MIRA
INFORM REPORT
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Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
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Name : |
SIMS GROUP LTD |
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Formerly Known As : |
Sims CO Ltd |
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Registered Office : |
Sir Joseph Banks
Corporat, |
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Country : |
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Financials (as on) : |
30.06.2008 |
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Date of Incorporation : |
20.06.2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
International Recycling Company |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
REGISTERED NAME
SIMS GROUP LTD
ACN: 114 838 630
ABN: 69 114 838
630
Summary
Incorporation
Date: 20 Jun 2005
Registered Office SIR JOSEPH BANKS
CORPORAT
BOTANY,
New South Wales 2019
Number of Shares
Issued: 181789385
Paid Capital: $181789385
Directors LEWON, ROBERT
IRVING
Appointment Date: 14 Mar 2008
Date of Birth: 18 Oct 1942
Gender: Unknown
Address:
Resident Overseas: Yes
MORRIS, GERALD EDWARD
Appointment Date: 14 Mar 2008
Date of Birth: 29 Aug 1932
Gender: Unknown
Address:
Resident Overseas: Yes
DIENST, DANIEL
Appointment Date: 14 Mar 2008
Date of Birth: 17 Aug 1965
Gender: Unknown
Address:
Resident Overseas: Yes
DILACQUA, JOHN THOMAS
Appointment Date: 14 Mar 2008
Date of Birth: 01 May 1952
Gender: Unknown
Address:
Resident Overseas: Yes
BOBINS, NORMAN
Appointment Date: 14 Mar 2008
Date of Birth: 14 Nov 1942
Gender: Unknown
Address:
Resident Overseas: Yes
IWANAGA, MASAKATSU
Appointment Date: 12 Jun 2007
Date of Birth: 30 Sep 1940
Gender: Unknown
Address:
Resident Overseas: Yes
RENWICK, CHRISTOPHER JOHN
Appointment Date: 12 Jun 2007
Date of Birth: 29 Sep 1942
Gender: Male
Address: 14
Resident Overseas: No
VARELLO, PAUL JOSEPH
Appointment Date: 31 Oct 2005
Date of Birth: 09 Oct 1943
Gender: Unknown
Address:
Resident Overseas: Yes
FEENEY, JOHN MICHAEL
Appointment Date: 28 Jul 2005
Date of Birth: 23 Jul 1946
Gender: Male
Address: 76
Resident Overseas: No
MAZOUDIER, PAUL KEITH
Appointment Date: 28 Jul 2005
Date of Birth: 30 Oct 1941
Gender: Male
Address:
Resident Overseas: No
SUTCLIFFE, JEREMY LEIGH
Appointment Date: 22 Jun 2005
Date of Birth: 13 Aug 1957
Gender: Male
Address:
Resident Overseas: No
CUNNINGHAM, ROSS BRODIE
Appointment Date: 22 Jun 2005
Date of Birth: 29 May 1945
Gender: Male
Address: 22A
Resident Overseas: No
Veda Advantage File Number: 31880465
Secretary FRANCIS MARTIN
MORATTI AND OTHERS
Appointment
Date: 22 Jun 2005
BUSINESS STRUCTURE
HEAD OFFICE Level
6, Sims Group House
TELEPHONE (612) 9956 91001
FACS (612) 9954
9680
CONTROLLED
ENTITIES Sims Group Australia Holdings Limited
PNG Recycling Limited
Sims Aluminium Pty Limited
Sims E-Recycling Pty Limited
Sims Group Canada Holdings Limited
Sims Group Mauritius Limited
Trishyiraya Recycling India Pvt Ltd
Sims Tyrecycle Properties Pty Limited
Sims Tyrecycle Pty Limited
Simsmetal Holdings Pty Limited
Sims
Sims Energy Pty Limited
Sims Industrial Pty Limited
Simsmetal Industries
Simsmetal Services Pty Limited
Sims Manufacturing Pty Limited
Simsmetal Executive Staff Superannuation Pty Limited
Universal Inspection and Testing Company Pty Limited
Sims Recycling Solutions Pte Limited
Simsmetal Staff Equity Pty Limited
Sims Group UK Holdings Limited
Sims Group UK Intermediate Holdings Limited
Sims Group UK Limited
Coley (Steel) Limited
ER Coley (Cast) Limited
Evans & Mondon Limited
Sims Recycling Solutions NV
Recommit Limited
Sims Cymru Limited
Sims Group German Holdings GmbH
Sims M+R GmbH
Sims Recycling Solutions AB (
Sims Group Recycling Solutions Canada Limited
Accu-Shred Limited
Sims Recycling Solutions Inc (
Sims Group Recycling Solutions USA Corporation
United Refining & Smelting Co
United Recycling International Corporation(
United Technology Services Inc
Universal Integration Circuits Corporation
Sims Recycling Solutions UK Holding Limited
United Castings Limited
Simsmetal UK Pension Trustees Limited
Sims Group Holdings 1 Pty Limited(
Sims Group Holdings 2 Pty Limited
Sims Metal Management
Sims Group USA Holdings Corporation
SHN Co LLC
HNW Recycling LLC
HNE Recycling LLC
Dover Barge Company(
Simsmetal East LLC
Sims Municipal Recycling of
Schiabo Larovo Corporation
Simsmetal West LLC
Sims Group USA Corporation
Metal Management Inc
MM Metal Dynamics Holdings Inc
Metal Dynamics LLC
Metal Dynamics
Metal Dynamics
Metal Management Midwest Inc
CIM Trucking Inc
Metal Management Indiana Inc
Metal Management
Metal Management Ohio Inc
Metal Management S&A Holdings Inc
Metal Management Pittsburgh Inc
Metal Management Aerospace Inc
Metal Management West Coast Holdings Inc
Metal Management West Inc
Metal Management
Proler Southwest GP Inc
Metal Management Proler Southwest Inc
Proler Southwest LP
Metal Management Alabama Inc
Metal Management Mississippi Inc
Naporano Iron & Metal Inc
Metal Management Northeast Inc
Metal Management Connecticut Inc
Metal Management New Haven Inc
Reserve Iron & Metal Limited Partnership
BANK COMMONWEALTH
BANK OF AUSTRLAIA
EMPLOYEES 6,000
BACKGROUND
The subject was incorporated in
The subject was formed to facilitate the merger of Sims Metal and Hugo Neu effective 31 October 2005.
The group has origins that date back to 1917.
In October 2005 the subject listed on the Australian Stock Exchange.
Over the past 15 years, the subject has expanded from an
Australian based division of a mining conglomerate to become the only truly
global metals recycling company with operations in
OPERATIONS
The subject is an ASX listed, international recycling company with a vision to expand its core metal recycling activities while developing an innovative recycling services and solutions business.
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
From the subjects most recently lodged financial statements, it is noted
that for the financial year ended 30 June 2008 the subject recorded
consolidated revenue of $7,670,536,000, which resulted in an operating profit
before tax of $651,830,000 and an operating profit after tax of $433,162,000
representing a Net Profit Margin of 5.65%.
Below is a summary of the subject’s consolidated income results for the
past two financial years.
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Sims Group Ltd - consolidated |
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As at 30 June 2008 |
As at 30 June 2007 |
Change (%) |
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Revenue |
$7,670,536,000 |
$5,550,897,000 |
38.19% |
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Profit b/tax |
$651,830,000 |
$356,165,000 |
83.01% |
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Profit a/tax |
$433,162,000 |
$239,352,000 |
80.97% |
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Net Profit Margin |
5.65% |
4.31% |
1.34% |
During fiscal 2008, the subject recorded consolidated Net Cashflows from operating activities totalling $181,657,000.
With completion of the merger with
US-based Metal Management, Inc., in March 2008, Sims became one of the world’s,
as well as North America’s and
The subject recorded extraordinary
financial results in the 2008 financial year due, largely, to the extremely
favourable ferrous market conditions experienced in the second half of the
year, particularly in the fourth quarter, and the inclusion of the results of
the former Metal Management business from 14 March 2008.
The operating cash flow, while
down on fiscal 2007, was very strong at A$181.7 million. Capital expenditure
was up 43% to A$129.7 million and well in excess of depreciation, reflecting
the subjects continuing commitment to invest in operations.
As at 30 June 2008, the subject recorded consolidated total current assets of $2,014,457,000. They included cash of $133,487,000, receivables of $866,101,000 and inventories of $1,010,921,000.
Current liabilities at the same date totalled $1,125,990,000 and included payables of $964,034,000 and provisions of $28,064,000.
As at 30 June 2008, the subject recorded consolidated Working Capital of $888,467,000 and a current ratio of 1.79 to 1 indicating sound liquidity levels.
Net Assets totalled $2,962,088,000 as at 30 June 2008. At this date, the subject further recorded a Debt to Equity ratio of 0.63 to 1 showing low levels of gearing.
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Sims Group Ltd - consolidated |
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As at 30 June 2008 |
As at 30 June 2007 |
Change (%) |
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Revenue |
$7,670,536,000 |
$5,550,897,000 |
38.19% |
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Profit b/tax |
$651,830,000 |
$356,165,000 |
83.01% |
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Profit a/tax |
$433,162,000 |
$239,352,000 |
80.97% |
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Net Profit Margin |
5.65% |
4.31% |
1.34% |
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Current Assets |
$2,014,457,000 |
$792,820,000 |
154.09% |
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Non Current Assets |
$2,802,515,000 |
$1,406,258,000 |
99.29% |
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Total Assets |
$4,816,972,000 |
$2,199,078,000 |
119.05% |
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Current Liabilities |
$1,125,990,000 |
$439,586,000 |
156.15% |
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Non Current Liabilities |
$728,894,000 |
$480,062,000 |
51.83% |
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Total Liabilities |
$1,854,884,000 |
$919,648,000 |
101.69% |
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Net Assets |
$2,962,088,000 |
$1,279,430,000 |
131.52% |
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Working Capital |
$888,467,000 |
$353,234,000 |
151.52% |
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Current Ratio |
1.79 |
1.80 |
-0.80% |
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Debt to Equity |
0.63 |
0.72 |
-12.88% |
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
for the financial year ended 30 June 2008 the subject recorded consolidated revenue of $7,670,536,000, which resulted in an operating profit before tax of $651,830,000 and an operating profit after tax of $433,162,000 representing a Net Profit Margin of 5.65%.
During fiscal 2008, the subject recorded consolidated Net Cashflows from operating activities totalling $181,657,000.
As at 30 June 2008, the subject recorded consolidated Working Capital of $888,467,000 and a current ratio of 1.79 to 1 indicating sound liquidity levels.
Net Assets totalled $2,962,088,000 as at 30 June 2008. After deducting intangibles of $1,402,156,000 this results in a Net Worth of $1,559,932,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.52 |
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1 |
Rs.75.54 |
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Euro |
1 |
Rs.63.12 |
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%)