Billabong International Limited (BBG):
Billabong has received a merger proposal from the majority owner of the Quiksilver and Roxy brands that values the surfwear retailer and wholesaler at about $200 million. The embattled retailer (BBG) says it has received a confidential, indicative and nonbinding proposal from Boardriders - formerly called Quiksilver and whose majority owner Oaktree Capital already has a 19 per cent stake in Billabong. The scheme of arrangement values Billabong shares at a six-month high of $1 each, 22 cents above yesterday’s closing price. Billabong says it has opened its books for due diligence. However, there was no certainty that the indicative proposal will result in an offer for the company. The Gold Coast-based retailer, which has been losing money for several years, recorded a $77 million loss in the 2017 financial year, worse than the previous year’s $24 million loss. Contributing to the disappointing result were total impairment charges of $106.5 million, including the discontinuation of the Tigerlily swimwear brand, and a fall in revenue. Billabong was founded in 1973 by Gordon and Rena Merchant. It was listed in 2000 and recapitalised by hedge funds in 2013.
Australian Myer Holdings Limited (MYR):
Retail billionaire Solomon Lew has ramped up his campaign against large institutional investors who failed to support him in his bid to block the election of three directors to the Myer board last week, as well as vote down other resolutions at the department store’s annual general meeting, slamming them as “passive” when they are supposed to be managing “other people’s money”. Addressing his shareholders at the Premier Investments (PMV) annual general meeting in Melbourne this morning, Mr Lew also launched a blistering attack on what he termed “10 years of continuous government instability, uncertainty and short-term decision making” where sound economic policy has lost out to political tactics. Mr Lew warned that Premier Investments would continue to use all of the options at its disposal to protect its Myer investment, ending his comments on Myer with a twist on a popular phrase from one of TV’s highest rating shows at the moment. “With apologies to fans of The Game of Thrones, my message to the Myer board is this: Summer is coming. The numbers won’t lie.”
Godfreys Group Limited (GFY):
Vacuum cleaner retailer Godfrey’s Group says board member Brendan Fleiter will take over as chairman and Jason Gowie will be its new chief executive, adding that full-year earnings will be lower than forecast. Mr Gowie replaces managing director John Hardy — the star of its 1990s TV commercials, who stepped in as CEO after his predecessor left prematurely — while board member Brendan Fleiter replaces Rod Walker. Meanwhile, Godfrey’s (GFY) has cut its forecast 2017/18 earnings by $3.5 million-$4m, due to reduced conversions of company to franchise stores, and says like-for-like store sales were weaker than expected in October and November.
Macquarie Telecom Group Limited (MAQ):
Macquarie Telecom is bucking the outsourcing trend in the telco sector by bringing its network talent back to Sydney at its new network operations centre. According to Macquarie Telecom, the facility will see at least 13 jobs from brought back to Australia and create additional employment opportunities across the business. The telco previously provided network operation services through a third party, Alcatel Lucent (now Nokia) and Luke Clifton, group executive, Macquarie Telecom, said that investing in local talent will deliver a much better outcome for its customers. Macquarie Telecom’s new operations centre will be integrated with Macquarie’s existing call centre in Sydney, ‘The Hub’, with the combined centres rebranded to ‘Hub+’. The centre will also feature a new technical service desk focused on creating better first-call resolution for customer queries and issues. A recent report shows there were more than 158,000 complaints made to the Australian Telecoms Industry Ombudsman in the last financial year, a staggering increase of 41 per cent from the previous year, and roughly four times the number of complaints received by the Financial Ombudsman Service, which deals primarily with banks.
Telstra Corporation Limited (TLS):
Telstra is sticking with its 22 cents a share dividend promise to shareholders, despite the telco copping a $600 million hit to its full year 2018 earnings as a result of NBN Co suspending its HFC rollout. The telco (TLS) has revised its full year revenue guidance from a range of $28.3 billion to $30.2bn to a range of $27.6bn to $29.5bn, a reduction of $700m. According to Telstra, the earlier guidance assumed that the rollout of the National Broadband Network would continue unimpeded during the next 12 months. However, NBN Co’s decision to stop the sale of services over the hybrid fibre coaxial (HFC) portion of the NBN for up to nine months, along with its decision in August to cut almost 200,000 premises out of the activation timetable in FY18, has forced Telstra to rethink its numbers. The telco has however managed to keep it dividend policy impact, reaffirming that it expects FY18 total dividend to be 22 cents per share fully franked. NBN Co on Monday announced an immediate halt of the HFC rollout, conceding that the network couldn’t accommodate more end users. The suspension will see a delay in the compensation Telstra receives from NBN Co as the telco’s customers migrate to the NBN. Telstra added today that the HFC halt will also see a delay in the revenue Telstra will make from the NBN Co as part of a $1.6bn commercial works contract.
National Australian Bank Limited (NAB):
As Australia’s federal politicians now brawl over the terms of reference of a royal commission into the financial system, Andrew Thorburn’s National Australia Bank is getting on with his bank’s bold new strategy: shedding its staff. NAB’s executive general manager of wealth advice, Greg Miller, is shuffling along “The Bridge” (which, you may remember, is NAB’s “best-practice career transition program”). Spiro Pappas’s role as the EGM of global institutional banking has also been made redundant, although he’s apparently being redeployed rather than travelling the Bridge. Pappas is moving from Mike Baird’s institutional banking empire into Anthony Healy’s private wealth division. We gather he’s still in negotiations about at what level. Thorburn raised eyebrows across the downtrodden banking industry when, four weeks ago, he made the axing of 6000 of NAB’s workers the centrepiece of a bumper $6.64 billion annual cash profit. In a change of approach, the bank is now being much more low key about departures. But Margin Call understands more executive general managers are in the process of being redeployed, possibly to the soon to be highly congested Bridge.
Aristocrat Leisure Limited (ALL):
Aristocrat shares fell sharply yesterday despite the company booking a 41 per cent rise in net profit on the back of growth in US operations and sustained strength locally. The shares closed 6.82 per cent lower at $21.99. Aristocrat posted a full-year net profit of $495.1m, up from $350.5m. The gaming machine manufacturer also announced it would expand its digital gaming operations with the acquisition of Seattle-based social gaming company Big Fish Games for $US990m ($1.4bn). Revenue grew 15.3 per cent to a record $2.45bn, while operating cash flow rose 17 per cent to $799m. Chief executive Trevor Croker said leading hardware and technology underpinned the company’s strong performance. “During the reporting period, Aristocrat invested behind our core business while also making progress in unlocking attractive growth opportunities in adjacent markets and segments,” he said. “Aristocrat will continue to target high-quality growth, with the benefit of our established performance momentum, broadening capabilities, strong balance sheet and growing recurring revenue base.” Mr Croker said the result was strong given increasing competition and flat markets. But despite the challenging market, the company anticipates continued growth in financial 2018. The company will pay a fully franked final dividend of 20c a share.
Spirit Telecom Limited (ST1):
James Spenceley-backed telco junior Spirit Telecom has tapped Taylor Collison to help the company raise equity. Taylor Collison launched the deal on Friday morning, seeking to raise $3 million in a placement to institutions and sophisticated investors at 15¢ a share. The company's shares last closed at 18¢. Spirit Telecom is a telco junior providing internet access and telephony services in Sydney, Melbourne and Brisbane. It's an expected beneficiary from the National Broadband Network and last financial year reported $14.7 million revenue and $3.4 million underlying EBITDA. The company counts Vocus founder and former executive James Spenceley's MHOR Asset Management as an investor. The raising comes one week after Spirit's annual general meeting, where investors were told the company had experienced nine straight quarters of organic growth.
Frontier Capital Group Limited (FCG):
New Zealand dairy firm Fonterra has been ordered to pay French company Danone 105 million euros ($125 million) over a contamination scare, a smaller than expected sum, though it prompted Fonterra to cut its earnings forecast. An arbitration tribunal made the ruling on Friday in a dispute between Fonterra, the world's biggest dairy producer, and Danone over a scare involving a Fonterra ingredient used by the French food manufacturer in 2013, which led to a recall based on erroneous information. Danone Nutricia, a unit of Paris-based Danone, recalled some types of infant formulas sold under the Karicare brand in 2013 after its milk powder supplier Fonterra said there was a risk of bacteria in its products that could cause fatal botulism. The scare was later declared a false alarm. Fonterra temporarily halted trading in its shares on Friday ahead of the decision and later said it had cut its 2017/18 earnings per share forecast to 35 to 45 New Zealand cents from 45 to 55 cents. "Fonterra is in a strong financial position and is able to meet the recall costs," Fonterra CEO Theo Spierings said in a statement.
Getswift Limited (GSW):
GetSwift, based in Melbourne, where Amazon located its first Australian distribution warehouse, said in a short statement on Friday that it "signed a global agreement with Amazon" without offering more details. In a separate statement, it said it signed a multi-year partnership with the operator of KFC, Taco Bell and Pizza Hut fast food restaurants, allowing them to use its software in 20 countries in the Middle East and Asia Pacific. The deals mark a stratospheric rise for a logistics software company which listed less than a year earlier, formed from the bones of a liquor delivery service started by three recently retired footballers. Shares of GetSwift leapt 84 percent to be trading at A$3.60, compared to a 20 cent issue price before listing in December 2016. Its A$282 million market capitalisation on Friday compared to a value of about A$25 million upon listing, and suggested a windfall for one-quarter shareholder and managing director Joel Macdonald, 33, who retired from Australian Rules football in 2013.
(Source: AIMS)
Billabong has received a merger proposal from the majority owner of the Quiksilver and Roxy brands that values the surfwear retailer and wholesaler at about $200 million. The embattled retailer (BBG) says it has received a confidential, indicative and nonbinding proposal from Boardriders - formerly called Quiksilver and whose majority owner Oaktree Capital already has a 19 per cent stake in Billabong. The scheme of arrangement values Billabong shares at a six-month high of $1 each, 22 cents above yesterday’s closing price. Billabong says it has opened its books for due diligence. However, there was no certainty that the indicative proposal will result in an offer for the company. The Gold Coast-based retailer, which has been losing money for several years, recorded a $77 million loss in the 2017 financial year, worse than the previous year’s $24 million loss. Contributing to the disappointing result were total impairment charges of $106.5 million, including the discontinuation of the Tigerlily swimwear brand, and a fall in revenue. Billabong was founded in 1973 by Gordon and Rena Merchant. It was listed in 2000 and recapitalised by hedge funds in 2013.
Australian Myer Holdings Limited (MYR):
Retail billionaire Solomon Lew has ramped up his campaign against large institutional investors who failed to support him in his bid to block the election of three directors to the Myer board last week, as well as vote down other resolutions at the department store’s annual general meeting, slamming them as “passive” when they are supposed to be managing “other people’s money”. Addressing his shareholders at the Premier Investments (PMV) annual general meeting in Melbourne this morning, Mr Lew also launched a blistering attack on what he termed “10 years of continuous government instability, uncertainty and short-term decision making” where sound economic policy has lost out to political tactics. Mr Lew warned that Premier Investments would continue to use all of the options at its disposal to protect its Myer investment, ending his comments on Myer with a twist on a popular phrase from one of TV’s highest rating shows at the moment. “With apologies to fans of The Game of Thrones, my message to the Myer board is this: Summer is coming. The numbers won’t lie.”
Godfreys Group Limited (GFY):
Vacuum cleaner retailer Godfrey’s Group says board member Brendan Fleiter will take over as chairman and Jason Gowie will be its new chief executive, adding that full-year earnings will be lower than forecast. Mr Gowie replaces managing director John Hardy — the star of its 1990s TV commercials, who stepped in as CEO after his predecessor left prematurely — while board member Brendan Fleiter replaces Rod Walker. Meanwhile, Godfrey’s (GFY) has cut its forecast 2017/18 earnings by $3.5 million-$4m, due to reduced conversions of company to franchise stores, and says like-for-like store sales were weaker than expected in October and November.
Macquarie Telecom Group Limited (MAQ):
Macquarie Telecom is bucking the outsourcing trend in the telco sector by bringing its network talent back to Sydney at its new network operations centre. According to Macquarie Telecom, the facility will see at least 13 jobs from brought back to Australia and create additional employment opportunities across the business. The telco previously provided network operation services through a third party, Alcatel Lucent (now Nokia) and Luke Clifton, group executive, Macquarie Telecom, said that investing in local talent will deliver a much better outcome for its customers. Macquarie Telecom’s new operations centre will be integrated with Macquarie’s existing call centre in Sydney, ‘The Hub’, with the combined centres rebranded to ‘Hub+’. The centre will also feature a new technical service desk focused on creating better first-call resolution for customer queries and issues. A recent report shows there were more than 158,000 complaints made to the Australian Telecoms Industry Ombudsman in the last financial year, a staggering increase of 41 per cent from the previous year, and roughly four times the number of complaints received by the Financial Ombudsman Service, which deals primarily with banks.
Telstra Corporation Limited (TLS):
Telstra is sticking with its 22 cents a share dividend promise to shareholders, despite the telco copping a $600 million hit to its full year 2018 earnings as a result of NBN Co suspending its HFC rollout. The telco (TLS) has revised its full year revenue guidance from a range of $28.3 billion to $30.2bn to a range of $27.6bn to $29.5bn, a reduction of $700m. According to Telstra, the earlier guidance assumed that the rollout of the National Broadband Network would continue unimpeded during the next 12 months. However, NBN Co’s decision to stop the sale of services over the hybrid fibre coaxial (HFC) portion of the NBN for up to nine months, along with its decision in August to cut almost 200,000 premises out of the activation timetable in FY18, has forced Telstra to rethink its numbers. The telco has however managed to keep it dividend policy impact, reaffirming that it expects FY18 total dividend to be 22 cents per share fully franked. NBN Co on Monday announced an immediate halt of the HFC rollout, conceding that the network couldn’t accommodate more end users. The suspension will see a delay in the compensation Telstra receives from NBN Co as the telco’s customers migrate to the NBN. Telstra added today that the HFC halt will also see a delay in the revenue Telstra will make from the NBN Co as part of a $1.6bn commercial works contract.
National Australian Bank Limited (NAB):
As Australia’s federal politicians now brawl over the terms of reference of a royal commission into the financial system, Andrew Thorburn’s National Australia Bank is getting on with his bank’s bold new strategy: shedding its staff. NAB’s executive general manager of wealth advice, Greg Miller, is shuffling along “The Bridge” (which, you may remember, is NAB’s “best-practice career transition program”). Spiro Pappas’s role as the EGM of global institutional banking has also been made redundant, although he’s apparently being redeployed rather than travelling the Bridge. Pappas is moving from Mike Baird’s institutional banking empire into Anthony Healy’s private wealth division. We gather he’s still in negotiations about at what level. Thorburn raised eyebrows across the downtrodden banking industry when, four weeks ago, he made the axing of 6000 of NAB’s workers the centrepiece of a bumper $6.64 billion annual cash profit. In a change of approach, the bank is now being much more low key about departures. But Margin Call understands more executive general managers are in the process of being redeployed, possibly to the soon to be highly congested Bridge.
Aristocrat Leisure Limited (ALL):
Aristocrat shares fell sharply yesterday despite the company booking a 41 per cent rise in net profit on the back of growth in US operations and sustained strength locally. The shares closed 6.82 per cent lower at $21.99. Aristocrat posted a full-year net profit of $495.1m, up from $350.5m. The gaming machine manufacturer also announced it would expand its digital gaming operations with the acquisition of Seattle-based social gaming company Big Fish Games for $US990m ($1.4bn). Revenue grew 15.3 per cent to a record $2.45bn, while operating cash flow rose 17 per cent to $799m. Chief executive Trevor Croker said leading hardware and technology underpinned the company’s strong performance. “During the reporting period, Aristocrat invested behind our core business while also making progress in unlocking attractive growth opportunities in adjacent markets and segments,” he said. “Aristocrat will continue to target high-quality growth, with the benefit of our established performance momentum, broadening capabilities, strong balance sheet and growing recurring revenue base.” Mr Croker said the result was strong given increasing competition and flat markets. But despite the challenging market, the company anticipates continued growth in financial 2018. The company will pay a fully franked final dividend of 20c a share.
Spirit Telecom Limited (ST1):
James Spenceley-backed telco junior Spirit Telecom has tapped Taylor Collison to help the company raise equity. Taylor Collison launched the deal on Friday morning, seeking to raise $3 million in a placement to institutions and sophisticated investors at 15¢ a share. The company's shares last closed at 18¢. Spirit Telecom is a telco junior providing internet access and telephony services in Sydney, Melbourne and Brisbane. It's an expected beneficiary from the National Broadband Network and last financial year reported $14.7 million revenue and $3.4 million underlying EBITDA. The company counts Vocus founder and former executive James Spenceley's MHOR Asset Management as an investor. The raising comes one week after Spirit's annual general meeting, where investors were told the company had experienced nine straight quarters of organic growth.
Frontier Capital Group Limited (FCG):
New Zealand dairy firm Fonterra has been ordered to pay French company Danone 105 million euros ($125 million) over a contamination scare, a smaller than expected sum, though it prompted Fonterra to cut its earnings forecast. An arbitration tribunal made the ruling on Friday in a dispute between Fonterra, the world's biggest dairy producer, and Danone over a scare involving a Fonterra ingredient used by the French food manufacturer in 2013, which led to a recall based on erroneous information. Danone Nutricia, a unit of Paris-based Danone, recalled some types of infant formulas sold under the Karicare brand in 2013 after its milk powder supplier Fonterra said there was a risk of bacteria in its products that could cause fatal botulism. The scare was later declared a false alarm. Fonterra temporarily halted trading in its shares on Friday ahead of the decision and later said it had cut its 2017/18 earnings per share forecast to 35 to 45 New Zealand cents from 45 to 55 cents. "Fonterra is in a strong financial position and is able to meet the recall costs," Fonterra CEO Theo Spierings said in a statement.
Getswift Limited (GSW):
GetSwift, based in Melbourne, where Amazon located its first Australian distribution warehouse, said in a short statement on Friday that it "signed a global agreement with Amazon" without offering more details. In a separate statement, it said it signed a multi-year partnership with the operator of KFC, Taco Bell and Pizza Hut fast food restaurants, allowing them to use its software in 20 countries in the Middle East and Asia Pacific. The deals mark a stratospheric rise for a logistics software company which listed less than a year earlier, formed from the bones of a liquor delivery service started by three recently retired footballers. Shares of GetSwift leapt 84 percent to be trading at A$3.60, compared to a 20 cent issue price before listing in December 2016. Its A$282 million market capitalisation on Friday compared to a value of about A$25 million upon listing, and suggested a windfall for one-quarter shareholder and managing director Joel Macdonald, 33, who retired from Australian Rules football in 2013.
(Source: AIMS)
Latest comments