MIRA
INFORM REPORT
|
Report Date : |
26.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
ORICA AUSTRALIA PTY LTD |
|
|
|
|
Registered Office : |
10, 35 Spring St, Melbourne, VIC 3000 |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
23 June
1925 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Leading supplier of explosives to the mining industry and specialty, industrial and agricultural, chemicals and consumer products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
REGISTERED NAME
ORICA AUSTRALIA PTY LTD
ACN
004 117 828
ABN
99 004 117 828
INCORPORATED
23 June 1925
REGISTERED ADDRESS
10, 35 Spring St
MELBOURNE, VIC 3000
SHARECAPITAL
$518,634,609
SHAREHOLDERS
ORICA LTD Holds
340,000,000 shares
ORICA INVESTMENTS P/L Holds
210,000,000 shares
ORICA CANADA INC Holds
140,000,000 shares
DIRECTORS
WITCOMBE, Gregory
John
BALWYN, VIC
3103
MEEHAN, Noel
Anthony
LIEBELT, Graeme Richard
SECRETARY
COOK, Annette
Margaret
REGISTERED CHARGES
None on record
BUSINESS STRUCTURE
TRADING ADDRESS
9,
TELEPHONE (613) 9665 7111
FACSIMILE (613) 9655 7937
HOLDING ENTITY
ORICA LIMITED
BANK
Not determined
EMPLOYEES
over 10,000 (Group)
BACKGROUND
The subject was incorporated in
The Holding entity Orica Limited is listed on the Australian Stock Exchange and employs 10,000 staff globally.
Group operations originated as Jones, Scott and Co in 1874.
The company was later acquired by Nobel, which went on to merge with a number of other entities to form Imperial Chemical Industries Plc.
In 1971, the company became ICI
In July 1997, the subject became an independent Australian Company after its holding entity, Imperial Chemical Industries Plc divested its shareholding in the company.
In February 1998, the group changed name to Orica.
DIRECTORS PROFILES
O’SULLIVAN,
Shaun, Director was born on 22 October 1955 and was appointed to the subjects
board on 1 August 2002. He joined
the Group in September 2001 and became General Manager, Business Development in
May 2002. He has worked in the Australian resources sector, initially for six
years at MIM Holdings Ltd in various senior finance roles and then for 13 years
at North Limited. He is active in the Groups operations as General Manager of
Business Development.
LIEBELT, Graeme Richard, Director was born on 2 March 1954 and was appointed to the subjects board on 1 July 1997. He joined the group in1989 and is active in the daily operations as CEEO of Orica Mining Services.
OPERATIONS
The group operates as a leading supplier of explosives to the mining industry and specialty, industrial and agricultural, chemicals and consumer products.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the failed to trace any litigation listed against the subject at that date.
FINANCES
The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.
During the current investigation, contact with the subject’s principals was unable to be established. Despite numerous messages being left, no reply has been received.
The Holding entity Orica Limited is listed on the Australian Stock Exchange and employs 10,000 staff globally.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Orica Limited. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.
For the financial year ended 30 September 2006, the group recorded consolidated sales revenue of $4,745,600,000 which resulted in an operating profit from continuing operations before tax of $166,900,000 and after tax of $120,500,000 representing a Net Profit Margin of 2.54%.
Below is a summary of the groups consolidated results for the past two financial years.
|
|
Orica Limited - consolidated |
|
|
|
|
As at 30 September 2006 |
As at 30 September 2005 |
Change (%) |
|
Revenue |
$4,745,600,000 |
$4,052,800,000 |
17.09% |
|
Profit b/tax |
$166,900,000 |
$293,400,000 |
-43.12% |
|
Profit a/tax |
$120,500,000 |
$211,500,000 |
-43.03% |
|
Net Profit Margin |
2.54% |
5.22% |
-2.68% |
During fiscal 2006, the parties which form part of the closed group, which form part of Deed of Cross Guarantee recorded an operating profit before tax of $421,200,000 and after tax of $387,300,000.
As at 30 September 2006, the group recorded consolidated total current assets of $2,479,700,000. They included receivables of $810,100,000 and cash of $1,009,100,000.
Current liabilities at the same date totaled $1,300,100,000 and included payables of $935,400,000 and interest bearing liabilities of $45,600,000.
As at 30 September 2006 the group recorded consolidated Working Capital of $1,179,600,000 and a current ratio of 1.93 to 1 indicating a sound liquidity position.
At the same date, the closed group recorded a deficiency in Working capital of $111,000,000 and a current ratio of 0.95 to 1.
The Group recorded consolidated Net Assets of $2,668,200,000 as at 30 September 2006.
At the same date, the closed group recorded Net Assets of $2,734,400,000.
Other
Financial Information
|
|
Orica Limited - consolidated |
|
|
|
|
As at 30 September 2006 |
As at 30 September 2005 |
Change (%) |
|
Revenue |
$4,745,600,000 |
$4,052,800,000 |
17.09% |
|
Profit b/tax |
$166,900,000 |
$293,400,000 |
-43.12% |
|
Profit a/tax |
$120,500,000 |
$211,500,000 |
-43.03% |
|
Net Profit Margin |
2.54% |
5.22% |
-2.68% |
|
Current Assets |
$2,479,700,000 |
$1,781,600,000 |
39.18% |
|
Non Current Assets |
$3,229,300,000 |
$2,529,600,000 |
27.66% |
|
Total Assets |
$5,709,000,000 |
$4,311,200,000 |
32.42% |
|
Current Liabilities |
$1,300,100,000 |
$1,177,600,000 |
10.40% |
|
Non Current Liabilities |
$1,740,700,000 |
$1,614,100,000 |
7.84% |
|
Total Liabilities |
$3,040,800,000 |
$2,791,700,000 |
8.92% |
|
Net Assets |
$2,668,200,000 |
$1,519,500,000 |
75.60% |
|
Working Capital |
$1,179,600,000 |
$604,000,000 |
95.30% |
|
Current Ratio |
1.91 |
1.51 |
26.07% |
|
Debt to Equity |
1.14 |
1.84 |
-37.97% |
TRADE SURVEY
During the current investigation, contact with the subject’s principals was unable to be established. As a result, details pertaining to the subject’s suppliers were unable to be obtained and a trade survey could not be conducted.
SUMMARY
The subject was incorporated in
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Orica Limited.
For the financial year ended 30 September 2006, the group recorded consolidated sales revenue of $4,745,600,000 which resulted in an operating profit from continuing operations before tax of $166,900,000 and after tax of $120,500,000 representing a Net Profit Margin of 2.54%.
For the same period the parties which form part of the closed group, which form part of Deed of Cross Guarantee recorded an operating profit before tax of $421,200,000 and after tax of $387,300,000.
As at 30 September 2006, the closed group recorded a deficiency in Working capital of $111,000,000 and a current ratio of 0.95 to 1.
At the same date, the closed group recorded Net Assets of $2,734,400,000.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)