ASIC cancels 95,000 business names; Reject Shop sales up 6.4%: Midday Roundup

Almost 100,000 businesses have had their names cancelled by the corporate watchdog in the first half of this year due to business name holders failing to pay their renewal notices.

In 2014-15, a total of 320,000 new business names were registered with the Australian Securities and Investments Commission (ASIC) and over 360,000 registered business names were renewed.

However, of the total of 171,000 business names that were cancelled in the period, ASIC said 95,000 were due to the non-payment of business name renewal fees.

ASIC Commissioner Greg Tanzer said a registered business name can be renewed for one or three years through a “simple process”.

The Reject Shop reveals strong sales

The Reject Shop has reported strong sales for the 2014-15 financial year, with full year sales up 6.4% to $756.8 million and a net profit after tax of $14.2 million.

The retailer’s operating cash flow for the year was $46.9 million.

The company also now boasts a total of 333 stores, with 21 new stores opening in 2015.

In the Reject Shop’s financial report, chairman William Stevens says the retailer’s second-half results were pleasing after a disappointing start to the year.

“The company’s balance sheet is strong, with modest gearing. The solid operating cash flow enables us to continue a steady expansion of our store network as sensible economic opportunities are identified,” Stevens said.

Local shares rally

Local shares have climbed strongly this morning, with Ric Spooner, chief market analyst at CMC Markets, saying local investors will be watching Chinese markets closely today.

“Both the Australian and Chinese stock markets closed on their lows at the end of a weak trading session yesterday,” Spooner said.

“The immediate question for markets this morning will be whether yesterday’s selling momentum can be arrested.”

“Investors remain particularly sensitive to developments in China after last week’s currency devaluation and are looking for comfort that things are not worse than they seem.”

The S&P/ASX200 benchmark was up 1.3%, rising 71.2 points to 5374.3 points at 11.58am AEST. On Tuesday, the Dow Jones closed down 0.19%, falling 33.84 points to 17511.3 points.