SILK posts another profit as injectables division expands
SILK Laser ClinicsFY22
The rapidly expanding Adelaide-based beauty therapy chain – which offers laser hair removal, cosmetic injectables, skin treatments and body contouring – now has 127 clinics across the country, compared to 61 at the end of FY21.
The listed company says it is on track to “reach and exceed” its initial public offering goal of expanding to 150 clinics in the “near term”. The company listed on the ASX in December 2020 after its founding in 2009 and ranked 41 on InDaily‘s South Australian Business Index last year.
SILK’s $9.56m profit – up from $7.47m in FY21 – was aided by a 91 per cent increase in network cash sales ($162.7m) and a 38 per cent increase in reported revenue ($81.3m).
“After operating in challenging market conditions this past year, I’m so proud at how hard the SILK team has worked to deliver these robust financial results,” co-founder and managing director Martin Perelman told the ASX.
“We continue to execute against SILK’s growth strategy outlined at the time of our IPO, beating EBITDA guidance by 10 per cent while diversifying our service mix with injectables and Body proving to be our key growth drivers.”
SILK, which has 15 clinics in South Australia, said its average customer spend remained steady at $661.
The company reported performing 1.7 million treatments last financial year.
SILK also says it now has “one of the largest injectables teams in Australia” after the number of staff in that division grew from 90 to 200 from FY21 to FY22.
“Service mix continues to skew further to injectables, which is proving to be the strongest and most resilient service category, posting its highest cash month in SILK-only clinics in July [2022],” the company said.
The company reported having to implement “strategic price increases” from July 1 this year but said the change has so far resulted in “no reduction in transaction volume”.
Climate Action organisation WRAP launches Adelaide office
Global UK-founded NGO WRAP has opened an Asia Pacific Office within the University of Adelaide’s Urrbrae campus alongside industry partner Fight Food Waste Limited.
WRAP’s Adelaide office will be the base for climate action operations in China, Indonesia, Japan, Singapore, Vietnam, the Pacific Islands and New Zealand.
The sustainability NGO’s Australian operations will mirror that of its global counterparts, working with businesses, governments and communities to shift to a more resource efficient, circular system within food, plastics and textiles.
Their office launch on September 1 featured circular economy experts and industry leaders including Member for Adelaide Lucy Hood, CEO of the Australian Fashion Council Leila Naja Hibri, CEO of the Salvation Army – Salvo Stores Matt Davis, CEO of the Australian Packaging Covenant Organisation Chris Foley, and CEO of Fight Food Waste Ltd. Steven Lapidge.
WRAP Asia-Pacific managing director Claire Kneller said she was thrilled to be leading WRAP’s first overseas office and to be able to share WRAP’s expertise and experience in the race to net zero.
“I’m excited to be able to work closely with our partners in the region, and to seek out new, game changing initiatives that will help us address climate change,” she said.
Havilah approves Oz Minerals’ $205m mine acquisition option
Small exploration company Havilah Resources
Oz Minerals will have the option to acquire the site, touted as “potentially one of Australia’s largest undeveloped open pit copper-gold deposits”, once an 18-month feasibility study has been conducted.
The project is in the Curnamona Province in the north-east of South Australia, between Yunta and Broken Hill, within close proximity to a major highway and rail corridor.
Havilah shareholders voted “overwhelmingly” last week to approve Oz Minerals’ $205m acquisition option for the mine, with the two companies now entering into a “strategic alliance” over the next 18 months.
During this period, Oz Minerals will pay Havilah $1m a month – half of which Havilah will direct towards exploring other mining opportunities in the Curnamona Province.
Oz Minerals CEO Andrew Cole said the feasibility study would “focus on opportunities to identify additional value” through modern mining technology.
“The Kalkaroo project provides the opportunity to add one of Australia’s largest undeveloped copper-gold deposits to our organic growth pipeline, complementing existing expansions at Prominent Hill and Carrapateena, and the greenfield West Musgrave Project to be considered for final investment decision later this year,” he told the ASX.
“Since the proposed transaction was announced in May 2022 our project team has been planning work programs, engaging with supplies, and working closely with the Havilah team to enable the study to commence immediately upon Havilah shareholder approval.”
Cole said if the acquisition option is exercised, timing for the development would be at Oz Minerals’ discretion.
“This enables progressive capitalising of internal project development skills which follows on from the success achieved to date with Carrapateena and opportunities with West Musgrave,” he said.
“The agreement with Havilah provides flexibility to study the Kalkaroo project at a low cost, while retaining the optionality to acquire 100 per cent of the project for a fixed acquisition price together with any deferred contingent consideration.”
Qantas faces industrial action
International travellers using airlines including Qantas, Emirates and Etihad face potential delays as baggage handlers agree to take strike action.
Ground handlers from Dnata, who are contracted to Qantas and more than a dozen other carriers, will walk off the job for 24 hours on Monday, September 12.
The industrial action was agreed to by Dnata workers on Friday with some 350 crew to strike.
Dnata, a ground crew and cargo company, is hoping to stave off next Monday’s strike when it appears before the Fair Work Commission on Tuesday.
The Transport Workers Union is calling for Dnata to lift pay and conditions, including minimum guaranteed work hours.
Qantas sacked its own ground crew staff during the height of the COVID-19 pandemic and moved to outsourcing roles to companies such as Dnata.
An airline spokeswoman said the negotiations were a matter for Dnata and the carrier had contingency plans in place to curb disruptions.
The transport union’s national secretary Michael Kaine said ground handlers couldn’t afford to stay in the industry because of a drop in pay and conditions.
“We need to rebalance aviation towards good, secure jobs that keep skilled workers in the industry and ensure the safety of the travelling public,” Kaine said.
He pinned the fall in conditions on outsourcing by Qantas and the lack of JobKeeper payments for Dnata workers under the former Morrison government.
Kaine called on the new Albanese government to establish a regulatory body to set minimum standards across the industry.
A Dnata spokesman said the company had offered workers a “highly competitive” pay offer but also needed to ensure its business was financially sustainable.
“We are disappointed that we have been unable to reach an agreement with the bargaining representatives to date,” he said.
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Virgin Australia, Australia’s other major carrier, will not be impacted by the strike.
-With AAP
Topics: business, companies, SILK Laser Clinics
