MIRA INFORM REPORT
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Report Date : |
28.11.2008 |
IDENTIFICATION DETAILS
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Name : |
DOWNER EDI LTD |
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Formerly Known As : |
Downer Group Ltd |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2008 |
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Date of Incorporation : |
21.09.1989 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Engineering and
Infrastructure Management Services |
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
DOWNER EDI LTD
ACN:
003 872 848
ABN: 97 003 872 848
CORPORATE SEARCH
Incorporation
Date: 21 Sep 1989
Registered Office 3/190 GEORGE
Street
Structure
Number of Shares
Issued: 969740730
Paid Capital: $550910772
Directors COATES, PETER
ROLAND
Appointment Date: 30 Oct 2008
Date of Birth: 19 Nov 1945
Gender: Male
Address:
Resident Overseas: No
CHAPLAIN, SALLY ANNABELLE
Appointment Date: 01 Jul 2008
Date of Birth: 28 Jan 1958
Gender: Female
Address:
Resident Overseas: No
HARDING, RICHARD MICHAEL
Appointment Date: 01 Jul 2008
Date of Birth: 20 May 1949
Gender: Male
Address:
Resident Overseas: No
KNOX, GEOFFREY HUGH
Appointment Date: 01 Feb 2008
Date of Birth: 13 May 1957
Gender: Male
Address:
Resident Overseas: No
DI BARTOLOMEO, LUCIO
Appointment Date: 22 Jun 2006
Date of Birth: 05 Aug 1953
Gender: Male
Address:
Resident Overseas: No
RENWICK, CHRISTOPHER JOHN
Appointment Date: 09 Sep 2004
Date of Birth: 29 Sep 1942
Gender: Male
Address:
Resident Overseas: No
JOLLIE, PETER
Appointment Date: 30 Apr 2004
Date of Birth: 14 Jul 1940
Gender: Male
Address: CURRAWINYA 94 ELLIOTT Street BALMAIN,
Resident Overseas: No
HUMPHREY, JOHN SCOTT
Appointment Date: 11 Apr 2001
Date of Birth: 10 Apr 1955
Gender: Male
Address:
Resident Overseas: No
Secretary BRUCE JOHN CRANE
Appointment
Date: 19 Aug 2008
BUSINESS STRUCTURE
HEAD OFFICE Level 3,
SYDNEY,
NSW 2000
TELEPHONE (612) 9240 9000
FACSI (612)
9251 4845
DIVISIONS DOWNER EDI
WORKS
DOWNER EDI
ENGINEERING
DOWNER EDI
MINING
DOWNER EDI
RAIL
CONSULTING
SERVICES
CONTROLLED ENTITIES See pages 74 to 79 of the attached annual report
BANK Not
determined
EMPLOYEES over 24,000
BACKGROUND
The subject was incorporated
in
The subject was listed on the Australia Stock Exchange
on 20 December 1990.
In February 2001, the Downer Group acquired Evans
Deakin Industries Ltd in a $250 million take over bid.
OPERATIONS
The subject operates as an engineering and infrastructure management services company to the public, private transport, energy, communications and resources sectors.
The subject operates in the following divisions:
DOWNER EDI WORKS – Road maintenance and
upgrade, railtrack services and water services.
DOWNER EDI ENGINEERING – contracting,
technical services and projects.
DOWNER EDI MINING – Open cut and underground
mining, blasting services, plant and tyre maintenance and minerals processing
technology.
DOWNER EDI RAIL – Passenger Rollingstock,
Freight Rollingstock, maintenance and spares.
CONSULTING SERVICES – Multi-disciplinary architectural and engineering design, project management, facilities management and geology and mining consulting.
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
$5,462,530,000, which resulted in an operating profit before tax of
$231,946,000 and an operating profit after tax of $165,842,000 representing a
Net Profit Margin of 3.04%.
Below is a summary
of the subject’s income results for the past two financial years.
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Downer EDI Limited - consolidated |
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As at 30 June 2008 |
As at 30 June 2007 |
Change (%) |
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Revenue |
$5,462,530,000 |
$5,329,530,000 |
2.50% |
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Profit b/tax |
$231,946,000 |
$72,643,000 |
219.30% |
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Profit a/tax |
$165,842,000 |
$101,498,000 |
63.39% |
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Net Profit Margin |
3.04% |
1.90% |
1.13% |
The group performed
to expectations during the last financial year, delivering increased revenue
and improved financial performance.
The Downer Edi Works division delivered a 9.9% increase in revenue to $1.77 bullion and a 48.4% increase in EBIT to $110 million.
Downer EDI Rail for the same period was able to increase revenue by 14.2% to $612.9 million with a 9.8% in EBIT to $45.9 million.
The Engineering and Consulting division increased revenue for the period by 16.1% to $1.82 billion resulting in an EBIT to $96.3 million.
Downer EDI Mining generated revenue of $1.31 billion during fiscal 2008 which resulted in EBIT of $66.2 million.
The group’s total order book at 30 June 2008 was $11.5 billion.
During fiscal 2008, the subject recorded Net Cashflows from operating activities totalling $276,031,000.
As at 30 June 2008 the subject recorded total current assets of $1,697,625,000. They included cash of $245,790,000, receivables of $1,114,371,000 and inventories of $204,043,000.
Current liabilities at the same date totalled $1,419,473,000 and included payables of $993,478,000 and provisions of $225,803,000.
As at 30 June 2008 the subject recorded consolidated Working Capital of $278,152,000 and a current ratio of 1.2 to 1 indicating satisfactory liquidity levels.
Net Assets totalled $1,196,364,000 as at 30 June 2008. At this date, the subject further recorded a Debt to Equity ratio of 1.66 to 1. After deducting intangibles of $578,725,000 this resulted in a Net Worth of $617,639,000.
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Downer EDI Limited - consolidated |
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As at 30 June 2008 |
As at 30 June 2007 |
Change (%) |
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Revenue |
$5,462,530,000 |
$5,329,530,000 |
2.50% |
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Profit b/tax |
$231,946,000 |
$72,643,000 |
219.30% |
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Profit a/tax |
$165,842,000 |
$101,498,000 |
63.39% |
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Net Profit Margin |
3.04% |
1.90% |
1.13% |
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Current Assets |
$1,697,625,000 |
$1,558,682,000 |
8.91% |
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Non Current Assets |
$1,485,651,000 |
$1,621,345,000 |
-8.37% |
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Total Assets |
$3,183,276,000 |
$3,180,027,000 |
0.10% |
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Current Liabilities |
$1,419,473,000 |
$1,274,597,000 |
11.37% |
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Non Current Liabilities |
$567,439,000 |
$735,523,000 |
-22.85% |
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Total Liabilities |
$1,986,912,000 |
$2,010,120,000 |
-1.15% |
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Net Assets |
$1,196,364,000 |
$1,169,907,000 |
2.26% |
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Working Capital |
$278,152,000 |
$284,085,000 |
-2.09% |
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Current Ratio |
1.20 |
1.22 |
-2.20% |
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Debt to Equity |
1.66 |
1.72 |
-3.34% |
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
The subject was listed on the Australia Stock Exchange on 20 December 1990.
for the financial year ended 30 June 2008 the subject recorded consolidated revenue of $5,462,530,000, which resulted in an operating profit before tax of $231,946,000 and an operating profit after tax of $165,842,000 representing a Net Profit Margin of 3.04%.
The group’s total order book at 30 June 2008 was $11.5
billion.
As at 30 June 2008
the subject recorded consolidated Working Capital of $278,152,000 and a current
ratio of 1.2 to 1 indicating satisfactory liquidity levels.
Net Assets totalled $1,196,364,000 as at 30 June 2008. After
deducting intangibles of $578,725,000 this resulted in a Net Worth of
$617,639,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.84 |
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1 |
Rs.76.81 |
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Euro |
1 |
Rs.64.38 |
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%)