MIRA INFORM REPORT
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Report Date : |
25.05.2011 |
IDENTIFICATION DETAILS
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Name : |
MYER PTY LIMITED |
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Formerly Known As : |
Myer Stores Ltd |
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Registered Office : |
7/800 Collins Street, Docklands, Victoria 3008 Australia |
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Country : |
Australia |
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Financials (as on) : |
31.07.2010 |
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Date of Incorporation : |
09.02.1928 |
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Legal Form : |
Proprietary Company |
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Line of Business : |
Subject is an Australia’s largest department store chain |
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 : |
Slow |
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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 |
REGISTERED NAME
MYER PTY LIMITED
ACN:
004 143 239
ABN: 83 004 143 239
CORPORATE SEARCH
Incorporation
Date: 09 Feb 1928
Incorporation
State: Victoria
Registered Office 7/800 COLLINS
Street
DOCKLANDS,
Victoria 3008 Australia
Charges None on record
Number of Shares
Issued: 9394765
Paid Capital: 841532130
Shareholders MYER GROUP PTY LTD
Number of Shares: 6894765
THE MYER EMPORIUM PTY LTD
Number of Shares: 2500000
Directors HAY,
Peter Algernon
59
Cromwell Rd
SOUTH
YARRA, VIC 3141
BRENNAN,
Anne
7 Cairo St
SOUTH
COOGEE, NSW 2034
FLOOD, THOMAS JOHN
Appointment Date: 26 Jul 2007
Date of Birth: 20 Apr 1948
Gender: Male
Address: 117 manorina Way MACEDON, Victoria 3441 Australia
Resident Overseas: No
MCDONALD, HOWARD JOHN
Appointment Date: 06 Nov 2006
Date of Birth: 02 Feb 1950
Gender: Male
Address: 141 BEAUMONT Road BERWICK, Victoria 3806 Australia
Resident Overseas: No
MYER, RUPERT HORDERN
Appointment Date: 12 Jul 2006
Date of Birth: 13 Aug 1958
Gender: Male
Address: 120 VALE Street EAST MELBOURNE, Victoria 3002 Australia
Resident Overseas: No
BROOKES, BERNARD JOSEPH
Appointment Date: 02 Jun 2006
Date of Birth: 08 Nov 1959
Gender: Male
Address: 14 HAVEN Place DURAL, New South Wales 2158 Australia
Resident Overseas: No
Secretary RODWELL, Marion
Joan
BUSINESS STRUCTURE
TRADING ADDRESS 800 COLLINS Street
VICTORIA HARBOUR, Victoria 3008 Australia
TELEPHONE (613) 8667 6050
FACSIMILE (613) 8342 2021
TRADING STYLES MYER
GRACE BROS
MYER GRACE BROS
MEGAMART
GOOD BUY WAREHOUSE
STORES The
subject maintains 67 stores across Australia
HOLDING ENTITY MYER GROUP LIMITED
ULTIMATE HOLDING
ENTITY MYER
HOLDINGS LTD
BANK Not
determined
EMPLOYEES 14000
BACKGROUND
The subject was incorporated in Victoria on 9 February 1928 as Paterson Powell & Sandford P/L, changing name on 13 October 1941 to Paterson Powell P/L, changing name on 17 March 1953 to The Myer Emporium (Ballarat) P/L, changing name on 1 September 1964 to Myer (Ballarat) P/L, changing name on 1 August 1967 to Myer Southern Stores Ltd, changing name on 30 April 1984 to Myer Stores Ltd, before adopting the current style on 9 February 2007.
The subject has origins that date back to 1900 when Sidney Myer and his brother opened the first Myer Store.
In 1989 Myer joined with Grace Bros to become the largest department store group in Australia.
In 1998, the subject launched Megamart stores.
In March 2006 the subjects former holding entity Coles Myer announced the sale of the subject to Newbridge Capital and the Myer Family for $1.4 billion.
On 23 November 2007 Coles Myer Ltd was acquired by Wesfarmers Ltd for consideration of $18.6 billion.
On 2 November 2009 the ultimate holding entity Myer Holdings Ltd re-listed on the Australian Stock exchange after a $2 billion capital raising.
OPERATIONS
The subject operates as Australia’s largest department store chain involved in the retail of clothing, electronics, furniture, homewares, fashion accessories, shoes, computers, giftware etc.
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 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 Ultimate Holding entity Myer Holdings Limited and other parties within the group. Pursuant to the Class Order, the subject is relieved from its requirements to lodge financial statements.
For the last financial year ended 31 July 2010 the group recorded a 1.5 per cent increase in consolidated sales to $3,324,240,000, which resulted in an operating profit before tax of $228,460,000 and after tax (and after non-recurring IPO transactions costs of $96,352,000) of $67,182,000 representing Net Profit Margin of 2.02%.
Below is a summary of the groups consolidated income results for the past two financial years.
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Myer Holdings Ltd - consolidated |
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As at 31 July 2010 |
As at 25 July 2009 |
Change (%) |
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Revenue |
$3,324,240,000 |
$3,260,812,000 |
1.95% |
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Profit b/tax |
$228,460,000 |
$153,684,000 |
48.66% |
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Profit a/tax |
$67,182,000 |
$108,749,000 |
-38.22% |
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Net Profit Margin |
2.02% |
3.34% |
-1.31% |
On 2 November 2009 the ultimate holding entity Myer Holdings Ltd re-listed on the Australian Stock exchange after a $2 billion capital raising.
During fiscal 2010, the group recorded Net cashflows from operating activities totalling $241,051,000.
As at 31 July 2010 the group recorded total consolidated current assets of $482,692,000. They included inventories of $352,813,000 and cash of $105,834,000.
Current liabilities at the same date totalled $557,414,000 and included payables of $437,568,000.
As at 31 July 2010, the group recorded a deficiency in consolidated Working capital of $74,722,000 and a current ratio of 0.87 to 1.
The debt funding of
the Group at 31 July 2010 comprised bank loan facilities. The loan facilities
comprise the following:
·
Term
cash advance facility: $ 425 million; and
·
a
Revolving cash advance facility of $200 million
As at 31 July 2010 the
group recorded consolidated Net Assets of $857,440,000 and a Debt to equity
ratio of 1.28 to 1.
For the first six
months of fiscal 2011 the group recorded consolidated sallies of $1,733.1
million which resulted in a profit before tax of $150.5 million and a profit
after tax of $108.9 million.
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Myer Holdings Ltd - consolidated |
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As at 31 July 2010 |
As at 25 July 2009 |
Change (%) |
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Revenue |
$3,324,240,000 |
$3,260,812,000 |
1.95% |
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Profit b/tax |
$228,460,000 |
$153,684,000 |
48.66% |
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Profit a/tax |
$67,182,000 |
$108,749,000 |
-38.22% |
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Net Profit Margin |
2.02% |
3.34% |
-1.31% |
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Current Assets |
$482,692,000 |
$601,786,000 |
-19.79% |
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Non-Current Assets |
$1,471,222,000 |
$1,384,989,000 |
6.23% |
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Total Assets |
$1,953,914,000 |
$1,986,775,000 |
-1.65% |
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Current Liabilities |
$557,414,000 |
$594,215,000 |
-6.19% |
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Non-Current Liabilities |
$539,060,000 |
$1,012,438,000 |
-46.76% |
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Total Liabilities |
$1,096,474,000 |
$1,606,653,000 |
-31.75% |
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Net Assets |
$857,440,000 |
$380,122,000 |
125.57% |
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Working Capital |
($74,722,000) |
$7,571,000 |
-1086.95% |
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Current Ratio |
0.87 |
1.01 |
-14.49% |
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Debt to Equity |
1.28 |
4.23 |
-69.75% |
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 9 February 1928, adopting the current style on 30 April 1984.
The subject has origins that date back to 1900 when Sidney Myer and his brother opened the first Myer Store.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Ultimate Holding entity Myer Holdings Limited and other parties within the group.
For the last financial year ended 31 July 2010 the group recorded a 1.5 per cent increase in consolidated sales to $3,324,240,000, which resulted in an operating profit before tax of $228,460,000 and after tax (and after non-recurring IPO transactions costs of $96,352,000) of $67,182,000 representing Net Profit Margin of 2.02%.
During fiscal 2010, the group recorded Net cashflows from operating activities totalling $241,051,000.
As at 31 July 2010, the group recorded a deficiency in consolidated Working capital of $74,722,000 and a current ratio of 0.87 to 1.
As at 31 July 2010 the group recorded consolidated Net Assets of $857,440,000. After deducting intangibles of $921,020,000 this results in a deficiency in Net Worth of $63,580,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.25 |
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UK Pound |
1 |
Rs.72.82 |
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Euro |
1 |
Rs.63.58 |
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.