Christian Beck bets big with huge debt pile; Mick Gatto’s soft side

Billionaire tech entrepreneur Christian Beck. Picture: NCA NewsWire/Flavio Brancaleone

Billionaire tech entrepreneur Christian Beck’s appetite to borrow money to fund growth in his Australian Technology Innovators is seemingly boundless.

The Sydney-based, self-made rich-lister has geared his software and search provider parent company ATI International up to its metaphoric eyeballs, with interest-bearing loans and borrowings now north of $2.6bn in the 2022-23 year, at a business that made a net loss of $177m.

That compares to the year before, when debt was just under $2bn and ATI made a loss of $106m.

In accounts just released to the regulator, Beck and the company’s executive chair Stephen Wood have said the business is a “going concern” and predicted ATI would be profitable at the EBITDA line this year, as well as cash flow positive.

Beck, 54, is one of Australia’s 140 billionaires. According to this masthead’s authoritative annual The List – Australia’s Richest 250, he is said to be worth $1.03bn.

Despite his billionaire status, Beck maintains a relatively low profile. He began his business LEAP Legal Software, delivering technical solutions to improve the productivity of law firms and conveyancers, after he taught himself computer programming and coding to build software for his father’s law firm.

Beck is also the founder of InfoTrack, a search engine for critical legal and other company-related information from various sources.

He also owns an extensive range of properties across Sydney and wider NSW, many of which are mortgaged to the Commonwealth Bank.

Under the ATI umbrella, Beck in FY2023 went on an acquisition binge. He bought at least six enterprises funded via a new $400m debt facility put in place in July 2022 just after the start of the new financial year.

Revenue at the group jumped to $884m from $772m previously, but finance costs jumped from $207m to $306m to drag on post-EBITDA earnings.

At balance date, ATI International had negative net assets of $290m, but net cash inflow from operations of $145.6m.

The group is paying significant interest on at least some of its borrowings, including a $1bn facility on which it has agreed to an interest rate of 15.5 per cent.

Yikes.

BoJo shouts ScoMo

Former Liberal prime minister and now mere backbencher Scott Morrison’s intervention on the ground alongside his British former prime ministerial counterpart Boris Johnson
in the Middle East conflict in early November was a surprise.

Scott Morrison and Boris Johnson in Kfar Aza. Picture: Yoni Bashan

Now we learn that the enduring Member for Cook travelled to Tel Aviv on the clip of his travel companion himself, with BoJo forking out for Morrison’s return private charter flight to the Israeli capital, along with accommodation, security and other incidentals for the two-day “solidarity” visit.

The pair had been in London attending Jordan Peterson’s Alliance for Responsible Citizenship conference, with ARC paying for ScoMo’s Sydney to London return journey.

ScoMo was the first Aussie pollie to visit Israel after the November 7 Hamas attack. The visit saw him cross paths with this column via on-assignment correspondent Yoni Bashan, who remains on the ground in the Jewish state reporting on the unfolding conflict.

Morrison said at the time his and Johnson’s visit was a “demonstration of solidarity with the people and state of Israel”, but former Liberal PM Malcolm Turnbull described the visit by Johnson and Sco as “showboating”.

“They have got plenty of free time,” Turnbull said on radio, with BoJo also clearly having plenty of money at his disposal too.

Gatto’s soft side

Ever colourful Melbourne “business” identity Mick Gatto is better known for his reputation as a “mediator” and for his membership of the Carlton Crew, but now he’s turned charity spruiker.

Who knew he had a soft side?

Mick Gatto. Picture: Tony Gough

Along with his wife Cheryl Gatto, he is raising awareness about autism. The couple have a grandson Dominic who is on the spectrum and because they are aware of the challenges facing those with additional needs and their families, they decided to start a foundation that can raise funds to make a difference.

Their organisation, Equal Access for Autism, will roll out a fundraising event, Laps of Love 2023, on December 3 at Victoria Park in Abbotsford.

Gatto told Margin Call the event was all about driving awareness and support for teenagers and young adults with autism. He said the event would be a “fun day with great entertainment”.

“The foundation has spent a significant amount of money to put this awareness campaign together,” he said.

“It’s mainly for the autistic children and their families to enjoy a day out with autistic friendly playground equipment, climbing castles, etc.”

True to past form, Gatto we hear is pulling in mates from all over to pump up the walkathon, including former Magpies Peter McKenna and Rene Kink, who are supporting the day as ambassadors.