MIRA INFORM REPORT
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Report Date : |
29.04.2011 |
IDENTIFICATION DETAILS
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Name : |
ALLIANCE GROUP LTD |
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Registered Office : |
Level 2, 51 Don
Street, Invercargill |
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Country : |
New Zealand |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
02.03.1948 |
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Legal Form : |
Limited Company |
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Line of Business : |
processors of sheepmeat |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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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
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
New Zealand |
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 |
Company name
ALLIANCE GROUP LTD
CN: 154786
CORPORATE SEARCH
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Entity Type: |
NZ Limited Company |
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Incorporated: |
02 Mar 1948 |
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Current Status: |
Registered |
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Constitution Filed: |
Yes |
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Annual Return Filing Month: |
June |
Registered Office
Level 2, 51 Don Street, Invercargill
Address for Service
Level 2, 51 Don Street, Invercargill
Directors
BROWN, Douglas Alexander
"punchbowl", Waimotu Rd - Maheno, 6 O R D, Oamaru
BUCKINGHAM, Owen David
8 Golf Course Road, Rd 1, Te Anau, 9679
DONALD, Murray Wilson Arthur
Spar Bush, No 4 R D, Invercargill
LINDSAY, John Andrew
Wakefield Farm, R D, Dipton
MACKENZIE, David John
54 Eely Point Road, Wanaka 9192, 9305
MILLER, Jason Andrew
5 Wilkins Road, Southdown, Rd 2, Invercargill
POOLE, Geoffrey Owen
18 Kowhai Drive, Wanaka, 9305
TAGGART, Murray James
2045 Oxford Road, Rd 1, Oxford, 7495
WALLER, John Anthony
11 Maungakiekie Avenue, Greenland, Auckland 1051
Shareholdings
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Total Number of Shares: |
76,140,660 |
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Extensive Shareholdings: |
Yes |
|
145,000 |
340966 LANDCORP FARMING LIMITED 15 Allen Street, Wellington, 0000 |
|
145,000 |
628088 E.G. LUDEMANN LIMITED Harvie Green Wyatt, Chartered Accountants, Level 5,229 Moray Place, Dunedin 9016 |
|
145,000 |
158450 MOUNT LINTON STATION LIMITED Whk South, 173 Spey Street, Invercargill, 9810 |
|
145,000 |
150633 W PINCKNEY LIMITED Jackson Valentine Limited, Chartered Accountants, 3rd Floor, 258 Stuart Street, Dunedin |
|
145,000 |
166817 N.E. PARKES & SONS LIMITED 266 Hardy St, Nelson |
|
145,000 |
PETERS, Alexander Trevor 1205 Teviot Road, Millers Flat, Rd 2, Roxburgh |
|
|
PETERS, Karen Anne 1205 Teviot Road, Millers Flat, Rd 2, Roxburgh |
|
145,000 |
954417 LONE STAR FARMS LIMITED Level 2, 295 Trafalgar Street, Nelson |
|
145,000 |
1690983 GLEN ISLAY LIMITED Harvie Green Wyatt, Chartered Accountants, Level 5,229 Moray Place, Dunedin 9016 |
|
145,000 |
1650563 SUMMIT FARMING NZ LIMITED C/-polson Higgs, Hsbc Tower, Level 8, 62, Worcester Boulevard, Christchurch 8140 |
|
144,112 |
1136736 WILKINS FARMING COMPANY LIMITED 15a Hokonui Drive, Gore |
BUSINESS STRUCTURE
TRADING ADDRESS 51 Don St
INVERCARGIL, NZ 9500
POSTAL ADDRESS PO Box 845
INVERCARGIL, NZ 9500
TELEPHONE (643) 214 2719
PROCESSING PLANTS The subject maintains 9 processing plants across New Zealand
CONTROLLED ENTITY WAITAKI INTERNATIONAL LTD (non trading)
NEW ZEALAND HOLDINGS (UK) LTD
NEW ZEALAND FARMERS LTD
BANK ANZ NATIONAL BANK
THE HONGKONG AND SHANGHAI BANKING CORP
RABOBANK NZ BRANCH
EMPLOYEES Not determined
BACKGROUND
The subject was incorporated in New Zealand on 2 March 1948 under the current style.
The subject was
established in 1948 by a group of farmers who formed the company to process and
market high quality meat and co-products to international markets.
In 1960 the subject the
subject opened its first plant at Lorneville.
IN 1980 the subject became a cooperative.
In 1987 the subject acquired CS Stevens Ltd, a local meat processing company.
OPERATIONS
The subject operates
as the world's largest processors of sheepmeat. The group's nine processing
plants are strategically located throughout the South Island and lower North
Island. Approximately 7 million lambs, 1 million sheep, 150,000 cattle and
130,000 deer are processed annually.
The subject is a farmer-owned co-operative with over 5,000 farmer-shareholders.
More than 85% of the stock supplied to the company for processing comes from
shareholders.
The subject produces 30% of New Zealand’s sheepmeat production, 10% of its beef
production and 20% of its venison production. Nearly all of the subjects
sheepmeat production is exported, accounting for 15% of the world's
cross-border sheepmeat trade.
Activities are conducted from premises located at the above listed trading address.
FINANCES
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 September 2010 the subject recorded revenue of $1,387,114,000, which resulted in an operating profit before tax of $16,910,000 and an operating profit after tax of $6,318,000 representing a Net Profit Margin of 0.46%.
Below is a summary of the subject’s income results for the past two financial years.
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|
Alliance Group Ltd - consolidated |
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|
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As at 30 September 2010 |
As at 30 September 2009 |
Change (%) |
|
Revenue |
$1,387,114,000 |
$1,493,645,000 |
-7.13% |
|
Profit b/tax |
$16,910,000 |
$27,139,000 |
-37.69% |
|
Profit a/tax |
$6,318,000 |
$19,008,000 |
-66.76% |
|
Net Profit Margin |
0.46% |
1.27% |
-0.82% |
During fiscal 2010, the subject recorded Net Cashflows from operating activities totalling $110,361,000.
As at 30 September 2010 the subject recorded total current assets of $191,334,000. They included cash of $28,287,000, receivables of $90,485,000 and inventories of $67,802,000.
Current liabilities at the same date totalled $73,461,000 and included payables of $58,889,000.
As at 30 September 2010 the subject recorded Working Capital of $117,873,000 and a current ratio of 2.6 to 1 indicating strong liquidity levels.
On 5 November 2010,
the company arranged a syndicated revolving cash advances facility with a
consortium of banks for a three year term. This facility is denominated in New
Zealand dollars.
Net Assets totalled $358,266,000 as at 30 September 2010. At this date, the subject further recorded a Debt to Equity ratio of 0.23 to 1 showing low levels of gearing.
|
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Alliance Group Ltd - consolidated |
||
|
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As at 30
September 2010 |
As at 30
September 2009 |
Change (%) |
|
Revenue |
$1,387,114,000 |
$1,493,645,000 |
-7.13% |
|
Profit b/tax |
$16,910,000 |
$27,139,000 |
-37.69% |
|
Profit a/tax |
$6,318,000 |
$19,008,000 |
-66.76% |
|
Net Profit Margin |
0.46% |
1.27% |
-0.82% |
|
Current Assets |
$191,334,000 |
$267,306,000 |
-28.42% |
|
Non Current Assets |
$248,222,000 |
$250,318,000 |
-0.84% |
|
Total Assets |
$439,556,000 |
$517,624,000 |
-15.08% |
|
Current Liabilities |
$73,461,000 |
$105,126,000 |
-30.12% |
|
Non Current Liabilities |
$7,829,000 |
$51,578,000 |
-84.82% |
|
Total Liabilities |
$81,290,000 |
$156,704,000 |
-48.13% |
|
Net Assets |
$358,266,000 |
$360,920,000 |
-0.74% |
|
Working Capital |
$117,873,000 |
$162,180,000 |
-27.32% |
|
Current Ratio |
2.6 |
2.54 |
2.43% |
|
Debt to Equity |
0.23 |
0.43 |
-47.74% |
TRADE SURVEY
Details pertaining to the subjects suppliers were not provided for the current enquiry.
A trade survey on the subject was subsequently unable to be conducted.
SUMMARY
The subject was incorporated in New Zealand on 2 March 1948 under the current style.
The subject was
established in 1948.
For the financial year ended 30 September 2010 the subject recorded revenue of $1,387,114,000, which resulted in an operating profit before tax of $16,910,000 and an operating profit after tax of $6,318,000 representing a Net Profit Margin of 0.46%.
During fiscal 2010, the subject recorded Net Cashflows from operating activities totalling $110,361,000.
As at 30 September 2010 the subject recorded Working Capital of $117,873,000 and a current ratio of 2.6 to 1 indicating strong liquidity levels.
Net Assets totalled $358,266,000 as at 30 September 2010.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.33 |
|
UK Pound |
1 |
Rs.74.14 |
|
Euro |
1 |
Rs.65.78 |
RATING EXPLANATIONS
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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 |
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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 |
|
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 |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.