MIRA INFORM REPORT

 

 

Report Date :

27.11.2008

 

IDENTIFICATION DETAILS

 

Name :

SPEAR & JACKSON (AUSTRALIA) PTY LTD

 

 

Formerly Known As :

JNU INTERNATIONAL (AUSTRALIA) PTY LTD

 

 

Registered Office :

2/82 Greens Road Dandenong South, Victoria 3175

 

 

Country :

Australia

 

 

Financials (as on) :

30.09.2007

 

 

Date of Incorporation :

02.05.1957

 

 

Legal Form :

Propriety Limited

 

 

Line of Business :

Import and Distribution Hand Tools, Power Tools, Garden Tools and Associated Products.

 

 

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 :

No Complaints

 

 

Litigation :

Clear

 

                                   

REGISTERED NAME      

 

SPEAR & JACKSON (AUSTRALIA) PTY LTD

ACN: 004 376 934

ABN: 72 004 376 934

 

 

CORPORATE SEARCH

 

Incorporation Date:                     02 May 1957

 

Incorporation State:                    Victoria

 

Registered Office                       2/82 GREENS Road

                                                DANDENONG SOUTH, Victoria 3175 Australia

 

Charges                                    Date Registered: 16 Jul 1990

Chargee Name: 005 357 522 AUSTRALIA AND NEW

Charge Type: Fixed and floating charge

ASIC Charge No: 75248

 

Number of Shares Issued:           2320000

 

Paid Capital:                              4640000

 

Shareholders                             JAMES NEILL HOLDINGS PLC

Number of Shares: 2319996

 

JAMES HUGH NEILL

Number of Shares: 1

 

ROBERT VICTOR BROWNE

Number of Shares: 1

 

MALCOLM WILLIAM GRANT

Number of Shares: 1

 

 PETER BRADLEY BULLOCK

Number of Shares: 1

 

Directors                                   BOYD, ALEXANDER JAMES

Appointment Date: 06 Dec 2003

Date of Birth: 25 Jul 1953

Gender: Male

Address: 14 AMBERWOOD Court TEMPLESTOWE, Victoria 3106 Australia

Resident Overseas: No

 

FLETCHER, WILLIAM

Appointment Date: 25 Jun 2002

Date of Birth: 28 Jan 1946

Gender: Unknown

Address:

Resident Overseas: Yes

 

Secretary                                  ALEXANDER JAMES BOYD

                                                Appointment Date: 24 Apr 2007

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 Building 2, 82 Greens Rd

                                                DANDENONG SOUTH, VIC 3175

 

TELEPHONE                             1300 731 818

 

FACSIMILE                               1300 735 858

 

HOLDING ENTITY                      JAMES NEILLL HOLDINGS PLC

 

CONTROLLED ENTITIES            UNCOS (AUSTRALIA) P/L

                                                EH COLLIS P/L

                                                EH COLLIS (NSW) P/L                          

 

BANK                                       ANZ BANKING GROUP 

                                               

EMPLOYEES                            45

               

 

BACKGROUND

 

The subject was incorporated in Victoria on 2 May 1957 as Eclipse Tools (Sheffield) Ltd, changing name to James Neill (Australia) P/L, changing name on 16 August 1990 to JNU International (Australia) Pty Ltd, before adopting the current style on 30 October 2002.

 

The group has origins that date back to 1760 when a draper named John Love and a Wakefield merchant, Alexander Spear, decided that steel offered a better living than cloth and went into business together. By 1814, the business had passed down to Alexander's nephew John, who took on an apprentice - Sam Jackson.

 

In 1985 Eclipse owner Neill Tools buys Spear and Jackson.

                               

 

OPERATIONS

 

The subject operates in the import and distribution of a range of hand tools, power tools, garden tools and associated products.

 

Activities are conducted from premises located at the above listed trading address.

 

 

ADVERSE

                                                               

A search of the of Credit Advantage Limited traced the following litigation listed against the subject at that date.

 

Court Actions

Action Date: 03 Jun 2004

Amount: 2186

Creditor: WORKCOVER CORPORATION

Plaint Number: 0001333/04/ELCO

Court Type: Local court

 

Action Date: 20 Jan 2004

Amount: 1738

Creditor: HARRIS SCARFE HOLDINGS LTD & A

Plaint Number: 0013400/03/ALCO

Court Type: Local court

 

 

FINANCES

 

From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 September 2007 the subject recorded revenue of $18,372,400, which resulted in an operating profit before tax of $2,025,706 and an operating profit after tax of $2,025,706 representing a Net Profit Margin of 11.03%.

 

During the current interview conducted with the subjects Financial Controller, Ron Frost, he advised that for the last financial year ende30 September 208, the subject recorded revenue of $27,000,000 which resulted in an operating profit of $908,000.

 

Below is a summary of the subject’s income results for the past two financial years.

 

 

Spear & Jackson (Australia) Pty Ltd

 

As at 30 September 2007

As at 30 September 2006

Change (%)

Revenue

$18,372,400

$15,671,984

17.23%

Profit b/tax

$2,025,706

$35,132

5665.99%

Profit a/tax

$2,025,706

$32,132

6204.33%

Net Profit Margin

11.03%

0.21%

10.82%

 

During fiscal 2008, the subject recorded a deficiency in Net Cashflows from operating activities totalling $953,470.

 

As at 30 September 2008 the subject recorded total current assets of $12,354,371. They included cash of $1,437,343, receivables of $3,319,447 and inventories of $6,080,881.

 

Current liabilities at the same date totalled $4,877,136 and included payables of $2,375,815 and provisions of $1,075,554.

 

As at 30 September 2007 the subject recorded Working Capital of $7,477,235 and a current ratio of 2.53 to 1 indicating sound liquidity levels.

 

The subject recorded a deficiency in Net Assets totalling $1,475,731 as at 30 September 2007.

 

 

 

Spear & Jackson (Australia) Pty Ltd

 

As at 30 September 2007

As at 30 September 2006

Change (%)

Revenue

$18,372,400

$15,671,984

17.23%

Profit b/tax

$2,025,706

$35,132

5665.99%

Profit a/tax

$2,025,706

$32,132

6204.33%

Net Profit Margin

11.03%

0.21%

10.82%

Current Assets

$12,354,371

$9,807,862

25.96%

Non Current Assets

$279,471

$264,426

5.69%

Total Assets

$12,633,842

$10,072,288

25.43%

Current Liabilities

$4,877,136

$2,585,424

88.64%

Non Current Liabilities

$9,232,437

$10,896,284

-15.27%

Total Liabilities

$14,109,573

$13,481,708

4.66%

Net Assets

($1,475,731)

($3,409,420)

-56.72%

Working Capital

$7,477,235

$7,222,438

3.53%

Current Ratio

2.53

3.79

-33.23%

Debt to Equity

-9.56

-3.95

141.79%

 

 

TRADE SURVEY

 

A trade survey on the subject traced the following accounts:

 

(MC Products) Purchases average $40,000 per month on 30 day terms. Payment is met in 30 days and the account is considered satisfactory, having been known over years.

 

(Toll Global Forwarding) Nominated supplier failed to respond to correspondence despite chasing.

 

 

SUMMARY

 

The subject was incorporated in Victoria on 2 May 1957 as Eclipse Tools (Sheffield) Ltd, changing name to James Neill (Australia) P/L, changing name on 16 August 1990 to JNU International (Australia) Pty Ltd, before adopting the current style on 30 October 2002.

 

The group has origins that date back to 1760

 

For the last financial year ende30 September 208, the subject recorded revenue of $27,000,000 which resulted in an operating profit of $908,000.

 

During fiscal 2008, the subject recorded a deficiency in Net Cashflows from operating activities totalling $953,470.

 

As at 30 September 2007 the subject recorded Working Capital of $7,477,235 and a current ratio of 2.53 to 1 indicating sound liquidity levels.

 

The subject recorded a deficiency in Net Assets totalling $1,475,731 as at 30 September 2007.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.84

UK Pound

1

Rs.76.81

Euro

1

Rs.64.38

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions