MIRA INFORM REPORT

 

 

Report Date :

21.01.2011

 

IDENTIFICATION DETAILS

 

Correct 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) :

30.09.2009

 

 

Date of Incorporation :

02.05.1957

 

 

Legal Form :

Proprietary Company

 

 

Line of Business :

Import and distribution of a range of hand tools, power tools, garden tools and associated products

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

----

 

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Australia

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

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                                   LIM, Henry Won

Resident overseas

 

DYSON, Patrick John

Resident overseas

 

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

 

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

 

ULTIMATE HOLDING

ENTITY                                UNITED PACIFIC INDUSTRIES LTD - HK

 

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                            35

 

           

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 failed to trace any litigation listed against the subject at that date.

 

                       

FINANCES

 

During the current investigation contact with the subject’s financial controller Rod Frost was unable to be established. It was advised that he is away for two weeks on annual leave.

 

From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 September 2009 the subject recorded revenue of $22,148,094, which resulted in an operating profit before tax of $392,408 and an operating profit after tax of $1,019,653 representing a Net Profit Margin of 4.6%.

 

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

 

 

Spear and Jackson (Australia) Pty Ltd

 

As at 30 September 2009

As at 30 September 2008

Change (%)

Revenue

$22,148,094

$21,891,406

1.17%

Profit b/tax

$392,408

$760,072

-48.37%

Profit a/tax

$1,019,653

$760,072

34.15%

Net Profit Margin

4.60%

3.47%

1.13%

 

During fiscal 2009, the subject recorded a deficiency in Net Cashflows from operating activities totalling $1,153,231.

 

As at 30 September 2009 the subject recorded total current assets of $14,277,838. They included cash of $2,199,988, receivables of $3,130,753 and inventories of $6,114,966.

 

Current liabilities at the same date totalled $16,398,882 and included payables of $12,036,370 and provisions of $1,634,712.

 

As at 30 September 2009 the subject recorded a deficiency in Working Capital of $2,121,044 and a current ratio of 0.87 to 1 indicating some tightness in liquidity levels.

 

The subject recorded a deficiency in Net Assets totalling $1,316,958 as at 30 September 2009.

 

At 30 September 2009 the subject was party to a loan from James Neill Holdings Ltd (parent) for $10,065,437. The parent has indicated that there is no written loan agreement in pace and that the loan is planned to be converted to share capital in the future.

 

From the 2009 the subject’s auditors noted that the ability of the company to continue as a going concern is dependant upon the parent entity not calling on the unsecured loan and the future profitability of the company.

 

At the time of signing the 2009 the director’s opinion is that there are reasonable grounds to believe the subject will be able to pay its debts as and when they fall due.

 

 

 

Spear and Jackson (Australia) Pty Ltd

 

As at 30 September 2009

As at 30 September 2008

Change (%)

Revenue

$22,148,094

$21,891,406

1.17%

Profit b/tax

$392,408

$760,072

-48.37%

Profit a/tax

$1,019,653

$760,072

34.15%

Net Profit Margin

4.60%

3.47%

1.13%

Current Assets

$14,277,838

$15,968,893

-10.59%

Non-Current Assets

$851,765

$231,094

268.58%

Total Assets

$15,129,603

$16,199,987

-6.61%

Current Liabilities

$16,398,882

$18,319,197

-10.48%

Non-Current Liabilities

$47,679

$50,787

-6.12%

Total Liabilities

$16,446,561

$18,369,984

-10.47%

Net Assets

($1,316,958)

($2,169,997)

-39.31%

Working Capital

($2,121,044)

($2,350,304)

-9.75%

Current Ratio

0.87

0.87

-0.12%

Debt to Equity

-12.49

-8.47

47.52%

 

 

TRADE SURVEY

 

During the current investigation, contact with the subject’s 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 Victoria on 2 May 1957, before adopting the current style on 30 October 2002.

 

The group has origins that date back to 1760 for the financial year ended 30 September 2009 the subject recorded revenue of $22,148,094, which resulted in an operating profit before tax of $392,408 and an operating profit after tax of $1,019,653 representing a Net Profit Margin of 4.6%.

 

During fiscal 2009, the subject recorded a deficiency in Net Cashflows from operating activities totalling $1,153,231.

 

As at 30 September 2009 the subject recorded a deficiency in Working Capital of $2,121,044 and a current ratio of 0.87 to 1 indicating some tightness in liquidity levels.

 

The subject recorded a deficiency in Net Assets totalling $1,316,958 as at 30 September 2009.

 

From the 2009 the subject’s auditors noted that the ability of the company to continue as a going concern is dependant upon the parent entity not calling on the unsecured loan and the future profitability of the company.

 

At this time the director’s opinion is that there are reasonable grounds to believe the subject will be able to pay its debts as and when they fall due.

 

           

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.58

UK Pound

1

Rs.72.73

Euro

1

Rs.61.45

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.