MIRA
INFORM REPORT
|
Report Date : |
11.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GRAINCORP OPERATIONS LTD |
|
|
|
|
Formerly Known as : |
NSW GRAIN CORPORATION LTD |
|
|
|
|
Registered Office : |
17, 201 Sussex St Sydney, Nsw 2000 |
|
|
|
|
Country : |
Australia |
|
|
|
|
Financials (as on) : |
30.09.2007 |
|
|
|
|
Date of Incorporation : |
27.09.1989 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Engaged
in Agribusiness, with extensive bulk handling
infrastructure on the east coast and a national and international
grain marketing operation |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Exists |
REGISTERED NAME
GRAINCORP OPERATIONS LTD
ACN
003 875 401
ABN
52 003 875 401
INCORPORATED
27 September 1989
REGISTERED ADDRESS
17, 201 Sussex St
SYDNEY, NSW 2000
SHARECAPITAL
$25,000,000
SHAREHOLDERS
Not shown
DIRECTORS
LANE,
Gerald
9 Galore St
LOCKHART,
NSW 2656
MILLEAR,
Spencer
6001
Mortlake Ararat Rd
WILLAURA,
VIC 3379
EASTBURN,
John William
Lynwood
BARADINE,
NSW 2396
CURLEWIS,
Geoffrey Douglas
11 Normandy
Cres
OCEAN
GROVE, VIC 3226
TAYLOR,
Donald Clarendon
893 Mail
Service
DALBY, QLD
4405
TREBECK,
David Bruce
9 Rous Cres
FORREST,
ACT 2603
GROVES,
David
22 Beach Rd
BONDI
BEACH, NSW 2026
KEENE,
Thomas Bodley
145A Raglan
St
MOSMAN, NSW
2088
FREEMAN,
Richard George
Ventura
EDGEROI,
NSW 2390
FLANERY,
Ross Roy
Goonawarra
GALONG, NSW
2585
SECRETARY
HART, Nigel Phillip
REGISTERED CHARGES
Registered Charge Number : 781881
Date Registered : 21.12.2000
Status : Fixed
Creditor : Soft Commodity Trading
BUSINESS STRUCTURE
HEAD OFFICE Tower
1, Level 17,
201 Sussex Street
Sydney NSW 2000
TELEPHONE (612) 9325 9100
FACSIMILE (612) 9325 9180
HOLDING ENTITY GRAINCORP SERVICES LIMITED
CONTROLLED ENTITIES GRAINCORP VICTORIA P/L
GRAINCORP NATIONAL P/L
BULK TERMINALS AUSTRALIA P/L
GRAINCORP NATIONAL RAIL P/L
ULTIMATE HOLDING
ENTITY GRAINCORP LIMITED
BANK Not determined
EMPLOYEES Not determined
BACKGROUND
The subject was incorporated in New South Wales on 27 September 1989 as NSW Grain Corporation Ltd, before adopting the current style on 2 July 1993.
The subject is ultimately owned by Graincorp Limited, a corporation that was listed on the Australian Stock Exchange in 1998.
Since 1917, GrainCorp was a Government/Statuatory Authority called the Grain Elevators Board (GEB) then Grain Handling Authority (GHA).
Corporatisation began in September 1989 and the group was renamed the NSW Grain Corporation Limited.
In July 1993 the privatisation process culminated in a name change to GrainCorp Operations Limited.
In 2000 the group and Victorian grain handling company, Vicgrain, owned by Victorian Grain Services, agreed to a merger through a share swap.
OPERATIONS
The group operates as a leading Australian agribusiness, with extensive bulk handling infrastructure on the east coast and a national and international grain marketing operation. It also provides transport and finance services to the rural sector and has a network of farm merchandise centres.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the of Credit Advantage Limited on 1 February 2008 traced the following litigation listed against the subject at that date.
Default Report Listing
Account Number : 469005241
Account Type : Utilities
Member : Origin Energy
Date : 15 Feb 2006
Amount : $107
Reason : Payment default
Assoc Code : Company’s Account
Status : Paid 29.07.2006
Default Report Listing
Account Number : 541004103
Account Type : Utilities
Member : Origin Energy
Date : 15 Feb 2006
Amount : $271
Reason : Payment default
Assoc Code : Company’s Account
Default Report Listing
Account Number : 614000578
Account Type : Utilities
Member : Origin Energy
Date : 6 Oct 20056
Amount : $167
Reason : Payment default
Assoc Code : Company’s Account
Default Report Listing
Account Number : 056003702
Account Type : Utilities
Member : Origin Energy
Date : 13 Sep 2005
Amount : $105
Reason : Payment default
Assoc Code : Company’s Account
Default Report Listing
Account Number : 968001051
Account Type : Utilities
Member : Origin Energy
Date : 12 Jul 2005
Amount : $156
Reason : Payment default
Assoc Code : Company’s Account
Default Report Listing
Account Number : 960004246
Account Type : Utilities
Member : Origin Energy
Date : 12 Jul 2005
Amount : $335
Reason : Payment default
Assoc Code : Company’s Account
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 Ultimate Holding entity Graincorp 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 revenue of $824,874,000, which resulted in an operating loss before tax of $35,640,000 and an operating loss after tax of $19,779,000.
For the same period, the ‘closed group recorded revenue of $825,255,000 which resulted in an operating loss before tax of $33,678,000 and after tax of $17,650,000.
The groups results for the last financial year affected by rural drought conditions resulting in low grain receivables. Increased grain prices however were able to push up revenue by 1%.
Below is a summary of the subject’s income results for the past two financial years.
|
|
Graincorp Limited
- consolidated |
||
|
|
As at 30 September 2007 |
As at 30 September 2006 |
Change (%) |
|
Revenue |
$824,874,000 |
$815,999,000 |
1.09% |
|
Profit b/tax |
($35,640,000) |
$46,813,000 |
-176.13% |
|
Profit a/tax |
($19,779,000) |
$31,737,000 |
-162.32% |
|
Net Profit Margin |
-2.40% |
3.89% |
-6.29% |
During fiscal 2007, the group recorded a deficiency in Net Cashflows from operating activities totalling $26,794,000.
As at 30 September 2007 the group recorded total current assets of $345,615,000. They included receivables of $184,438,000 and inventories of $124,634,000.
Current liabilities at the same date totalled $303,707,000 and included payables of $121,536,000 and borrowings of $111,502,000.
As at 30 September 2007 the group recorded Working Capital of $41,908,000 and a current ratio of 1.14 to 1 indicating satisfactory liquidity levels.
At the same date, the ‘closed group recorded Working capital of $41,626,000 and a current ratio of 1.16 to 1.
Net Assets totalled $399,021,000 as at 30 September 2007. At this date, the subject further recorded a Debt to Equity ratio of 1.43 to 1.
At the same date, the ‘closed group recorded Net Assets of $401,532,000.
|
|
Graincorp Limited
- consolidated |
||
|
|
As at 30 September 2007 |
As at 30 September 2006 |
Change (%) |
|
Revenue |
$824,874,000 |
$815,999,000 |
1.09% |
|
Profit b/tax |
($35,640,000) |
$46,813,000 |
-176.13% |
|
Profit a/tax |
($19,779,000) |
$31,737,000 |
-162.32% |
|
Net Profit Margin |
-2.40% |
3.89% |
-6.29% |
|
Current Assets |
$345,615,000 |
$373,401,000 |
-7.44% |
|
Non Current Assets |
$624,619,000 |
$602,194,000 |
3.72% |
|
Total Assets |
$970,234,000 |
$975,595,000 |
-0.55% |
|
Current Liabilities |
$303,707,000 |
$345,183,000 |
-12.02% |
|
Non Current Liabilities |
$267,506,000 |
$218,053,000 |
22.68% |
|
Total Liabilities |
$571,213,000 |
$563,236,000 |
1.42% |
|
Net Assets |
$399,021,000 |
$412,359,000 |
-3.23% |
|
Working Capital |
$41,908,000 |
$28,218,000 |
48.52% |
|
Current Ratio |
1.14 |
1.08 |
5.20% |
|
Debt to Equity |
1.43 |
1.37 |
4.81% |
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 New South Wales on 27 September 1989 as NSW Grain Corporation Ltd, before adopting the current style on 2 July 1993.
The subject is ultimately owned by Graincorp Limited, a corporation that was listed on the Australian Stock Exchange in 1998.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with Graincorp Limited.
for the financial year ended 30 September 2007 the group recorded revenue of $824,874,000, which resulted in an operating loss before tax of $35,640,000 and an operating loss after tax of $19,779,000.
For the same period, the ‘closed group recorded revenue of $825,255,000 which resulted in an operating loss before tax of $33,678,000 and after tax of $17,650,000.
As at 30 September 2007, the ‘closed group recorded Working capital of $41,626,000 and a current ratio of 1.16 to 1.
At the same date, the ‘closed group recorded Net Assets of $401,532,000.
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%)