MIRA INFORM REPORT

 

 

Report Date :           

25.05.2011

 

IDENTIFICATION DETAILS

 

Name :

COUNTRY ROAD CLOTHING PTY LTD

 

 

Formerly Known As :

The Country Road Clothing Company Shops P/L

 

 

Registered Office :

658 Church St, Cremorne, Vic 3121

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2010

 

 

Date of Incorporation :

14.03.1978

 

 

Legal Form :

Proprietary Company

 

 

Line of Business :

chain of retail stores

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Australia

a1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

REGISTERED NAME      

 

COUNTRY ROAD CLOTHING PTY LTD

ACN: 005 419 447

ABN: 84 005 419 447

 

ADDRESS GIVEN                     658 Church St

                                                CREMORNE, VIC 3121

 

 

CORPORATE SEARCH

 

INCORPORATED                       14 March 1978

 

REGISTERED ADDRESS           658 Church St

                                                CREMORNE, VIC 3121

 

SHARECAPITAL                                    $27,500,002                 

 

SHAREHOLDERS                     COUNTRY ROAD LTD    Holds 27,500,002

 

Directors                                   GOLDBERG, Howard Roy

8 Amaroo Ave

CASTLE COVE, NSW 2069

 

HOLT, Sophie

3 The Avenue

Toorak, VIC 3142

 

THOMAS, David Andrew

22 Larnaca Ct

TEMPLESTOWE, VIC 3106

 

THOMPSON, NORMAN

Appointment Date: 05 Feb 2003

Date of Birth: 26 Jun 1951

Resident Overseas: Yes

 

SUSMAN, SIMON NORMAN

Appointment Date: 06 Dec 2000

Date of Birth: 01 May 1950

Gender: Unknown

Address:

Resident Overseas: Yes

 

MOIR, IAN

Appointment Date: 23 Oct 1998

Date of Birth: 10 Dec 1958

Gender: Male

Address: 11A Caraar Creek Rd Mornington VIC 3931 Australia

Resident Overseas: No

 

Secretary                                  THOMAS, David Andrew

22 Larnaca Ct

TEMPLESTOWE, VIC 3106

                                                           

REGISTERED CHARGES          None on record

 

 

BUSINESS STRUCTURE

           

TRADING ADDRESS                 658 Church St

                                                RICHMOND, VIC 3121

 

TELEPHONE                             (613) 9267 1400

 

FACSIMILE                                            (613) 9267 1312

 

HOLDING ENTITY                              COUNTRY ROAD LTD

 

BRANCHES                    The group maintains over 60 retail stores and 80                                                                                                                                                                                             concession outlets.           

 

BANK                                       NATIONAL AUSTRALIA BANK   

                                               

EMPLOYEES                            2,000 (group)

 

           

BACKGROUND

 

The subject was incorporated in Victoria on 14 March 1978 as Waggoner P/L, changing name on 21 April 1978 to The Country Road Clothing Company Shops P/L, before adopting the current style on 24 May 1982.

 

Group operations were established as a new venture in 1974.

 

In the 1980’s and 1990’s the subject expanded the Australian base and wholesale markets and entered the US and Asian markets.

 

In the later 1990’s the US operations failed and the Australian operations became unprofitable.

 

The subject was listed on the Australian Stock Exchange on 2 July 1987.

 

Woolworth Holdings Ltd of South Africa secured a controlling interest in the subject in 1998 and the business was re-built from the bottom up.

 

 

OPERATIONS

 

The subject operates as a chain of retail stores involved in the sale of men’s and women’s clothing, homewares and fashion accessories.

 

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

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Country Road 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 most recently lodged financial statements, it is noted that for the financial year ended 30 June 2010 the group recorded revenue of $381,219,000, which resulted in an operating profit before tax of $17,459,000 and an operating profit after tax of $12,331,000 representing a Net Profit Margin of 3.2%.

 

For the same period, the parties which make of the ‘closed group’ that for part of the Deed of Cross Guarantee recorded an operating profit before tax of $16,464,000 and an operating profit after tax of $11,637,000.

 

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

 

 

Country Road Ltd - Consolidated

 

As at 30 June 2010

As at 30 June 2009

Change (%)

Revenue

$381,219,000

$347,547,000

9.69%

Profit b/tax

$17,459,000

$21,888,000

-20.23%

Profit a/tax

$12,331,000

$15,649,000

-21.20%

Net Profit Margin

3.23%

4.50%

-1.27%

 

In the first half of 2010 the Group introduced the new brand ‘Trenery’ which was launched on 3 September 2009.

 

During this period the Group invested over $13 million in capital programs which included four new country road stores and the launch of Trenery with six stores.

 

During fiscal 2010, the group recorded Net Cashflows from operating activities totalling $1,246,000.

 

As at 30 June 2010 the group recorded total current assets of $53,315,000. They included cash of $2,466,000, receivables of $7,438,000 and inventories of $39,113,000.

 

Current liabilities at the same date totalled $40,223,000 and included payables of $27,743,000 and provisions of $7,569,000.

 

As at 30 June 2010, the group recorded Working Capital of $13,092,000 and a current ratio of 1.3 to 1 indicating satisfactory liquidity levels.

 

For the same period, the closed group recorded Working Capital of $6,583,000 and a current ratio of 1.14 to 1.

 

The Group has access to financing facilities which have a combined limit of $20,000,000. These facilities were drawn to $3,000,000 at 30 June 2010.

 

Net Assets totalled $84,792,000 as at 30 June 2010. At this date, the group further recorded a Debt to Equity ratio of 0.52 to 1.

 

At this date, the closed group recorded Net Assets of $76,243,000.

 

For the six months ended 31 December 2010 the group recorded revenue of $217.8 million which resulted in an operating profit before tax of $13.2 million and an operating profit after tax of $9.4 million.

 

Despite the difficult trading conditions the group was still able to improve overall profitability for the first half.

 

 

Country Road Ltd - Consolidated

 

As at 30 June 2010

As at 30 June 2009

Change (%)

Revenue

$381,219,000

$347,547,000

9.69%

Profit b/tax

$17,459,000

$21,888,000

-20.23%

Profit a/tax

$12,331,000

$15,649,000

-21.20%

Net Profit Margin

3.23%

4.50%

-1.27%

Current Assets

$53,315,000

$70,140,000

-23.99%

Non Current Assets

$75,879,000

$71,528,000

6.08%

Total Assets

$129,194,000

$141,668,000

-8.81%

Current Liabilities

$40,223,000

$63,242,00

-36.40%

Non Current Liabilities

$4,179,000

$3,445,000

21.31%

Total Liabilities

$44,402,000

$66,687,000

-33.42%

Net Assets

$84,792,000

$74,981,000

13.08%

Working Capital

$13,092,000

$6,898,000

89.79%

Current Ratio

1.33

1.11

19.51%

Debt to Equity

0.52

0.89

-41.12%

 

 

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 14 March 1978 as Waggoner P/L, changing name on 21 April 1978 to The Country Road Clothing Company Shops P/L, before adopting the current style on 24 May 1982.

 

Group operations were established as a new venture in 1974.

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Country Road Limited.

 

For the financial year ended 30 June 2010 the group recorded revenue of $381,219,000, which resulted in an operating profit before tax of $17,459,000 and an operating profit after tax of $12,331,000 representing a Net Profit Margin of 3.2%.

 

For the same period, the parties which make of the ‘closed group’ that for part of the Deed of Cross Guarantee recorded an operating profit before tax of $16,464,000 and an operating profit after tax of $11,637,000.

 

As at 30 June 2010, the closed group recorded Working Capital of $6,583,000 and a current ratio of 1.14 to 1.

 

At this date, the closed group recorded Net Assets of $76,243,000.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.25

UK Pound

1

Rs.72.82

Euro

1

Rs.63.58

 

 

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

----

NB

New Business

----

 

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.