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MIRA
INFORM REPORT
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Report Date : |
05.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
HEXIONSPECIALTY CHEMICALS (NZ) LTD |
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Formerly Known as : |
AKZO NOBEL INK & ADHESIVE RESINS (N.Z.) LIMITED |
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Registered Office : |
211 Totara Street, Mount Maunganui |
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Country : |
New Zealand |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
19.01.1989 |
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Com. Reg. No.: |
420431 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture and Sale of specialty
Chemicals including thermoset resins to the global wood and industrial
markets. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
REGISTERED NAME
HEXIONSPECIALTY CHEMICALS (NZ) LTD
CORPORATE SEARCH
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Company Number |
420431 |
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Company |
HEXION SPECIALTY CHEMICALS (N.Z.) LIMITED |
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Incorporated |
19-JAN-1989 |
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Current Status |
REGISTERED |
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Entity Type |
Company |
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Constitution Filed |
Yes |
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Annual Return Filing Month November
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Previous Names
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(Names changed prior to 1992
may not be recorded) |
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Address Details
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Registered Office |
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211 Totara Street |
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Mount Maunganui |
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Address for Service |
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211 Totara Street |
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Mt Maunganui |
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Directors
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Name |
Date Appointed: |
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COFFIN, Sarah |
01-JUN-2006 |
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2185 Strathshire Hall Lane, Powell, Ohio
43065, United States Of America |
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SHAH, Nipesh |
01-OCT-2007 |
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39 Cressy Street, Malvern, Victoria, Australia
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SUTHERLAND, Rohan John |
29-SEP-2008 |
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64 Rosedale Drive, Lalor, Victoria, Australia,
3075 |
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WAGNER, Kurt |
01-OCT-2007 |
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180 East Board Street, Columbus, Ohio, United
States Of America |
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Share Parcels
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Total Number of shares |
10,000,000 |
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Number of Shares |
10,000,000 |
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Shareholder(s) |
HEXION SPECIALTY CHEMICALS PTY LIMITED |
2-8 James St., Laverton North, Victoria,
3026 Australia |
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BUSINESS STRUCTURE
TRADING ADDRESS 211
Totara St
MOUNT
MAUNGANUI, NZ
POSTAL ADDRESS PO
Box 5136
MOUNT
MAUNGANUI, NZ 3150
TELEPHONE (647) 572 7089
FACSIMILE (647) 572 7396
BANK ASB
EMPLOYEES 100
BACKGROUND
The subject was incorporated in New Zealand on 19 January 1989 as
Albright & Wilson Pine Chemicals Ltd, changing name on 10 December 1990 to
EKA Nobel (NZ) Ltd, changing name on 28 August 1996 to EKA Chemicals (NZ) Ltd,
changing name on 1 December 2004 to Akzo Nobel Ink & Adhesive Resins (NZ)
Ltd, before adopting the current style on 13 July 2006.
The global operations of Hexion were formed in 2005 through the merger
of Borden Chemical Inc., Resolution Chemical Products LLC and Resolution
Specialty materials LLC, and the acquisition of Bakelite AG.
After
the merger in 2005, the company has continued to grow with the acquisitions of
the Rhodia Group, the wax business of Rohm and Haas, and the ink and adhesive
resins business of Akzo Nobel. Hexion is owned by an affiliate of private
investment firm Apollo Management, L.P.
Hexion
Specialty Chemicals has 103 production and distribution facilities and over
7000 employees in various countries.
OPERATIONS
The subject operates in the manufacture and sale of specialty chemicals
including thermoset resins to the global wood and industrial markets.
Activities are conducted from premises located at the above listed
trading address.
FINANCES
During the current interview conducted with the subjects financial
Controller she advised that for the last financial year ended 31 December 2007,
the subject traded profitably and recorded revenue in the order of
NZ$80,000,000.
The last years revenue result, represents a significant increase on the
previous corresponding year which was a direct result of the acquisition of
Hexions group global acquisition of Orica Ltd’s adhesive and resins business on
31 January 2007.
Consideration for Orica New Zealand’s adhesive and resins business was
$67.1 million.
From the subjects most recently lodged financial statements, it is noted
that for the financial year ended 31 December 2006 the subject recorded revenue
of $27,498,713, which resulted in an operating profit before tax of $6,244,250
and an operating profit after tax of $4,130,419 representing a Net Profit
Margin of 15.02%.
Below is a summary of the subject’s income results for the past two
financial years.
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Hexion Specialty Chemicals (NZ) Ltd - $NZ |
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As at 31 December 2006 |
As at 31 December 2006 |
Change (%) |
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Revenue |
$27,498,713 |
$21,209,833 |
29.65% |
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Profit b/tax |
$6,244,250 |
$2,138,063 |
192.05% |
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Profit a/tax |
$4,130,419 |
$1,688,306 |
144.65% |
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Net Profit Margin |
15.02% |
7.96% |
7.06% |
As at 31 December 2006 the subject recorded total current assets of
$13,313,448. They included cash of $2,222,663, receivables of $6,545,314 and
stock of $3,412,256.
Current liabilities at the same date totalled $18,144,393 and included
payables of $3,449,557.
As at 31 December 2006 the subject recorded Working Capital of
$9,731,325 and a current ratio of 3.72 to 1 indicating strong liquidity levels.
Net Assets totalled $14,562,270 as at 30 June 200. At this date, the
subject further recorded a Debt to Equity ratio of 0.25 to 1 showing low levels
of gearing.
The subject is ultimately owned by Hexion Speciality Chemicals, a USA
based private corporation that employs 6,900 staff globally.
For the year ended 31 December 2006, the global group recorded
consolidated sales of US$5,205 million.
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Hexion Specialty
Chemicals (NZ) Ltd - $NZ |
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As at 31 December 2006 |
As at 31 December 2006 |
Change (%) |
|
Revenue |
$27,498,713 |
$21,209,833 |
29.65% |
|
Profit b/tax |
$6,244,250 |
$2,138,063 |
192.05% |
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Profit a/tax |
$4,130,419 |
$1,688,306 |
144.65% |
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Net Profit
Margin |
15.02% |
7.96% |
7.06% |
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Current Assets |
$13,313,448 |
$9,689,329.00 |
37.40% |
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Non Current Assets |
$4,830,945 |
$5,236,299.00 |
-7.74% |
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Total Assets |
$18,144,393 |
$14,925,628.00 |
21.57% |
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Current Liabilities |
$3,582,123 |
$1,793,777.00 |
99.70% |
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Non Current Liabilities |
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Total
Liabilities |
$3,582,123 |
$1,793,777.00 |
99.70% |
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Net Assets |
$14,562,270 |
$13,131,851.00 |
10.89% |
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Working Capital |
$9,731,325 |
$7,895,552.00 |
23.25% |
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Current Ratio |
3.72 |
5.40 |
-31.19% |
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Debt to Equity |
0.25 |
0.14 |
80.08% |
TRADE SURVEY
A trade survey on the subject traced the following accounts:
- Nominated supplier declined to provide a reference owing to company
policy.
- Nominated supplier failed to respond to correspondence despite
chasing.
SUMMARY
The subject was incorporated in New Zealand on 19 January 1989, before
adopting the current style on 13 July 2006.
The global operations of Hexion were formed in 2005 through the merger
of Borden Chemical Inc., Resolution Chemical Products LLC and Resolution
Specialty materials LLC, and the acquisition of Bakelite AG.
For the last financial year ended 31 December 2007, the subject traded
profitably and recorded revenue in the order of NZ$80,000,000.
for the financial year ended 31 December 2006 the subject recorded
revenue of $27,498,713, which resulted in an operating profit before tax of
$6,244,250 and an operating profit after tax of $4,130,419 representing a Net
Profit Margin of 15.02%.
As at 31 December 2006 the subject recorded Working Capital of
$9,731,325 and a current ratio of 3.72 to 1 indicating strong liquidity levels.
Net Assets totalled $14,562,270 as at 30 June 200. At this date, the
subject further recorded a Debt to Equity ratio of 0.25 to 1 showing low levels
of gearing.
The subject is ultimately owned by Hexion Speciality Chemicals, a USA
based private corporation that employs 6,900 staff globally.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.69 |
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UK Pound |
1 |
Rs.72.96 |
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Euro |
1 |
Rs.63.46 |
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%)