Christmas pain forecast for troubled building sector
There is more pain ahead for the building sector with experts warning the coming Christmas period is expected to bring a new wave of company collapses.
City Beat
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Insolvency expert Jarvis Archer is warning of more pain ahead for the building sector. Archer, a partner at Revive Financial on the Sunshine Coast, says homeowners are starting to issue their builders with breach notices following widely reported delays in construction.
“Builders are asking for out of contract advances, issuing part-progress claims or not progressing builds in accordance with contracts,” Archer tells City Beat. “These are signs that generally precede a builder’s insolvency.”
He says that with more wet weather predicted, on top of existing issues, expect to see more builder insolvencies in the coming months.
“Historically these increase around the Christmas shutdown period which isn’t too far off,” he warns. The recent failure of Queensland building giant Oracle Homes may not be the last before Christmas it seems. Readers will recall Oracle started asking hapless customers for more money six months ago before spiralling into liquidation last month.
According to the Australian Securities and Investments Commission data, 87 Queensland companies either had liquidators or administrators appointed last month, compared to 69 in July, a 26 per cent increase and up 55 per cent since the same time last year.
WCT Advisory partner Andrew Weatherley said he expected insolvency numbers and inquiries to continue to rise until the end of the year.
“The main industries making up the figures are construction, accommodation and food services, and other services,” he said.
“I think that is expected given the continuing issues facing the construction industry and the similar challenges facing the hospitality sector.”
Fin-ishing School
Sunshine Coast law shop Travis Schultz & Partners has gone all the way to Finland for its most recent hire with the appointment of lawyer Emmi Airaksinen.
Airaksinen has seven years of legal experience, having graduated and worked as an employment and contract lawyer in her home country, before making the move to Australia in 2018 to complete her Bachelor of Laws at the University of the Sunshine Coast.
“I love being able to make a difference in people’s lives, and working in the legal industry allows me to do that,” Airaksinen says.
“In Finland, I was managing legal disputes in the workplace, but now I look forward to helping people who have been injured through no fault of their own and ensuring they get the compensation they deserve.” TSP chief executive Kelly Phelps says Airaksinen will be a perfect fit for the award-winning firm.
Christmas in September
We have barely edged out of August but the good folk at Woolworths Ascot are already getting us ready for Christmas. A City Beat spy tells us that tucked away near the deli section at the supermarket was a display groaning with Christmas pies and puddings.
It is after all only fours months to Christmas by which time we will all be fat with all the yuletide fare we have been consuming. City Beat readers can send in any more pernicious early outbreak of Christmas they spot on their travels.
Insurance Hire
Insurance veteran Mike Ambrosini has been appointed to the board of Brisbane-based Austbrokers Comsure joining former Broncos boss Bruno Cullen who is chair of the company. Ambrosini has 55 years of experience in the industry, having worked with Zurich, QBE, Suncorp and Allianz. Ambrosini joined the industry in 1967 as a junior clerk with MMI General Insurance (later purchased by Allianz).
Initially a marine specialist, Ambrosini has since worked extensively in compulsory third party and motor dealership insurance.
Austbrokers Comsure managing director Ian Garbutt says Ambrosini’s experience would be invaluable as Austbrokers Comsure continues to build on its expansion that began with the merger of three south-east Queensland brokerages in 2020.
Super meeting
The big wigs of Australia’s $1.6 trillion superannuation sector will make a beeline for Brisbane next week. The Australian Institute of Superannuation Trustees is holding its annual conference at the Brisbane Convention and Exhibition Centre on Tuesday and Wednesday featuring more than 60 speakers across 18 sessions. Attendees will include Financial Services Minister Stephen Jones, super pioneer Garry Weaven, former treasurer and now Cbus chair Wayne Swan and Robert Hannigan, the former director of UK intelligence organisation GCHQ. Topics will include mergers, retirement income covenants, insurance, cyber threats, digital transformation and carbon offsetting.
Viagra replacement gets $10.5m funding boost
Brisbane-based LTR Pharma has attracted some big bucks from new investors as it seeks to replace the little blue pill in the bedroom with a simple nasal spray.
QIC appoints new real estate head
QIC says that former Dexus executive Deborah Coakley will replace Michael O’Brien as head of its real estate funds business and multi-billion development pipeline.