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Jun 11 , 2018 / By :

SHARES in global vaccine maker CSL reached a record high on Tuesday after the company upgraded its profit forecast to 20 per cent, helped by a rise in Gardasil royalties.
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The Melbourne-based company, which makes the cervical cancer vaccine as well as other life-saving blood treatments, had originally anticipated profit to grow by just 12 per cent.

Its shares jumped almost $3 on the news, to a record $50.17.

The company reported a net profit of $US1 billion last financial year. Its new outlook has been adjusted to remove the impact of exchange rate movements, after it started reporting in US dollars this year.

Chief executive Brian McNamee said the increased outlook was underpinned by the performance of CSL Behring, its large-scale plasma branch. ”A number of factors have contributed including a higher level of sales, a better sales mix and improved efficiencies across the supply chain,” he said.

”Also contributing to the better outlook is higher than anticipated royalty income from sales of Gardasil.”

In 2007, the Australian government introduced Gardasil as part of a mass vaccination program against the human papilloma virus, which was offered to women and girls aged up to 26.

CSL also manufactures vaccines for influenza, tetanus, measles, mumps and hepatitis A and B.

Macquarie Group analyst Craig Collie said the positive outlook suggested the company was benefiting from its current position in the healthcare market.

”It’s clearly a strong upgrade and confirms just how positive market conditions are right now and how strong their competitive position is right now.”

Last month, CSL announced it would buy back another $900 million worth of shares, or 4 per cent of issued capital, over the next 12 months.

UBS analyst Andrew Goodsall said the higher-than-expected outlook showed CSL was benefiting from its competitor, Baxter, undergoing a plant refurbishment that had cut its production by about 20 per cent.

”There has been robust demand as well,” he said. ”We think there is still growth in healthcare, but there are obviously things going on that are peculiar to this [plasma] industry.”

Dr McNamee, who is credited for building the company up from a local government enterprise to a global business, will end his 23-year tenure as chief executive in the middle of the year. In 2000, he led the takeover of Swiss counterpart ZLB Bioplasma when he was fighting testicular cancer. Four years later the company acquired a second big target, US-based Aventis Behring.

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Jun 11 , 2018 / By :

‘SHOVE them up your arse.” That’s how outgoing Cabcharge director Sharon Doyle responded to efforts to get the taxi payments system operator to participate in a survey of corporate carbon emissions.
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She also told the chief executive of the Investor Group on Climate Change, Nathan Fabian, that he was ”completely brain dead”, a halfwit and an idiot.

After less than a year at the boardroom table, Doyle is retiring as a director of Cabcharge at its annual meeting on Wednesday.

But the stoush took place in 2010, when she was Cabcharge’s company secretary. Back then, the IGCC, which provides research on the effects of climate change to institutional members including CBUS, Perpetual and UBS, was questioning companies on behalf of the Carbon Disclosure Project, a survey of the carbon emissions of about 3000 companies around the world. (The CDP has since taken over the Australian survey.)

On June 5, 2010, the CDP team at the IGCC sent an email to Cabcharge reminding the company that it hadn’t responded to the survey, sent out in February.

The team pointed out it was acting on behalf of many large instos, ”likely to own a significant proportion of your company and have asked for the information request to be completed”.

While the deadline for responses had passed, Cabcharge was offered an extension to June 30. By return email Doyle asked for details of the investors represented by the IGCC.

”It seems very strange that they would request the information form [sic] you when in fact we have a very open line of communication here with investors,” she wrote.

Fabian responded on June 9, referring Doyle to the list of members on the IGCC website.

”We are not in the habit of providing contact details, but we will certainly relay your written communication and advise these investors of your decision regarding participation,” he said.

Mild words, perhaps, but Doyle was unimpressed.

”For the record I would appreciate a copy of the email to which you claim I sent but I suspect there isn’t one and this just part of your tactics to try and make me regret not filling in your self-serving and no doubt time-consuming survey so the company you work for can gain some credibility and somehow make money,” she said in a June 10 email.

She said Cabcharge’s ”dedication to the environment is second to none. Of particular annoyance to me however is the attitude of organisations like the one you are employed by that try and wring as much money out of the topic as possible by providing information to investors about how each company deals with it.

”I would almost place a bet on the fact that the organisation that you work for couldn’t give a collective rats clacker about the effect of the environment, although I suspect that your company should be replanting a forest in South America on a daily basis to make up for the global warming from the hot air you all produce over there.

”I do not appreciate your tactics Nathan and would ask that you cease and desist from any further attempts to bully Cabcharge into providing you information so that you can on sell it.”

Email ire

FABIAN responded on June 28 with a note pointing out the email Doyle doubted was to be found at the bottom of the email chain in which she was participating. Cabcharge would be recorded as having declined to participate in the survey, he said.

It was this missive that provoked the allegations of brain death, half-wittedness and idiocy.

”I have absolutely no problem with you including my correspondence in whatever publication that surprisingly somehow allows you to be gainfully employed,” Doyle wrote back that day. ”In fact Nathan, subject to you being comfortable with everyone realising that you are in fact as I suspected completely brain dead I would be more than delighted for you [to] share that fact with the world.

”I do not usually provide gratuitous legal advice to idiots incapable of independent thought but if you do publish the emails Nathan it is you who has published them so when the jokes about you start circulating please do not think that I will in any way be liable for the outcome to your reputation (if you have one).”

She told Fabian that ”attempted blackmail isn’t really the best way to go about luring potential clients but I must say Nathan that I would not have expected anything less from you. Now take your publication and your threats Nathan and shove them up your arse.”

Fabian confirmed the email chain was genuine but declined to comment on its content.

”IGCC never charged anyone to participate in the CDP,” he told CBD. He said the organisation did not charge for its reports, which are available on its website. Doyle has yet to return CBD’s call.

Groundhog day

NO SIGNS of board evolution at Genesis, where angry shareholders led by interim Ivanhoe CEO Ines Scotland sacked all but two directors at the gold explorer’s annual meeting on Monday. Instead, one big shareholder proposes a judgment day at which the sacked board would rise from the earth to be remade flesh and blood.

In a notice lodged on Monday, Lim Kim Heng told the ASX that the 18.1 per cent of Genesis shares held by his company, S Active Holding, was not voted at the meeting ”due to a technical error in completing the proxy form”.

Lim said he was aware that seven of eight resolutions put to the meeting had failed but believed they would have passed ”if S Active had been permitted to exercise its substantial voting power”. He called for an extraordinary general meeting to reappoint the four directors sacked on Monday and increase the director remuneration pool to $300,000.

Genesis told the exchange that it will hold a meeting within 21 days, and use the ”opportune moment” to resubmit a motion that was the subject of some confusion on Monday.

The motion, to ratify the issue of 11.8 million shares at 12¢ each, was on the notice paper as a special resolution, requiring a 75 per cent majority, but barely scraped home at the meeting when it was voted on as an ordinary resolution, requiring 50 per cent. And the name of the company to whom the shares were issued? S Active Holding.

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Jun 11 , 2018 / By :

Clydesdale Bank has been a problem for NAB.IN THE mid-1980s, three big Australian banks – ANZ, Westpac and National Australia Bank – embarked on a dramatic overseas expansion.
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We had just won the America’s Cup and we weren’t going to sit around and allow new foreign entrants into our home market without first marching into theirs.

The banks argued that the Australian market was of a finite size and deregulation had stripped away protection from global players wanting to enter the Australian market.

No other bank embarked on a more enthusiastic period of deregulation than Westpac, with its desire to become Australia’s world bank.

Westpac, then the country’s biggest bank, showed a willingness to expand beyond traditional banking overseas. It bought a sizeable bullion trading business in Britain in 1986, beating 40 international rivals, and in 1987 bought US bond dealer William E. Pollock Government Securities.

”The only way for real growth is to go outside Australia,” said Bob White, Westpac’s managing director at the time.

Between 1984 and 1986, Westpac’s assets more than doubled. White referred to it as ”judicious but vigorous lending”.

ANZ also had international ambitions. In 1984, it bought Grindlays, a British bank, but with most of its assets sourced overseas. It had been established in the first half of the 19th century and had operations in 40 countries, including India, the Gulf states and East Africa – exotic banking markets, far from our time zone and where often little English was spoken.

NAB then joined in. In 1987, it bought Clydesdale Bank (Scotland) and Northern Bank (Northern Ireland and Republic of Ireland) from a distressed Midland Bank.

More acquisitions and expansion followed. In 1975, Australian banks had a presence in 16 countries, but by 1987 this had risen to 50. The aggregate value of offshore assets rose from less than $3 billion to nearly $81 billion over the same period. The proportion of these assets of total assets doubled to 31 per cent.

Fast forward 25 years and the landscape is very different. Commonwealth Bank is the biggest bank by market capitalisation, having evaded the overseas drive of its peers because it was not fully privatised until the mid-1990s.

ANZ is back on the Asian expansion path, having sold the last of its Grindlays business in 2000. Westpac is tentatively expanding in Asia, having divested much of its international business in the early 1990s.

National Australia Bank is looking to end the pain from its operations in Britain once and for all. From having the biggest market capitalisation in the 1990s, it now has the smallest of the majors. The lesson for all companies, big and small, and financial and non-financial, might be that measured rather than rapid expansion is best when heading offshore, and closer to home might be preferable to far away, especially when the globe’s fastest-growing region is on our doorstep.

A bank’s board has to ensure it has sufficient management expertise and systems to match its ambitions.

So far, Australian banks have shown little ability to persevere with an overseas strategy through multiple economic cycles, picking up assets when they are cheap in their targeted markets. Right now is definitely not the best time to be expanding via mergers and acquisitions in Asia and each of the big banks knows that.

In hindsight, the best time to have expanded in Asia would have been during the Asian crisis more than a decade ago, but hindsight is easy for companies wanting to grow.

Stewart Oldfield is a research analyst at Investorfirst Securities.

[email protected]南京夜网.au

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Jun 11 , 2018 / By :

Industry insiders are predicting a rental spike.A SQUEEZE in future supply of premium new office space will lead to a rental spike and keep the market afloat over the next two years, industry insiders say.
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Two property heavyweights have dismissed recent gloomy reports about the outlook for Melbourne’s office market, saying economic factors, tightening supply and demand will boost industry prospects.

A Colliers International projection of the amount of premium office space available in new CBD buildings shows supply constricting in 2015, where only one major project with a significant amount of available space is due to be completed.

At the same time, several new buildings have created a surplus of approximately 39,000 square metres of office space this year and next, Colliers’ projections show.

But Savills Australia head of research Tony Crabb said recent reports that ”virtually junked the CBD market’s prospects” over concerns about the volume of available space reflected a poor understanding of the demand that drives Melbourne’s office market.

Leasing inquiries tracked by Savills for 2012 were similar to previous years with nearly 450 inquiries recorded in the year to date, Mr Crabb said.

On average, 480 inquiries were recorded each year over the past 10 years.

As well, there were 250 active office requirements in the market seeking the equivalent of 390,000 square metres of office space, Savills research shows.

”In 2012, businesses remain cautious and this has been reflected in the amount of time it has taken for decisions to be made. Nevertheless, inquiry has remained as strong as it has ever been,” Mr Crabb said.

”Add to this the fact that Melbourne’s full-floor vacancy rate has been trending downward for four consecutive months and you have rather a different picture than that which has been painted in recent market commentary,” he said.

The flush of new space has seen incentives offered by landlords to prospective tenants rise to between 20 and 25 per cent net for premium space, according to industry insiders.

Incentives offered this year were up at least 5 per cent on those given in 2011.

The economic climate is prompting businesses to be ”cautious and prudent”, Colliers’ national office leasing director Andrew Tracey said. Some, though, were recognising the value of negotiating new leases and locking in a lower fixed cost base for the next 10 years, he said.

”After pricing in of all these factors, it’s now at the stage where there are good propositions for people. They can move up, pay no more and probably get themselves a fitout along the way,” he said.

”Without some unforeseen event, I can’t see it getting into the really negative territory people are talking about,” Mr Tracey said. In 2015, the market was likely to be under-supplied, with most new buildings already having enough prospective tenants in place.

”When confidence comes back in 12 to 18 months and the market is under-supplied, there will be a significant rental spike,” he said.

Melbourne’s tenant diversity shielded the sector from dramatic swings and had helped maintain a low vacancy level that was the envy of other markets, Mr Crabb said.

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Jun 11 , 2018 / By :

The group now runs lotteries in every state and territory except Western Australia.TATTS has won the operating rights for South Australia’s lottery and keno service for the next 40 years at a cost of $427 million, giving it an almost clean sweep of the lotteries business in Australia.
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Tatts said the deal would lift lottery earnings before interest, tax, depreciation and amortisation to more than $300 million in the year to June 2014, up from $224 million last year, and would immediately lift earnings per share.

“It continues our track record of securing higher-margin lottery franchises with longer-term arrangements,” said departing chief executive Dick McIlwain.

The lotteries business will be the company’s biggest earner after the loss of its poker machine duopoly in Victoria in August. Tatts now operates every state and territory lottery apart from Western Australia, which is still run by the state government.

Tatts said the Queensland and New South Wales lotteries would double its EBITDA within four years of taking over these businesses, and expects the acquisition of the South Australian lottery to ”produce broadly similar outcomes”.

”The company’s strategy of consolidating state-owned and Tatts’ lottery operations continues to drive significant operating efficiencies and benefits from a single lottery operating system,” said chairman Harry Boon.

South Australian Treasurer Jack Snelling said the Tatts group had paid substantially more than the government’s $400 million reserve price for the licence to run lottery and keno services from December 10, 2012.

Mr Snelling said while the government would forgo the annual $20 million dividend paid by Lotteries SA, it would still get about $60 million in gambling taxes each year from the sale of lottery products.

Mr McIlwain steps down at the end of the year and will be replaced by Wotif chief Robbie Cooke.

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Jun 11 , 2018 / By :

NUCOAL Resources has won approval from its shareholders to raise fresh equity but uncertainty over the outcome of the New South Wales corruption inquiry hangs over the company’s projects.
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At the annual meeting in Sydney yesterday resolutions were passed allowing NuCoal to issue new shares, up to an additional 25 per cent, although chief executive Glen Lewis said the company was ”well funded through until 2014” after raising $35.3 million earlier this year, and should soon receive an injection of about $7 million from Japanese farm-in partner Mitsui Matsushima.

The NSW Independent Commission Against Corruption is investigating the grant of coal permits by the previous Labor state government, including over the Doyles Creek project, and there are calls they should be revoked, which were rejected on the weekend by Premier Barry O’Farrell.

Mr Lewis said NuCoal had recently lodged a renewal application for the Doyles Creek Exploration Licence (EL) 7270 with the Department of Mining.

Asked by one shareholder whether the corruption inquiry could have an impact on the renewal, Mr Lewis said while the EL was granted on 15 December 2008 and was valid for four years, there was no ”sunset clause”.

”[The EL] remains in force while ever you have a valid renewal application before the government.

”In my experience, of 33 years in the industry, I’ve seen EL renewals normally take 6 months … the worst case would be 18 months. So it’s business as usual, you just continue to follow the conditions of the EL, while the government go through the renewal process.”

One analyst, speaking off the record, said there was no suggestion NuCoal’s board or shareholders had done anything wrong, comparing their acquisition of the Doyles Creek tenement to a used car deal.

”They’ve bought a car. Did they buy a stolen car from somebody else? We don’t know that yet.”

NuCoal shares closed down 0.5¢ or 4.3 per cent to 11¢ on Tuesday.

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