the sophistication of analysis by business journalists belonging somewhere between New Idea and News of The World. Most just cut and paste gushingly from Weldon’s own press release and said "well done". Wel-don indeed. Welcome folks to the Weldonfairy that casts its spell over the financially illiterate every reporting period. Even senior reporters are just too darn afraid to question him.
Such laziness or fear has no place in business journalism when in a period of economic gloom, any publicly listed company, increases their profits by not just double digits but 40% in any given period compared to 2008. Questions must be asked. But here the Weldonfairy has struck again and you have been hazed with his magic spell into spitting out the numbers his PR and handler "Lucy" gives to you. I remain immune to the Weldonfairy.
“Chief executive Mark Weldon said around half the improvement could be attributed to higher revenues and about half to discipline on the cost side”.
If any business journalist had taken half an hour to open the linked spreadsheets they would find an increase in profit for the NZX Group of $862,000 (40%) from not the period 1 April 2008 to 31 March 2009, but the March quarters, March 2008 being the lowest performing quarter of the 2008 year. It’s not an annual result, but two comparative snapshots.
Of that increased $862,000 earnings after tax, $593,000 or 69% (less tax effect) can be explained away as Weldon slashing staffing, the largest cost in any business. “Employee and related costs” at NZX Markets slashed from $2.3 million to $1.7 million (a 25% decrease on the same period in 2008). Add to that the decrease in professional fees from $178,000 to $108,000 and you are looking at a slash and burn of 77% (less tax effect) of the 40% gains.
Yes statistics are fun aren't they? When you actually flex them, rotate them, think about them and interpret them without mindlessly just cutting and pasting.
You too can create positions that the Weldonfairy does for the cut and pasters of the business journalism school of laziness and fear.
At the NZX Markets Statement of Performance the following core activities have disintegrated with the market conditions as would be expected so this cannot be blamed solely on Weldon:
Listings: Initial, Secondary down 42%
Listings: Annual down 9%
Trading: down 15%
NZ Market Services: down 23%
The two interesting results were:
Fees: Participant fees actually up 4%. When core activity is down?
"Information": was up 39%
Information includes real-time core business data across the managed funds, agriculture and media industries. Such as Agrifax, Fundsource, Newsroom, Dairy Week and Profarmer. In other words the drop in cash at the bank (and interest income related) for a concentrated acquisition of FARMING publications. Added to that Country-Wide that includes The NZ Farmers Weekly, Country-Wide North and Country-Wide South, NZ Dairy Exporter, Deer Farmer and Young Country.
Pleasing a Director of NZX, Henry van der Heyden, also Chairman of Fonterra? I think so. See now NZX own the editorial content of every publication that FOC (Father of Cactus) wades through and trusts as the primary trusted source of rural information. Watch for these publications to cement a firm pro-listing editorial view for Fonterra. The Fonterra Chairman is already on the NZX Board and a Fonterra listing is the NZX's wettest dream.
The key to the future. And cashing out those share options that they all seem to have a hand in the pie with respect to as listed in great detail in the accounts.
No information was linked to see detailed intercompany transactions, possible expenditure items written to the balance sheet that may have to be written back at some stage (ie. contingency for AXE's Australia market license) and we cannot see items such as "Equity Accounted Earnings" or TZ1's detailed operating revenue and expenditure (the carbon credit trader that they are preparing for sale to be paid for in shares of the buyer even though it's meant to be a goose that lays endless golden eggs - wouldn't you keep it?). These two line items on the Statement of Financial Performance providing the largest percentage changes up and down respectively on Earnings. Questions folks? Asking them from your position in the newsroom? Nope.
“Chief executive Mark Weldon said the result was due to the success of the company's strategy. That strategy included strengthening the core NZX markets, cementing a broader integrated base from which to grow, and continuing to reshape the NZX business”.
Weldonspeak for moving away from core activity that as a regulator we should be focusing on, slashing professional fees and employment costs, splashing cash on investments gained using a dominant monopoly market position to position one's self for the El Gordo of a Fonterra listing.
The regulatory and compliance arm of NZX should now be put up for competitive tender. It's clear that this is now a secondary activity to Weldon's attempt to be the next Sir Humphrey Michael Fay.
Weldon slashed and burned his own company to get this extraordinary profit figure., no problem with that but this is the guy fronting the JOBS SUMMIT folks.
As a non-believer in the Jobs Summit we like this. If he wasn't preaching the opposite.
Rather than attack him for this prima facie illusionary position of his own company that is now acting more as a merchant bank with profits skimmed off a monopoly position than that of a stable and fair market regulator, I can think of one position in the current National administration that he would be perfect for.
Head of The Razor Gang
A 25% cut in employment costs and 39% in professional fees for the public sector would be a fine beginning.
Reporters don't question Weldon thoroughly about anything these days therefore he would simply glide through the process unnoticed. Teflon Mark would be an excellent acquisition for an assault on the public sector. Perhaps NZX Markets can lease him out for some more "Information" revenue?
Little wonder John Key can see potential in him.
posted by Cactus Kate at 8:12 AM
11 Comments:
What an impressive post CK.
On a par with your post "letter from the boss."
I bet the mild centrist blogger @ Kiwiblog won't link to this shocking story!
Oh dear ....here we go again Kate...I think you might start another witch hunt?
Do you think Weldon will again instruct brokerage firms to search their servers for evidence of visiting Cactus Kates blog and commenting, or providing sensitive information!
His paranoia is astounding;-)
Prince Ham
Love your analytical mind!
Well done on the reveal!
Did you know that 95% of statistics are made up on the spot?
Everton fan,
in Taupo
The Fonterra issue must be examined further. But by whom? You are right, no one will question Mark Weldon as he then bullies them.
Why stick a guy whose Chair of one of the largest non-listed companies in the world, on your Board? The suspicion on the rural publications is valid, I have seen it on Stratford's blog http://quoteunquotenz.blogspot.com/2009/04/why-has-nzx-bought-cpl.html
Nice to see there are others out there who recognise Lord Weldon's Borgia-like characteristics and behaviours.
Great post!
He wants to make a futures market in NZ commodities I hear! Milk solids anyone?
Your points about the big picture such as Fonterra etc are of course valid, but I'm puzzled by your comments about the reporting of the latest quarterly results. The Herald report made it perfectly clear it was not an annual result, and it's normal business practice to compare like-for-like quarters. A quarterly result is not a big deal - it's the annual result that counts. Yes, of course brokers are pissed off, but so are the airlines with Auckland Airport, and everyone hates the power companies. Of course monopolies screw everyone - that's why investors love them so much. And the media are not as crap as you make out. You're swallowing the brokers' line, but the Herald, at least, canvassed differing views in this piece:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10460841
Anonymous, you have linked a piece from 2007?
The points I bring up here have nothing to do with the brokers. I have dealt with those in the past, yes.
While we are on The Herald lets have a look at this misleading headline
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10568967
"NZX revamp leads to 40pc rise in profit".
Case closed.
Cactus
NZX is a tiny company. It's operating revenue to y/e 08 was around $32 million. To put it in perspective your beloved NZ Cricket Black Caps had operating revenue of $40 million (before the India tour) and the Rugby Union had $101 million in operating revenue.
I'm sure the CEO of NZC and NZRU are paid NOWHERE near what Weldon is paid to run the tiddler that is NZX.
Stan, then is he paid to get onterra listed and make all the hangers on loads of cash?
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