News
16th August 2010 - Media Release
Sigma sells drugs division to Aspen for $900 million, Shares slip: Economy Roundup
African Aspen Pharmacare for $900 million, with the company's shares jumping 8% to 54c this morning.
Aspen has offered 55c per share for the company, which has struggled over the past year due to a large write down and pressure to sell its assets. The company says it will hold on to the wholesale and retail arms of the business.
"The anticipated proceeds from the transaction exceed Sigma's net debt, including securitised debt," Sigma said in a statement.
There are a number of conditions, including a two-year non-compete clause between Sigma and the new business, but chairman Brian Jamieson said this was the best outcome.
"The board has concluded that Aspen's proposal to acquire the pharmaceuticals division is the best alternative for Sigma shareholders," Jamieson said.
"Sigma will emerge after the sale in a financially powerful position for future growth and business improvement under the company's new management team led by Mark Hooper."
The group's long-time chief executive Elmo de Alwis is about to step down, while its chairman and chief financial officer also quit.
Meanwhile, Leighton Holdings has recorded a 39% increase in full-year profit and says it remains positive about the 2011 financial year.
The firm posted net profit of $612 million for the year ending June 30, up from $440 million during the 2009 financial year. Revenue rose by 2% to $18.6 billion.
"We remain positive for the 2011 financial year and expect to report an increased revenue and operating profit," Leighton chief executive Wal King said in a statement.
Newcrest Mining recorded a massive 124% increase in full-year statutory net profit of $556.9 million, with EBITDA also up 38% to $1.43 billion, the company said this morning.
Underlying profit increased to $763.7 million from 483.1 million during 2009, with sales revenue up by 11% due to higher gold sales volumes and prices.
"A strong second half performance helped deliver a record profit and operating cashflow for the year ended June 30, 2010, driven by increased gold sales, higher realised metal prices and lower cost of sales," Newcrest said in a statement.
Sharemarket falls after weak US performance
The Australian sharemarket has opened lower this morning following negative sentiment in the United States and Europe late last week.
The benchmark S&P/ASX200 index was down 0.87% or 38.8 points to 4420.7 at 11.55 AEST, while the Australian dollar has fallen to a three week low of US88c.
AMP shares lost 0.8% to $5.29, while Commonwealth Bank shares fell 3.6% to $49.63. Westpac lost 1.4% to $22.21 as NAB fell 1.8% to $23.44.
Meanwhile, Lend Lease Group has posted a statutory net profit after tax of $345.6 million, following a $653.6 million loss during 2009. Operating profit after tax was $323.6 million, from $307.5 million, with revenue down 28.5% to $10.57 billion.
"Construction markets offshore remain difficult and construction volumes in Australia are likely to decline as government stimulus spending softens," Lend Lease chief executive and managing director Steve McCann said in a statement.
"However, it is very clear that the group is well placed for growth and we expect our strong project pipeline to deliver over the medium-term."
Bluescope Steel has recorded a net profit of $126 million for the year ending June 30, but says it expects soft demand during the first quarter of the 2011 financial year.
"Overall, we are planning for a significantly improved market conditions over the medium- to long-term, despite the short-term concerns," Bluescope chief executive Paul O'Malley said in a statement.
"We are seeing a modest real-time increase in export steel prices in our region for Q2 delivery."
Woodside makes new gas discovery in WA
Woodside Petroleum has said it has made a gas discovery in Western Australia, increasing hopes it will make an investment decision to expand its Pluto project.
"Initial analysis of drilling fluids suggests the gas could be comparatively liquids rich, but this requires confirmation by further analysis," Woodside said, although it confirmed extra testing and analysis will be needed.
Virgin Blue has announced the first stage of the airline's network revenue, including moves to pull out of the NZ domestic market and increase its long-haul flights to the US, South Africa and Thailand.
"We are adding capacity to routes with strong revenue potential and accordingly, removing capacity from services which are underperforming," chief executive John Borghetti said in a statement.
"These changes will maximise yields, increase aircraft utilisation and also provide a more attractive schedule for the business market, including better integration of our international and domestic schedules."
But investors overseas have been disappointed with new Japanese economic data, showing the country's growth slowed during the second quarter with GDP at 0.1%. Economists say the Government will move to strengthen the Yen.
"I think the Bank of Japan and the government need to take decisive action against currency moves. Solo currency intervention is possible if the yen approaches ¥80 to the US dollar," chief economist at Norinchukin Research Institute, Takeshi Minam, told Reuters.
"If that is accompanied by monetary easing by the Bank of Japan, it may have a certain effect."
April 7th 2010 - Media Release
Will Malcolm Turnbull become Australia’s most prominent angel investor?
Malcolm Turnbull's decision to quit politics after the next federal election and return to the business world should be music to the ears of Australia's small and medium tech companies – one of the countries more prominent angel investors is back in town.
While Turnbull is expected to be approached about his remaining involvement in politics at some level (including at a state level) he flagged yesterday that he is keen to get back into early-stage investing with his wife Lucy Turnbull.
"Lucy and I are looking forward to pursuing new opportunities in the business world," he told Sky News shortly after announcing his decision to quit.
"In the past we've had enormous fun and satisfaction by investing in and supporting and promoting new businesses and new technologies."
"I am passionate about Australian technology in particular so I am looking forward to getting back to the business of creating jobs and creating businesses."
"That is a very important role in any view."
A spokesperson for Turnbull declined to comment further this morning, but said early-stage investing has always been one of Turnbull's passions.
Turnbull will certainly have some cash to splash around. Last year's BRW Rich 200 put his wealth at $178 million and while Turnbull described the figure as being "plucked out of the air" there is a consensus that he is worth somewhere between $150 million and $200 million.
The bulk of his fortune is held in managed funds, a prime property portfolio and personal assets.
Turnbull also has a good track record as an investor in early stage companies.
In 1999 he made just under $60 million from the sale of pioneering internet service provider OzEmail, two years after selling his boutique investment bank Turnbull and Partners to Goldman Sachs.
He also did well out of the sale of investments in hosting company WebCentral (which was purchased by Melbourne IT in 2006) and fund manager Pengana Holdings (which was sold to National Australian Bank in 2008).
Exactly where Turnbull intends to direct his cash isn't clear, but he should find plenty of opportunities. Many small and medium tech companies are hunting for cash to fund expansion and with the banks still hesitant to lend, Turnbull should get good value for any investment he makes.
With the election slated for later this year, tech companies have a few months to dust off their investor presentations, get their pitches ready and prepare to welcome the former Opposition leader back to the world of small business.
5th June 2009 - Media Release
$83M FUND TO SUPPORT INNOVATION OPENS
The Rudd Government’s $83 million Innovation Investment Follow-On Fund opened for applications today.
Announcing the opening, Senator Kim Carr, Minister for Innovation, Industry, Science and Research, encouraged eligible fund managers to apply for funding.
“The fund is a temporary, targeted response to address a lack of capital available to the most promising young innovative companies during the global recession,” Senator Carr said.
“It will enable these companies to continue to develop and to commercialise their products and services during this difficult period.
“The commercialisation of innovation is vital to Australia's prosperity and will continue to be strongly supported by this Government.”
Funding is available to fund managers currently licensed by the Government though Rounds 1 and 2 of the Innovation Investment Fund, the Renewable Energy Equity Fund and the Pre Seed Fund as well as successful applicants under the ICT Incubators program. Fund managers may invest in early stage companies that have already received investment capital under these programs.
The Rudd Government’s commitment to encouraging innovation and supporting all firms bring their new ideas to market was reaffirmed in the 2009-10 Budget.
Two new measures will assist firms commercialise their research through the establishment of a $196.1 million Commonwealth Commercialisation Institute and the introduction of an R&D Tax Credit.
These initiatives are aimed at ensuring the best ideas developed by Australian universities, publicly funded research agencies and new enterprises are grown in Australia and become successful commercial realities.
For further information on these important initiatives visit AusIndustry’s website, call the hotline 13 28 46 or email hotline@ausindustry.gov.au
June 1st 2009 - Media Release
Seeking Australia’s top life science students
Student life-scientists and bio-entrepreneurs are invited to apply for the annual awards and present their research, vying for the AusBiotech-GSK Student Excellence Award 2009.
The award program aims to recognise and encourage promising researchers who are working on innovations to extend and enhance our lives, including medicines, diagnostics and medical devices, as well as solutions to address food shortages and climate change.
Previous winner for NSW, Mr Leo McHugh from the University of Sydney, was honoured for developing a new software package to assist in proteomics research, the study of proteins and their functions. The proteins present (or absent) in disease samples compared to the protein profiles of normal tissue can assist scientists to elucidate the biochemical processes underlying disease. Leo’s software, named PINNACLE, uses a powerful artificial intelligence approach and his results showed more protein identifications when compared against a number of leading packages.
“The student awards program, made possible through GlaxoSmithKline’s (GSK) support, is a key driving factor in the development of our future bio-industry leaders,” said AusBiotech CEO, Dr Anna Lavelle. “Student research is a critical factor in the life cycle that takes discoveries through the commercialisation process to reach and benefit the community.”
"GSK is proud to support the student awards. While it's always valuable to celebrate achievement in science, it is also so important to encourage an understanding of the business aspects of the bioscience field for those entering it. This leads to better research outcomes and a stronger people ‘pipeline’ for academia and industry in Australia," said Dr Ashley Bates, Head of R&D Alliances Australia/NZ, GSK.
The Awards, which open on today (1 June 2009), recognise one winner in each state. Winners from around the country will gather to share their research at the annual international conference AusBiotech 2009, this year to be held in Melbourne. More information is available at www.ausbiotech.org/studentexcellenceawards or by contacting Olgatina Bushi obushi@ausbiotech.org or
08 8217 6499
May 12 2009- Media Release
MAKING IDEAS REALITY: COMMONWEALTH COMMERCIALISATION INSTITUTE
The Government will establish a $196.1 million Commonwealth Commercialisation Institute to develop a radical new approach to commercialising the best Australian research.
The Institute will aim to see that the best ideas developed by our universities and publicly funded research organisations become successful commercial realities.
This initiative is about making the most of home-grown innovations and getting the best value for taxpayers’ investment by supporting new innovation activity.
It will keep high-wage, high-skill jobs in Australia with long term economic and social benefits for the nation.
As well as supporting commercialisation of promising research, the Institute will support innovative firms with the potential for rapid growth, helping to take their research and ideas to the marketplace.
Bringing an innovative product or service to market is always challenging. The global recession has made things even tougher, stalling the development of potentially lucrative Australian inventions.
The Australian Government is establishing the Commonwealth Commercialisation Institute now to ensure our innovative young companies are still here when the global recession is over.
12th May 2009-Media Release
R&D TAX CREDIT TO BOOST BUSINESS INVESTMENT
The Rudd Government will simplify and enhance the Research and Development (R&D) Tax Concession so that it provides better incentives and more support for Australian jobs in the face of the global recession.
The new R&D Tax Credit is the biggest reform to business innovation support for more than a decade. It will boost investment, support jobs and strengthen Australian companies so they can take full advantage of new opportunities as the economy recovers.
From 2010-11, the Government will replace the complex and outdated R&D Tax Concession with a simplified R&D Tax Credit which cuts red tape and provides a better incentive for business to invest in research and innovation.
Importantly, the new R&D Tax Credit will better reflect the financial realities facing many businesses during the global recession. It will help ensure that Australian businesses are well placed to take full advantage of generous incentives to innovate during the global recovery.
The new Tax Credit provides a 45 per cent refundable credit for firms with an annual turnover of less than $20 million – equivalent to a Tax Concession of 150 per cent. This means that firms will receive a tax refund of 45 per cent of their R&D spending when they file their tax return.
This measure effectively doubles the standard level of support for innovative small and medium sized companies. The measure reverses the previous government’s retrograde decision to halve the R&D Tax Concession when it came to office.
Importantly, the refundable credit will be available to small companies in tax loss, with no limit on the level of R&D expenditure they undertake. This will provide a real boost to start-up companies in areas such as biotechnology and ICT.
Around 5,500 small firms stand to benefit under these new arrangements.
Businesses with a turnover of more than $20 million will also benefit from the new scheme, with access to a 40 per cent non-refundable credit – equivalent to a tax concession of 133 per cent.
Companies undertaking R&D in Australia where the intellectual property is held offshore will also be able to access the 40 per cent non-refundable credit.
As a transitional measure for 2009-10, the R&D expenditure cap for the existing R&D Tax Offset will be lifted from $1 million to $2 million. The cap is the maximum amount a firm can spend on R&D to be eligible for the Tax Offset.
This change addresses the perverse incentive for firms to limit their R&D spending under the current threshold, and will provide a further boost to small companies in research intensive industries of the future.
Under the new Tax Credit system, eligibility criteria will be tightened to make sure that our investment is getting the best results – supporting only genuine R&D. This will provide offsetting savings to fund improvements to the system.
The Government will consult further on the eligibiltiy criteria in developing legislation for the new Tax Credit. A consultation paper will be released in the next few months.
The complex Premium Concession and International Premium will be abolished. Industry feedback indicates that the unpredictability of the Premium means it provides little or no incentive for companies to invest in new projects, or for multinationals to bring their R&D to Australia.
The new R&D Tax Credit will provide certainty for business and its operation will align with international best practice. Under this simpler system businesses will be able to invest in R&D with confidence.
The reform of the R&D Tax Concession will complement the Government's new $196.1 million to establish a Commonwealth Commercialisation Institute and reaffirms its commitment to supporting innovation in Australia.