AU Morning Wrap: Tyro Sinks 17% as Potentia Walks; City Chic Plunges

Fear crept onto Wall Street Friday after talks to raise the debt ceiling sputtered in Washington, bringing a week of steady trading to a tense conclusion.

Tyro Payments sank 16.6 per cent to $1.28 on news that Potentia has withdrawn from takeover discussions.

City Chic plunged 10.4 per cent to 34.5¢ after reporting that group sales for the 45 weeks to May 14 were down 15.2 per cent to $262.2 million compared to the same period last financial year.

New Hope advanced 4.3 per cent to $5.33 following a quarterly update which showed its underlying EBITDA climbed in the three months to April.

Coal sales from New Hope's 80 per cent-owned Bengalla operations were 2.15 million tonnes for the period, up 46.9 per cent on the January quarter.

The group has guided for total sales between $NZ157 million and $NZ160 million in financial 2023.

The sale is expected to contribute about $75 million to core operating profit after tax for FY23.

Lendlease has now sold 62 per cent of its interest in its US Military Housing asset management income stream since FY22. Lendlease will retain 38 per cent of the asset management income stream as well as its existing ownership of the development, property and construction management rights, in addition to a $200 million equity interest in the portfolio.

Operating revenue climbed 20 per cent on the prior year to $NZ156.6 million, while operating profit of $NZ19.7 million was slightly lower than the prior year's $NZ20.4 million.

The company declared a maiden dividend of NZ1.1¢ a share.

Operating revenue for the period was $NZ1.85 billion, up from $NZ1.3 billion the prior year.

The company expects proportionate earnings before interest, tax, depreciation, amortisation and financial derivative movements of between $NZ570 million and $NZ610 million in the 12 months to March 2024.

The company declared a final dividend of NZ12.5¢ a share.

The EAF, targeted to be operational by 2026, will be co-funded by the New Zealand government to produce lower-emissions steel.

Potentia's decision to withdraw follows Tyro granting the company due diligence, as well as extensive and advanced negotiation of material commercial terms and draft transaction documents.

However, Tyro said discussions with Potentia in relation to a possible change of control proposal have now ceased.

The company said revenue was affected in the US by the transition in March to its new 3PL facility as City Chic reduced its promotional activity to avoid excessive delivery times and ensure a good customer experience.

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