Business – Page 39 – Michmutters

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Hiro Brands confident shoppers will keep filling up their baskets

Hiro Brands confident shoppers will keep filling up their baskets

The latest cosmetics and household goods producer to make a tilt at the ASX reckons rising interest rates and inflation fears aren’t going to stop Australians from filling up their trolleys.

Hiro Brands, chaired by former Myer chairman Garry Hounsell, embarked on a $35 million initial public offer raise last week, offering shares at $1.87 each to bring its suite of cosmetics and cleaning products to the ASX.

Company managing director and CEO, Steven Chaur, is confident the consumer goods sector will remain buoyant, despite talk of tough economic conditions.

The price of food, rent, utilities and coffee have all gone up with Australia's inflation expected to peak at an annual rate of 7.75 per cent in the December quarter.

The price of food, rent, utilities and coffee have all gone up with Australia’s inflation expected to peak at an annual rate of 7.75 per cent in the December quarter.Credit:istock

“There is still a lot of consumer demand for everyday groceries. The business we compete in is everyday household goods and personal care products — consumers are still demanding those items,” Hiro Brands MD and CEO, Steven Chaur, told The Sydney Morning Herald and TheAge.

Hiro brings together brands from unlisted consumer goods makers, Aware, which makes household products like Orange Power and Organic Choice and Heat Group, which makes brands including MUD cosmetics. These products generated $95.7 million in revenues in 2021, according to prospectus documents, and ran at a $16.1 million loss.

It is also pitching itself to the market as an opportunity to invest in local manufacturing, with the majority of its brands and ingredients being made in Australia.

But as the business hit the road to talk to prospective investors this month, there were no shortage of warnings about consumers’ ability to spend, with top-line inflation hitting 6.1 per cent.

Meanwhile, ASX-listed beauty brand BWX, which Hiro is pitted against in the market, was warning investors that prevailing retail conditions were exerting pressure on the company and its retail partners.

According to Chaur, Hiro is very different from a company to BWX. For one, the business is not just focused on cosmetics and beauty.

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‘Zombie’ homes are fueling Australia’s rental crisis, experts say

'Zombie' homes are fueling Australia's rental crisis, experts say

Real estate experts say Australia is experiencing a rental crisis that’s set to worsen without government intervention, and so-called “zombie” homes are fueling the problem.

A zombie home is a property that is occupied only part of the time – such as a holiday house listed on Airbnb – that is not available to rent on a short or long term lease but can generate large profits for the owner.

For example, a good property in a regional town, near the beach or one in inner Sydney could fetch $1000 for a weekend but just $800 on a weekly basis under a leasing arrangement, First National Real Estate CEO Ray Ellis said.

“It’s a lot easier to take your investment property out of the full-time rental mix and put it into the short-term rental mix which is basically AirBnB or weekend accommodation,” Mr Ellis told news.com.au.

“If you could get $800 a week by having someone there full-time but you can get $1000 for a Saturday and Sunday, and don’t have to go through all the extra legislation requirements, you’ll do it, because you’re making the same return,” he said.

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Throughout any city there’s “hundreds if not thousands” of zombie homes, especially in coastal areas, that are occupied one or two days a week, Mr Ellis said.

“There’s now too many occurring in most cities in Australia.”

The benefit for owners – apart from the financial element – ​​was not having the long-term commitment of dealing with renters, he added.

Zombie homes are widespread, with last year’s census revealing that during lockdown and while Australia’s borders were closed, there were more than 1 million unoccupied properties.

While it’s a win-win for landlords, renters are suffering with rents souring and long queues of desperate prospective tenants lining up to inspect properties. This has forced some to live in their cars, a motel or caravan – even couch surfing – to keep a roof over their heads.

“Investors are putting their properties out for Airbnb, but it’s taking rental properties away from renters and that lack of … properties available to rent is driving demand and prices up,” Finder money expert Rebecca Pike told 7NEWS.com.au.

PropTrack’s latest rental report for the June quarter found the number of renters per property listed on realestate.com.au had risen 28 per cent year-on-year across capital cities, with Sydney and Melbourne experiencing the greatest increase.

The number of rental listings in Sydney fell 21 per cent in the last year. The largest declines in listings were recorded in Melbourne (-25.7 per cent) and Brisbane (-24 per cent).

Overall, the number of new listings coming on to the market was 13.8 per cent lower than the decade average in June.

The strong demand for rentals and limited supply was leading to significant increases in advertised rent prices, the report found.

Rental prices in Sydney have grown by 6 per cent over the past year, after having fallen throughout the early part of the pandemic.

The median rental price for a house in Sydney is currently $620 a week and $500 for a unit.

Nationally, the median weekly rent for a house is $490 and $440 for units.

With higher land tax charges for investors and larger interest rates, many of these costs are being passed on to renters causing rents to rise even further, the report added.

Ms Pike told 7NEWS.com.au the rental crisis needed urgent action and would get worse over the coming months.

“We’re definitely seeing that demand for rental housing going up because we have so many more people coming into the country, whereas during Covid we really saw that drop,” she said. “There is definitely more demand at the moment, but there’s also less supply.

“Also with the RBA cash rate, if investors are paying more for their loans, they’re potentially passing that on to renters.”

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News Corp almost doubles its profits on back of digital advertising and subscribers | newscorporation

Rupert Murdoch’s News Corporation has almost doubled its profits in 2021/22 to a record $US760m ($A1.1bn).

The US-listed company owns News Corp Australia, as well as numerous mastheads in the US and UK, alongside book publisher HarperCollins and a majority stake in real estate advertising company REA Group.

Net income increased 95% on the previous year, while revenue for the year ended June 2022 reached another record at $US10.4bn ($A14.9bn), an increase of 11%.

The unprecedented result was driven by the company’s news media division, which saw $US217m ($A311m) profit growth through digital advertising revenue expansion and record digital subscriber numbers.

In an ebullient presentation to investors, the company said it had seen seven years of uninterrupted double-digit growth, which has resulted from acquisitions and digital transformation.

“The business has been fundamentally transformed, we are vastly more profitable and have created a potent platform for even greater growth, to the benefit of all our investors and other stakeholders,” the chief executive, Robert Thomson, said in the results release.

In the most recent quarter, overall revenues were up 7% to $US2.67bn ($A3.83bn), while net income was back in the black at $US127m ($A182m), compared with a net loss in the fourth quarter of the previous year.

Dow Jones, publisher of the Wall Street Journal, achieved the highest revenue since its acquisition, driven by record advertising, and growing digital-only subscriptions.

Fourth-quarter profitability at Dow Jones soared 54% to $US106m ($A152m), leading to a 30% increase for the year to $US433m ($A620m).

Declines in broadcast viewing at Foxtel were offset by streaming revenues from Kayo and Binge, with more than 2.8m streaming subscribers in total.

Digital real estate division revenues, including results for REA Group and Move, grew by a quarter.

The acquisition of HMH books and media saw revenues climb 10% in News Corp’s book publishing division, with consumer spending above pre-pandemic levels.

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Norseman solar project sees towns switch from diesel to part solar in battery rollout

Rows of solar panels with sunny sky

With already high petroleum prices expected to rise even further this year, solar projects that will shift dependency away from diesel are underway in several West Australian regional towns.

Energy provider Horizon Power has announced it would build a centralized solar farm and battery in Norseman, about 720km east of Perth.

The 758 kilowatt solar farm would consist of 1,400 panels and would house a 336 kilowatt-hour battery energy storage system.

On completion, the project would see just over 24 per cent of the town’s energy sourced from renewable energy.

Currently, the township relies entirely on a diesel-generated power station for its electricity.

Dundas Shire President Laurene Bonza said a development application had been lodged with the council.

“It looks like solar and renewables are going to be the way of the future and we get a little bit of a jump on that,” she said.

“Hopefully, it will mean our power is reliable and we are doing our bit.”

If approved, construction was expected to get underground early next year.

A woman in a white tshirt leans on a statue of a horse
Laurene Bonza says a development application has been lodged.(ABC News: Rosemary Murphy)

The diesel power plant would then be used to ensure supply.

Demand for energy was expected to increase with a gold mill currently under construction in the area.

“The mine has already extended the old power station and added in a couple more diesel generators to make sure we so don’t end up in the dark,” Ms Bonza said.

“Este [solar farm and battery] should make sure we never end up in the dark.”

There was an extra incentive to switch to renewables when the federal government’s temporary cut to the fuel excise tax was removed at the end of September.

regional roll-out

The Norseman solar project was part of a broader roll out in which Horizon Power planned to install centralized solar and battery storages systems in the mid-west towns of Cue, Sandstone, Meekatharra, Mount Magnet, Wiluna and Yalgoo.

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Kyneton residents consider court action to fight development of McDonald’s, Bunnings complex

Three residents stand in front of a vacant paddock holding signs saying 'No Maccas here in Kyneton', 'More Cons than pros'.

Macedon Ranges residents are considering Supreme Court action following a state planning tribunal decision to overturn a council vote to halt a two-part commercial development.

A Kyneton development for a McDonald’s fast-food restaurant, another restaurant, Bunnings and a 24-hour service station was approved by the Victorian Civil and Administrative Tribunal (VCAT) last week after the applicant decided to challenge the council’s decision and the conditions imposed.

Susan McNab is one of the leaders of the fight against the development and said residents were disappointed by the court’s actions.

She said the group would look at viable options to counter the decision, but accepted that a loss in the Supreme Court would be costly.

an architectural drawing of a commercial development
The development will carry a McDonalds restaurant, another convenience restaurant, a Bunnings trade center, and a petrol station. (Supplied / VCAT)

“Naturally, we don’t feel the decision is to the benefit of Kyneton. That part of the town is the main access to nearby reserves and people often go out that way climbing and for classic car rallies and cycling,” she said.

“It’s difficult for many residents to not be considered at VCAT.

“It’s been about the economics of the matter. The council said that area would be developed at some point, but this particular style of development works against Kyneton’s character.”

Big brands coming down the highway

The decision almost confirms the introduction of commercial development in Kyneton, which one community group has labeled the ‘tide of overdevelopment’. Residents fear the big brands will take away the small country charm that the town is known for, with small businesses and well-known eateries losing out.

“The proposal will not detract from the rural character of the Shire. The proposal will reinforce the rural character of the Shire by its location [in a commercial zone] within the protected settlement boundary; [and the] containment of its impacts within the subject land,” VCAT’s decision said.

A woman holds a cardboard sign in each hand. One says 'protect cultural land' and the other says 'support local business'
Lenka Thompson started the Keep Kyneton Country group to fight the proposed development.(Supplied: Lenka Thompson)

The decision by VCAT has caused a stir on social media after attracting hundreds of submissions airing concerns about traffic and safety, and the effect the development could have on the nearby environment and local economy.

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NSW government announces driverless bus trial in 2023

NSW government announces driverless bus trial in 2023

Self-driving buses could hit NSW roads as soon as next year, with trials for the futuristic vehicles preparing to begin.

The Perrottet government has announced it will invest $5m for an on-road connected and automated vehicle (CAV) bus trial to kick off the beginning of the future on NSW roads.

With driverless vehicles predicted to hit our roads commercially in less than a decade, the government is working to set up a CAV-friendly road network to keep up with the likes of San Francisco, Paris and Singapore.

The state government says the trial will be subject to “robust testing” to ensure the buses will operate safely.

A government spokesperson said where and when the vehicles will pop up will depend on proposals from industry groups, which are being called on to get involved with the first 18-month trial in 2023.

Minister for Customer Service and Digital Government Victor Dominello is hoping the project puts NSW on the map as a world-leading adopter of CAV technologies.

“Vehicle connectivity and automation are game-changing technological innovations with the potential to sustainably transform the future mobility of people and goods,” Mr Dominello said.

“Globally, these technologies are advancing rapidly and already appearing in vehicles on the market today.”

He said the move would put NSW “in the front seat” in the race to roll out of the new technology.

The strategy will introduce, test and deploy CAVS on the road network, shape policy, prepare the road network ready for the new models and develop physical and digital testing capabilities for the driverless cars.

Part of the project will also include supporting freight services and increasing knowledge of autonomous vehicles.

Metropolitan Roads Minister Natalie Ward said the strategy would “revolutionise the way we travel”.

“The CAV readiness strategy outlines six priority areas focused on integrating this new technology into our transport system,” Ms Ward said.

“This will include working within the national regulatory framework over the next five years so we’re ready for the safe commercial deployment of CAVS in Australia.”

Ms Ward said adopting the new technology would help the state keep up with constituents’ expectations.

“Getting ahead of the game will make it easier to upskill our transport staff so customers have a seamless service when it is officially on our roads,” she said.

Regional Transport and Roads Minister Sam Farraway said NSW had already set several national and international firsts in autonomous vehicle technology.

“This is big-picture thinking – by putting NSW one step ahead it will bring investment opportunities, knowledge and better customer outcomes,” he said.

The state introduced the world’s first fully automated shuttle service in a public setting through the Coffs Harbor BusBot trial, which was completed late last year.

“This builds on what NSW has already achieved through autonomous shuttle trials, partnerships with local universities and investment in the Future Mobility Testing and Research Center at Cudal,” Mr Farraway said.

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Google outage: Explosion at data center injures three electricians

Google outage: Explosion at data center injures three electricians

Google suffered a global outage today while an explosion at a data center in the United States left multiple staff injured.

Three electricians were critically injured after an “electrical incident” at the data center in Council Bluffs, in the US state of Iowa, local police and Google told news site SF Gate.

The accident unfolded at about midday Monday (local time) while the electricians were working on a substation near the data center buildings.

All three suffered significant burns after an electrical explosion, the publication reported.

The incident coincided with a major global outage, with users across the world complaining about the search engine going down.

Many users received an error message when they attempted to search.

People in the US, UK, Australia and Singapore reported issues, according to DownDetector.

It was not immediately clear whether the outage was linked to the explosion.

“We are aware of an electrical incident that took place today at Google’s data center in Council Bluffs, Iowa, injuring three people onsite who are now being treated,” a Google spokesman told SF Gate.

“The health and safety of all workers is our absolute top priority, and we are working closely with partners and local authorities to thoroughly investigate the situation and provide assistance as needed.”

One of the injured electricians was flown to Nebraska Medical Center, while the other two were taken by ambulance, the publication reported.

They were all conscious and breathing at the time.

The affected data centre, which opened in 2009, is one of Google’s largest.

It is one of 14 in the United states, with there 23 around the world.

Read related topics:Google

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Airplane etiquette: Aussie traveler calls out ‘ballsy’ plane act during recent flight

Let’s face it – the middle seat on a plane is the absolute pits and having to put up with fellow passengers making it even worse is just not right.

our own Shelly Horton recently smoked about how she was “so squished” in the middle seat on a flight that she called for a “refresh on air travel etiquette”.

And now another Aussie traveler has shared their frustration at a “ballsy” plane act she experienced on a flight to Melbourne.

“My Syd to Mel flight just now. She’s in the aisle seat,” the woman wrote in a post on Redditsharing a photo showing herself sitting in the dreaded middle seat.

READMORE: Woman ‘humiliated’ on flight over chronic condition

plane passenger reddit post: My Syd to Mel flight just now. She pushed my arm off the armrest and plopped her feet in my space. The middle seat already sucks enough.
An Aussie traveler has called out a ‘ballsy’ plane act during recent flight, when a passenger stole her armrest and foot space. (reddit)

“She pushed my arm off the armrest and plopped her feet in my space. The middle seat already sucks enough,” she added.

The image was flooded with hundreds of comments, including some people suggesting a host of passive aggressive solutions.

“Say you’re going to the toilet, she will uncross her legs, stick both legs on that side to block her,” one person said – this one received plenty of praise from fellow Redditors.

“Window gets an armrest and a wall. Middle gets two armrests. Aisle gets an armrest and a little bit of extra leg. We’re not animals! We live in a society,” another person fumed.

A few pointed out that there was no reason for the anger, as she should have just asked the traveler to move her feet.

To which the original poster responded: “I politely asked her to move her leg and she did, I also got my armrest back. I just thought it was awfully ballsy of her to push my arm off and put her foot in my space in the first place.”

Not enough legroom

It comes as almost on the same day, another traveler from the US shared a photo of someone’s feet encroaching on her space on another flight.

“On my flight. Can you like not?” the woman, from Baltimore, posted alongside another photo on Reddit.

READMORE: Hotel worker issues warning for travelers staying in holiday accommodation

reddit post plane passenger complains about feet
Another traveler shared a photo of someone’s feet crouching on her space on another flight. (reddit)

Despite many people agreeing that she had every right to step on the person’s feet, many also pointed out how many people with long legs struggle on flights.

“There is no fricking legroom on plans anymore. If you just put your feet in front of you where they should go, you would not even notice,” one person commented.

The woman however did hit back saying that if her “6 foot 4 inches tall husband managed to do it without annoying other people” then this person could too.

“I actually started very lightly knocking the person’s feet with mine. Like a very gentle ‘oops, I’m not sure what’s below my feet’ kind of way,” she added.

“Just mildly frustrating that it kept happening like every 15 minutes throughout the flight.”

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Fears Melbourne building company Blint is on the brink of collapse

Fears Melbourne building company Blint is on the brink of collapse

A Melbourne builder has “disappeared” placing homeowners under a “horrendous” amount of stress as they are left with half finished homes they have poured hundreds of thousands into that they may struggle to complete.

One family impacted are Dean and Nolle Fuller, who have five children between them, and have already shelled out $480,000 to the builder called Blint, since signing on in January.

The couple had demolished their existing home last November and had engaged Blint Builders to build two townhouses for $1.5 million, due to be delivered early next year.

The slab for the two homes was laid and the first floor framing has been done on both but then work started to slow down in the middle of this year, according to Mr Fuller.

But the 54-year-old said alarm bells really started to sound when his wife drove past the site in the first week of June and discovered that the portaloo had been taken away and a tradition was on site collecting his materials.

She then went straight to the builder’s office only to discover it locked up, while her calls went unanswered.

Two days later on June 9, the owner of Blint told the Fullers he was going into voluntary administration but since then they have heard “nothing”, with emails and phone calls left unanswered and the office empty.

Building site targeted

Their building site has been broken into leaving it a “mess”, Mr Fuller said.

“In that time, we have had two lots of vandalizing and trespassing and damage caused to our property, which has been lodged with police,” Mr Fuller told news.com.au.

“We have had a truck back up and dump three to four square meters of rubble and waste material on the property and the truck also smashed the gates down.

“Recently someone turned up and stole the electrical meter box within the property.”

The project manager said the experience had caused an “unbelievable amount of stress and anxiety”.

“We have half a million dollars outlaid on something that is sitting still and… sitting on a block that is wasting away and not covered by insurance potentially,” he said.

“We are in a situation that we may be forced to compromise significantly on what was our dream home to build.

“We are financially impacted and may have sell off things to complete the build as there have been cost increases and delays. The property we have might have to be stripped right back to be rebuilt, notwithstanding that we have got to pay rent and that we have to be out of this rental by Christmas.”

left in limbo

Mr Fuller said his family would have to negotiate to stay in the rental meaning his, including three of their children, would be forced to be crammed into the small property for another 10 to 12 months.

I have added it’s been almost impossible to find out information when “all we want to do is build a house” and instead they are left in “limbo”.

“It takes a lot of time and hours with pursuing legal options and between the Housing Industry Association and banks and insurance companies it’s relentless,” I explained.

“We are all sitting on insurance policies but because the trigger is Blint going into voluntary administration, none of us can trigger the insurance policies. So we are sitting on property we can’t do anything with as we can’t engage new builders.”

Mr Fuller said it’s a “frustrating” experience and just wants answers from the builder.

Do you have a similar story? Contact [email protected]

Offices seized

Blint Builder’s office in the Melbourne suburb of Highett has also been seized by the landlord.

Legal documents posted on the front door show the landlord has executed their right to re-entry, terminating the lease and demanding all property be removed and the keys be returned.

The legal notice also revealed that Blint Builders owe the landlord close to $14,000 in unpaid rent and rates.

Emails to Blint are undeliverable, while news.com.au has called, left voicemails and sent text messages to the builder but has not heard back.

‘Horrifying strain’

Another family who are under “horrendous strain” are Tony and Jo Firman and their two children, who are building a home specially designed for her disability.

Mrs Firman has multiple sclerosis and the couple were building a home to meet her needs in the Melbourne suburb of Mordialloc, which included a swimming pool.

They had demolished the original home and signed up to build their $1.2 million house with Blint, which was scheduled to be finished in mid February.

The couple said they have paid $1.14 million so far to the builder and the house is at lock up stage but no work has happened since early June, according to Mr Firman.

“There is no carpet, it hasn’t been painted and there are serious defects that need to be rectified, so there’s still quite a bit of work,” he claimed.

The 54-year-old said he even went to Blint’s office twice in June to find out about the progress of the home.

But since then the builder has “disappeared off the face of the Earth” with Mr Firman’s calls and emails going unanswered, he claimed

“It went from talking to him every day to him never ringing me back and never hearing from him,” he said.

Being left in limbo has taken a toll on him with the online retailer saying he has “never felt more depressed in my life”.

“It’s a massive strain on us as a family, both financially as we are paying rent as well as paying off part of the house that we can’t even live in it as we have no occupancy certificate,” he added.

‘Sending us broke’

Mr Firman said they can’t get a payout from the insurance company until Blint goes into liquidation and it could “cost a lot of money to force that to happen” through the courts.

“Even with the full insurance payout it might not be enough money. We skimped and saved and borrowed quite a substantial amount of money. We are worried we won’t make enough money to repay the loan and be able to live,” he said.

“I fear that this will send us broke.

“It’s very touch and go for us at the moment … My daughter turns 21 next month and her only wish was to have the party at the new house and that won’t happen.”

‘Derelict sites’

Dad-of-three Jamie* had also signed up with Blint in March 2021 to renovate and extend their two bedroom house in the Melbourne suburb of Murrumbeena for $730,000.

The family had planned a double storey addition out the back with a new kitchen, living area and kids’ bedrooms and are currently living in a rental.

Jamie said the work was “slow going” and the family had forked out $600,000 so far.

Now they’ve been left with a half built home, even though it was due to be complete in April, and he describes the site as “quite derelict”.

Jamie confronted the builder at his home in June and was told Rodger Reidy had been appointed to handle the voluntary administrators.

But when he contacted the insolvency specialist firm he was told that it was not the case and Rodger Reidy also confirmed with news.com.au they had not been appointed.

Now, he can’t get in touch with Blint with the phone turned off and emails unanswered.

The 43-year-old said he just wants to be able to finish the home, even if it costs the family an extra $50,000, but he has been left in limbo, adding he is “exhausted and frustrated”.

News.com.au understands a number of suppliers are also owed money from Blint.

*Name changed for privacy reasons

Read related topics:melbourne

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Kmart’s bestseller $20 knit mules return to stores after selling out

Kmart's bestseller $20 knit mules return to stores after selling out

After selling out across the country last year, Kmart has brought back a very popular item.

The budget retailer caused a frenzy over its $20 “Casual Knit Square Toe Mules” when shoppers began raving about how “comfy” the affordable heels were.

One influencer even shared a TikTok video telling people they “need to go buy a pair right now” – predicting the shoes would “quickly sell out”.

Her warning was right and the heels became a fast favourite, with stock disappearing from Kmart shelves in October.

But now shoppers have spotted the item is once again available, with Kmart Australia revealing “more stock has just dropped into stores”.

“Customers have been loving our casual knit square toe mule that is incredible value, priced at $20,” a spokesperson told news.com.au.

“It’s the perfect addition to any outfit. The mule comes in a variety of colors including black, charcoal and natural, and the super-comfy slip on style can be styled up or down an outfit.”

TikTok user Olivia Burrows alerted shoppers to the fact the slide-on-shoes had returned in a recent video titled “premium Kmart haul”.

Putting together a black knit skirt and red blouse with the chunky heels, one social media user was quick to point out: “OMG the mules are back.”

Last year, fashion blogger @curvysam told followers they “need to go buy a pair right now” in a TikTok video that has been viewed almost 40,000 times.

Another affordable fashion influencer @kmartfever said she “can’t get enough of these mules” as they “seriously make every single outfit look better”.

The styling blogger purchased them in both black and the natural colour, which she said “go with everything”.

Shoppers quickly gave the mules the tick of approval, with many saying they had already purchased multiple colors and were “obsessed”.

“Just had to buy all colors,” one customer joked.

“Who is the buyer for Kmart? They deserve an award for saving us all,” another agreed.

“Already have two pairs! They are so good,” one person wrote.

“I’ve got them and they’re amazing,” another commented. “They don’t make that cheap sound when you walk… they’re silent.”

For winter 2022, the mules now also come in khaki green colour.

Read related topics:Kmart

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