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MIRA
INFORM REPORT
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Report Date : |
26.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
AWB (AUSTRALIA) LTD |
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Registered Office : |
21, 380 La Trobe
St Melbourne, VIC 3000 |
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Country : |
Australia |
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Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
12.03.1998 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manager and Marketer of Australian Bulk Wheat Exports |
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 : |
No Complaints |
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Litigation : |
Clear |
REGISTERED NAME
AWB (AUSTRALIA) LTD
ACN: 081 890 502
ABN: 35 081 890 502
INCORPORATED
12 March 1998
REGISTERED ADDRESS
21, 380 La Trobe St
MELBOURNE, VIC 3000
SHARECAPITAL
$5
SHAREHOLDERS
AWB LIMITED
DIRECTORS
HOSKING,
Mark Gregory
14m 58 Ross St
TOORAK, VIC 3142
LYNCH, Kevin Joseph
32 Gore St
FITZROY, VIC 3065
DAVIS, Gordon Richard
7 Gibney St
HAWTHORN, VIC 3122
SECRETARY
PATTESON, Peter Robert
REGISTERED CHARGES
Registered Charge
Number : 1396509
Date Registered : 21.12.2006
Status : Fixed and floating
Creditor : Trust Company
Registered Charge Number :
1396502
Date Registered : 21.12.2006
Status : Fixed and floating
Creditor : Trust Company
Registered Charge Number :
1396473
Date Registered : 21.12.2006
Status : Fixed and floating
Creditor : Trust Company
Registered Charge Number :
1396464
Date Registered : 21.12.2006
Status : Fixed and floating
Creditor : Trust Company
BUSINESS STRUCTURE
TRADING ADDRESS 380 La Trobe Street
Melbourne
3000, Victoria,
TELEPHONE (613) 9209 2000
FACSIMILE (613) 9670 2782
HOLDING ENTITY AWB LIMITED
BANK Not determined
EMPLOYEES 2,583 (group)
BACKGROUND
The subject was incorporated in Victoria on 12 March 1998 to commence operations under the current style.
The group has origins that date back to 1915, during World War 1, when an Australian wheat pooling scheme was created to assist wheat growers. This pool was administered by an Australian Wheat Board, comprising the prime minister and a minister from each of the wheat growing states. In 1921 the wheat board ceased to operate, as it was always intended that the pooling scheme would end after the war
The Australian Wheat Board was established as a statutory authority by Wheat Acquisition Regulations contained in the National Security Act 1939. It continued in existence as a Government controlled marketing authority under successive legislation until July 1 1999.
In 1989, the Government established the Wheat Industry Fund, imposing compulsory levies on wheat sales. This fund was held and managed by the Australian Wheat Board and by July 1999 was approximately $600 million.
In 1992 the Commonwealth Government, with bipartisan support, decided to cease the Government guarantees on borrowings, and therefore an alternative structure was required to finance borrowings.
In June 1998 the assets and liability of the statutory authority (other than the Wheat Industry Fund) were transferred to AWB and AWBI, then wholly owned subsidiaries of the statutory authority.
In July 1999, the Wheat Industry Fund was transferred to AWB and B Class shares were issued to the holders of units in that fund, A Class Shares were issued to persons who met the definition of “growers” in AWB’s constitution. Upon the issue of these A Class and B Class shares, AWB became a grower-owned and controlled corporation.
In August 2001, AWB was publicly floated with B-Class shares listed on the Australian Stock Exchange.
In 2003, AWB acquired Landmark from Wesfarmers Limited.
OPERATIONS
The subject operates in the manager and marketer of Australian bulk wheat exports.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the of Credit Advantage Limited 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.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity AWB Limited. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.
From the most recently lodged financial statements, it is noted that for the financial year ended 30 September 2007, the group recorded consolidated revenue of $4,325,278,000, which resulted in an operating profit before tax of $52,500,000 and an operating profit after tax of $27,555,000 representing a Net profit margin of 0.64%.
For the same period, the members of the closed group recorded an operating profit before tax of $53,993,000 and after tax of $32,249,000.
Below is a summary of the group’s income results for the past two financial years.
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AWB Limited - consolidated |
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As at 30 September 2007 |
As at 30 September 2006 |
Change (%) |
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Revenue |
$4,325,278,000 |
$4,493,657,000 |
-3.75% |
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Profit b/tax |
$52,500,000 |
$71,458,000 |
-26.53% |
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Profit a/tax |
$27,555,000 |
$58,459,000 |
-52.86% |
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Net Profit Margin |
0.64% |
1.30% |
-0.66% |
During fiscal 2007, the group recorded a deficiency Net Cashflows from operating activities totalling $89,239,000.
As at 30 September 2007, the group recorded total assets of $5,458,666,000. They included cash of $546,387,000 receivables of $3,061,458,000. intangibles of $550,477,000 and other financial assets of $516,088,000.
Liabilities at the same date totalled $4,346,719 and included payables of $530,033,000 and borrowings of $3,369,217,000.
At this date the group further recorded Net Assets of $1,111,947,000.
At the same date, the closed group recorded total assets of $2,072,520,000 and Net Assets of $1,056,000,000.
TRADE SURVEY
During the current investigation, contact with the subject’s 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 Victoria on 12 March 1998 to commence operations under the current style.
The group has origins that date back to 1915.
In August 2001, AWB was publicly floated with B-Class shares listed on the Australian Stock Exchange.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity AWB Limited.
For the financial year ended 30 September 2007, the group recorded consolidated revenue of $4,325,278,000, which resulted in an operating profit before tax of $52,500,000 and an operating profit after tax of $27,555,000 representing a Net profit margin of 0.64%.
For the same period, the members of the closed group recorded an operating profit before tax of $53,993,000 and after tax of $32,249,000.
As at 30 September 2007, the closed group recorded total assets of $2,072,520,000 and Net Assets of $1,056,000,000.
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%)