MIRA INFORM REPORT
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Report Date : |
24.05.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
HILLS HOLDINGS LTD |
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Formerly Known As : |
Hills Industries Ltd |
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Registered Office : |
944 South Road, Edwardstown, South Australia 5039 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
27.06.1957 |
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Legal Form : |
Limited Company |
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Line of Business : |
Holding and Investment Company |
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 : |
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 – 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
HILLS INDUSTRIES LTD
SPECIAL NOTE On 5
November 2010 the subject changed name to Hills Holdings Ltd
REGISTERED NAME
HILLS HOLDINGS LTD
ACN: 007 573 417
ABN: 35 007 573
417
ADDRESS GIVEN 944 SOUTH Road
EDWARDSTOWN,
South Australia 5039
CORPORATE SEARCH
Incorporation
Date: 27 Jun 1957
Incorporation
State: South Australia
Registered Office 944 SOUTH Road
EDWARDSTOWN,
South Australia 5039 Australia
Number of Shares
Issued: 243198157
Paid Capital: $179,455,334.59
Directors SPENCE,
David Moray
17
Berrillee St
TURRAMURRA,
NSW 2074
BENNETT,
Fiona Rosalyn
28
Wolseley Gr
BRIGHTON,
VIC 3186
STANCLIFFE, PETER
WILLIAM
Appointment Date: 01 Aug 2003
Date of Birth: 29 Jan 1948
Gender: Male
Address: 114 PRINCE ALFRED Parade NEWPORT, New South Wales 2106
Australia
Resident Overseas: No
ELLIOT, IAN
Appointment Date: 01 Aug 2003
Date of Birth: 30 Dec 1953
Gender: Male
Address: 119/6 COWPER WHARF Road WOOLLOOMOOLOO, New South Wales 2011
Australia
Resident Overseas: No
FLYNN, ROGER BADEN
Appointment Date: 23 Nov 1999
Date of Birth: 18 Feb 1950
Gender: Male
Address: 26 MONTPELIER Drive LOWER PLENTY, Victoria 3093 Australia
Resident Overseas: No
TWARTZ, GRAHAM LLOYD
Appointment Date: 08 Jul 1993
Date of Birth: 11 May 1957
Gender: Male
Address: 15 SEAVIEW Road TENNYSON, South Australia 5022 Australia
Resident Overseas: No
HILL-LING, JENNIFER HELEN
Appointment Date: 21 Aug 1985
Date of Birth: 25 May 1962
Gender: Female
Address: 18 LARKIN Street WAVERTON, New South Wales 2060 Australia
Resident Overseas: No
BUSINESS STRUCTURE
HEAD OFFICE ADDRESS 944-956
South Road
EDWARDSTOWN, SA 5039
TELEPHONE (618) 8301 3200
FACSIMILE
(618)
8297 4468
TRADING STYLES PACIFIC
COMMUNICATIONS
DIRECT
ALARM SUPPLIES
TELEFIX
HILLS
SVL
CONTROLLED
ENTITIES Hills Finance Pty Ltd
Hills industries Limited
Spraygen Sprayers Limited
Korvest Ltd
Korvest NZ Limited
Hills Hoists Pty Ltd
Bailey Aluminium Products Pty Ltd
ACN 000195 951 Pty Ltd
ACN 089 622 622 Pty Ltd
Woodroffe Industries Pty Ltd
Fielders Australia Pty Ltd
Fielders Mobile Mill Pty Ltd
Zen 99 Pty Ltd
Orrcon Holdings Pty Ltd
Orrcon Operations Pty Ltd
Orrcon Tubing Pty Ltd
Precision Tube Company Ltd
Tube Specialist Pty Ltd
ATS 2005 Pty Ltd
ATS 2004 Pty Ltd
Universal Communications Corp Pty Ltd
ACN 089 140 134 Pty Ltd
Audio Telex Communications Pty Ltd
Crestron Control Solutions Pty Ltd
Team Poly Pty Ltd
KDB Engineering Pty Ltd
Kerry Equipment (Aust) Pty Ltd
Step Electronics 2005 Pty Ltd
Greenwattle Investments Pty
Access Scaffolding (Aust) Pty
Greenwattle Equipment Pty Ltd
Alquip Holdings Pty Ltd
Alquip Pty Ltd
Pathfinder Insurance Pte Ltd
Hills Nominees Pty Ltd
DAS Security Wholesalers Pty Ltd
Pacific Communications Pty Ltd
Pacom Security Pty Ltd
CBS Hardware Pty Ltd
Step
Electronics Pty Ltd
BANKERS ANZ
BANKING GROUP
NATIONAL
AUSTRALIA BANK
WESTPAC
BANKING CORPORATION
EMPLOYEES 3,000
BACKGROUND
The subject was incorporated in South Australia on 27 June 1957 as Hills Industries Ltd before adopting the current style on 5 November 2010.
The operations of the subject were founded in 1946 following the launch of “The Hills Rotary Hoist".
1948 saw
the launch of an expanded range of laundry products to supplement the hoist.
In 1954 the company's activities were consolidated into new premises on South Road at Edwardstown on the former site of Pengelley's Coach Builders.
During 1959, the subject commenced television repair operations and 'Hills Telefix' was born.
The subject was listed on the Australian Stock Exchange on 30 June 1962.
The Group has continued to diversify through acquisition. Bailey Ladders, Kelso Wheelbarrows, Direct Alarm Supplies, Vicam CCTV Systems, Pacific Communications and Triton Manufacturing & Design are all examples of this strategy.
In 1994, Hills celebrated the sale of its 5 millionth Hills hoist.
Effective 1 October 2002, the company acquired the K-Care group, comprising KDB Engineering P/L and Kerry Equipment (Aust) P/L for $20.341 million. The K-Care Group manufacturers and distributed rehabilitation and mobility equipment.
The operations of Pacific Communications have been established for 35 years.
On 1 April 2009 the subject acquired 51% of the issued capital of UHS Systems P/L for total consideration $5,207,000.
DIRECTORS PROFILES FLYNN,
Roger Baden, Director was born on 18 February 1950 and was appointed to the
subjects board on 23 November 1999. He holds a Bachelor of Engineering and an
MBA. He maintains an active role in the subject operations.
TWARTZ, Graham Lloyd, Director was born on 11 May 1957
and was appointed to the subjects board on 8 July 1993.
HILL-LING, Jennifer Helen, Director was born on 25 May 1962
and was appointed to the subjects board on 21 August 1985. She is a non-
executive Director of the subject.
HILL-LING, Robert Donald, Director
was born on 9 June 1958 and was appointed to the subjects board on 19 May 1933.
He Joined the company in 1952 and was
Managing Director from November 1965 to December 1992. He was appointed
Chairman in December 1966. Chairman of the Audit and Remuneration Committees.
OPERATIONS
The subject operates as a holding and investment company for a group which main business segments include:
Electronic Security and
Entertainment -
Communications related products and services, domestic and commercial
antennas, master antenna television systems, communications antennas,
amplifiers, electronic security systems, closed circuit television systems,
home and commercial automation and control systems, professional audio
products, fibre optic transmission solutions and subscription TV installation
services
Home and Hardware - Outdoor clothes driers, ladders, ironing boards,
laundry trolleys, security doors, playtime equipment, garden sprayers,
wheelbarrows, scaffold systems, rehabilitation and mobility products, water
tanks and other rotationally moulded products.
Building and Industrial - Structural precision and large steel tubing,
galvanising, precision metal cabinets, stainless steel products, steel
doorframes, roll-formed metal building products, carports and shed systems.
Korvest – comprises the business of Korvest Ltd and includes electrical
and cable support systems, pipe support systems, walkway systems, steel fabrication,
associated metal treatment and galvanising services.
ADVERSE
A search of traced the following litigation listed against the subject
at that date.
Writs
and summonses
Creditor :
QR Ltd
Date :
17.12.2008
Amount :
$57,938
Plaint No. :
3533/08/QBNE
Court :
District Court Writ
Assoc code :
Companys Account
FINANCES
For the last financial year ended 30 June 2010 the subject recorded a 3% decline in consolidated revenue to $1,158,247,000, which resulted in an operating profit before tax of $62,060,000 and an operating profit after tax of $43,095,000, representing a net profit margin of 1.29%.
The impact of the global financial crisis continued during the year led to patchy trading conditions. The Australian operations performed relatively well compared to other global economies.
Below is a summary of the subject of the subject’s income results for the past two financial years.
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Hills Holdings Ltd - consolidated |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$1,158,247,000 |
$1,195,064,000 |
-3.08% |
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Profit b/tax |
$62,060,000 |
$23,259,000 |
166.82% |
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Profit a/tax |
$43,095,000 |
$15,655,000 |
175.28% |
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Net Profit Margin |
3.72% |
1.31% |
2.41% |
On 31 May 2010 the subject acquired the assets and operations of The Steel Barn P/L for $3,558,000.
On 1 April 2009, the Company acquired 51% of the issued share capital of UHS Systems Pty Ltd (UHS).
During fiscal 2010, the subject recorded consolidated Net Cashflows from operating activities totalling $101,548,000.
On 5 August 2009 it was announced that the subject has underwritten a share placement to institutional and sophisticated investors to raise a minimum of $28.5 million. In addition the intention to offer a share purchase plan was announced. In total the company plans to raise a maximum of $50,000,000.
As at 30 June 2010 the subject recorded consolidated total current assets of $425,213,000. They included receivables of $186,002,000, inventories of $181,496,000 and cash of $56,915,000.
Current liabilities at the same date totalled $173,761,000 and included payables of $128,048,000 and provisions of $33,445,000.
As at 30 June 2010 the subject recorded consolidated Working Capital of $251,452,000 and a current ratio of 2.45 to 1 indicating a sound liquidity position.
At 30 June 2010 the subject had access to financing facilities with a combined limit of $232,828,000. These facilities were drawn to $113,215,000 at this time.
Furthermore, as at 30 June 2010 the subject recorded consolidated Net Assets of $496,499,000 and a debt to equity ratio of 0.58 to 1.
For the six months ended 31 December 2010 the subject recorded revenue of $557,957,000 which resulted in an operating profit Loss tax of $45,518,000 and an operating Loss after tax of $40,888,000.
The Loss for this period included Impairment of assets and Goodwill totalling $57,133,000.
The net debt of the subject at 31 December 2010 was $76.7 million (net
of cash of $21.0 million). The subjects
bank facilities have been extended such that
the earliest date for review of any of the facilities is June 2012, while the
remainder of the facilities are committed until November 2012 and June 2013.
Further Financial Information
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Hills Holdings Ltd - consolidated |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$1,158,247,000 |
$1,195,064,000 |
-3.08% |
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Profit b/tax |
$62,060,000 |
$23,259,000 |
166.82% |
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Profit a/tax |
$43,095,000 |
$15,655,000 |
175.28% |
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Net Profit Margin |
3.72% |
1.31% |
2.41% |
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Current Assets |
$425,213,000 |
$462,027,000 |
-7.97% |
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Non Current Assets |
$359,731,000 |
$367,983,000 |
-2.24% |
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Total Assets |
$784,944,000 |
$830,010,000 |
-5.43% |
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Current Liabilities |
$173,761,000 |
$172,699,000. |
0.61% |
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Non Current Liabilities |
$114,684,000 |
$228,791,000 |
-49.87% |
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Total Liabilities |
$288,445,000. |
$401,490,000 |
-28.16% |
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Net Assets |
$496,499,000 |
$428,520,000. |
15.86% |
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Working Capital |
$251,452,000 |
$289,328,000 |
-13.09% |
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Current Ratio |
2.45 |
2.68 |
-8.53% |
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Debt to Equity |
0.58 |
0.94 |
-37.99% |
TRADE SURVEY
During the current investigation, details pertaining to the subject’s suppliers were unable to be obtained.
A trade survey on the
subject was subsequently unable to be conducted.
SUMMARY
The subject was incorporated in South Australia on 27 June 1957 before adopting the current style on 5 November 2010.
The operations of the subject were founded in 1946 following the launch of “The Hills Rotary Hoist".
For the last financial year ended 30 June 2010 the subject recorded a 3% decline in consolidated revenue to $1,158,247,000, which resulted in an operating profit before tax of $62,060,000 and an operating profit after tax of $43,095,000, representing a net profit margin of 1.29%.
As at 30 June 2010 the subject recorded consolidated Working Capital of $251,452,000 and a current ratio of 2.45 to 1 indicating a sound liquidity position.
Furthermore as at 30 June 2010 the subject recorded consolidated Net
Assets of $496,499,000.
For the six months ended 31 December 2010 the subject recorded revenue
of $557,957,000 which resulted in an operating profit Loss tax of $45,518,000
and an operating Loss after tax of $40,888,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.28 |
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UK Pound |
1 |
Rs.73.30 |
|
Euro |
1 |
Rs.63.61 |
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 |
|
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.