Transurban chair retires, Newcrest Mining’s profit falls 25% and Cleanaway to acquire competitor Global Renewables

Leading toll road operator Transurban Group (ASX: TCL) has announced its current chair Lindsay Maxsted will retire from the company’s board following the conclusion of the 2022 Annual General Meeting (AGM).

Mr Maxsted has held the role for more than a decade, joining the board in March 2008 and first serving as chair in August 2010.

He said the opportunity to serve was a privilege.

“What we have achieved has been a result of a talented and committed team that is steadfastly focused on creating long-term value for our investors and other stakeholder groups.”

“I would like to take this opportunity to thank my fellow Board members as well as the broader Transurban team for their commitment and dedication to the ongoing success of Transurban,” Mr Maxsted added.

Transurban chief executive officer Scott Charlton thanked Mr Maxsted, attributing many of the company’s recent successes to the departing chair.

“Lindsay’s active approach and deep understanding of the business have been instrumental in creating opportunities that will underpin distributions to our security holders and growth opportunities for decades to come,” he said.

The company’s board has elected current non-executive director Craig Drummond as the next chair, taking over at the conclusion of the 2022 AGM.

Newcrest Mining

Australia’s biggest gold miner Newcrest Mining (ASX: NCM) posted a drop of nearly a quarter in full year profit for 2022, warning the short-term outlook for costs is “unpredictable”.

The company released its full-year results on Friday, which showed net profit plunged 25% on the year to US$872 million (A$1.26 billion), down from US$1.16 billion in the previous year on lower production.

Newcrest confirmed the results showed lower gold and copper sales volumes which were driven by lower production.

Inflationary pressures experienced across a range of input costs – including oil and gas, steel and labour and high shipping costs – were all contributors, according to a company statement.

Despite this, Newcrest chief executive offier Sandeep Biswas said the company still delivered a solid financial performance, notably finishing the second half strongly.

“We were particularly pleased with our costs trending lower in the second half of the year, with Cadia achieving its lowest ever annual all-in sustaining cost of negative US$124 per ounce,” he said.

In other news, Newcrest’s flagship Cadia mine has now returned to full capacity after suffering COVID-19 supply chain issues and significant rainfall was experienced in the region.

IPH Limited

Intellectual property services group IPH Limited (ASX: IPH) has announced Canada’s leading intellectual property (IP) agency Smart & Biggar will join the IPH group, costing an estimated C$348 million (A$387 million).

Smart & Biggar will gain access to a network of IP expertise, spanning 25 countries in the Asia Pacific region, as well as resources to advance its services to existing clients in Canada.

In return, IPH will acquire Smart & Biggar’s IP agency, which owns an interest in the legal practice of Smart & Biggar.

The latest news follows the release of the FY2022 results, which saw the firm’s underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) increase to $137.4 million, up by 11% on the FY2021 results of $124.3 million.

The company’s revenue of $385.1 million in FY2022 also reflected a 6% increase from the previous year.

IPH chief executive officer Dr Andrew Blattman said the results were made possible through the company’s strong network in the Asia Pacific region.

“IPH continues to leverage its leading network across Asia Pacific to deliver a strong financial result,” he said.

“Since listing, we have successfully demonstrated how our strategy to combine organic growth with the acquisition and integration of businesses delivers earnings accretion for the wider group.”

“Our FY22 result reflects the continuation of that strategy with our Asian business once again delivering double-digit revenue and earnings growth on a like-for-like basis,” he added.

Steadfast Group

Steadfast Group (ASX: SDF) has announced it has entered an agreement to complete the acquisition of Insurance Brands Australia (IBA) for $301 million.

IBA is a leading Australian privately-owned insurance distribution business which focuses on the small to medium enterprise (SME) sector.

Steadfast managing director and chief executive officer Robert Kelly said through acquiring IBA, the company will be able to expand and diversify its services to the SME and domestic market.

“Insurance Brands Australia is a highly successful business with an exceptional growth track record and experienced management team,” he said.

“The combination of both businesses is complementary with exceptional strategic and cultural alignment and further strengthens our regional footprint across Australia.”

The deal is expected to be finalised on 23 August, with Steadfast paying $276 million initially, followed by a further $25 million if fiscal 2023 performance criteria is met.

Cleanaway Waste Management

Cleanaway Waste Management (ASX: CWY) has announced it will raise $400 million in an attempt to acquire Global Renewables Holdings (GRL), a competitor with a sustainability focus.

The company’s equity raising is made up of a $350 million institutional placement and a $50 million share purchase plan, which will allow it to complete the purchase of GRL for $168.5 million.

Cleanaway chief executive officer and managing director Mark Schubert said the acquisition will accelerate the company’s ‘BluePrint 2030’ organics strategy.

“The site and facility provide a strategic location and infrastructure to enhance our broader network and customer offering today and into the future as we position ourselves for the growing FOGO market opportunity,” he said.

“As outlined in our Strategic Infrastructure Growth Pillar update, Cleanaway aims to be recognised by our customers as the most innovative and sustainable waste management company and today’s acquisition is clearly aligned with this objective,” Mr Schubert added.