MIRA INFORM REPORT
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Report Date : |
07.07.2011 |
IDENTIFICATION DETAILS
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Name : |
ATLAS SPECILAITY METALS PTY LTD |
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Registered Office : |
13
to 23 Lynch Road, Brooklyn, Victoria 3012 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
21.10.1960 |
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Legal Form : |
Proprietary Company |
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Line of Business : |
stainless and specialty Steels Distribution
Company |
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 : |
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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Australia |
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 |
NAME GIVEN
ATLAS STEELS
(AUSTRALIA) PTY LTD
SPECIAL NOTE
On 7 March 2008
the subject changed name to Atlas Specialty Metals P/L
REGISTERED NAME
ATLAS SPECILAITY
METALS PTY LTD
ACN: 004 496 128
ABN: 13 004 496
128
CORPORATE SEARCH
Incorporation
Date: 21 Oct 1960
Incorporation
State: Victoria
Registered Office 13 to
23 LYNCH Road
BROOKLYN,
Victoria 3012 Australia
Public
Record Information
Charges Date
Registered: 30 Jun 2006
Chargee Name: 000 974 747 GE COMMERCIAL CORP
Charge Type: Fixed and floating charge
ASIC Charge No: 1319809
Number
of Shares Issued: 190001
Paid
Capital: 380002
Shareholders RANGITIKI
NZ LTD 11360
shares
BALRON
NOMINEES PTY LIMITED 91848 shares
BMT
TRUSTEE 11360
shares
ATT
TRUSTEE 11361
shares
GREENSTONE PARTNERS PRIVATE CAPITAL
Number of Shares: 52947
GREENSTONE PARTNERS PTY LIMITED
Number of Shares: 3237
STEVEN JAMES ANNEAR
Number of Shares: 4203
GREGORY LENNOX FOX
Number of Shares: 1682
KIM FOX
Number of Shares: 420
Directors ANNEAR,
STEVEN JAMES
Appointment Date: 04 Nov 2008
Date of Birth: 18 Mar 1961
Gender: Male
Address: 20 MAY Street HAMPTON, Victoria 3188 Australia
Resident Overseas: No
KERR, HEATH ROBERT
Appointment Date: 04 Nov 2008
Date of Birth: 31 Dec 1970
Gender: Male
Address: 13 PALMERTSON Place SEAFORTH, New South Wales 2092
Australia
Resident Overseas: No
MALCOLM, SCOTT LEITH
Appointment Date: 04 Nov 2008
Date of Birth: 29 Feb 1964
Gender: Male
Address: 24 ALBERT Street EDGECLIFF, New South Wales 2027
Australia
Resident Overseas: No
TAYLOR, ANDREW THOMAS
Appointment Date: 04 Nov 2008
Date of Birth: 29 Dec 1962
Gender: Unknown
Address:
Resident Overseas: Yes
BALKIN, DAVID MARK
Appointment Date: 04 Nov 2008
Date of Birth: 06 Dec 1953
Gender: Male
Address: 291 WHALE BEACH Road WHALE BEACH, New South Wales
2107 Australia
Resident Overseas: No
SMALLER, KEVIN CECIL
Appointment Date: 04 Nov 2008
Date of Birth: 29 Aug 1977
Gender: Male
Address: 22 RICKARD Avenue BONDI BEACH, New South Wales 2026
Australia
Resident Overseas: No
SMALLER, PETER KEVIN
Appointment Date: 04 Nov 2008
Date of Birth: 14 Nov 1947
Gender: Male
Address: 12 VICTORIA Road BELLEVUE HILL, New South Wales
2023 Australia
Secretary GREGORY
LENNOX FOX
Appointment
Date: 04 Nov 2008
BUSINESS STRUCTURE
TRADING ADDRESS 1 –
23 Lynch Road
BROOKLYN, VIC, 3025
TELEPHONE (613) 9272 9999
FACSIMILE (613) 9272 9965
CONTROLLED ENTITY ATLAS SPECIALTY
METALS LIMITED – NZ
ATLAS
METAL PROCESSORS P/L
GILBERT
LODGE P/L
BRANCHES The
subject maintains 19 branches throughout Australia and
New Zealand.
BANK WESTPAC
BANKING CORPORATION
GE
COMMERCIAL
EMPLOYEES 350
BACKGROUND
The subject was incorporated in Victoria on 21 October 1960 as Atlas Steel (Australia) Pty Ltd, before adopting the current style on 7 March 2008.
Group operations were established n Australia in 1939.
In 1962, the Group established its own distribution warehouse and a wire drawing mill at Altona North, Melbourne. From this beginning, the company has grown to 15 sites across Australia and New Zealand.
In 1987, Atlas Steels Limited was publicly listed on the Stock Exchange of Melbourne. At this time, the steel manufacturing and distribution operations of Atlas Steels (Australia) Pty Limited and the Martin Bright Steels Group were brought together. This merged entity created the largest stainless and specialty steels company in Australia and New Zealand.
Atlas Steels Limited was acquired by Email Limited in 1995 and the distribution and manufacturing operations became a part of the Email Metals Group.
In 2001 a consortium of Smorgon and OneSteel, acquired Email. Following this successful acquisition, Atlas Steels, was put up for sale.
Effective 1 December 2001, the subject and Bisalloy Steels were acquired by InterBank Capital Partners Pty. Ltd (“InterBank”). To facilitate the acquisition, InterBank established a new incorporated company, AB Steels Holdings Pty Ltd. This company is owned by Quadrant Capital (Westpac, Development Capital), and the Directors and Management of the entity businesses.
In June 2003, the holding entity Atlas Group Holdings P/L listed on the Australia Stock Exchange.
On 6 November 2008 the subject was acquired from Bisalloy Steel Group Ltd by a consortium of Balron Nominees and entities associated with Greenstone Partners Private capital.
As a result of the acquisition, Peter Smaller of Southern Steel and a past director of Atlas will now chair the board, and Steven Annear formally of Smorgon Steel will assume the role of Managing Director.
OPERATIONS
The subject operates as the largest stainless and specialty steels
distribution company in Australia.
Products distributed by the subject include stainless flat product,
stainless tubular product, stainless sections, engineering bar and aluminium.
Activities are conducted from premises located at the above listed
trading address.
ADVERSE
A search of failed to trace any litigation listed against the subject at
that date.
FINANCES
On 6 November 2008 Bisalloy Steel Group Ltd (formerly Atlas Group Holdings Ltd completed the sale of Atlas Distribution, the company’s speciality distribution business in Australia and New Zealand to a consortium of Balron Nominees and entities associated with Greenstone Partners Private capital.
Consideration for the acquisition was an estimated $95 million and consisted of $22.6 mil in cash and the assumption of $72.4 mil in liabilities.
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 June 2010 the subject recorded revenue of $200,700,000, which resulted in an operating Loss before tax of $14,453,000 and an operating Loss after tax of $14,527,000.
Difficult market and economic conditions affected the subjects operating performance during the last financial year.
The decline in revenue for fiscal 2010 was primarily attributable to lower sales volumes and lower average selling price.
The subjects Directors are expecting improved trading results for the current financial year ending 30 June 2011.
Below is a summary of the subject’s income results for the past two financial years.
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Atlas Specialty Metals Pty Ltd |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$200,700,000 |
$257,467,000 |
-22.05% |
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Profit b/tax |
($14,453,000) |
$75,475,000 |
-119.15% |
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Profit a/tax |
($14,527,000) |
$80,874,000 |
-117.96% |
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Net Profit Margin |
-7.24% |
31.41% |
-38.65% |
During fiscal 2010, the subject recorded Net Cashflows from operating activities totalling $4,961,000.
As at 30 June 2009 the subject recorded consolidated total current assets of $135,620,000. They included cash of $571,000, receivables of $38,909,000 and inventories of $94,423,000.
Current liabilities at the same date totalled $52,571,000 and included payables of $50,112,000.
As at 30 June 2010 the subject recorded consolidated Working Capital of $83,049,000 and a current ratio of 2.58 to 1 indicating strong liquidity levels.
The group entered into a $90 million variable interest revolving loan facility in November 2008 with GE Commercial which is due to mature in November 2011.
Consolidated Net Assets totalled $17,547,000 as at 30 June 2010. At this date, the subject further recorded a Debt to Equity ratio of 7.82 to 1.
The Directors believe that the subjects going concern basis is appropriate. Underlying profit of the group has strengthened as a direct result of actions undertaken by management since the change in ownership in November 2008. This included a major restructure, resulting in significant reductions in the cost base of the group.
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Atlas Specialty Metals Pty Ltd |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
|
Revenue |
$200,700,000 |
$257,467,000 |
-22.05% |
|
Profit b/tax |
($14,453,000) |
$75,475,000 |
-119.15% |
|
Profit a/tax |
($14,527,000) |
$80,874,000 |
-117.96% |
|
Net Profit Margin |
-7.24% |
31.41% |
-38.65% |
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Current Assets |
$135,620,000 |
$129,487,000 |
4.74% |
|
Non-Current Assets |
$19,061,000 |
$22,326,000 |
-14.62% |
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Total Assets |
$154,681,000 |
$151,813,000 |
1.89% |
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Current Liabilities |
$52,571,000 |
$31,909,000 |
64.75% |
|
Non-Current Liabilities |
$84,563,000 |
$87,887,000 |
-3.78% |
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Total Liabilities |
$137,134,000 |
$119,796,000 |
14.47% |
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Net Assets |
$17,547,000 |
$32,017,000 |
-45.19% |
|
Working Capital |
$83,049,000 |
$97,578,000 |
-14.89% |
|
Current Ratio |
2.58 |
4.06 |
-36.43% |
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Debt to Equity |
7.82 |
3.74 |
108.87% |
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 21 October 1960 to commence trading under the current style.
For the financial year ended 30 June 2010 the subject recorded revenue of $200,700,000, which resulted in an operating Loss before tax of $14,453,000 and an operating Loss after tax of $14,527,000.
The subjects Directors are expecting improved trading results for the current financial year ending 30 June 2011.
During fiscal 2010, the subject recorded Net Cashflows from operating activities totalling $4,961,000.
As at 30 June 2010 the subject recorded consolidated Working Capital of $83,049,000 and a current ratio of 2.58 to 1 indicating strong liquidity levels.
Consolidated Net Assets totalled $17,547,000 as at 30 June 2010.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.38 |
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UK Pound |
1 |
Rs.71.24 |
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Euro |
1 |
Rs.64.16 |
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 |
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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.