MIRA
INFORM REPORT
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Report Date : |
29.08.2007 |
IDENTIFICATION DETAILS
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Name : |
GATES AUSTRALIA PTY LTD |
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Registered Office : |
1 Hydrive Cl, Dandenong South, VIC 3175 |
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Country : |
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Date of Incorporation : |
2 June 1996 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Import and distribution of rubber products for the automotive and industrial markets. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
REGISTERED NAME
GATES AUSTRALIA PTY LTD
ACN
006 576 754
ABN
36 006 576 754
INCORPORATED
2 June 1996
REGISTERED ADDRESS
1 Hydrive Cl
DANDENONG SOUTH, VIC 3175
SHARECAPITAL
$2
SHAREHOLDERS
The Gates Rubber Company Inc Holds 1 share
Gates Export Corporation Holds 1 share
DIRECTORS
HOWARD,
William
BITTERN,
VIC 3918
KING, Peter
MALVERN EAST,
VIC 3145
THOMSON,
Noel
BERWICK, VIC 3806
SECRETARY
DAHIYA, Reena
REGISTERED CHARGES
None on record
BUSINESS STRUCTURE
TRADING ADDRESS
1 to 15 Hydrive Cl
DANDENONG SOUTH, VIC 3175
TELEPHONE (613) 9797 9666
FACSIMILE (613) 9797 9600
ULTIMATE HOLDING
ENTITY
TOMKINS PLC
BANK
Not determined
EMPLOYEES
61
BACKGROUND
The subject was incorporated in
The Gates group was established When Charles Gates, Sr. bought The Colorado Tire and Leather Company in 1911 for $3,500.
In 1996, the Gates group became a wholly owned subsidiary of Tomkins Plc.
OPERATIONS
The subject operates in the import and distribution of rubber products for the automotive and industrial markets.
Products include timing belts, brake and vacuum hoses, drive systems, heater hose, fuel hose, tools, clamps, gaskets and thermostats.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the of Credit Advantage Limited on 31 August 2007 failed to trace any litigation listed against the subject at that date.
FINANCES
During the current investigation, contact with the subjects Financial Controller was unable to be established. Despite messages being left, no reply has been received.
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 31 December 2005 the subject recorded revenue of $45,930,000, which resulted in an operating profit before tax of $10,011,000 and an operating profit after tax of $6,933,000 representing a Net Profit Margin of 15.09%.
Below is a summary of the subject’s income results for the past two financial years.
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Gates Australia
Pty Ltd |
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As at 31 December 2005 |
As at 31 December 2004 |
Change (%) |
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Revenue |
$45,930,000 |
$43,931,000 |
4.55% |
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Profit b/tax |
$10,011,000 |
$8,137,000 |
23.03% |
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Profit a/tax |
$6,933,000 |
$5,704,000 |
21.55% |
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Net Profit Margin |
15.09% |
12.98% |
2.11% |
During fiscal 2005, the subject recorded Net Cashflows from operating activities totaling $5,705,000.
As at 31 December 2005, the subject recorded total current assets of $33,657,000. They included cash of $6,828,000 receivables of $10,899,000 and inventories of $15,635,000.
Current liabilities at the same date totaled $14,844,000 and included payables of $9,537,000 and provisions of $3,119,000.
As at 31 December 2005, the subject recorded Working Capital of $18,813,000 and a current ratio of 2.27 to 1 indicating sound liquidity levels.
Net Assets totaled $23,076,000 as at 31 December 2005. At this date, the subject further recorded a Debt to Equity ratio of 0.65 to 1 showing low levels of gearing.
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Gates Australia
Pty Ltd |
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As at 31 December 2005 |
As at 31 December 2004 |
Change (%) |
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Revenue |
$45,930,000 |
$43,931,000 |
4.55% |
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Profit b/tax |
$10,011,000 |
$8,137,000 |
23.03% |
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Profit a/tax |
$6,933,000 |
$5,704,000 |
21.55% |
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Net Profit Margin |
15.09% |
12.98% |
2.11% |
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Current Assets |
$33,657,000 |
$28,307,000 |
18.90% |
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Non Current Assets |
$4,398,000 |
$4,314,000 |
1.95% |
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Total Assets |
$38,055,000 |
$32,621,000 |
16.66% |
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Current Liabilities |
$14,844,000 |
$16,287,000 |
-8.86% |
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Non Current Liabilities |
$135,000 |
$191,000 |
-29.32% |
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Total Liabilities |
$14,979,000 |
$16,478,000 |
-9.10% |
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Net Assets |
$23,076,000 |
$16,143,000 |
42.95% |
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Working Capital |
$18,813,000 |
$12,020,000 |
56.51% |
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Current Ratio |
2.27 |
1.74 |
30.46% |
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Debt to Equity |
0.65 |
1.02 |
-36.41% |
The subject is ultimately owned by Tomkins Plc, a
corporation which is listed on the
For the year ended31 December 2006, the global group recorded consolidated revenue of US$5,418.7 million which resulted in Net Income of US$251.7 million.
TRADE SURVEY
During the current investigation, contact with the subjects principals was unable to be established.
Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.
SUMMARY
The subject was incorporated in
The Gates group was established When Charles Gates, Sr. bought The Colorado Tire and Leather Company in 1911 for $3,500.
for the financial year ended 31 December 2005 the subject recorded revenue of $45,930,000, which resulted in an operating profit before tax of $10,011,000 and an operating profit after tax of $6,933,000 representing a Net Profit Margin of 15.09%.
During fiscal 2005, the subject recorded Net Cashflows from operating activities totalling $5,705,000.
As at 31 December 2005, the subject recorded Working Capital of $18,813,000 and a current ratio of 2.27 to 1 indicating sound liquidity levels.
Net Assets totaled $23,076,000 as at 31 December 2005.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)