Trade Talk

1999

May [1]

1998

August [1]

Trade Talk

Newcastle Herald

Wednesday September 13, 2000

Lending boosts profit

RECORD personal lending has pushed the Australian Central Credit Union to a $5.57million after-tax profit. The Adelaide-based organisation said the result for the year to the end of June 2000 was a 39% improvement on the previous year. Total assets also rose by 6.5% to $1.08billion, revenue was up by more than $6million to $96.4million and membership was up by more than 19,000 to just over 170,000. Chief executive Peter Evers said personal lending grew by 15% to $101million.

Sigma's net loss

SIGMA Company Ltd's acquisition and restructuring activities drove its earnings higher but also generated abnormals which pushed the drug manufacturer and distributor to a net loss for the first half. The company behind Amcal and Guardian Pharmacies yesterday reported a $2.18million net loss for the six months to July 31, 2000, compared to a $3.56million net profit in the previous corresponding period. The result was impacted by $10.76million in abnormal charges before tax after making provisions for redundancies, discontinued business initiatives and products, doubtful debts and GST compliance expenses. Sigma shares gained 6? to $1.39 yesterday.

Retailer expects growth

CLOTHING retailer Harris Scarfe Holdings Ltd was poised for good growth in the 2000-01 year as the company ramps up its on-line strategy, executive chairman Adam Trescowthick said yesterday. The company reported yesterday a 6% lift in net profit to $13.24million for the year to June 30, 2000, with sales climbing 9% to $421.88million. Harris Scarfe shares closed 1? better at $1.35.

Austin cuts losses

TEXTILE and clothing company Austin Group Ltd expects to return to profitability this financial year after completing a major restructuring program to arrest two years of losses. Geelong-based Austin Group reported a $523,000 net loss yesterday for the year to June 30, 2000, an improvement on the previous year's $2.135million net loss. `The directors believe that the group's re-capitalisation combined with a renewed focus on the company's core businesses, with a proven history of profitable performance, will enable the company to return to profitability in the financial year ending 30 June 2001,' Austin Group said. Austin Group has exited its home textiles operation Austin Home Textiles and its Billiecare Party Plan business, in a bid to concentrate on its core ladieswear, menswear and childrenswear businesses. Chief executive Paul Chrimes said the core businesses had always been profitable but Austin Group's move outside its area of expertise into textiles, branding, Beverly Hills Polo Club and Billiecart had failed. Austin Group shares were untraded yesterday and last closed at 13.5? on Friday.

QCT statement issued

BHP Co Ltd and Japan's Mitsubishi Development believe current marketing arrangements represent the most effective and cost efficient arrangement available to takeover target QCT Resources Ltd. The companies' dispatched their bidder's statement to QCT shareholders yesterday after launching a $1.20 a share bid for the company late last month. The $830million bid was launched through a 50/50 partnership between BHP and Mitsubishi called MetCoal. The three companies are partners at the Central Queensland Coal Associates (CQCA) and Gregory joint venture coal mines in Queensland. BHP shares finished 64? higher at $20.74 while QCT was steady at $1.28 yesterday. Wembley rebuild

AUSTRALIAN firm Multiplex ? which built Stadium Australia ? has been chosen to rebuild London's famous Wembley Stadium. Only two weeks after the breakdown of talks between Wembley and a consortium involving Multiplex and another construction industry firm Bovis, it was reported yesterday Multiplex had been chosen to continue alone. The new stadium is expected to be ready in time for the FA Cup final of May, 2004.

Insurance merger

CONSOLIDATION of the general insurance sector continued yesterday with the formation of a joint venture between The Royal Automobile Club of Western Australia and Royal & SunAlliance. Under the terms of an agreement, RAC and SunAlliance will form a joint venture company, RAC Insurance, to manufacture and sell general insurance products in WA. The joint venture, which will be WA-based, will not affect other areas of the RAC business such as its motoring services, finance and travel. The joint venture should take three months.