CORPORATE TURNAROUNDS – AUSTRALIA

Scale of Qantas turnaround catches Joyce by surprise

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Original article by Steve Creedy
The Australian – Page: 20 : 10-Dec-14

Alan Joyce, CEO of Qantas Airways, admits that he and his management team had not expected their cost-cutting strategy to bear fruit so rapidly. He has been able to forecast a 2014-15 interim underlying profit pre-tax of up to $A350m, after the previous loss. The carrier’s stock on 9 December closed $A0.01 lower at $A2.38, but had gained nearly 14% the day before when the news was released. Meanwhile independent senator Nick Xenophon wants the Australian Competition & Consumer Commission to look into whether Qantas’s refusal to lower its fuel surcharge despite a falling crude oil price constitutes misleading and deceptive conduct

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BOEING COMPANY, CITIGROUP PTY LTD, AIRBUS SAS, NICK XENOPHON GROUP

Woolies back in the retail race

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 24-Aug-17

Retail giant Woolworths has posted a 2016-17 net profit of $A1.533bn, following an impairment-marred loss of $A1.234bn for 2016-17. Net profit from continuing operations was down 3.6 per cent at $A1.422bn, but revenue was 3.7 per cent higher at $A55.47bn. Woolworths’ core supermarkets division recorded 4.5 per cent growth in food sales, to $A36.37bn, while the struggling Big W business recorded an EBIT loss of $A150.5m and a 5.6 per cent decline in sales.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, WOOLWORTHS SUPERMARKETS, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, EZIBUY, LOWE’S COMPANIES INCORPORATED, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, WESFARMERS LIMITED – ASX WES, VERTIUM ASSET MANAGEMENT

Roy Morgan Research – 75 Years collecting, analysing and interpreting accurate information!

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Dec-16

Roy Morgan Research Ltd Directors are pleased to report the company has returned to profitability during 2016, both in Australia and overseas, and the start of 2017 is continuing in the same way. Shareholders have been advised that the consolidated profit for the financial year to June 30, 2016 was $3,045,000 compared with a loss for the year ended June 30, 2015 of $2,337,000 and a loss of $7,858,000 for 2014. EBITDA (Earnings before interest, income tax, depreciation, and amortisation) for the financial year to June 30, 2016 was $3,946,000 compared with a negative EBITDA of $1,784,000 for 2015 and a negative EBITDA of $6,644,000 for 2014. Directors expect Roy Morgan Research Ltd profit for the full year to June 30, 2017 to be near $5.5 million with EBITDA in excess of $6 million.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Booming gold sector powers Barminco profit

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Original article by Paul Garvey
The Australian – Page: 22 : 29-Sep-16

Unlisted mining services group Barminco has posted a net profit of $A42.4m for 2015-16, compared with a net loss of $A48.4m previously, while EBIT rose from $A43.6 million to $A57m. Barminco now boasts debt of just $US306m after repaying some $US79.8m ($104m) during fiscal 2016. The group has benefited from its strong presence in the gold sector, which accounts for more than 50 per cent of its contracts.

CORPORATES
BARMINCO PTY LTD, GRESHAM PRIVATE EQUITY LIMITED, NORTHERN STAR RESOURCES LIMITED – ASX NST

Lacaze puts struggling Lynas back on track

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Original article by Glenda Korporaal
The Australian – Page: 21 : 17-May-16

Shares in rare earths producer Lynas Corporation were trading at about $A0.14 when Amanda Lacaze became CEO in mid-2014, compared with a peak of $A2.25 in 2011. The stock is currently trading at around $A0.07, but Lynas has increased its output, reduced its operating costs and scaled back its workforce during Lacaze’s tenure. The group’s sales rose by 43 per cent rise to $A93m during the second half of 2015, and its operating loss fell to $A40m.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, TELSTRA CORPORATION LIMITED – ASX TLS, COMMANDER COMMUNICATIONS LIMITED, NESTLE AUSTRALIA LIMITED, ORICA LIMITED – ASX ORI, MOLYCORP MINERALS LLC

Light at end of the tunnel for Ritchies Stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 9-Jul-15

Ritchies Stores’ earnings have fallen by 73 per cent since 2011, but chairman Fred Harrison says the grocery chain returned to profit growth in the 2014-15 financial year. Ritchies is supplied by grocery wholesaler Metcash, and Harrison notes that Metcash’s store refurbishment and price-matching strategy for the IGA network has helped to boost his company’s sales. Harrison adds that price competitiveness has become essential for independent grocery retailers.

CORPORATES
RITCHIES STORES PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE SECURITIES PTY LTD

Murray in the business of making a difference

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 & 18 : 29-Jun-15

Former Lion Nathan CEO Rob Murray has a track record of turning around struggling companies. He did so at Lion, as well as Spillers Petfoods and Nestle Foods in the UK. Murray is now on the boards of three Australian-listed companies whose outlooks are uncertain. He is a non-executive director of Southern Cross Media Group and chairs both Metcash and Dick Smith Holdings. Murray says Metcash’s price-matching strategy must focus on key grocery products, and has ruled out the sale of its Mitre 10 hardware business.

CORPORATES
METCASH LIMITED – ASX MTS, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, DICK SMITH HOLDINGS LIMITED – ASX DSH, LION PTY LTD, SPILLERS PETFOODS, NESTLE SA, IGA, MITRE 10 LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, LIDL GMBH & CO KG, BUNNINGS GROUP LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SUPER RETAIL GROUP LIMITED – ASX SUL, LINFOX PTY LTD, BESTEST, CAMBRIDGE UNIVERSITY

Vocation cuts back, rebrands in survival bid

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Original article by Simon Evans
The Australian Financial Review – Page: 1 & 9 : 2-Jun-15

Australian-listed Vocation will implement a five-point plan aimed at turning around its fortunes. The vocational education provider will adopt a new business name and rebrand several of its businesses, while more than 40 of its courses will be discontinued. CEO Stewart Cummins is confident that the group will become profitable in 2015-16. Vocation currently boasts just 160 employees, with its workforce cut due to asset sales and redundancies.

CORPORATES
VOCATION LIMITED – ASX VET, CUSTOMER SERVICE INSTITUTE OF AUSTRALIA, AVANA EDUCATION PTY LTD, REAL INSTITUTE PTY LTD, BAWM GROUP PTY LTD, ASPIN PTY LTD, ENDEAVOUR COLLEGE OF NATURAL HEALTH, STUDY GROUP INTERNATIONAL, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Target boss reckons there’s room for two

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Original article by Simon Evans
The Australian Financial Review – Page: 22 : 21-May-15

Target MD Stuart Machin has outlined plans to revive the discount retailer’s fortunes. He has told Wesfarmers’ annual strategy presentation that up to 10 new stores will be opened each year, while 30 stores will be closed. He has also downplayed concerns that a turnaround by Target could be at the expense of Kmart, noting that there is a lot of scope to gain market share from rival retailers such as Myer and David Jones.

CORPORATES
WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, COLES GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, BIG W DISCOUNT STORES, HARRIS SCARFE HOLDINGS LIMITED

Qantas on target for $1b profit

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Original article by Jamie Freed
The Australian Financial Review – Page: 1 & 12 : 27-Feb-15

Qantas has reported a 2014-15 interim net profit of $A204m, compared with a loss of $A235m in the first half of 2013-14. The carrier’s underlying result for the half-year rose from a loss of $A252m to a pre-tax profit of $A367m. Qantas is now tipped to achieve a full-year underlying profit of around $A1bn, following a loss of $A646m in 2013-14. CEO Alan Joyce says the airline’s focus remains on debt reduction, but adds that it could resume paying dividends at some stage

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, MACQUARIE EQUITIES LIMITED, TRANSPORT WORKERS’ UNION, FIJI AIRWAYS, JETSTAR AIRLINES PTY LTD