MIRA INFORM REPORT
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Report Date : |
04.05.2011 |
IDENTIFICATION DETAILS
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Name : |
SIMS GROUP AUSTRALIA HOLDINGS LTD |
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Formerly Known As : |
Sims Group Ltd |
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Registered Office : |
Sir
Joseph Banks Corporat, 3/32 Lord Street Botany, New South Wales 2019 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
28.01.1988 |
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Legal Form : |
Limited Company |
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Line of Business : |
subject operates as an international metal recycling and distribution company. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Exists |
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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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 |
REGISTERED NAME
SIMS GROUP AUSTRALIA HOLDINGS LTD
ACN: 008 634 526
ABN: 37 008 634
526
ADDRESS GIVEN
Level 6
41 Mclaren St
NORTH SYDNEY, NSW 2060
SPECIAL NOTE The
subjects head office is located at Level 2 32 to 34 Lord St BOTANY, NSW.
Contact details for the subject at the address provided were unable to be
traced.
CORPORATE SEARCH
Incorporation
Date: 28 Jan 1988
Incorporation
State: Australian
Capital Territory
Registered Office SIR
JOSEPH BANKS CORPORAT
3/32
LORD Street BOTANY,
New
South Wales 2019 Australia
Number
of Shares Issued: 91467048
Paid
Capital: 45733524
Directors SHIELDS,
Rodney James
44
Mill Dr
NORTH
ROCKS, NSW 2151
MCLEAN, DOUGLAS STEWART
Appointment Date: 16 Apr 2007
Date of Birth: 31 Aug 1951
Gender: Male
Address: 85 MORUYA Drive GROVEDALE, Victoria 3216 Australia
Resident Overseas: No
RADHAKRISHNAN, SIVAKUMARAN
Appointment Date: 16 Apr 2007
Date of Birth: 07 Jul 1966
Gender: Male
Address: 12 WOOLCOTT Street WAVERTON, New South Wales 2060
Australia
Resident Overseas: No
WHITAKER, JASON
Appointment Date: 13 Feb 2006
Date of Birth: 17 Sep 1970
Gender: Male
Address: 12 Trevalsa Pl Burraneer, NSW 2230
Resident Overseas: No
GLYDE, JOHN STANLEY
Appointment Date: 13 Feb 2006
Date of Birth: 12 Jul 1966
Gender: Male
Address: 27 MANDALAY Street FIG TREE POCKET, Queensland 4069
Australia
Resident Overseas: No
MCGREE, DARREN RODNEY
Appointment Date: 27 Oct 2005
Date of Birth: 07 Aug 1947
Gender: Male
Address: 34B BULLS Road BURRANEER, New South Wales 2230
Australia
Resident Overseas: No
Secretary FRANK
MARTIN MORATTI
BUSINESS STRUCTURE
HEAD OFFICE Level 6
41
Mclaren St
NORTH
SYDNEY, NSW 2060
TELEPHONE (612) 8813 1600
FACSIMILE (612)
8113 1622
HOLING ENTITY SIMS METAL MANAGEMENT LTD
BANK COMMONWEALTH
BANK OF AUSTRLAIA
EMPLOYEES 5,600
(group)
BACKGROUND
The subject was incorporated in the ACT on 28 January 1988 as Kinchella P/L, changing name on 9 May 190 to Simsmetal Ltd, changing name on 29 January 2003 to Sims Group Ltd, before adopting the currents style on 20 October 2005.
The group has origins that date back to 1917.
In October 2005 the group listed on the Australian Stock Exchange.
Over the past 15 years, the group has expanded from an Australian based division of a mining conglomerate to become the only truly global metals recycling company with operations in Australia, Malaysia, India, China, UK, US and Canada.
With completion of the merger with
US-based Metal Management, Inc., in March 2008, Sims became one of the worlds,
as well as North America’s and Australasia’s, largest metal and electronics
recyclers. Sims today has over 230 locations in 20 countries on four
continents, and some 6,000.
OPERATIONS
The subject operates as an international metal recycling and distribution company.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of traced the following litigation
listed against the subject at that date.
Court Actions
Action Date: 18 Apr 2008
Amount: 17262
Creditor: BEILBY CORPORATION PTY LTD
Plaint Number: 003694/08/WPER
Court Type: Magistrates court
Status: Paid
Status Date: 04 Dec 2008
Court Writs
Action Date: 23 Feb 2010
Amount: 108,800
Creditor: 7Steel Distribution
Plaint Number: 565/10/WPER
Court Type: District court
FINANCES
The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Sims Metal Management Limited. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 June 2010 the Group recorded consolidated revenue of $7,458,500,000, which resulted in an operating profit before tax of $194,500,000 and an operating profit after tax of $126,700,000 representing a Net Profit Margin of 1.7%.
For the same period the closed
group recorded an operating profit before tax of $40,600,000 and after tax of
$28,100,000.
Below is a summary of the Group’s consolidated income results for the past two financial years.
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Sims Metal Management Ltd - consolidated |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$7,458,500,000 |
$8,641,000,000 |
-13.68% |
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Profit b/tax |
$194,500,000 |
($122,200,000) |
-259.17% |
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Profit a/tax |
$126,700,000 |
($150,300,000) |
-184.30% |
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Net Profit Margin |
1.70% |
-1.74% |
3.44% |
During fiscal 2010, the Group recorded a deficiency in consolidated Net Cashflows from operating activities totalling $47,500,000.
As of 30 June 2010, we had net cash balances of
approximately $15 million, undrawn lines of credit
of approximately $1.3 billion.
As at 30 June 2010, the Group recorded consolidated total current assets of $1,494,100,000. They included cash of $132,300,000, receivables of $576,200,000 and inventories of $776,900,000.
Current liabilities at the same date totalled $674,100,000 and included payables of $614,200,000 and provisions of $31,100,000.
As at 30 June 2010, the Group recorded consolidated Working Capital of $820,000,000 and a current ratio of 2.22 to 1 indicating sound liquidity levels.
For the same period the closed
group recorded Working Capital of $357,300,000 and a current ratio of 2.96 to
1.
Net Assets totalled $3,278,800,000 as at 30 June 2010. At this date, the Group further recorded a Debt to Equity ratio of 0.29 to 1 showing low levels of gearing.
For the same period the closed group recorded Net Assets of $3,001,700,000. After deducting intangibles of $15,300,000 this results in a Net Worth of $2,986,400,000.
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Sims Metal Management Ltd - consolidated |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$7,458,500,000 |
$8,641,000,000 |
-13.68% |
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Profit b/tax |
$194,500,000 |
($122,200,000) |
-259.17% |
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Profit a/tax |
$126,700,000 |
($150,300,000) |
-184.30% |
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Net Profit Margin |
1.70% |
-1.74% |
3.44% |
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Current Assets |
$1,494,100,000 |
$985,900,000 |
51.55% |
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Non-Current Assets |
$2,745,600,000 |
$2,822,700,000 |
-2.73% |
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Total Assets |
$4,239,700,000 |
$3,808,600,000 |
11.32% |
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Current Liabilities |
$674,100,000 |
$577,000,000 |
16.83% |
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Non-Current Liabilities |
$286,800,000 |
$372,600,000 |
-23.03% |
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Total Liabilities |
$960,900,000 |
$949,600,000 |
1.19% |
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Net Assets |
$3,278,800,000 |
$2,859,000,000 |
14.68% |
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Working Capital |
$820,000,000 |
$408,900,000 |
100.54% |
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Current Ratio |
2.22 |
1.71 |
29.72% |
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Debt to Equity |
0.29 |
0.33 |
-11.77% |
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 the ACT on 28 January 1988 as Kinchella P/L, before adopting the current style on 20 October 2005.
The group has origins that date back to 1917.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Sims Metal Management Limited.
for the financial year ended 30 June 2010 the Group recorded consolidated revenue of $7,458,500,000, which resulted in an operating profit before tax of $194,500,000 and an operating profit after tax of $126,700,000 representing a Net Profit Margin of 1.7%.
For the same period the closed
group recorded an operating profit before tax of $40,600,000 and after tax of
$28,100,000.
As at 30 June 2010, the closed group recorded Working Capital of $357,300,000 and a current ratio of 2.96 to 1.
For the same period the closed group recorded Net Assets of $3,001,700,000. After deducting intangibles of $15,300,000 this results in a Net Worth of $2,986,400,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.34 |
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UK Pound |
1 |
Rs.73.70 |
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Euro |
1 |
Rs.65.75 |
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.