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Queensland

Super Retail Group keeps eye on the future with astute use of its 23% NPAT boost

SUPER Retail Group is keeping a firm hand on the future with the way it is utilising its 23 percent growth in net profit after tax (NPAT) for the 2012/13 financial year, which amounted to about $102.7 million.

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Super Retail Group has managed a remarkable year, well served by its major brands Supercheap Auto (pictured), BCF, Rebel and Amart Sports.

While the big winners for the group were Supercheap Auto, BCF Boating Camping Fishing, Rebel and Amart Sports, as expected, the pleasing news for investors is the focus on developing the group's multi-channel retailing capabilities and restructuring under-performing business brands.

The current Super Retail Group policy of distributing 55-65 percent of underlying NPAT as dividends, according to a board statement, enables the group to balance investing in growth opportunities and building group capability, gradually paying down debt and increasing dividends to shareholders.

Super Retail Group managing director and chief executive officer, Peter Birtles, said it was pleasing the company had delivered strong sales and profit growth in all three of its divisions while also restructuring under-performing businesses and continuing to invest in developing group-wide multi-channel capabilities.

"We sustained strong like-for-like sales growth in each of our divisions despite the widely reported slowdown in wider retail spending," Mr Birtles said.

"Our focus on retailing products that our customers predominantly use as part of their leisure experiences has served us well. We believe our customers will continue to spend money on their passions even when they tighten their belt in other areas," he said.

"The key drivers of our performance continue to be merchandise renewal and presentation, private brand development, engaging marketing, sourcing and supply chain execution and the passion of our team members.

"We are particularly pleased that our larger businesses; Supercheap Auto, BCF Boating Camping Fishing, Rebel and Amart Sports, have all grown market share and operating margins.

"We completed a review of the Ray's Outdoors, FCO Fishing Camping Outdoors and Goldcross Cycles businesses and implemented a number of business improvement initiatives to deliver sales and profit growth, with encouraging early results. Associated non-recurring restructuring costs of $16.2 million were incurred.

"Last year, the group commenced a three year program of initiatives to develop the capabilities that our businesses will require to successfully operate as integrated multi-channel retailers. During the year, the group invested circa $53.9 million in capital expenditure and $4.1 million in operating expenses on these programs."

Mr Birtles said although retail conditions were forecast to remain patchy, the group expected to deliver solid like-for-like sales growth in each division and to maintain or grow operating margins while generating working capital improvements.

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Peter Birtles

 

"The year ahead will be another year of growth and development as we maintain our focus on growing our existing businesses and building our multi-channel capabilities.

"We will be investing in opening new stores and refurbishing existing stores in all of our businesses with around 25 stores opening across the group," he said.

"We will complete the development of two new distribution centres at Brendale in Queensland and Erskine Park in New South Wales.

"We have made a strong start to the new financial year with like-for-like growth in group sales of circa 6 percent in the first seven weeks of the year.

"We will continue to develop our loyalty programs and increasingly use data analytics to develop relevant targeted marketing campaigns. We will also continue to develop our fledgling Auto Trade Direct and Super Retail Commercial businesses."

The Super Retail Group board declared a fully franked final dividend of 21 cents per share resulting in the fully franked dividends declared for the full year totalling 38 cents per share. This is an increase of 6 cents per share (18.8%) over the prior year.

The final dividend will be paid on October 2, with a record date of August 30.

The company will again provide shareholders with the opportunity to reinvest their dividends through its Dividend Reinvestment Plan. Dividends will be converted to shares at a nil discount to market value and the shares will be acquired on market to neutralise the effect of the Dividend Reinvestment Plan on all shareholders.

 Super Retail Group 2012/13 financial highlights:

  • A 22 percent increase in group sales to $2.02 billion;
  • A 22 percent increase in the group's EBIT to $172.3 million;
  • A 13 percent increase in Earnings Per Share to 52.3 cents;
  • Solid like-for-like sales growth achieved across all three of the group's divisions;
  • Increased gross margins in the Auto and Leisure retailing divisions;
  • Contribution from Rebel and Amart Sports businesses continues to exceed acquisition business case;
  • Group's multi-channel development programs progressing in line with plan.

www.superretailgroup.com.au

 

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Hi-tech manufacturer EM Solutions laments lack of Aussie awareness of local ICT solutions

GOVERNMENT and ‘think tank' reports continue to emphasise the importance of hi-tech engineering and manufacturing for Australia's economic future - but that is largely where the emphasis stops.

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Rowan Gilmore, managing director of EM Solutions.

Many of the world's leading telecommunications technologies - designed and manufactured in Australia - are sold to blue chip companies in the US and Europe, but are continually overlooked in Australia, by Australian corporates and even by government and defence organisations.

This is the unfortunate ongoing experience for Queensland-based engineering group, EM Solutions.

"EM Solutions struggles to sell its products to large corporations here at home, even government entities, while we are able to do so to blue-chip customers overseas. Why is that?" asked EM Solutions managing director Rowan Gilmore, who is also a former CEO of the Australian Institute for Commercialisation.

"A recent report by Professor Graham Schaffer, commissioned by the Queensland State Government, has accentuated the importance of engineering and engineering intensive firms to the Queensland economy," Dr Gilmore said.

" Growth of the industry has the potential to add $10 billion per annum to the Queensland economy with Brisbane as a world engineering centre for the global provision of specialist engineering services. 

"I attended an excellent event in the new Brisbane Convention Centre recently, at which these challenges were debated. It struck me that the company I lead, EM Solutions, an innovative designer and manufacturer of broadband telecommunications radios for microwave and satellite links, is an iconic example of one such firm.

"We employ 15 engineers, seven of whom have PhDs. For the past five years we have reinvested over 25 percent of our revenues into research and development.

"The founders of our company, through their persistence and contributions over the past 30 years, have been responsible for spawning several new companies and the growth of a high-tech electronics industry in South East Queensland that now employs many hundred staff.

"Technological innovation is important to compete in such an industry. But it is not enough.

"If taxpayers are spending $40 billion to lay a broadband network across Australia, why aren't local innovators thriving on the back of that?

"If Australian Defence is spending billions upgrading its telecommunications equipment, why is it all

imported?

"It seems our large corporations don't like to take risks, to work with SMEs, to nurture home grown innovative firms.

"They prefer to work with accredited suppliers, large organisations they think are more trustworthy than small businesses.

"One solution to prevent the further hollowing out of manufacturing in Australia is indeed to innovate; but another is for our big corporations to innovate in their procurement as well, and better manage the risk of working with small local businesses.

"Otherwise, we'll all end up the poorer."

www.emsolutions.com.au

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CrispTech sees the light again, after recovering 'China syndrome' moment

IN NOVEMBER 2010, CrispTech got the call every company dreads - its number one category killer product, a miniature overcurrent circuit breaker, had just failed an Australian audit and had to be withdrawn from the market.

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Duncan Andrews: CrispTech's lights went on again by launching new Lumigen business.

Three short years earlier the company had been in the right place, right time with a new product when changes to Australian regulative requirements came into effect.  

Now CrispTech was managing a product withdrawal, only to discover that the Chinese manufacturer failed to honour warranties.  The company was faced with a seemingly irrecoverable situation, given its available resources and with no manufacturer support.

CrispTech went into voluntary administration in July 2012, but by October of that year Brisbane businessman Duncan Andrews purchased the company.

Mr Andrews had insights into the business's potential and saw its strong base from which he could resurrect CrispTech's fortunes - he knew he was able to draw on the loyalty of suppliers, customers and, as he said, "the all-important staff".

CrispTech started with a new strategy.

First, the firm created three new divisions: Ethernet Australia (industrial communications), Lumigen (LED lighting) and Elindus (standard electrical products) .

"Industrial communications is the backbone of the company but it needed a clearer focus which Ethernet Australia provides and the world leading communication brands it represents," Mr Andrews said.

"But it was the LED side of the business that really interested me and the opportunity that existed with energy saving products."

While CrispTech had been involved with LED for two years, rapid technology change and declining product quality were adversely affecting the LED market.

"So, learning from recent experiences, we visited China three times over the past six months to select the right manufacturers with the right products, and to audit their factories to ensure everything meets our agreed specifications," Mr Andrews said.

"With my background in food manufacturing where safety and Quality Assurance are a given, I see no difference that the same process and discipline are brought to importing LED products.

"We are serious about quality and eliminating the pain factor for our customers by building confidence in Chinese manufactured products."

http://www.crisptech.com.au/

*CrispTech is a 2013 Member of Queensland Leaders, the organisation helping to develop the next generation of leading companies based in Queensland. http://www.queenslandleaders.com.au/

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Cheating a workplace drug test is a mug's game says ADDA

WORKPLACE drug testing organisation, The Australian Drug Detection Agency (ADDA), knows there is a lot of misinformation about both the prevalence and real effects of drugs on work performance. Among the most misunderstood by employees is the capability to detect recent drug use.

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The ADDA Queensland team, led by Calum Davie (second from left).

 

From long experience, ADDA sees the problem as a workplace health and safety issue above all else. Now the organisation is becoming concerned about the health and performance effects of workers increasingly using elaborate, and some exotic chemical methods, to avoid drug use detection.

"We've seen just about every trick in the book for workers trying to cheat," ADDA Queensland managing director Calum Davie said. Part of ADDA's role, Mr Dvie said.

"Some try the so-called remedies on-line. Some local providers offer what they call ‘guaranteed' products that are said to provide a clean result.

"The reality is that much of the online advice is flawed and the ‘guaranteed' products, on ADDA's results alone, should be creating long lines at the refund counter," Mr Davie said.

Mr Davie said many workers were under the misapprehension that drugs can be detected by a urine test for months afterwards.

Mr Davie said cannabis can be detected up to 30 days after use but that applies only for heavy users (around five joints per day).

Most drugs - such as amphetamines, benzodiazepines, ecstasy and opiates - are generally only detectable between two and four days after use.

"Having said that, recent developments with hair testing can show a history of up to 90 days of drug use," Mr Davie said. "ADDA are currently experiencing a growing trend in employers choosing to use hair testing, especially during the pre-employment phase."

"Employees have to concentrate, and just can't afford to be at risk of being impaired by the effects of drug taking," Mr Davie said.

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Calum Davie, ADDA managing director

 

"People's livelihoods are at stake. If someone is not on their game, you're going to have a much higher chance of someone being killed or seriously injured in a workplace accident.

"And that's not including the down-time for that business from having to close the workplace down for an investigation.

"Trying to cheat at a drug test is not worth it. In the end, you're cheating your fellow employees who are entitled to work in a safe environment."

Mr Davie said ADDA Queensland is fully compliant National Association of Testing Authorities (NATA) accredited on-site testing provider, under the standard AS/NZS 4308:2008. Much of its work is now part of regular processes for major construction and mining companies.

ADDA is considered to be a leader in its field, Mr Davie said, providing specialised services for companies that conduct on-site workplace drug and alcohol testing, as well as pre-employment testing.

"At ADDA we work closely with our clients to not only help them develop drug and alcohol policies, but we also encourage companies to provide a supportive environment to help their employees who have a drug or alcohol problem," Mr Davie said.

ADDA is a 2013 Member of Queensland Leaders, the organisation helping to mentor and develop the next generation of leading companies headquartered in Queensland.

http://www.tadda.com.au/

Tel: 1300 4 DETECTION.

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CTM enables business travellers with Wotif Integration and post-ticketing changes online

CORPORATE Travel Management (CTM) has taken business travel and 'cloud' computing into the clouds with the success of its two industry-leading enhancements to the CTM online booking tool - full integration of Wotif hotel inventory and post-ticketing changes online.

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Jamie Pherous - CTM puts enabling technology in the hands of its business travellers.

 

These technological enhancements from CTM are industry firsts across the Asia-Pacific region, aimed at providing Australia and New Zealand’s corporate travellers with the highest level of flexibility and convenience in the online booking environment, according to CTM CEO Jamie Pherous.

Wotif hotel inventory is fully integrated with CTM’s Global Distribution System (GDS) online booking tool, u-book, providing mobile access to Wotif hotel inventory, seamlessly integrated with GDS content.

Mr Pherous said CTM clients now had access to the largest hotel inventory in Australia and New Zealand with the biggest range of room types and rates.

Both Wotif and CTM are headquartered in Brisbane, contributing to the speed of development and refinement of the system.

CTM’s head of product development, Ben Wheeler said the company was excited to be one of the first travel management companies (TMCs) worldwide to bring these enhancements to its clients.

“By integrating Wotif hotel inventory with our Global Distribution System, CTM has opened up a number of new cost saving benefits for travellers at the click of a button,” Mr Wheeler said. “These include access to new and improved accommodation options in metropolitan, regional and rural areas, and the choice of additional room types.”

He said in one simple step, travellers enter their basic hotel search into CTM’s online booking tool and the new technology will source and display all available GDS and Wotif inventory combined into one easy-to-read list.

Users can then prioritise their search results by hotel name or hotel chain according to their preferred hotel partners, maximising policy compliance and cost savings by aligning bookings to their negotiated supplier deals.

 

POST-TICKETING CHANGES ONLINE

Another Asia-Pacific first launched a few months ago is CTM’s development of online flight changes post-ticketing for domestic Australian and New Zealand GDS bookings.

CTM clients can now change their pre-ticketed domestic flights online at the click of a button.

"Until now, once a fare had been ticketed it was a lengthy and manual process to make a simple time or date change,” Mr Wheeler said.

“But now, the re-booking process has been moved online and our clients can easily update their booking in a simple and seamless process. It’s a first for TMCs in the Asia Pacific region and a unique and valuable benefit to our customers."

He said the process was simple, time efficient and aligned to the client’s travel policy to support compliance and maximise savings. Ticket re-issue and revalidation is automated, enabling round-the-clock access to flight changes online.

“This new enhancement is totally transparent, with all change fees displayed up front so there are no hidden costs; the price displayed is the price you pay” Mr Wheeler  said.

Mr Pherous said CTM continued to invest in developing industry-leading products and services which add value to clients’ travel programs and improve efficiencies for business.

Mr Pherous said CTM now employs more than 500 staff across Australia, New Zealand and the US with offices in Brisbane, Sydney, Melbourne, Toorak, Perth, Gold Coast, Auckland and Denver. CTM is a Queensland Leaders Partner Company, helping to mentor the next generation of leading companies based in Queensland, and is the first IPO to come out of the Queensland Leaders network.

www.travelctm.com

  

ENDS

 

Economist calls Federal Budget 'Swan song' on false revenue shortfalls

FEDERAL Treasurer Wayne Swan’s delivery of his latest Budget has been labelled as his ‘swan song’ by Michael Knox, chief economist and director of strategy at RBS Morgans. Mr Knox blames the deficit on over-spending, not revenue declines, as Mr Swan painted in his Budget speech.

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Michael Knox, RBS Morgans

“We balance the Budget by spending less than we earn,” Mr Knox said in his Budget review. “We all know that in a perfect world, income would rise so that we could afford whatever we wanted to spend.

“However, most of us have learnt that in the real world, we have to reduce our spending to no more than our income. That is how we balance our budget.

“The Treasurer has told us that incomes did not rise as rapidly as he hoped. He therefore blames incomes for the reason he could not balance his budget.” Mr Knox referred to a chart of Australian Government Sector spending as a percentage of gross domestic product (GDP).

“This is drawn from Table 1, page 10-6 of Budget Paper No.1,” Mr Know pointed out. “In the period of the previous government, payments fall from 25.1 percent of GDP in 2000/2001 to 23.1 percent of GDP in 2007/2008. This is the level of spending when Wayne Swan first strode to the Treasury benches.”

Mr Knox said spending would “never be as low again as it was in 2007/2008. Over two years to 2009/2010 it rose to 26.1 percent of GDP. Only then did it peak,” he said. “It then began to decline. In 2013/2014, it has declined to 24.5 percent of GDP. This is still 1.4 percent of GDP higher than it is when Wayne Swan took office in 2007/2008.

“The result is that in 2013/2014, Wayne Swan produces a deficit of 1.1% percent of GDP. If spending was the same as in 2007/2008, the result would instead be a surplus of 0.3 percent of GDP.”

Mr Knox said the concerning issue was that even in trying to claw back into surplus, The Labor Government’s Budget would not return to the inherited spending levels.

“It is important to note that even out in the distant year of 2016/2017, spending is still estimated to be 23.8 percent of GDP,” Mr Knoz said.

“This is still 0.7 percent higher than it was in 2007/2008.”

www.rbsmorgans.com

*RBS Morgans is an Industry Expert member of Queensland Leaders, the organisation mentoring business leaders and the next generation of leading companies based in Queensland.

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InterFinancial helps Moxon Timber successfully renegotiate debt

QUEENSLAND Leaders member InterFinanical has helped century-old Australian family timber business, Moxon Timbers, to successfully renegotiate debt facilities that were challenging the business.

InterFinancial led the company through a competitive process that achieved improved flexibility in facilities, pricing and an increase of debt facilities by over $7 million.

“Having InterFinancial along not only showed how serious and professional we were, we were able to talk to people with whom we had no relationship, got some competiton into the process and improved the day-to-day reporting requirements,” said Moxon Timbers managing director, Tony Moxon.

InterFinancial acted as an adviser to Moxon Timber to organise working capital finance to primarily fund stock and debtors.

They also utilised term debt to fund the distribution centre and head office at Stapylton in Queensland.

Then astute use of asset finance was utilised for specific plant and equipment. Moxon

Timber Moxon Timber is a privately owned company that was established in 1903 by the Moxon family.

The company’s Australian operations are based at Stapylton and additional offices are located at Melbourne and Sydney.

In the 1980s the company expanded overseas, establishing businesses in the United States and New Zealand.

Since this expansion, Moxon Timbers has continued to grow both domestically and overseas, opening businesses in France and Chile in 2006 and 2007 respectively.

The company currently employs moe than 120 people, operating globally, and supplying timber to customers including Bunnings, Mitre 10 and Bretts Hardware.

www.interfinancial.com.au

www.moxontimbers.com.au

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