Papyrus to take full control of Egyptian business

ASX-listed Papyrus Australia will acquire the remainder of Papyrus Egypt it does not already own via a share sale and purchase agreement.

Papyrus Australia chairman Edward Byrt described the deal as a “very significant milestone for the company”.

The Adelaide-based company, which specialises in sustainable packaging solutions using banana fibre, entered into the share sale and purchase agreement with Egypt Banana Fibre Company.

Papyrus and EBFC established Papyrus Egypt to further develop the former’s technology which has led to the production of moulded fibre products and ongoing R&D activities at the business’ factory in Egypt.

Papyrus currently owns 39.22 per cent of EBFC, with the remainder held by other entities.

“This is a very significant milestone for the company in the commercialisation project in Egypt, where we have the significant support of the Egyptian Government intent on establishing a ‘national banana plantation waste retrieval industry’ utilising the Papyrus technology,” chairman Edward Bryt said.

“As the company enters the next phase of its growth in Egypt, this agreement is not only a major step in PPY growth, enabling it to continue with product development as well as generating revenue from product sales, it will create better transparency.”

– David Simmons

Photo: Tony Lewis / InDaily

Adelaide’s visitor economy looks positive

Adelaide’s visitor economy is showing positive signs of growth in 2024, the Adelaide Economic Development Agency (AEDA) has said, with events like the Adelaide International and the Tour Down Under contributing to this trend.

For example, 51,117 people attended the Adelaide International earlier in January, breaking the record for the most attended single week event since 2020, according to the South Australian Tourism Commission.

Likewise, 65,000 rooms were booked during the Tour Down Under, with an occupancy rate of 61 per cent compared to 45 per cent in 2023.

The AEDA said that upcoming events such as the Fringe, WOMAD, the AFL Gather Round, the Adelaide Festival and Adelaide Writers’ Week, will only increase this trend.

According to the AEDA, Adelaide experienced the highest level of international visitation in January 2023 since 2022, with a $142.9 million interstate spend, amounting to a 36 per cent increase compared to the previous year.

The 2023 Fringe season saw a 20 per cent higher visitor expenditure rate than the year prior, with single day events such as the Paul McCartney concert seeing an uptick in hotel occupancy and midweek expenditure.

Data also indicates that despite fewer events in the middle of the year, July 2023 recorded the strongest spending figures since December 2021, with city-goers spending $365 million.

The end of the year also broke records, with InDaily reporting that CBD shoppers spent $1.2 million more on Boxing Day 2023, an increase of 22.5 per cent from 2022.

– Charlie Gilchrist

Median house prices topple records again in SA

The South Australian property market has achieved record median prices of $665,000 and $740,000 across the state and metropolitan Adelaide respectively.

Sales volumes also increased by more than 14 per cent in the latest quarter.

The Real Estate Institute of South Australia said the toppled records signify that buyers were investing in the real estate market and were optimistic about the times ahead.

“The median price really does show that the South Australian real estate market is robust and strong and reflecting ever increasing optimism from both sellers and buyers,” REISA CEO Andrea Heading said.

Suburbs that saw the largest growth over the last 12 months were Munno Para, Mile End and Davoren Park, with sales volumes increasing by 42.36 per cent, 41.72 per cent, and 35.82 per cent respectively.

Top selling suburbs in terms of recorded sales over the December quarter were Mount Barker, Morphett Vale and Blakeview.

“Suburbs which continue to demonstrate strong sales really highlight the key drivers of our real estate market which are location, affordability and potential,” Heading said.

“Those suburbs which provide attractive investments in infrastructure, development potential and amenities will always perform strongly for first home buyers and investors.

“South Australia’s real estate market continues to do extraordinarily well despite the low supply of housing stock. We will not let these results, remarkable as they are, deter us from continuing to advocate for policies and strategies that address the issues of housing supply and property taxation and ensure that home ownership is a realistic dream for all South Australians.”

– David Simmons

Gupta’s LIBERTY awarded $63m in funding

The operator of the Whyalla Steelworks has been awarded $63.2 million towards the purchase of a low-carbon electric arc furnace to replace the existing infrastructure.

The funding for Sanjeev Gupta’s LIBERTY is part of $200 million in federal government funding to help “secure the future of Australian steelmaking”.

BlueScope Steel was also awarded $136.8 million to upgrade its Port Kembla steelworks blast furnace.

Sanjeev Gupta, who founded LIBERTY and operates the Whyalla Steelworks via GFG Alliance, turned off the old coking ovens after 55 years of operation in September 2023.

– David Simmons

Photo: AAP/Dan Himbrechts

Advice for employees who don’t want to celebrate Australia Day

As debate continues to grow over changing the date of Australia Day, Business SA has released advice for employees wishing to substitute the public holiday for another day.

According to the Business SA Chamber of Commerce and Industry, individual employees can reach an agreement with their employer to substitute the Australia Day holiday for a different date so long as it respects the public holiday entitlements under the National Employment Standards.

This is the case for employees whether they are covered by an award, an enterprise agreement or another agreement.

Business SA stresses that substituting the public holiday is not an employee entitlement and that employers can reasonably refuse a request if it interferes with their operations.

It also states that this new date will attract applicable penalties that will not be applied to the original date of the public holiday.

– Charlie Gilchrist

New program to help improve veterans’ employment prospects

The state government has announced the launch of a new program that aims to help employers attract and retain veterans and their partners.

The South Australian Veteran Employer Network comprises local employers across the private and public sectors.

Some 15 organisations have currently signed up for the initiative which will consist of bi-monthly networking events, mentoring and guidance for employers seeking to hire and retain veterans, workplace support and cultural awareness training.

The state government has also pledged $2.1 million in budget to improve outcomes for veterans and their families.

“We want more businesses to be aware of the great opportunities that come with employing veterans and the diverse skill sets they can bring,” said Minister for Veteran Affairs Geoff Brock.

“By building a network of like-minded employers, we are fostering a supportive environment that leads to better job outcomes and helps veterans find work.

“Defence partners also share unique qualities and experiences that are highly sought after in the workplace, making them another valuable addition to South Australia’s economy.”

According to the government, each year more than 6,000 veterans transition from the Australian Defence Forces.

– Charlie Gilchrist

ATO launches free online learning support for small businesses

The ‘Essentials to strengthen your small business’ website includes more than 20 short courses and a calendar of key lodgment due dates to support small businesses.

Deputy Commissioner Will Day said the new platform is designed for small business owners who want to enhance their knowledge of tax and super.

“The new platform supports a variety of learning styles with videos, case studies, audio content and written information, as well as the option to test your knowledge with quick quizzes – making it easier for all small businesses to learn about important components of running a business,” he said.

“It also includes tips on areas where we see small business owners make mistakes, like goods and services tax (GST) and business deductions.”

The website was co-created with small businesses and educational experts to deliver learning pathways that can be customised, depending on each stage of a business’s lifecycle, structure and industry.

Australian Small Business and Family Enterprise Ombudsman Bruce Billson said the courses will help entrepreneurs develop their businesses.

“The spark that inspires an entrepreneurial person into creating and growing a business is rarely the behind-the-scenes business of running the business. Yet this is where success and better decision-making can be formed,” he said.

“That’s why these resources are so important and helpful.”

– Jim Plouffe

The University of Adelaide’s ThincLab secures a large grant

The University of Adelaide’s startup incubator ThincLab has secured a $150,000 grant from the Adelaide Economic Development Agency, allowing it to run its annual startup program ThincSeed twice this year.

The university said that the 13-week program provides expert mentoring to students and allows aspiring entrepreneurs to connect with like-minded individuals.

It also said that the initiative teaches skills such as strategy, marketing and planning.

According to the university, students will also have the chance to practice and pitch to Angel Investors, which refers to a wealthy individual who invests in start-ups

Mary Kelly, who took part in the program in 2023, said that it taught her skills such as considering the lens of an investor when raising capital.

“Our mentor was incredible because he learned every aspect of our business and could provide detailed support, preparing us for how investors may think, how we needed to present ourselves, what we needed to include, from documents and pitch decks, through to the language we should use and how to anticipate the questions they may ask,” she said.

– Charlie Gilchrist

Photo: Mighty Kingdom

Mighty Kingdom stems losses

Embattled video game developer Mighty Kingdom said its operating cash outflow for the December quarter was $133,000 – a major improvement from its previous quarterly outflow of $1.075 million.

The company also reported a 58 per cent year-on-year increase in revenue generated from games, with quarterly game revenue coming in at $1.6 million in the period.

Mighty Kingdom, which saw its leadership come under siege by the company’s largest shareholder through 2023 and into January this year, attributed the financial improvements to the “sustainability plan being executed by the company”.

“Mighty Kingdom’s path towards their stated aspirations of a sustainable business model continues to evolve,” the company said.

“Notwithstanding previously disclosed capital limitations, the business has moved organically in further cutting costs and building revenue via contract extensions.”

– David Simmons

Feedback sought for advertising environmental claims code

The Australia Association of National Advertisers (AANA) has made public a draft for a new advertising code for companies claiming environmental benefits in an effort to limit greenwashing.

AANA CEO Josh Faulks said the aim of releasing the Exposure Draft was “to give the public, government, and industry a further opportunity to help shape the standards around environmental claims”.

“Due to increasing concerns about environmental matters such as climate change, consumers rely on businesses’ claims and credentials for purchasing decisions,” he said.

“Therefore, the advertising sector bears a critical responsibility in putting an end to greenwashing practices and leading the transition toward a sustainable future.”

Interested parties have until Friday, 22 March 2024, at 5 p.m., to submit their comments.

The community can also voice concerns through Ad Standards, an independent complaints system that adjudicates such complaints and is unaffiliated with the advertising industry.

– Estee Loke

SA defence industry gets funding boost

Six projects have received a total of nearly $900,000 in funding for the seventh round of the Defence Innovation Partnership’s Collaborative Research Fund (CRF).

The Defence Innovation Partnership is a collaboration between Defence SA, DSTG and South Australia’s three public universities:, the University of Adelaide, Flinders University and the University of South Australia, supporting defence-relevant research, development and innovation.

“The applications received were of an incredibly high quality, and from across a variety of themes, which is demonstrative of the depth of research and industry expertise in South Australia,” said Reg Carruthers, Defence SA’s Acting Chief Executive.

Each project was awarded up to $150,000 and include:

Sovereign manufacturing reliable defence structures by 3D metal printing and structural health monitoring – led by the University of Adelaide with partners Flinders University, DSTG and AML3D.

Mathematical modelling of a complex and contested conflict environment: influence of logistics and resource transfer – led by Flinders University with partners University of South Australia and DSTG.

Warm Starts and Goal-based Heuristics to Improve MARL Performance in Advanced Distributed Defence – led by the University of Adelaide with partners University of South Australia, DSTG and DEWC Services.

Evaluation of State Uncertainty for Resident Space Objects – led by Flinders University with partners the University of Adelaide, DSTG and Lockheed Martin Australia.

Cyber Terrain Mapping and Analysis of Operational Technology Networks – led by Insight Via Artificial Intelligence with partners the University of Adelaide, University of South Australia and DSTG.

First-in-class pharmaceutical radiation protectant and mitigant – led by the University of Adelaide with partners Flinders University, University of South Australia, DSTG and Plantworx Organics Pty Ltd.

– Sharni McPhail

Centrex digs up $8m raise

Miner Centrex on Friday announced it raised $8 million from existing shareholders to proceed with the next stage of its phosphate mining project south of Mt Isa in North West Queensland.

It has also launched a share purchase plan (SPP) to eligible shareholders to raise a further $2 million at $0.057 per share – the same terms as the $8 million component.

Centrex CEO and managing director Robert Mencel said he was “delighted with the support for the placement”.

“Achieving the final investment decision for stage 1.5 expansion at Ardmore represents a watershed moment for Centrex,” he said.

“With this funding now secured, our team is dedicated to delivering the expansion on schedule and within budget.”

Mencel said the company would go down the capital raising route rather than taking on more debt, because “relying too heavily on debt at this juncture would result in unduly burdensome conditions being imposed on the company”.

“To ensure certainty of reaching our production targets for CY20204, we firmly believe that executing the placement and SPP offer is the best path forward,” he said.

“Further, strengthening our balance sheet now will allow us to secure future financing facilities with less stringent cash requirements, at lower risk to the company and at reduced cost as well.”

– David Simmons