ON THE MOVE - AUGUST 30.08.10
O’Neill South Pacific has moved to a new bigger site in Brookvale, NSW. According to GM Michael Heath, the company has outgrown its old space and O’Neill is investing in additional resources (both people and warehousing facilities) as part of a 5-year growth plan. The Sydney office will now be the regional office for O’Neill in the Asia Pacific, housing both its domestic (Australian) team and also an International team whose role will be to build the O’Neill brand further within the APAC region. The new facility will provide additional showroom space designed to showcase O’Neill’s expanded apparel, accessory, wetsuit and outerwear product ranges, along with new categories like eyewear and audio. The Brookvale location will provide state of the art communication and multi-media facilities. A grand opening is scheduled - according to Heath “We’ll be celebrating the opening of the new site in style with our key customers and the industry soon.”
Billabong Rings the Changes
Billabong has offered some staff redundancies or new positions as the company moves to restructure its business. This follows a string of international and national acquisitions. "We are currently working on the restructuring of some departments, including product design and development," said a Billabong spokesman. "This, in particular, is a response to a reduction in range sizes as retailers increase their buying focus on our more heavily marketed styles. At the same time we are growing other areas of our business, as has been foreshadowed with some recent acquisitions including the purchase of a neighbouring property, and this will result in an overall increase in staffing levels." Earlier this year, Burleigh Heads based Billabong International bought the neighbouring property owned by Cult Industries for $10.6 million. The long-term plan is to join it to its current headquarters, increasing its footprint on the Gold Coast.
Oakley South Pacific appoints Beau Emerton
World Championship Tour veteran Beau Emerton has joined Oakley and will be responsible for surf, skate, MX and wake sports marketing. Beau comes to Oakley after three years’ experience at Red Bull and will be based in Oakley's Queensland office. "I'm really excited to be employed by one of my original sponsors and I'm looking forward to helping guide the careers of Oakley's riders." said Emerton.
Turf N Surf
Sydney based Turf N Surf (distributors of Sanuk, Ando and Brixton) has employed Rebecca Johnston head of marketing (formerly from Woolworths) and Matt Paull as assistant brand manager (formerly from Tracks and Waves).
Unit Announces New Global Sales Manager [photo]
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GLOBE RESULTS FY09-10. CASHED UP, PROFIT UP, REVENUE DOWN 26.08.10
Globe International Limited (GLB) today announced a net profit after tax (NPAT) of $1.3 million for the financial year ended 30 June 2010. This result, while modest, is a significant improvement compared to the loss of $8.9 million reported for the year ended 30 June 2009 (the prior year). But the real highlight today was the news the group has cash of $14.9m and no debt, compared to $11.3m net cash at the end of the prior year.
Total revenues for the year were $91.7 million, 22% below the $117.6 million reported in the prior year. Like other brands operating in this space, Globe’s decline in revenues was predominantly due to the impacts of foreign currency translation. In constant currency terms, net sales were 9% below the prior year, excluding the impact of the discontinuation of the Australian retail business (PSC). This represents a reduction in the rate of decline, compared to the 14% decline in constant currency terms reported as at the end of the prior year.
Despite the reduction in total revenues, the Group generated $5.5 million of earnings before interest, tax, depreciation and amortisation (EBITDA), compared to a loss of $4.5 million in the prior year. This $10 million turn-around in profitability is directly attributable to the restructuring undertaken during 2009 and the refined approach to working capital management and on-going cost control at all levels within the business. On a regional basis, all operating segments reported a significant improvement in profitability compared to the prior year.
The strength of the Group’s financial position continued to improve, with $6.0m cash generated from operations during the financial year. As at the end of the financial year, the Group had cash of $14.9m and no debt, compared to $11.3m net cash at the end of the prior year.
Directors declared a fully-franked final ordinary dividend of 5.0 cents per share. Globe International Limited Chief Executive Officer, Matt Hill, said that the performance was in line with expectations.
“We are pleased with this result and the turn-around in underlying performance that has been delivered, particularly given that this has been achieved in the midst of such challenging global economic conditions.
“This performance reflects the benefits of our restructuring and cost rationalisation, and we now have a sustainable global cost base that generates positive cash flows from earnings at current revenue levels. It is pleasing that as a direct result of this Globe is now in a position to pay a dividend to shareholders,” said Matt Hill.
“The past financial year has provided the stabilised base from which Globe can now focus its resources on developing its brands and revenue growth strategies. However, we expect that conditions in FY11 will continue to be volatile and, as such, revenue growth is difficult to predict.”
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WEST 49 SHAREHOLDERS AGREE ON BILLABONG 26.08.10
Shareholders of West 49 have approved the sale of the company to Billabong International, which faced a brief contest to acquire the Canadian retailer in July by one of its major US retailers in the USA - Zumiez. Shareholders of West 49 voted nearly unanimously for Billabong’s $93 million buyout. The deal is set to close later this month or in early September.
West 49, based near Toronto, runs a chain of 138 mall stores in Canada and is said to be Billabong’s second largest customer in North America including Canada. Billabong vied briefly with Zumiez Inc. to buy West 49. However, Zumiez, dropped its bid for West 49 in July after it failed to reach agreement with the company on a review of its books. The deal stands to more than double Billabong’s North American stores to 230.
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RUSTY INVESTOR HAS CASE THROWN OUT 25.08.10
A Perth barrister behind a $2.7 million lawsuit against the directors of Rusty has had his case dismissed. Philip George Clifford will also have to pay his opponents' legal costs after Federal Court Justice Michael Barker found neither Rod Hart nor Geoffrey Backshall had duped Mr Clifford into buying shares in Vegas Enterprises in late 2006. Mr Clifford - a barrister who worked on the highly publicised Rothwells conspiracy trial in the 1990s - had accused the pair in his 2009 claim of deceiving him about the financial status of the company when they invited him to become a substantial shareholder. Justice Barker handed down his decision this afternoon after hearing Mr Clifford's case in March and April this year. Outside court, Mr Backshall said he was "stoked" to be able to put the case behind the company.The claims had been an unwanted distraction. Mr Clifford did not appear in court for the verdict. His lawyer, Alan Rumsley, said he and his client would examine the 113-page judgment before deciding whether to appeal against the decision.
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$500,000 BOOST FOR SURFING VICTORIA’S NEW HEADQUARTERS! 24.08.10
Surfing Victoria received the
ultimate break today – a $500,000 Brumby Labor Government funding boost to
help secure the peak organisation’s headquarters in Torquay. Sports Minister James Merlino visited Surf City Plaza, the new base for Surfing Victoria’s education and administration, to announce funding for the new project.
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DEREK O’NEILL ON AUSTRALIA AND RUSH ACQUISITION. 23.08.10
Billabong revealed its sobering annual results last week amid a backdrop of tough retail conditions in the Australia market. It posted a net profit of $146 million, down 4.5 per cent and took into account $2.7 million in one-off costs from acquisitions earlier this year. Its combined group sales were $1.48 billion, down 11.2 per cent compared with 2009. Its forecast is conservative, with the company predicting a 2 to 8 per cent growth over the next financial year. Australasia, it says, is its worst performing sector, down 4.2 per cent to $425.7 million, compared with last year's $444.3 million, as consumer spending remains tight. Its wholesale orders have suffered as smaller retail stores continue to feel the affect of the global financial crisis, spiralling business confidence levels and a general tightening of discretionary spending. In Australia alone, its wholesale orders for summer and hi-summer are down 20 per cent and the company is bracing itself for a softer winter order book. Additionally, across this region Japan, South Africa and the New Zealand markets remain slow. But is good news. It purchased the 36-store chain, Rush, and believes its foray into online stores will help see its modest growth. The company also predicts the local market will benefit from the distribution of licensed footwear brands DVS and Lakai, the synergies between the new retail additions and the purchase of California's youth brand RVCA.
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