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SEPTEMBER 2020 VOLUME 16 NUMBER 8 Print Post Approved 100002454 HBRHunter Business Reviewmag.com.au 16TH YEAR OF PUBLICATION MINING & ENERGY UPDATE 2020/2021 HUNTER BUSINESS FUNCTION GUIDE Australia $6.60 ISSN 2202 - 8838 (Print) ISSN 2202 - 8846 (Online) HUNTER BUSINESS REVIEW HUNTER BUSINESS REVIEW Connecting & informing business people Connecting & informing business people IS YOUR BUSINESS PREPARED TO COME OFF GOVERNMENT LIFE SUPPORT? Recognising the signs your business is in trouble and If your answer is ‘no’, or even actioning an early intervention insolvency procedure in time, ‘not sure’, it’s vital you read on. such as a restructure, refinance or a period of voluntary administration, could mean the difference between turning it around or going into Liquidation. While government support measures have provided some much-needed help for the countless business owners and directors affected by COVID-19, they will come to an end. 10 warning signs your Your business needs to lay the groundwork now for what business is in trouble action you’ll take when those measures are gone. And this includes gaining an understanding of insolvency procedures • Experiencing poor or no cash flow to ensure whatever road you take, you achieve the best • Unable to pay wages or superannuation outcome for everyone involved. • Securing special payment arrangements with creditors All businesses go through a ‘Business Lifecycle’ (see below). As you can see, if your business is declining, it can undergo • Issuing post-dated or dishonoured cheques a rebirth – perhaps through a restructure or Voluntary • Having suppliers refusing to supply or insisting on COD only Administration – or if that proves impossible, Liquidation, which offers a legal way to wind it up under certain • Unable to borrow funds or raise additional equity capital circumstances. And often, Liquidation is simply the orderly • Receiving solicitors’ letters, summonses, judgements closure of a business, paying creditors and returning the net or warrants equity to shareholders. • Delaying/stopping financial and trading performance Business Life Cycle reporting and forecasting CONCEPT & GROWTH MATURITY DECLINE REBIRTH • Letting go of staff and having staff morale issues START UP • Making substantial bad debt write-offs These are all signs your business is in significant financial distress and that you need professional, supportive help as soon as possible from a trusted insolvency practitioner. CLOSURE For over 35 years, Jirsch Sutherland’s business VOLUNTARY recovery/insolvency specialists have been providing support and solutions that can reduce further losses FORCED and relieve damaging stress and worry. DON’T WAIT UNTIL IT’S TOO LATE. To arrange an obligation-free conversation with one of our supportive insolvency practitioners in Newcastle, call 4965 6500 or email [email protected] HBR contents PUBLISHED BY: IS YOUR BUSINESS Hunter Business Publications Pty Ltd From the Editor ABN: 15 112 838 945 4 265 King Street Newcastle NSW 2300 Business News PREPARED TO COME PO Box 853, Hamilton NSW 2303 5 Phone: (02) 4062 8133 17 New Appointments OFF GOVERNMENT PUBLISHER and EDITOR: Garry Hardie GARRY Mob: 0414 463 125 18 Property LIFE SUPPORT? [email protected] ART DIRECTOR: Mining & Energy Update Sandie Collie 20 [email protected] Business Services Directory CONTENT MANAGER: 25 Jason Duncan [email protected] Funny Business SANDIE 26 PRINTING: NCP Printing Phone: (02) 4926 1300 2020/2021 [email protected] 2020/2021 HUNTER www.ncp.com.au BUSINESS Hunter Business Function Guide FUNCTION GUIDE Published monthly (except January) Hard copy circulation: 5,000 See this year’s function guide Also available online between pages 16 and 17 of this issue www.HBRmag.com.au JASON THE COMPREHENSIVE ANNUAL GUIDE TO HELP WITH FUNCTION AND EVENT PLANNING FOR YOUR BUSINESS If your answer is no or even Recognising the signs your business is in trouble and HUNTER BUSINESS PUBLICATIONS PTY LTD ‘ ’, actioning an early intervention insolvency procedure in time, 2020 ALL RIGHTS RESERVED OUR PHONE NUMBER HAS CHANGED! ‘not sure’, it’s vital you read on. such as a restructure, refinance or a period of voluntary The number for Hunter Business Publications is now administration, could mean the difference between turning Reproduction in any part prohibited without the written consent of the publisher. While every effort has been made to ensure it around or going into Liquidation. all information in this magazine is accurate, no responsibility is (02) 4062 8133 While government support measures have provided some accepted by the publisher, Hunter Business Publications Pty Ltd much-needed help for the countless business owners and Opinions expressed in externally supplied stories are not Please update your records accordingly directors affected by COVID-19, they will come to an end. 10 warning signs your necessarily those of the publisher. Your business needs to lay the groundwork now for what business is in trouble action you’ll take when those measures are gone. And this includes gaining an understanding of insolvency procedures • Experiencing poor or no cash flow to ensure whatever road you take, you achieve the best • Unable to pay wages or superannuation outcome for everyone involved. • Securing special payment arrangements with creditors All businesses go through a ‘Business Lifecycle’ (see below). HUNTER MLA HAS 10 VANS ON THE ROAD COVERING • Issuing post-dated or dishonoured cheques As you can see, if your business is declining, it can undergo THE CENTRAL COAST, NEWCASTLE AND HUNTER VALLEY REGIONS, a rebirth – perhaps through a restructure or Voluntary • Having suppliers refusing to supply or insisting on COD only Administration – or if that proves impossible, Liquidation, SERVICING ALL BRANDS OF FORKLIFTS! which offers a legal way to wind it up under certain • Unable to borrow funds or raise additional equity capital circumstances. And often, Liquidation is simply the orderly • Receiving solicitors’ letters, summonses, judgements closure of a business, paying creditors and returning the net or warrants equity to shareholders. Contact Hunter MLA Now! • Delaying/stopping financial and trading performance Business Life Cycle reporting and forecasting 1300 000 652 CONCEPT & GROWTH MATURITY DECLINE REBIRTH • Letting go of staff and having staff morale issues START UP • Making substantial bad debt write-offs These are all signs your business is in significant financial distress and that you need professional, supportive help as soon as possible from a trusted insolvency practitioner. CLOSURE For over 35 years, Jirsch Sutherland’s business VOLUNTARY recovery/insolvency specialists have been providing support and solutions that can reduce further losses FORCED and relieve damaging stress and worry. DON’T WAIT UNTIL IT’S TOO LATE. To arrange an obligation-free conversation with one of our supportive insolvency practitioners Contact Hunter MLA now! in Newcastle, call 4965 6500 or email HUNTER [email protected] 1300 000$24,990 652 + GST SEPTEMBER 2020 | 3 From the Editor As expected, Australia is now in Regarding COVID restrictions, it is hoped that the states are its first economic recession learning from experience and will fine tune restrictions to help in around 29 years after the reduce their economic impact. Safety is of course paramount, release of a 7% fall in the but it seems difficult, for example, to justify blanket state-wide June quarter. This follows the restrictions when only a few localities are experiencing any 0.3% decline for the March COVID infections. Businesses and consumers are also hopefully quarter. becoming more acclimatised to the new way of life, but are no The fall was inevitable given doubt eagerly awaiting the time when the restrictions will be the COVID restrictions that removed or dramatically scaled back. have been in place and the The biggest boost to business and consumer confidence will uncertainty be when an effective vaccine begins to be distributed. Whilst of the future. this looks very promising, it seems unlikely that there will be any Spending has dramatically reduced, with major release of a vaccine until at least early 2021. consumer spending in particular experiencing a dramatic fall. In the meantime, it is hoped that we see some green shoots It is clear that even consumers that have not had their income of economic recovery in coming months and that we will begin reduced are being careful with their spending and saving more as to feel a little less fearful about the future so that consumer they are uncertain about the future. spending and business investment will begin to improve. How long the recession lasts is uncertain, with some anecdotal comments suggesting that a small recovery is underway in some Garry Hardie industries. Publisher & Editor The Federal Budget to be released on 6 October will be important in creating a framework to encourage economic activity and help increase our confidence about the future. The Government’s stimulus packages have kept many businesses On the cover afloat during extremely difficult conditions and the challenge for Port Waratah Coal Services shiploader many of these will be continuing to survive as the packages are lit up blue over September to support International Prostate Cancer Awareness wound back. The Government may well need to consider further Month. Photo taken by Tony Banfield, Port stimulus packages that are targeted to specific industries or Waratah Maintenance Supervisor. groups of businesses.