Covid-19 News Updates

Reliance rises as US sales rebound

Plumbing supplies company Reliance Worldwide (ASX: RWC) is bouncing back after a slow FY20, with US sales up 22 per cent in July.

The company's optimism for the future follows a soft financial year, during which RWC reported net profit after tax of $89.4 million, down 33 per cent.

RWC's results were largely impacted by COVID-19, with just 5 per cent growth in reported net sales during the year after the company's UK and European sales dived.

However, the company performed well in the US, with 11 per cent second half sales growth, and 6 per cent growth for the year overall.

Despite a slowdown in Australian new residential construction during the initial COVID-19 market disruption, the company's Asia Pacific sales were up 2 per cent.

"Our performance this year has been impacted by what occurred in the second half with COVID-19, with sales trends varying by region reflecting the differing market responses to the pandemic," says RWC CEO Heath Sharp.

"In contrast to the US, sales in EMEA (Europe, the Middle East and Africa) were down 20 per cent in the second half as UK and Continental Europe curtailed business activity in response to COVID-19.

"We significantly reduced manufacturing and distribution activity in the UK and Europe for a period, including placing over 400 employees on furlough."

The impacts of COVID-19 appear to be wearing off for RWC, with sales in the US 22 per cent higher in July than for the same month last year.

As a result, shareholders have responded positively, sending the company's shares up by 21.6 per cent at 10:15am AEST.

In APAC, external sales in July are slightly ahead year on year, and EMEA sales in July were 96 per cent of the same month in 2019.

RWC also generated $217.9 million in earnings in FY20, impacted by restructuring and impairment charges of $33.4 million.

The plumbing supplies group today declared total dividends for FY20 of 7 cent per share, despite RWC receiving wage subsidies of $4.1 million across EMEA, $300,000 in New Zealand and $200,000 in Canada.

Due to ongoing uncertainty surrounding market demand and potential impacts of further COVID-19 outbreaks RWC will not provide earnings guidance for FY21.

Updated at 11:51am AEST on 24 August 2020.

Qantas lets go of international CEO Tino La Spina

With overseas flights unlikely to be reactivated until FY22 except for New Zealand, Qantas Group (ASX: QAN) has today announced the departure of the boss in charge of its international business.

Tino La Spina will leave the company on 1 September following 14 years of service, having previously held the position of CFO before taking on the international CEO role in May last year after Alison Webster resigned.

The nation's most iconic airline has made 6,000 staff redundant in response to COVID-19 and associated travel restrictions, as well as the grounding of its fleet as part of a $15 billion cost saving strategy.

Today's announcement may increase that figure by a few million dollars. La Spina's responsibilities will be transferred to the group's domestic CEO Andrew David, who also handles Qantas Freight.

"The COVID crisis is forcing us to rethink our business at every level. It's increasingly clear that our international flights will be grounded until at least mid-2021 and it will take years for activity to return to what it was before," says group CEO Alan Joyce.

"Under those circumstances, we've made the decision to consolidate the domestic and international business units under a single divisional CEO.

"Tino has done a superb job throughout his 14 years at Qantas. He's a talented executive who brings his trademark enthusiasm to every challenge. I know I speak for the rest of the executive team and for the Board in thanking him sincerely for the huge contribution he has made, particularly as Deputy CFO and then CFO for most of that time."

Investors appear to have responded negatively to the news, with QAN shares down 4.36 per cent at $3.73 at 11:30am AEST. 

Updated at 11:31am AEST on 24 August.

Health warning issued for Indooroopilly Shopping Centre, Brisbane youth detention cluster grows

Queensland Health has implemented urgent protection measures over the weekend after nine more people linked to the Brisbane youth detention centre cluster tested positive for COVID-19.

As such, a number of public health warnings have been issued, including for the Indooroopilly Shopping Centre, Ikea (Slacks Creek), Westfield Carindale, and the Ipswich Hospital.

There are now 10 confirmed COVID-19 cases linked to the youth detention centre cluster, including one new case confirmed this morning.

Queensland currently has 18 active cases of COVID-19 after the state confirmed 11 new infections of the coronavirus over the weekend.

Chief Health Officer Dr Jeannette Young implemented new restrictions on aged care and other heath care facilities and hospitals across Greater Brisbane, and Ipswich and surrounds on Saturday.

The measures put in place on the weekend across the West Moreton, Metro North and Metro South Hospital and other health services include:

• Residential aged care and disability accommodation services were placed into effective lockdown with visitors being restricted,
• Public and private emergency departments were instructed to use PPE to treat all patients,
• Public and private hospitals were also asked to restrict visitors as soon as possible.

Further, gatherings in homes and in public have been restricted to 10 people in the following local government areas: City of Brisbane, City of Ipswich, Logan City, Scenic Rim Region, Somerset Region, Lockyer Valley Region, Moreton Bay Region, Redlands City.

"This is a very significant issue and we need people to take it seriously," Dr Young said.

"Visits to aged and other care facilities in those areas need to again be postponed.

"Movement of staff between facilities needs to be reduced as much as reasonably possible."

The complete list of venues where cases linked to the Brisbane youth detention centre cluster visited now includes:

Forest Lake

• 9 August 2020, IGA Express, Forest Lake, ~6.30am-~6.40am
• 10 August 2020, Coles, Forest Lake Shopping Centre, Forest Lake, ~10.00am ~10.15am
• 10 August 2020, Woolworths, Forest Lake Shopping centre, Forest Lake, unknown times
• 12 August 2020, Lakeside Fruit Barn, Forest Lake Shopping Centre, Forest Lake, 4pm-~4.30pm
• 12 August 2020, Woolworths, Forest Lake Shopping centre, Forest Lake, ~4:30pm-~5pm
• 13 August 2020, Australian Nails, Forest lake Shopping Centre, Forest Lake, 11am-~12am
• 13 August 2020, Forest lake Shopping Centre, Forest Lake, 11am-3pm
• 13 August 2020, Fig Tree Bakehouse, Forest Lake Shopping Centre, Forest Lake, 12pm-unknown
• 13 August 2020, Nandos, Forest Lake Shopping Centre, Forest Lake, after 12pm-unknown
• 14 August 2020, Aldi, Forest Lake Village Shopping Centre, Forest Lake, ~4pm-~4.30pm
• 14 August 2020 Coles, Forest Lake Shopping Centre, Forest Lake, ~4pm-~4:30pm
• 21 August 2020, Woolworths, Forest Lake Shopping centre, Forest Lake, ~10:30am-~10:45am
• 21 August 2020, The Chop Shop (Butcher), Forest Lake Shopping Centre, Forest Lake, ~10.45am-~11.15am
• 21 August 2020, Best & Less, Forest Lake Shopping Centre, Forest Lake, ~10.45am-~11.15am

Browns Plains

• 9 August 2020, Anytime Fitness Village Square, Browns Plains, 11am-12:10pm
• 9 August 2020, Woolworths, Browns Plains Grand Plaza, Browns Plains, 11am-12pm
• 10 August 2020, Spotlight, Browns Plains, ~9:30am-~9:45am
• 10 August 2020, Anytime Fitness Village Square, Browns Plains, 10:15am-11:25am
• 10 August 2020, Woolworths, Browns Plains, Grand Plaza Browns Plains, ~11am-~12:30pm
• 12 August 2020, Coles, Browns Plains, Grand Plaza, Browns Plains, ~7:15pm-unknown
• 14 August 2020, OfficeWorks Browns Plains, ~10am-~10:10am
• 14 August 2020, Coles, Browns Plains, Grand Plaza Browns Plains, After 10am before 11am
• 14 August 2020, Anytime Fitness, Village Square Browns Plains, 2:20pm-3:30pm
• 14 August 2020, Bunnings, Browns Plains, ~2:30pm-~3pm
• 15 August 2020 K-Mart, Browns Plains Grand Plaza, Browns Plains, ~9:30am-~9:45am
• 15 August 2020 Anytime Fitness, Village Square Browns Plains, 10:25am-11:35am
• 16 August 2020 Coles, Browns Plains Grand Plaza, Browns Plains, ~10:30am-~11am
• 16 August 2020 Anytime Fitness, Village Square Browns Plains, 1:20pm-2:30pm
• 19 August 2020, Woolworths, Browns Plains Grand Plaza, Browns Plains, ~9:30am-unknown

Greenbank

• 10 August 2020, Greenbank Takeaway, Greenbank, 5:30pm-5:40pm
• 17 August 2020, Greenbank Takeaway, Greenbank, ~6:30pm-~6:40pm

Wacol

• 11 August 2020, BP Wacol (Cnr Boundary & Progress Rds), Wacol ~6am-~6:15am
• 18 August 2020, BP Wacol (Cnr Boundary & Progress Rds), Wacol, Evening

Mt Gravatt

• 11 August 2020, Mt Gravatt Swimming Pool, Wecker Rd (updated), Mt Gravatt, 11.25am-12.05pm
• 11 August 2020, Dami Japanese Restaurant, Mt Gravatt, ~12pm-unknown

Carina Heights

• 12 August 2020, Thai Antique, Carina Heights, 6pm-6:15pm

Slacks Creeek

• 14 August 2020, Ikea, Slacks Creek, 11am-2pm

Marsden

• 14 August 2020, Woolworths, Marsden on Fifth shopping centre, Marsden, ~11:15am-~11:30am
• 16 August 2020 Woolworths, Marsden on Fifth shopping centre, Marsden, ~10am-~10:15am
• 20 August 2020, Woolworths, Marsden on Fifth shopping centre, Marsden, ~10am-~10:15am

Ipswich

• 16 August 2020, Riverlink Shopping Centre, Ipswich, Morning
• 16 August 2020, The Reject Shop, Ipswich, Morning
• 16 August 2020, Jamaica Blue coffee shop, Ipswich, Morning
• 19 August 2020 - 20 August 2020, Ipswich Hospital ED, Ipswich, 11:00pm-6:19am

Indooroopilly

• 17 August 2020, Indooroopilly Shopping Centre, Indooroopilly, 11:00am-1pm
• 17 August 2020, BUPA, Indooroopilly, 11:00am-1pm
• 17 August 2020, Origin Kebabs, Indooroopilly, 11:00am-1pm
• 19 August 2020, Indooroopilly shopping Centre, Indooroopilly, 1pm-4pm
• 19 August 2020, Myer, Indooroopilly, 1pm-4pm
• 19 August 2020, David Jones, Indooroopilly, 1pm-4pm
• 19 August 2020, Touch of Indian, Indooroopilly, 1pm-4pm
• 19 August 2020, Sweets from Heaven, Indooroopilly, 1pm-4pm

Bundamba

• 17 August 2020, Costco Bundamba self-service fuel station, Bundamba, Afternoon-Afternoon

Greenslopes

• 18 August 2020, BCF Greenslopes, ~12:30pm-~1pm
• 18 August 2020, Rock and Roll Butcher, (Formerly Brisbane Bulk Meats), Logan Rd, Greenslopes, 1pm-Unknown
• 19 August 2020, The Jam Pantry, Greenslopes, 10:30am-11:45am

Crestmead

• 18 August 2020, Chemist Warehouse (Waratah Dr), Crestmead, Afternoon

Brassall

• 18 August 2020, Uncle Bill's Takeaway, Brassall, 5:45pm-6:15pm

Birkdale

• 19 August 2020, 12 RND Fitness, Birkdale, 8am-9:30am

Sherwood

• 19 August 2020, Red Cross Op Shop, Sherwood Rd, Sherwood, 12.30pm-~1pm
• 19 August 2020, Newsagent in Sherwood, Sherwood Rd, Sherwood, 1.10pm-~1.20pm

Carindale

• 19 August 2020, Westfield Carindale Shopping Centre, Carindale, ~1pm-~3pm
• 19 August 2020, Bras 'n' Things, Westfield Carindale, Carindale, ~1pm-~3pm
• 19 August 2020, Ghanda clothing, Westfield Carindale, Carindale, ~1pm-~3pm
• 19 August 2020, Myer, Westfield Carindale, Carindale, ~1pm-~3pm

Camp Hill

• 19 August 2020, Baskin Robbins, Camp Hill Market Place, Camp Hill, ~5:30pm-~5:40pm
• 19 August 2020, Pho Inn, Camp Hill Market Place, Camp Hill, ~5:30pm-~5:40pm

Updated 9:29am AEST on 28 August 2020.

E-commerce native Redbubble sees earnings more than quadruple

Print-on-demand fashion and art marketplace Redbubble (ASX: RBL) has seen its niche offering ride the rise of e-commerce during FY20, with earnings up by 358 per cent during the period to $5.1 million.

The company says its FY20 financial result reflects a positive shift to online retail, which saw its marketplace recording revenue of $349 million, up 36 per cent.

However, despite the company's ability to tap into e-commerce bonanza, the group still reported a loss of $8.8 million, which was down from a $27.6 million loss in FY19.

"RB Group's on-demand fulfilment model and differentiated consumer offerings provide us with distinctive advantages," says Redbubble CEO Martin Hosking (pictured).

"The strong financial performance follows from these fundamentals. It has been pleasing to see the acceleration of existing trends in the last few months.

"2021 represents a year of opportunity for the business. We are positioned to build on a decade of momentum and aggressively pursue the global opportunity presented by the shift to online activity and increasing adoption of e-commerce platforms."

Redbubbles' revenue growth was particularly strong during the fourth quarter when COVID-19 lockdowns and restrictions were implemented by governments worldwide.

COVID-19 initially resulted in sales volatility and a reduction of demand for Redbubble's goods, however, after this initial decline, the group benefitted from an acceleration in online activity.

Gross profits of $134.9 million strengthened over the course of FY20 following the onboarding of additional fulfilment capacity in Europe, Canada and the United States.

The financial year was also the first full year of TeePublic's inclusion in the group's results following Redbubble's acquisition of the t-shirt marketplace in October 2018.

Because Teepublic operates in a similar economic environment to Redbubble's main marketplace the revenue results for the two were bundled. Together, they generated $416 million in revenue for the umbrella company.

During the year there were 551,000 selling artists on the Redbubble platform, up 51 per cent, and artist earnings were $67 million, up 35 per cent.

The company now has 6.8 million unique customers, with repeat consumers accounting for 40 per cent of marketplace revenue.

Redbubble says the new financial year has started strongly, with July marketplace revenue growth more than doubling in July, and similar sales levels in the first two weeks of August.

The company has not paid and does not propose to pay dividends for the year ended 30 June 2020.

At the year end, Redbubble retained a cash balance of $58 million - an increase of $29 million.

Shares in Redbubble are up 0.28 per cent to $3.56 per share at 11:15am AEST.

Updated at 11:51am AEST on 21 August 2020.

Smiles Inclusive has three weeks to cough up $12m to NAB

For at least 14 months struggling Gold Coast-based company Smiles Inclusive (ASX: SIL) has barely put a dent into a $19 million debt to National Australia Bank (NAB), despite capital raisings and asset sales. 

Now the dental practice network, having burned around $7 million in cash in FY20, is expected to pay back more than $12 million of that amount by 11 September.

The outstanding debt to NAB includes a temporary $330,750 JobKeeper facility.

In a release yesterday, Smiles Inclusive said it was pleased to announce it had agreed to finalise the banking relationship with NAB under a formal release deed.

NAB agreed to release and discharge Smiles from liability under its various banking facilities on receipt of the $12 million and a $347,658 credit card facility by 11 September, and the JobKeeper facility within two business days of the company receiving ATO funds for September.

The company explains the deal was reached as part of a recapitalisation plan, and it noted various sales and consolidations had been reached but without providing dollar figures.

Smiles confirmed it had sold its Miranda and Yarram practices and the proceeds were used to reduce the NAB loan on 13 July and 12 August respectively - both payments prior to the 14 August when the balance stood at $19.29 million.

The company has also restructured its dentures and mobile divisions, resulting in the consolidation of 15 tenancies as part of a portfolio simplification and operational effectiveness plan.

Smiles Inclusive chief executive officer Michelle Aquilina explained the company was in advanced discussions with a professional underwriter to raise capital for the company, with a target completion date by the end of September 2020.

"We remain focused on our goals to manage our core business efficiently and effectively to maximise shareholder value," she said.

"The results to date have demonstrated the efforts, commitment and professionalism from our people during these challenging times and I am sincerely thankful to them."

The group also clarified that its long-awaited audited first half results - whose delay is the cause of a long-running suspension from trading - are just around the corner. 

"The Company expects the audit review of the interim financial statements for the half-year ended 31 December 2019 to be completed by no later than 31 August 2020," Smiles Inclusive said.

"The full year audit work for the year ended 30 June 2020 is in progress and the Company expects to have this finalised shortly in the near future.

"The Company will also be lodging Appendix 4C cash flow statements monthly and looks forward to providing the regular cash flow updates going forward."

ASX raised concerns over lodging of Aquilina's appointment

Yesterday's announcements come almost a week after Smiles' response last Friday to an ASX query regarding why formal documentation regarding Michelle Aquilina's CEO appointment was lodged almost four months late.

While Smiles Inclusive had reported on Aquilina's appointment in April following the departure of former CEO Tony McCormack, it lodged the Appendix 3X with more details on 11 August.

"As the Notice indicated that Ms Aquilina was appointed on 9 April 2020, it appears that the Notice should have been lodged with ASX by 20 April 2020," the ASX said in its query.

"As the Notice was lodged on 11 August 2020, it appears that SIL may have breached listing rules 3.19A and/or 3.19B.

"It also appears that Ms Aquilina may have breached section 205G of the Corporations Act 2001 (Cth)."

In its response, Smiles explained the late lodgement was an administrative oversight as the company was in the midst of managing the COVID-19 crisis.

"The lodgement of the Appendix 3X under Listing Rule 3.19A.1 was a requirement that was inadvertently overlooked at the time of the appointment of Ms Aquilina as CEO and Managing Director," the company said.

The company's filing also included information on Aquilina's remuneration of $360,000, which is 26 per cent more than her predecessor McCormack who was on $285,000. 

In order to ensure compliance with listing rules, Smiles noted it had an external consultant in place who provides company secretarial services to the company. The group has been without a CFO since mid-May, but in a letter to shareholders yesterday chairman David Usasz said the company was in the final stages of appointing one.

Usasz added the proposed EGM to replace all of Smiles' existing directors represented an unnecessary distraction and cost for the company.

"A change of directors at this time would be disruptive, if not disastrous," he said.

"The call comes at a time when the Directors and management are leading a major turnaround in the operational and financial performance of the company to ensure a sustainable future and enhance shareholder value."

"The Requisitioning Shareholders have nominated Dr Joao Camacho, Dr Philip Makepeace and Dr Arthur Walsh as their proposed replacement directors of the company."

He noted this latest call for an EGM came only 14 months after the last EGM requisitioned by some of the current party.

"At that EGM, Dr Camacho failed in his bid to be elected to the Board. Subsequently, Dr Camacho and others sought to requisition a second EGM to consider the same resolutions that failed at the first EGM," Usasz said.

"In effect, this latest call for an EGM is the third time that Dr Camacho has sought to remove the Directors and to be elected to the Board.

"Dr Camacho, Dr Makepeace and Dr Walsh have never been directors of a publicly listed healthcare company. They and the Requisitioning Shareholders have not put forward any plan to improve the Company's balance sheet or any plan for turning around the performance of the business to create sustainable growth.

"Dr Camacho, Dr Makepeace and Dr Walsh terminated their facilities and services engagement with the Company some months ago and no longer work with the Company."

Business News Australia

ASIC launches fees for no service cases against StatePlus Super, Westpac subsidiaries

The Australian Securities and Investments Commission (ASIC) has today commenced its third and fourth legal actions over 'fees for no service' (FFNS) behaviour, this time with StatePlus Super, Asgard Capital Management and BT Funds Management in the firing line.

Like ongoing cases launched over the past couple of years against National Australia Bank (ASX: NAB) and two of its wealth management companies, the latest civil penalty proceedings stem from the findings of the Royal Commission. 

The corporate watchdog alleges State Super Financial Services Australia (StatePlus Super) charged fees to at least 36,592 members for advice it did not provide, with potential penalties of between $1.7-2.1 million per contravention if the fund is judged guilty.

ASIC alleges that from 1 April 2013 to 30 June 2018, StatePlus:

• charged at least 36,592 members fees for financial advice it promised to provide (Fees for No Service) but did not provide. This included the promise of an annual financial planning review (Annual Review) and to contact members as part of the Annual Review;
• issued defective disclosure documents or statements that included promises to provide annual financial advice to members in circumstances that StatePlus did not have reasonable grounds for believing it could provide;
• failed to establish and maintain the appropriate internal procedures, measures and controls to ensure that, as far as reasonably practicable, it could provide or would be able to provide the promised annual financial advice; and contravened its overarching obligations as an Australian financial services (AFS) license holder to act efficiently, honestly and fairly.

Shortly after filing these proceedings in the Federal Court, ASIC commenced another case against Westpac subsidiaries Asgard and BT.

The regulator alleges Asgard charged adviser fees to 404 customers for financial advice that was not given, and both companies of making misleading representations in half-yearly or annual account statements regarding the charging of the adviser fees.

ASIC alleges that from September 2014 to August 2017:

• Asgard charged customers around $130,006 for financial advice after requests were made for customers' financial advisers to be removed from their product accounts and after the advisers ceased providing advice;
• In relation to superannuation products for which it is trustee, BT issued account statements which appeared to show that adviser fees were no longer being charged while the 'adviser fee' line item was removed from the account statement, an amount equal to that fee was added to the administration fee amount;
• In relation to an investor directed portfolio service (IDPS) for which it is the issuer, Asgard issued account statements which appeared to show that adviser fees were no longer being charged while the 'adviser fee' line item was removed from the account statement, an amount equal to that fee was added to the administration fee amount;
• The wrongly charged fees were retained by Asgard as revenue; and
• Asgard contravened its overarching obligations as an Australian financial services (AFS) license holder to act efficiently, honestly and fairly.

ASIC Deputy Chair Daniel Crennan QC was reserved in his statement about the new cases.

"Today, ASIC has commenced a 'fees for no service' case against BT and Asgard as well as commencing a 'fees for no service' case against StatePlus Super," Crennan said.

"Both cases, which relate to superannuation, were subject to cases studies in the Royal Commission, were investigated by ASIC's Office of Enforcement and have been brought by ASIC to the Federal Court for determination."

Concise statements for the notices of filing can be found here for StatePlus Super and here for the Westpac subsidiaries.

ASIC is also overseeing FFNS remediation programs involving other financial services licensees including Bendigo Financial Planning Ltd, Police Financial Services Ltd (trading as BankVic) and Yellow Brick Road Wealth Management Pty Ltd.

Photo courtesy of Adz, via Wikimedia Commons.

Business News Australia

$10m of emergency funding now available for Melbourne CBD businesses

From today, businesses based in Melbourne's CBD can apply for up to $5,000 in funding as part of the city's COVID-19 business support scheme.

Worth $10 million in total, the funding package includes $8 million in grants for business transformation and $2 million for mentoring and business support services.

The grants are available for businesses that:

• Have a valid ABN,
• Are a bricks and mortar business based in the CBD, Southbank or Docklands,
• Employ up to 50 full time equivalent staff, and
• Are a participant in the Federal Government's JobKeeper program.

Hospitality and entertainment businesses are not eligible for these particular grants, as they are able to receive funding through the Victorian Government's Small Hospitality Grants program.

Non-employing sole traders, political organisations, fundraising groups and government departments are also ineligible.

"These businesses are a critical part of the fabric of our city and they are more than just numbers on a balance sheet," said Melbourne Lord Mayor Sally Capp.

"They are Melburnians who have taken a risk to pursue a passion and provide employment for others.

"The continued viability and success of Melbourne businesses is critical to Victoria, as our economy accounts for one quarter of the overall Victorian economy."

The City of Melbourne anticipates the business transformation grants will support around 1,600 businesses.

Applications for the grants opened at 6am today via the City of Melbourne website, and will close at 11.59pm on Thursday 3 September.

Mentoring and business support will be available over the coming weeks.

Updated at 12:49pm AEST on 20 August 2020.

IDP Education overcomes disruption as profits rise on digital pivot

With a business that revolves around international students, IDP Education (ASX: IDP) could have easily been one of the scores of companies reporting losses due to COVID-19 travel restrictions. 

But the Melbourne-based group has done just the opposite, reporting a 29 per cent increase in EBITDA to $148.6 million.

While the company's English language testing and student placement levels in Australia were down, operations were buffered by IDP's digital strategy while declines were offset by a 52 per cent surge in multi-destination student placement revenue. 

IDP Education is led by Andrew Barkla, who according to the Australian Council of Superannuation Investors (ACSI) was the highest paid CEO on the ASX in FY19 with earnings of $37.76 million.

Financials revealed in today's FY20 results show fewer available CEO incentive options meant Barkla likely took home an estimated $11 million during the period, which would still place him - the head of a mid cap - amongst the nation's highest executive earners.

In today's announcement, Barkla commended his global team for delivering solid results, which in statutory terms led to a 3 per cent rise in NPATA despite the disruption to travel markets and student movements.

"Our results reflect strong momentum in the first of the half year, followed by a pivot towards disciplined capital management and product innovation in the second half," he said.

"Our recent investment in digital talent and our technology platform has enabled us to respond to COVID-19 restrictions with agility and customer centricity."

Adapting to a near-global shutdown of the International English Language Testing System (IELTS), which constitutes the majority of the group's revenue, the company rapidly rolled out an online IELTS test to help students progress applications where in-centre testing was suspended.

As a result, the company's English language testing segment revenues fell by 9 per cent to $325.5 million. There was however a slight increase in sales from its much smaller English language teaching business.

While student placements in Australia were down by 13 per cent, the shift to multi-destination volumes led the segment's revenue to jump by 12 per cent to reach $190 million.

Barkla said although many international students' plans were on hold due to travel restrictions, demand for international education remained strong.

"Gaining an international education is a lifelong aspiration. Our research shows 74 per cent of IDP students with current university offers are holding on to their study goals," he said.

Similarly, IELTS is regaining momentum after social distancing requirements put it in a stranglehold.

"While IELTS volumes were impacted in the second half of FY20, we are encouraged to see our testing centre network has safely reopened in 53 of the 55 countries in which we operate," Barkla said.

The executive said the group's focus remained on accelerating its rebound and capturing market opportunities.

"Throughout this period of disruption, we continued to execute on our vision of building the world's leading platform for international students," he said.

"Our global dataset and insights have been sought-after by policy makers and educators around the world. We will continue to share our insights to help the sector and ensure the interests and behaviours of students remain at the fore of all decision making.

"The world needs educated and globally ambitious people now more than ever. We are proud of our role in helping connect the next generation of business leaders, doctors, nurses, planners, policy makers to their global study goals."

Updated at 1:24pm AEST on 20 August 2020.

COVID-19 alert in Brisbane: cases linked to The Jam Pantry café, youth detention centre

Queensland Health has issued a public health alert after a woman who spent time in Brisbane tested positive for COVID-19 upon returning home to Japan.

The woman arrived in Sydney in mid-July where she spent two weeks in hotel quarantine, before visiting her unwell father in Brisbane.

The asymptomatic case, confirmed as a positive COVID-19 infection by Japanese health authorities yesterday, returned two negative test results when she was in Sydney.

In Brisbane the woman dined at The Jam Pantry café at Greenslopes on Sunday 16 August, meaning anyone who visited there should monitor for COVID-19 symptoms and get tested if any appear.

Queensland Health is also working with NSW Health to contact people from Virgin flight VA962 from Brisbane to Sydney on Monday, 17 August, who were in close contact with the case.

Queensland Health is cooperating with Japanese authorities to determine where she might have picked up COVID-19.

"On her arrival to Japan on 18 August, she was asymptomatic but returned a positive COVID-19 result," said Queensland chief health officer Dr Jeannette Young.

"While we are still determining where the virus may have been acquired, we are working with Japanese authorities to gather necessary information.

"We have been in touch with six close contacts in Brisbane identified by the woman. These people have been tested and are now in quarantine."

Anyone else who dined at The Jam Pantry café outside these hours on that day should come forward for testing if they develop any COVID-19 symptoms.

Youth detention centre worker tests positive

The Queensland Government has also confirmed a new positive case in the state - a 70-year-old woman from the Ipswich area who worked at the Brisbane Youth Detention Centre in Wacol while unwell.

It is believed she developed the symptoms on 10 August, but authorities are still in the process of finding out more details.

Dr Young noted the good news was that the detention centre in question had not been receiving any visitors, as a precautionary measure following the incident of three women (two who were COVID-19 positive) who travelled to Melbourne and failed to declare it.

Updated at 9:03am AEST on 20 August 2020.

Qantas drops $2.7 billion into the red, significant loss flagged for FY21

Qantas (ASX: QAN) has reported a $2.7 billion loss for FY20 amidst what CEO Alan Joyce has described as the worst trading conditions in the airline's 100-year history, with significant losses expected in the current financial year as well.

Despite a few bright spots such as Qantas International actually turning a $56 million profit thanks to record freight performance and a huge increase in e-commerce, the situation has been grim for Australia's leading airline.

"To put it simply, we're an airline that can't really fly to many places - at least for now," says Joyce.

"The impact of that is clear. COVID punched a $4 billion hole in our revenue and a $1.2 billon hole in our underlying profit in what would have otherwise been another very strong result."

Around half of the statutory loss is non-cash, including a $1.4 billion write down of assets including the A380 fleet which are currently in storage in the USA's Mojave Desert, and more than $600 million in redundancies and other costs.

Joyce says COVID-19 will continue to have a huge impact on the business and an underlying loss is expected in FY21. With the exception of New Zealand flights which are still in limbo, international operations are unlikely to restart until at least the following financial year - July 2021.

Qantas collected $267 million in JobKeeper payments this year which helped buffer the pandemic's blow, but the group still had to let thousands of staff go. Joyce highlights these problems are industry-wide.

"It's devastating and it will be a question of survival for many. What makes Qantas different is that we entered this crisis with a strong balance sheet and we moved fast to put ourselves in a good position to wait for the recovery," he says.

"We've had to make some very tough decisions in the past few months to guarantee our future. At least 6,000 of our people will leave the business through no fault of their own, and thousands more will be stood down for a long time.

"Recovery will take time and it will be choppy. We've already had setbacks with borders opening and then closing again. But we know that travel is at the top of people's wish lists and that demand will return as soon as restrictions lift."

Joyce says the FY20 result, including a $124 million underlying profit, shows how the COVID crisis derailed what would have been a strong financial performance.

"We were on track for another profit above $1 billion when this crisis struck. The fact that we still delivered a full year underlying profit shows how quickly we adjusted when revenue collapsed," he says.

"Qantas Loyalty's profit was down less than 10 per cent and member satisfaction increased in the fourth quarter, which shows the strength of that business.

"Qantas Freight has been a major beneficiary of the shift to people shopping online and our charter flying for resources companies is strong."

The airline notes current border restrictions have meant 20 per cent of pre-pandemic capacity is scheduled for domestic operations in August, but recent sales activity shows high levels of latent travel demand for when restrictions are eased.

"Looking further ahead, we're in a good position to ride out this storm and make the most of the recovery," says Joyce.

"Our market position is set to strengthen as the only Australian airline with a full service and low fares domestic offering as well as long haul international services."

Updated at 9:27am AEST on 20 August 2020.