Covid-19 News Updates

Challenger bank Tyro Payments sees transactions grow despite Covid-19

The macro-trend of neobanking has so far held up well against the economic headwinds of Covid-19, with challenger bank Tyro Payments (ASX: TYR) continuing to grow its transaction volume over the past three weeks.

The latest numbers from March 1-20 show processed transactions were up 20 per cent year-on-year at $1.19 billion.

This does however represent a slight slowdown on the 29 per cent growth recorded in February, when volumes hit $1.785 billion.

Tyro, which provides payments and banking solutions to more than 32,000 merchants including many SMEs, has emphasised its commitment to supporting merchants in these unprecedented times.

"Whilst we welcome the Federal Government's initiatives announced on 21 March 2020 designed to assist SMEs impacted by COVID-19, we do know many of our merchants are continuing to find the current environment extremely challenging and some, particularly in the hospitality vertical, are severely impacted," the company said in an announcement to the ASX today.

"We have implemented measures to provide such assistance we possibly can to support those of our merchants experiencing hardship.

"We also continue to operate on a business as usual basis providing the level of service, availability and support our merchants have come to expect from our team - with increased customer support teams in place 24 hours a day to assist our merchants."

Due to the current uncertainty around Covid-19, in the interests of transparency Tyro Payments has pledged to provide weekly transaction values updates for the remainder of FY20.

"This is a temporary measure introduced to address the unusual operating environment we face and to provide transparency as to the impact on our operations. Going forward these updates will be provided on the first ASX trading day of each week.

"Tyro remains in a strong financial position, with cash, cash equivalents and financial investments available at the end of February 2020 of $154 million (excluding net banking funds).

"This compares to a balance of $149 million as at 31 December 2019 (excluding net banking funds)."

Led by CEO Robbie Cooke, formerly of Tatts Group and Wotif fame, Tyro Payments listed on the ASX in mid-December backing from the likes of Mike Cannon-Brookes' investment vehicle Grok Ventures and Euclid Capital Partners managing director Danita Lowes.

TYR shares were up 9.81 per cent at $1.175 at 1:10pm AEDT.

Updated at 1:12pm AEDT on 25 March 2020.

InvoCare shares plunge on funeral limits

Funeral home operator InvoCare (ASX: IVC) is dead set on not letting last night's new social distancing measures be the nail in the coffin for business.

As part of the government's wide-reaching restrictions, funerals will not be allowed unless there are no more than 10 people in attendance and only one person per four square metres.

InvoCare, which also runs cemeteries and crematoria, saw its shares plummet by almost 16 per cent to $9.42 by 12:30pm AEDT.

Chief executive officer Martin Earp says the current restrictions will affect the company's ability to offer a full range of services to client families.

"We are now focusing on implementing a series of contingency plans to both reduce the impact of COVID-19 on our business and allow us to continue to meet the needs of our client families during this unprecedented crisis," says Earp.

"I would like to reassure families we will continue to arrange funeral and memorial services."

To keep services operating, InvoCare will have live streaming and webcast recording options available in many locations.

"We want to ensure those family, friends and colleagues who are unable to attend a funeral service due to the current social distancing and quarantine requirements that they feel part of the farewell," says Earp.

"We are focussing on the introduction of services to meet the needs of client families amidst the restrictions on social gatherings. 

"We will continue to offer a 24-hour 7 day a week service to assist our client families and the community."

InvoCare has implemented a raft of measures designed to prevent the spread of Covid-19 across its operations in Australia, New Zealand and Singapore. This includes activating reserve mortuaries to ensure that cases of Covid-19 are kept separate from the core business.

Like so many companies on the ASX, InvoCare's shares have been hit hard over the past month. A strong performance for 2019 reported on 26 February lifted shares by 13 per cent in one day to $14.57, but since then they have progressively declined. 

Updated at 12:40pm AEDT on 25 March 2020.

National Covid Coordination Commission to connect public and private sectors

A new commission established today by Prime Minister Scott Morrison will seek to connect the public and corporate sectors in Australia to help manage the ongoing Covid-19 crisis.

Headed up by Neville Power (pictured), the former CEO of Fortescue Metals Group and current chairman of Perth Airport and the Royal Flying Doctors Service of Australia, the National Covid Coordination Commission will advise the Government on how Australia's companies can assist the public sector's effort in a variety of ways.

The board of the Commission includes:

• Greg Combet (former Australian politician and trade unionist)
• Jane Holton (former head of the Australian Finance Department)
• Paul Little (former head of Toll Holdings)
• Catherine Turner (the head of Energy Australia)
• David Thody (the chair of the CSIRO and former head of Telstra)
• Phil Gaetjens (the secretary of Prime Minister and Cabinet)
• and Mike Pezzullo (the secretary of the Home Affairs Department)

"Whether it's ensuring we get food to supermarkets, and ensure the supply lines remain open there and the trucks can rollout when they need to rollout...these are the many challenges that we need to face," says PM Morrison.

Elective surgeries cancelled

The Prime Minister's National Cabinet has also decided today that from Midnight 25th March all elective surgeries will be suspended in public and private hospitals.

Category one elective surgeries and urgent category two elective surgeries will be exempt from the suspension.

"The cancellation of elective surgery will allow for the preservation of resources including personal protective equipment and allow health services provided to the public to prepare for their role for the Covid-19 outbreak," says PM Morrison.

Updated at 12:38am AEDT on 25 March 2020.

Star Entertainment Group stands down 90 per cent of workforce

Covid-19 gathering restrictions have forced Star Entertainment Group (ASX: SGR) to temporarily stand down 90 per cent of its 9,000 strong workforce.

The impact of social distancing measures announced by the Federal, New South Wales, and Queensland Governments forced Star to close its gaming facilities, and food and beverage, banqueting and conferencing offerings on Monday.

This will have a material impact on Star's operations and its three properties The Star Sydney, Treasury Brisbane, and The Star Gold Coast.

"This is a unique environment and one beyond our control in which we're determined to balance the necessary measures needed to protect the business while considering the considerable human impact to our workforce," says SGR chairman John O'Neill.

The 8,100 staff stood down, which includes those in senior management roles, will be given two weeks of paid pandemic leave. In addition these employees will be able to access any accrued annual and long service leave entitlements.

The board and senior management will also forego a percentage of entitled directors' fees and salaries respectively.

Updated at 11:10am AEDT on 25 March 2020.

Virgin Australia cuts domestic capacity by 90 per cent, suspends all Tigerair services

Airline Virgin Australia Group (ASX: VAH) will extend its domestic capacity reductions from 50 per cent to 90 per cent and suspend all Tigerair Australia domestic services effective immediately.

The measures come as many Australian states and territories make the decision to close borders, forcing around 125 Virgin aircraft to be temporarily grounded.

Because of the cuts, approximately 80 per cent of VAH's workforce - or 8,000 out of a total 10,000 staff - will be temporarily stood down.

The remaining 10 per cent domestic capacity will be retained for transportation of essential services, critical freight and logistics.

The cuts follow Virgin's decision to suspend all international flying from 30 March to 14 June 2020, and close all Virgin Australia operated lounges across the network.

"There has never been a travel environment in Australia as restricted as the one we see today and the extraordinary steps we've taken have been in response to the federal and state government's latest travel advice," says Virgin Australia CEO and managing director Paul Scurrah.

"We are now facing the biggest grounding of aircraft in this country's history. From the end of this week we will be repositioning and grounding more than 125 aircraft in our fleet, suspending almost all our domestic and international flying until at least the middle of June."

"I am only too aware of how much our people are hurting at the moment and these very tough decisions have weighed heavily on me and my leadership team. We are talking to our teams and we are working hard to do what we can to protect jobs and extend payments for as long as possible."

The 90 per cent reduction to the group's flight network means it will suspend services to 19 Australian destinations currently operated by the airline.

VAH team members that have been stood down have been asked to access accrued leave entitlements or take leave without pay.

Virgin Australia guests who are booked to travel between now and June 30 are encouraged to visit the Virgin Australia customer care hub at virginaustralia.com to request a travel credit or obtain more information about their options.

Elsewhere in the aviation industry, Qantas (ASX: QAN) has today announced a new round of debt funding, securing $1.05 billion in additional liquidity to strengthen its position to weather the coronavirus storm.

This debt has been secured against part of the Group's fleet of unencumbered aircraft, which were bought with cash in recent years. The loan has a tenure of up to 10 years at an interest rate of 2.75 per cent.

This funding increases the Group's available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.

"Over the past few years we've significantly strengthened our balance sheet and we're now able to draw on that strength under what are exceptional circumstances," says Qantas CEO Alan Joyce.

"Everything we're doing at the moment is focused on guaranteeing the long term future of the national carrier, including making sure our people have jobs to return to when we have work for them again."

Updated at 9:22am AEDT on 25 March 2020.

PM bans all overseas travel, restrictions on funeral attendance, penalties for profiteers

On Tuesday evening the Prime Minister held another Covid-19 press conference during which he sought to clarify the Federal Government's position on social distancing measures and travelling overseas.

Australians looking to leave the country will now be prohibited to do so under the Federal Government's powers in the Biosecurity Act.

The National Cabinet hopes this ban will reduce the risk of Australians returning to the country infected with coronavirus.

There are exemptions to the rule including for those citizens ordinarily resident overseas, where travel is essential or necessary, where travel is in Australia's national interest, and on compassionate and humanitarian grounds.

The PM and his National Cabinet have clarified the social distancing rules, building on the existing measures that are in place.

From 11.59pm (local time) tonight the following activities and venues will be prohibited:

• Cafes (with the exemption of takeaway or home delivery)
• Food courts (with the exemption of takeaway or home delivery)
• Auction houses
• Real estate auctions and open house inspections (with the exemption of private appointments for inspection)
• Hairdressers and barber shops (with the exemption that appointments take less than 30 minutes and the one person per four square metre rule applies)
• Beauty therapy, tanning, waxing, nail salons, tattoo parlours
• Spas and massage parlours
• Cinemas, nightclubs
• Casinos, gaming or gambling venues
• Concert venues, theatre, arenas, auditoriums, stadiums (with the exemption of live streaming which may be permissible with social distancing observed)
• Amusements parks and arcades
• Play centres (indoor and outdoor)
• Community and recreation centres (with the exemption of opening for the purpose of hosting essential voluntary or public services, such as food banks or homeless services)
• Health clubs, fitness centres, yoga, barre and spin facilities, saunas, bathhouses and wellness centres
• Boot camps, personal training operating outside and inside (with the exemption of outside events limited to no more than 10 people and social distancing must be exercised)
• Social sporting-based activities
• Swimming pools
• Galleries, museums, national institutions and historic sites
• Libraries, community centres, and youth centres
• Local government non-essential facilities and services
• Community facilities (such as community halls, clubs, RSLs, PCYCs)
• Places of worship
• Weddings (with the exemption of weddings with a maximum attendance of no more than five people and where the one person per four square metre rule applies)
• Funerals (with the exemption of funerals attended by a maximum of no more than 10 people and where the one person per four square metre rule applies).

"These will be significant sacrifices, I know," says PM Scott Morrison.

"We've all been to those events as extended families and gatherings and gathering together in that way, even around the large family table in the family home when all the siblings get together and bring the kids, these are not things we can do, now.

"All of these things present risks and they obviously present them to the elderly members of our families as well, who we need to protect."

The Federal Government has also announced it intends to take action against those exploiting panic and anxiety by profiteering off essential goods.

"These measures will help prevent individuals purchasing goods including face masks, hand sanitiser and vital medicines and either re-selling them at significant mark-ups or exporting them overseas in bulk, which prevents these goods from reaching people who need them in Australia," says the Federal Government.

The measures come as Australia records 2,144 confirmed cases of Covid-19.

There are 913 cases in NSW, 411 in VIC, 397 in QLD, 175 in WA, 170 in SA, 39 in ACT, 34 in TAS, and 5 in NT.

Eight people in total have died in Australia from the novel coronavirus.

Updated at 8:33am AEDT on 25 March 2020.

Justin Hemmes "completely heartbroken" as Merivale venues close

Hospitality entrepreneur Justin Hemmes has responded to the "devastating time" the industry is experiencing with the shutdown of all of Merivale's 70-plus venues, potentially putting 3,000 jobs at risk. 

Hemmes, whose company owns such iconic bars and restaurants as Establishment, ivy and the Coogee Pavilion, wrote a letter to guests today explaining trading had ceased as of yesterday.

"As a result of the recent government orders to combat COVID-19, our restaurants and bars have ceased trading as of yesterday for the foreseeable future," he said.

"This is the extremely unfortunate reality of COVID-19 and all Australians are being severely impacted through no fault of their own.

"It is a particularly devastating time for the hospitality industry, but nothing is more important than health. We wholeheartedly support government efforts to protect our country and will happily play our part to help stop the spread."

The company's bottle shops at The Newport, Allawah Hotel and The Royal will however remain open.

He said now that this decision has been made for community health and safety, his absolute top priority is supporting staff.

"Merivale is what it is today because of its people, and I am simply in awe of our team's passion and strength, especially over the last few weeks," Hemmes said.

"Behind the scenes, we are doing everything we can to get the business in the best possible position to reopen its doors, and help rebuild our economy, as soon as it is safe to do so.

"We will continue to update you on developments, including how we can continue to operate under the government's new takeaway and home delivery guidelines, in the hope we can continue to serve you safely and maintain a livelihood for as many of our much-loved employees as possible."

"I am completely heartbroken that this is happening but remain focused on the light at the end of the tunnel.   Together we will get through this and I can't wait to personally welcome you all back into our venues as soon as it is safe.

Updated at 7:22pm AEDT on 24 March 2020.

ResMed ramps up ventilator production to tackle Covid-19

Sleep apnoea treatment company ResMed (ASX: RMD) is one of Australia's great medical technology success stories, founded in Sydney by Dr. Peter Farrell in 1989 and now with offices all over the world.

Dual-listed on the New York Stock Exchange (NYSE), the company is headquartered in San Diego, California but has a state-of-the-art, 30-acre innovation and manufacturing center in the Greater Western Sydney suburb Bella Vista.

ResMed is a global leader in its field of expertise, but like Ford, GM and Tesla it is stepping up to the plate to help fill demand for other medical supplies, especially ventilators which are critical for treating severe cases of the virus.

"As a global leader in respiratory medicine, ResMed stands with the world in the face of the latest coronavirus disease COVID-19 and is ready to help mitigate its effects, helping people breathe while their immune system fights this virus," says ResMed CEO Mick Farrell, the founder's son.

"More than 7,500 ResMedians are working in over 140 countries for this purpose. We are working with governments, health authorities, hospitals, physicians, and patients worldwide to assess their needs, and to deliver the ventilation therapy that is essential to treat the respiratory complications of Covid-19.

"Our primary focus is to maximize the availability of ResMed ventilators and other respiratory support devices for the patients that need them most."

He says the company is taking "every measure possible" worldwide to maximise the production of ventilators, masks, and other respiratory devices.

"We are looking to double or triple the output of ventilators, and scale up ventilation mask production more than tenfold," says the executive.

"As global leaders in digital health, we're proud that many of our ventilators and bilevel respiratory devices are cloud-connected, enabling physicians and respiratory specialists to remotely monitor their patients.

"There could not be a clearer case for the use of digital health and remote monitoring of patients than this current crisis with a virus that is so contagious stemming from direct human contact."

Farrell expresses his gratitude to the global ResMed team for working through today's challenges to help treat an increasing number of Covid-19 patients.

"I'd like to call out first-responder ResMedians in China's Hubei province, the epicenter of the coronavirus outbreak, in particular one ResMed hero who, since early January, has donned a positive pressure hazmat suit, and helped set up thousands of people on ResMed ventilators and ResMed masks," he says.

"There are also 100-plus ResMedians from Malaysia who in mid-March volunteered to keep working in our Singapore manufacturing plant when Malaysia closed its borders, relocating to live near our plant in Singapore, spending weeks away from their families, so they can continue to produce as many lifesaving ventilators and ventilation masks as possible."

Updated at 6:53pm AEDT on 24 March 2020.

Wuhan residents will be allowed to leave

Almost four months after the world's first reported cases of Covid-19 in the central Chinese city of Wuhan, authorities are now reportedly preparing to lift outbound travel restrictions for residents.

Last week the city reported no new daily cases for the first time, and CGTN cites reports from the Wuhan Health Commission that there has only been one new reported case over the past six days - a local doctor.

This afternoon the publication reported Hubei provincial health authorities have announced residents would be allowed to leave starting 8 April.

A total of 60,323 patients have reportedly recovered from Covid-19 in the province while in Wuhan there are still 4,200 patients under treatment, of whom 1,203 were in severe condition and 336 were in critical condition.

To date there have been 3,160 recorded deaths from the virus in Hubei.

Updated at 5:15pm AEDT on 24 March 2020.

Guidance withdrawal update: Cleanaway, Cardno, GWA, Bapcor

Cleanaway Waste Management (ASX: CWY), bathroom and kitchen fixture distributor GWA Group (ASX: GWA) and engineering outfit Cardno (ASX: CDD) are among the major companies to withdraw earnings guidance today due to uncertain market conditions with Covid-19.

Other companies that withdrew guidance today include Seven West Media (ASX: SWM), Retail Food Group (ASX: RFG), Pacific Smiles Group (ASX: PSQ). Bapcor (ASX: BAP) and Aventus Group (ASX: AVN).

Click here for a full list of companies that have suspended or withdrawn their guidance for FY20.

Cleanaway's CEO and managing director Vik Bansal highlighted his company's role in providing essential services to customers including municipal councils, government infrastructure, hospitals and more.

"We have not observed any decline in overall trading in any of our operating segments to date," Bansal said.

"However, as the COVID-19 situation evolves and uncertainty increases, we expect the SME part of our C&I waste volumes to be impacted.

"At this stage, we expect the demand for other services, such as health, municipal collections and related post-collections services to remain strong."

GWA actually noted trading to date for the second half was in line with expectations and better than the trend in the first half.

"GWA is well positioned to manage through these unprecedented events and we continue to take decisive action to proactively manage the business through this period," said CEO and managing director Tim Salt.

"Our primary focus is to ensure the health and safety of our employees. We have implemented business continuity plans internally and with our suppliers to minimise disruption to the business and our customers.

"We are in a strong supply position with ample inventory to supply all key products to customers."

Salt noted the company had a three-year multicurrency revolving facility of $210 million which matures in October 2022, as well as a $40 million revolving bilateral facility which matures in October 2020.

Cardno has found trading results over the past 8.5 months have been consistent with guidance previously provided, but as client sites, client staff and the company's own staff self-isolate or are quarantined around the world, there is potential for its project delivery schedule to be impacted in the short to medium term.

"Cardno is committed to supporting our people and our clients around the world as we collectively navigate our way through the challenges posed by COVID-19," said Cardno CEO and managing director Susan Reisbord.

"While we have our eyes very much focused on the long term, our immediate priority is to ensure the safety and well-being of our people, our clients and our stakeholders around the world.

"We are working with our clients to ensure that we can continue to deliver projects and solutions with as little disruption as possible."

Auto aftermarkets part provider Bapcor - known for brands including Autobarn, Midas and Opposite Lock - notes sales in its Burson trade segment have continued to be strong, and the overall business has performed in line with expectations.

But like so many others, the company has found it prudent to withdraw guidance, particularly as there have been business closures in New Zealand, Thailand and Australia.

"Bapcor's businesses provide a critical service for the community in ensuring that replacement and service parts are available for cars and trucks, including emergency services vehicles," said Bapcor chief executive officer Darryl Abotomey.

"Bapcor's team members are dedicated to ensuring they have available the parts and services that are necessary to keep the nation's vehicles, including cars, light and heavy duty trucks and emergency vehicles operating.

"To ensure the safety of our team members and our customers, additional levels of precautions are being undertaken. However the business is not immune from the impacts of the shut downs that are occurring and the drastic actions being undertaken to contain Covid-19."

Updated at 6pm AEDT on 24 March 2020.