What an incredible year it has been. Just seven months ago we were facing what some pundits labeled the worst economic crisis since the Great Depression and were told to batten down the hatches for at least another two years of economic pain.
Fast-forward to today, and both consumer and business confidence is high, and companies are making expansion plans for 2010.
As we reflect on the past year here are the big moments which made 2009 the year it was.
Deal of the year
In a year when we’ve seen more corporate collapses than big corporate transactions, one deal stands out – the float of automotive classifieds site CarSales.com, led by chief executive Greg Roebuck.
The company, which dominates the online automotive classifieds sector, listed in mid-September, becoming the first major float after the GFC. Given the volatility of the market, there was a good chance that Carsales might have struggled once it hit the boards, as subsequent floats Myer and Kathmandu have done.
But after raising $163 million and listing at an issue price of $3.50, The stock hasn’t stopped climbing and was at $4.90 earlier this week.
Roebuck was rewarded by taking out the Entrepreneurs of the Year award from accounting firm Ernst & Young.
Most-hyped product of the year
Apple’s tablet computer hasn’t even been released and you’re probably sick of it already. The much-hyped device, which is supposed to look like an upsized version of an iPhone, with a palm-sized touch screen, actually hasn’t been confirmed by anyone inside Apple – but that’s done nothing to stop the rumours.
If it does come to fruition, the tablet could be a real industry-changer – after all, the iPhone and iPod have done exactly that. And let’s face it, the success of Amazon’s Kindle means Apple knows there is a market for its device.
But if the tablet is real, Apple better hope that it lives up to the hype, otherwise the backlash could be ugly.
Biggest corporate collapse of the year
There has been some incredible corporate failures this year, including the collapse of electrical goods franchiser Kleenmaid, agribusiness company Great Southern and a seemingly endless string of pub operators.
But the worst collapse of the year dates back to January, when Townsville-based financial services company Storm Financial collapsed, taking the savings of up to 4,000 clients down with it. The company, run by flamboyant couple Emmanuel and Julie Cassimatis, flew high during the boom on an intoxicating mix of debt and stellar sharemarket returns.
But when the GFC tore through the financial services sector, Storm and the savings of its clients were sunk.
Underlining the far-reaching ramifications of the collapse is the fact it has lead to a Federal Parliamentary inquiry and a real change in the way Australia’s financial planning sector is run.
Payday of the year
We love it when entrepreneurs who have built a great business get rewarded for their effort and so it was when junior telco SP Telemedia made a bid for Brisbane based telco Pipe Networks.
The company, founded in 2002 by Bevan Slattery and Stephen Baxter, has been one of Australia’s best junior technology companies, posting a profit in every year of its existence and developing a portfolio of world-class assets.
The pair will receive at least $51 million each from the deal – there is talk of an increased offer from SP Telemedia – which is a great return in less than seven years.
Saga of the year
The battle between internet service provider iiNet and the Australian Federation Against Copyright Theft (a coalition of films studios and media companies) has been the most-watched events of the year.
The fight if pretty simple – AFACT claims iiNet is responsible for stopping illegal downloads by its customers. But the court case that raged for the best part of two months has delved deep into the issue of file sharing, the role of ISPs and the crumbling business model of the entertainment sector.
But the sheer size of this battle is what makes is stand out as saga of the year. Live tweets were allowed from the courtroom and published on various news sites, while each day’s evidence was dissected and discussed all over the new.
iiNet faces a legal bill of $4 million and could face a bill of $3 million if the case doesn’t got its way.
Biggest attack of the year
Jan Cameron, founder of the Kathmandu clothing chain, has claims to being one of Australia’s greatest ever retailers, but we’re not sure the current managers of Kathmandu will be sending her a Christmas card this year.
Cameron, who sold Kathmandu to private equity at the height of the bull market, went on the attack after the private equity owners decided to float the business in October.
In the middle of the float process, Cameron announced the company was “incredibly vulnerable” and revealed plans to launch a rival chain, with the first stores by the end of next year – despite the fact her non-compete agreement with Kathmandu expires in May 2011.
Kathmandu got its float away, but there’s no doubt Cameron’s statements would have given some investors pause.
Best small business booster of the year
Now, many entrepreneurs treat the tax man with a mix of fear and loathing, but here at SmartCompany we know that the ATO is nothing but a bunch of big softies.
Indeed, this year the ATO has become the best friend of many small businesses thanks to its very own stimulus measures that included the liberal use of payment plans for tax debts and a suspension of interest on tax debts.
Just ask the slightly disappointed insolvency profession – these measures have kept thousands of companies out of the hands of the corporate undertakers.
Gen Y entrepreneur of the year
Internet entrepreneur Nicholas Bolton grabbed headlines earlier this year when he emerged as the largest shareholder in BrisConnections, which is building Brisbane’s $4.9 billion toll road project linking the city and airport.
Bolton was able to amass his 19.7% stake for less than $100,000 after the company’s stock plunged to just 1c last year, but he then claimed he was unaware that each unit holder is required to pay a $2-per-share instalment to BrisConnections over the next 12 months. That means Bolton faced a debt of $154 million on his shares.
Bolton called an extraordinary general meeting of the company in the hope of winding up the company and getting out of paying the instalments.
But prior to the meting, Bolton sold the voting rights to his shares to Leighton Holdings, the major contractor working on the road, for $4.5 million. Leighton then voted Bolton’s shares against the wind-up resolution.
A good way to make a profit, but not a good way to make friends with your fellow investors.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
