MIRA INFORM REPORT
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Report Date : |
11.04.2011 |
IDENTIFICATION DETAILS
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Name : |
COLORADO GROUP LIMITED |
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Formerly Known As : |
Venator Group
Australia Ltd |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.07.2010 |
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Date of Incorporation : |
01.11.1954 |
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Legal Form : |
Limited Company |
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Line of Business : |
Retail and wholesale
of footwear and clothing |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
Unknown |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
REGISTERED
NAME
COLORADO GROUP
LIMITED
UNDER EXTERNAL
ADMINISTRATION
ACN: 004 327 566
ABN: 85 004 327 566
ADDRESS
GIVEN
CORPORATE
SEARCH
Incorporation
Date: 01 Nov 1954
Registered Office 100
Charges Date Registered:
17 Jul 2009
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1819784
Date Registered: 17 Jul 2009
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1819783
Date Registered: 17 Jul 2009
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1819780
Date Registered: 13 Apr 2007
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1440636
Date Registered: 13 Apr 2007
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1440634
Date Registered: 13 Apr 2007
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1440633
Date Registered: 13 Apr 2007
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1440632
Date Registered: 13 Apr 2007
Chargee Name: 100 709 493 ANZ FIDUCIARY SERV
Charge Type: Fixed and floating charge
ASIC Charge No: 1440631
Number of Shares
Issued: 96038864
Paid Capital: 109944482
Directors ROBERTS,
Kevin Joseph
GLEN IRIS, VIC 3146
JOHNSON, SAMUEL GODSCHALL
Appointment Date: 09 Oct 2008
Date of Birth: 20 Oct 1978
Gender: Male
Address:
Resident Overseas: No
OSBORNE, NEIL ANTHONY
Appointment Date: 16 Feb 2007
Date of Birth: 11 Dec 1957
Gender: Male
Address:
Resident Overseas: No
SUTTON, BRETT STEPHEN
Appointment Date: 13 Oct 2006
Date of Birth: 25 Sep 1975
Gender: Male
Address: 53 WYMSTON Parade ABBOTSFORD,
Resident Overseas: No
DALZIEL, ROBERT RAE
Appointment Date: 13 Oct 2006
Date of Birth: 13 Nov 1946
Gender: Male
Address: 9
Resident Overseas: No
Secretary JILLIAN GLENDA
BANNAN
Appointment
Date: 17 Dec 2008
BUSINESS
STRUCTURE
TRADING ADDRESS 100
POSTAL ADDRESS GPO
BRISBANE,
QLD 4001
TELEPHONE (617) 3877 3278
FACSIMILE (617) 3877 3333
BRANCHES The group maintains 430 outlets in
Australia and New Zealand
CONTROLLED
ENTITIES Williams The Shoemen Pty Ltd
Mathers
Shoes Pty Ltd
Colorado
Adventurewear Pty Ltd
Colorado
Adventurewear Ltd
Colorado
Group Sourcing Pty Ltd
JAG (Aust)
P/L
Adele
Palmer DBA P/L
Diana Ferrari (
HOLDING ENTITY ARH
Investments (
ULTIMATE HOLDING
ENTITY ARH
Investments Ltd
BANK ANZ
BANKING GROUP
EMPLOYEES Not
determined
BACKGROUND
The subject was incorporated in
Operations were founded in Ballarat in 1864.
The subject was listed on the Australian Stock Exchange on 9 December 1999.
IN 2007 the subject de-listed from the Australian Stock Exchange following a private equity buyout by Affinity Equity Partners.
OPERATIONS
The subject operates in the retail and wholesale of footwear and clothing.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the traced the following litigation listed against the subject at that date.
External
Administration
Title: Administrator of a Company under
Administration
Name: Timothy Norman
Address: Deloitte Touche Tohmatsu –
Melbourne, VIC
Start date: 30.03.2011
Doc Number: 7E3577285
Title: Receiver Manager
Name: James Henry Stuart
Address: Ferrier Hodgson – Melbourne, VIC
Start date: 30.03.2011
Doc Number: 7E3574662
Title: Receiver Manager
Name: Brendan John Richards
Address: Ferrier Hodgson – Melbourne, VIC
Start date: 30.03.2011
Doc Number: 7E3574662
Title: Administrator of a Company under
Administration
Name: Salvatore Algeri
Address: Deloitte Touche Tohmatsu –
Melbourne, VIC
Start date: 30.03.2011
Doc Number: 7E3577285
Title: Administrator of a Company under
Administration
Name: David John Frank Lombe
Address: Deloitte Touche Tohmatsu –
Melbourne, VIC
Start date: 30.03.2011
Doc Number: 7E3577285
Title: Receiver Manager
Name: William Martin Colwell
Address: Ferrier Hodgson – Melbourne, VIC
Start date: 30.03.2011
Doc Number: 7E3574662
FINANCES
On 31 March 2011 the subject was placed under External Administration after a week-long tussle with lenders seeking immediate repayment of $230
million. It is likely administrators and receivers will
seek ways to realise value from the group's assets and may consider closing
some of the 430 stores it operates in
The subject is continuing to trade while the receivers examine options for the future of the group.
For the year ended 31 July 2010, the subject recorded consolidated revenue of $465,185,000 which resulted in an operating Loss before tax of $62,707,000 and an operating Loss after tax of $70,721,000.
The losses for the last financial year included impairment losses totalling $86,968,000.
The subject’s poor 2010 operating results are attributable to the global financial crisis and stronger competition resulting in tighter margins.
Below is a summary of the group’s income results for the past two financial years.
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Colorado Group Ltd - consolidated |
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As at 31 July 2010 |
As at 1 August 2009 |
Change (%) |
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Revenue |
$465,185,000 |
$476,092,000 |
-2.29% |
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Profit b/tax |
($62,707,000) |
$7,590,000 |
-926.18% |
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Profit a/tax |
($70,721,000) |
$4,584,000 |
-1642.78% |
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Net Profit Margin |
-15.20% |
0.96% |
-16.17% |
During fiscal 2010 the subject
recorded Net Cashflows from Operating activities totaling $12,802,000
As at 31 July 2010 the subject recorded total consolidated current assets of $81,465,000. They included inventories of $51,540,000, receivables of $25,295,000 and cash of $4,630,000.
Current liabilities at the same date totaled $78,180,000 and included payables of $59,731,000 and borrowings of $13,139,000.
As at 31 July 2010 the subject recorded Working Capital of $3,285,000 and a current ratio of 1.04 to 1 indicating a satisfactory liquidity position.
At 31 July 2010 the subject had access financing facilities (Excluding working capital arrangements) with a $296,035,000 limit. These facilities were fully drawn at this time.
The subject maintains total external syndicated debt of $387,000,000 at 31 July 2010. These facilities incorporate a number of financial covenants. In the 2010 financial report it was noted that the instability of the retail environment raises significant risk that the group may breach financial covenant thresholds. A breach of one or more of these covenants may result in the external syndicated debt becoming due and payable.
Net assets totaled $30,668,000 as at 31 July 2010. At this date, the subject further recorded a Debt to Equity ratio of 15.15 to 1.
Other Financial
Information
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Colorado Group Ltd - consolidated |
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As at 31 July 2010 |
As at 1 august 2009 |
Change (%) |
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Revenue |
$465,185,000 |
$476,092,000 |
-2.29% |
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Profit b/tax |
($62,707,000) |
$7,590,000 |
-926.18% |
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Profit a/tax |
($70,721,000) |
$4,584,000 |
-1642.78% |
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Net Profit Margin |
-15.20% |
0.96% |
-16.17% |
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Current Assets |
$81,465,000 |
$69,332,000 |
17.50% |
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Non-Current Assets |
$413,676,000 |
$470,378,000 |
-12.05% |
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Total Assets |
$495,141,000 |
$539,710,000 |
-8.26% |
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Current Liabilities |
$78,180,000 |
$69,181,000 |
13.01% |
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Non-Current Liabilities |
$386,293,000 |
$373,242,000 |
3.50% |
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Total Liabilities |
$464,473,000 |
$442,423,000 |
4.98% |
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Net Assets |
$30,668,000 |
$97,287,000 |
-68.48% |
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Working Capital |
$3,285,000 |
$151,000 |
2075.50% |
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Current Ratio |
1.04 |
1 |
3.97% |
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Debt to Equity |
15.15 |
4.55 |
233.04% |
TRADE
SURVEY
During the current investigation details pertaining to the subject’s trade suppliers were unable to be obtained.
A trade survey on the subject was subsequently unable to be conducted.
SUMMARY
The subject was incorporated in
Operations were founded in Ballarat in 1864.
In 2007 the subject de-listed from the Australian Stock Exchange following a private equity buyout by Affinity Equity Partners.
On 31 March 2011 the subject was placed under External
Administration
after a week-long tussle with lenders seeking
immediate repayment of $230 million. It is likely
administrators and receivers will seek ways to realise value from the group's
assets and may consider closing some of the 430 stores it operates in
For the year ended 31 July 2010, the subject recorded consolidated revenue of $465,185,000 which resulted in an operating Loss before tax of $62,707,000 and an operating Loss after tax of $70,721,000.
As at 31 July 2010 the subject recorded Working Capital of $3,285,000 and a current ratio of 1.04 to 1 indicating a satisfactory liquidity position.
Net assets totalled $30,668,000 as at 31 July 2010. After deducting intangibles of $25,901,000 this results in a Net Worth of $4,767,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.04 |
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1 |
Rs.72.20 |
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Euro |
1 |
Rs.63.40 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.