Today's business news brings a mix of strategic corporate movements, impactful industry revelations, and significant government actions. From major acquisitions to urgent calls for industry overhaul, here are the key stories shaping the Australian business landscape.
Levitt-Safety to Sell NLT Digital Solutions
Focus Shift and Strategic Sale
Canada's Levitt-Safety is selling its mining communications division, NLT Digital Solutions, which provides Wi-Fi networks for underground mines. This decision aims to shift the company's focus and tap into the thriving market for mining tech. Based in Ontario, Levitt-Safety offers life, fire, and environmental safety products. They’ve hired Sydney advisory firm PKF Corporate Finance to manage the sale of NLT Digital Solutions.
NLT's Market Leadership and Financial Performance
NLT Digital is a market leader in robust networking and communications technology for underground mines, improving safety and productivity. The division generated over $25 million in revenue this year, with a 55% annual growth rate since 2020 and an EBITDA margin exceeding 23%. Their client roster includes major players like Anglo American, BHP, and South32. Leading the team is Tim Haight, based in Brisbane.
Financial records show NLT Digital made $9.38 million in revenue and $346,923 in profit last year. NAB has an equipment finance loan with the company, and directors include Haight and Levitt-Safety's Heidi and Bruce Levitt.
Canva Loses Enterprise GM
Disruption Ahead of Wall Street Float
28 May 2024 | San Francisco – Canva has lost its enterprise division head, Javier Soltero, just six months into his tenure, disrupting its corporate sales strategy ahead of a potential Wall Street float. Soltero's departure leaves a significant gap, with the $38.4 billion start-up also still searching for a new CFO after Damien Singh's resignation.
Impact on Strategy and New Hires
Canva’s spokesperson minimised the impact, stating Soltero will continue as an adviser. Despite his departure, Canva remains optimistic about its enterprise push. New hires Amrita Murali, head of business marketing, and Robert Giglio, chief customer officer, are expected to play crucial roles.
Ed Husic Advocates for Australian Industry Overhaul at AI Summit
Call for Embracing New Technologies
Sydney, 28 May 2024 – At The Australian Financial Review AI Summit, Minister for Industry and Science Ed Husic stressed the urgent need to rejuvenate Australia's manufacturing sector by embracing new technologies such as robotics and automation. Highlighting the ageing manufacturing assets, Husic called for increased investment to reverse current trends and create new opportunities for Australian workers.
UQ Underpays Nearly 10,000 Casual Staff
Significant Underpayment Over Seven Years
The University of Queensland (UQ) has underpaid nearly 10,000 casual staff by over $7.5 million over seven years. This issue primarily involved minimum hours of engagement and incorrect pay rates for casual academic staff with relevant PhDs. UQ is taking steps to enhance its payment systems and will start a repayment scheme on June 14.
Sector-Wide Concerns and Actions
The National Tertiary Education Union (NTEU) Queensland Secretary, Michael McNally, highlighted the persistent issue of underpayment in the sector, estimating $180 million owed nationally. The University has informed the Fair Work Ombudsman and relevant authorities of the situation.
Openmarkets Makes Bid for IPS
Strategic Acquisition Amidst Market Challenges
Six months have passed since Integrated Portfolio Solutions (IPS) went up for sale. Openmarkets has now put in a non-binding bid for the 14-year-old investment administration platform, with Praemium and Netwealth also showing interest. Openmarkets specialises in wholesale share clearing and retail trading platforms.
Significance for IPS
IPS offers a robust platform for financial advisers and SMSFs. The sales process is set to reveal the true value of IPS, with high expectations from sellers. Openmarkets aims for a Nasdaq listing despite recent setbacks.
Challenges for Australia’s New Mega University
Recruitment Amid Migration Cuts
Australia's new mega university, a merger of the University of Adelaide and the University of South Australia, faces recruitment challenges due to competing government and opposition plans on migration cuts. Vice-chancellor David Lloyd outlines a business model dependent on 3% annual growth in international student numbers post-launch.
Political and Economic Implications
Federal government plans to reduce net migration could significantly impact new student intakes. Despite challenges, Professor Lloyd remains optimistic about reaching growth targets. South Australian Premier Peter Malinauskus emphasised the importance of international students for the state's economy.
Commonwealth Bank's Commitment to AI
Significant Investment in Generative AI
Commonwealth Bank CEO Matt Comyn has been deeply engaged in generative AI, sharing insights at The Australian Financial Review AI Summit. Comyn highlighted the profound changes AI will bring to the business landscape and the significant investments by tech giants. The CBA is experimenting with various large language models, focusing on customer service and engineering efficiency.
Property Developers Emulate Goodman Group’s Model
Transforming Development Strategies
Goodman Group leads Australian property developers with a successful model integrating development with third-party investors. Stockland, among others, is adopting similar strategies to drive earnings growth. Several new partnerships and projects aim to reduce market volatility and enhance share price stability.
Parliament Supports RBA's Costly Asbestos Remediation
Massive Renovation Costs
Federal parliament has endorsed the RBA's decision to retain and renovate its asbestos-laden headquarters despite soaring costs now estimated at $1.1 billion. The renovation, extending to November 2029, aims to make the building safe while preserving its heritage. The RBA’s ongoing financial challenges will mean no government dividends for at least a decade.
WA Government Drops Expert Over Conflict of Interest
Decision on North West Shelf Gas Project
The WA government has removed Simon McKirdy from a committee reviewing appeals against the North West Shelf gas extension project due to his past employment with Chevron, a partner in the project. Environmental groups welcomed the decision, highlighting the need for independent experts in environmental decision-making.
For continuing updates on these stories and more, stay tuned to Business Australia News.
