MIRA INFORM REPORT
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Report Date : |
18.11.2008 |
IDENTIFICATION DETAILS
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Name : |
NUFARM AUSTRALIA PTY LTD |
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Formerly Known As : |
Nufarm Ltd |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.07.2008 |
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Date of Incorporation : |
21.05.1957 |
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Legal Form : |
Propriety Limited |
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Line of Business : |
Manufacture and distribution of Crop Protection
Products. |
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
NUFARM AUSTRALIA PTY
LTD
ACN: 004 377 780
ABN: 80 004 377
780
CORPORATE SEARCH
INCORPORATED 21
May 1957
REGISTERED ADDRESS 103
Pipe Rd
LVERTON
NORTH, VIC 3026
SHARECAPITAL $420,000
SHAREHOLDERS ARGYLE
HOLDINGS LTD Holds 210,000
DIRECTORS BENSON, Brian
Frances
8
Heatherleigh Pl
MALVERN
EAST, VIC 3145
MARTIN,
Kevin Patrick
32
Leslie Rd
ESSENDON,
VIC 3040
PULLAN,
David Alan
22
Lynch St
BRIGHTON,
VIC 3186
RATHBONE,
Douglas John
38
Edward St
ESSENDON,
VIC 3040
SECRETARY HEATH,
Rodney
REGISTERED
CHARGES None on record
BUSINESS STRUCTURE
TRADING ADDRESS 103
Pipe Rd
LEVERTON
ORTH, VIC 3026
TELEPHONE (613) 9282 1000
FACSI (613)
9282 1000
BRANCHES TOOWOOMBA, QLD
MURARRIE,
QLD
LYTTON, QLD
BRENDALE, QLD
DUBBO, NSW
MOREE, NSW
WAGGA
WAGGA, NSW
HORSHAM,
VIC
HOLDING
ENTITY AGRYL HOLDINGS
P/L
ULTIMATE HOLDING
ENTITY NUFARM
LIMITED
BANK Not
determined
EMPLOYEES 2,600
(group)
BACKGROUND
The subject was incorporated in Victoria on 21 May 1957 as Nufarm Rural Products Ltd, changing name on 19 December 1969 to Nufarm Chemicals P/L, changing name to Nufarm Ltd, before adopting the current style on 27 January 2000.
The subject was
established in Melbourne in the mid 1950s. Founder, Max Fremder, began selling
phenoxy herbicides to professional spray applicators in regional Victoria.
The company moved to its
present head office location at Laverton North in 1972, with the corporate headquarters
located adjacent to Nufarm's largest manufacturing facility.
From the mid 1980s until
early 2000, Nufarm was a subsidiary of New Zealand based Fernz Corporation. The
Nufarm crop protection business continued to grow and expand during that period,
with a number of overseas locations established throughout the 1990s.
In 2000, Fernz migrated
the incorporation of the company from New Zealand to Australia and changed the
group's name to Nufarm Limited.
During fiscal 2007, the group reached an agreement to sell its 80% interest in the Nufarm-Coogee joint venture to its joint venture partner Coogee Chemicals P/L. The consideration of the sale will be approximately $48 million.
OPERATIONS
The subject operates in the manufacture and distribution of crop
protection products.
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 Ultimate Holding entity Nufarm 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 31 July 2008 the group recorded consolidated revenue
of $2,492,458,000, which resulted in an operating profit before tax of
$190,296,000 and an operating profit after tax of $138,120,000 representing a
Net Profit Margin of 5.54%.
For the same period, the parties which make up the closed group recorded
and operating profit before tax of $65,100,000 and after tax of $44,899,000.
Below is a summary of the subject’s income results for the past two
financial years.
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Nufarm Ltd -
consolidated |
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As at 31 July
2008 |
As at 31 July 2007 |
Change (%) |
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Revenue |
$2,492,458,000 |
$1,764,384,000 |
41.27% |
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Profit b/tax |
$190,296,000 |
$148,474,000 |
28.17% |
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Profit a/tax |
$138,120,000 |
$107,323,000 |
28.70% |
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Net Profit
Margin |
5.54% |
6.08% |
-0.54% |
During fiscal 2008, the subject recorded a deficiency in Net Cashflows
from operating activities totalling $127,402,000.
On 24 September
2008, Nufarm signed an agreement to acquire Lefroy Seeds Pty Ltd, based in
Toowoomba, Queensland. The acquisition involves total consideration of $11.5
million, the majority of which will be paid in Nufarm equity.
As at 30 June 2008, the group recorded consolidated total current assets
of $1,803,835,000. They included cash of $59,143,000, receivables of
$839,963,000 and inventories of $843,544,000.
Current liabilities at the same date totalled $1,422,007,000 and
included payables of $778,060,000 and borrowings of $587,612,000.
As at 31 July 2008 the Group recorded Working Capital of $381,828,000
and a current ratio of 1.27 to 1 indicating satisfactory liquidity levels.
At the same date, the parties which make up the closed group recorded
Working capital of $26,368,000 and a current ratio of 1.05 to 1.
Net Assets totalled $1,305,218,000 as at 31 July 2008. At this date, the
subject further recorded a Debt to Equity ratio of 1.46 to 1.
At the same date, the parties which make up the closed group recorded Net Assets of $804,255,000. After deducting intangibles of $91,039,000 this results in a Net Worth of $713,216,000.
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Nufarm Ltd - consolidated |
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As at 31 July 2008 |
As at 31 July 2007 |
Change (%) |
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Revenue |
$2,492,458,000
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$1,764,384,000
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41.27% |
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Profit b/tax |
$190,296,000
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$148,474,000
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28.17% |
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Profit a/tax |
$138,120,000
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$107,323,000
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28.70% |
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Net Profit Margin |
5.54% |
6.08% |
-0.54% |
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Current Assets |
$1,803,835,000
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$1,385,038,000
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30.24% |
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Non Current Assets |
$1,410,045,000
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$1,053,873,000
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33.80% |
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Total Assets |
$3,213,880,000
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$2,438,911,000
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31.78% |
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Current Liabilities |
$1,422,007,000
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$1,235,833,000.
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15.06% |
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Non Current Liabilities |
$486,655,000.
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$173,927,000
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179.80% |
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Total Liabilities |
$1,908,662,000
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$1,409,760,000
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35.39% |
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Net Assets |
$1,305,218,000
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$1,029,151,000.
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26.82% |
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Working Capital |
$381,828,000
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$149,205,000
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155.91% |
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Current Ratio |
1.27 |
1.12 |
13.19% |
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Debt to Equity |
1.46 |
1.37 |
6.75% |
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 Victoria on 21 May 1957 as Nufarm Rural
Products Ltd, before adopting the current style on 27 January 2000.
The subject was
established in Melbourne in the mid 1950s.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant
to a Class Order with its Ultimate Holding entity Nufarm Limited.
for the financial year ended 31 July 2008 the group recorded
consolidated revenue of $2,492,458,000, which resulted in an operating profit
before tax of $190,296,000 and an operating profit after tax of $138,120,000
representing a Net Profit Margin of 5.54%.
As at 31 July 2008, the parties which make up the closed group recorded
Working capital of $26,368,000 and a current ratio of 1.05 to 1.
At the same date, the parties which make up the closed group recorded
Net Assets of $804,255,000. After deducting intangibles of $91,039,000 this
results in a Net Worth of $713,216,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.74 |
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UK Pound |
1 |
Rs.74.37 |
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Euro |
1 |
Rs.62.78 |
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%)