MIRA INFORM REPORT
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Report Date : |
25.11.2011 |
IDENTIFICATION DETAILS
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Name : |
KMART AUSTRALIA LIMITED |
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Formerly Known As : |
K MART PTY. LIMITED |
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Registered Office : |
C/O Wesfarmers Limited Level 11, Wesfarmers House, 40 The Esplanade Perth, Western Australia, Zip/Postal Code 6000 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
10.07.1967 |
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Com. Reg. No.: |
004700485 |
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Legal Form : |
Unlisted Public Company |
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Line of Business : |
Owns
and operates a network of discount department stores |
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No. of Employees : |
25,500
Persons |
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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Maximum Credit Limit : |
USD 8,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
Usually Correct |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
Identification details
Verified Address
Subject
name : KMART AUSTRALIA LIMITED
Other
style / Business name : KMART / KMART TYRE & AUTO SERVICE
Business
address : Level 3,
690 Springvale Road
Town : Mulgrave
Province : Victoria
Zip/postal
code : 3170
Country : Australia
Tel : +61 3 99022000
Fax : +61
3 99022334
Website : www.kmart.com.au
Registered
address : C/o
WESFARMERS LIMITED Level 11, Wesfarmers House
40 The Esplanade
Town : Perth
Province : Western Australia
Zip/postal
code : 6000
Country : Australia
Summary details
Executive Summary
Date founded or registered : 10/07/1967
Legal form : Unlisted Public Company
Chief executive : Gaetano Alfred Gerrard Russo
Issued & paid up capital : AUD 340,000,000
Sales turnover : AUD 54,875,000,000 (Group-consolidated 12 months, 30/06/2011)
Net income : AUD 1,922,000,000 (Group-consolidated 12 months, 30/06/2011)
Total fixed assets : AUD 40,814,000,000 (Group-consolidated 12 months, 30/06/2011)
Line of business : Owns and operates a network of discount
department stores in Australia
and
New Zealand under the name KMART and KMART TYRE & AUTO
SERVICE.
Staff employed : 25,500 (Subject) 200,000 (Wesfarmers
Group)
Credit risk opinion
Company Analysis
Country risk : Country risk is minimal
Operation trend : Operational trend is progressing
Management
experience : Management is adequately experienced
Financial
performance : Financial performance is very good
Organization
structure : Organizational
structure is stable
Detrimental : No detrimental records found
Payment history : No
payment delays noted
Credit amount
suggestion : USD 8,000,000
Credit amount asked : Not described.
Comments : Larger credit can still be considered.
The Subject is well positioned in the
market and the financial stability of the
group is positive.
Statutory details
Registry Data
Registration date : 10/07/1967
Legal form : Unlisted Public Company
Registration no Australian
Company Number: 004700485
Registered authority : Australian Securities & Investments
Commission
Fiscal/ Tax no : Australian Business Number: 73004700485
Registry status : Live/Active
Previous name : K MART AUSTRALIA LTD COLES KMA LIMITED
K MART (AUSTRALIA) LIMITED K MART LIMITED
K MART PTY. LIMITED (initial)
Change of legal form : None reported.
Management / directors
Key Management
Name : Richard James Barr Goyder
Designation : Group Chief Executive Officer
Name : Gaetano Alfred Gerrard Russo
Designation : Managing Director
Name : Terence James Bowen
Designation : Financial Director
Name : Ian Bailey
Designation : Chief Operating Officer
Name : David Graham Matheson
Designation : Director
Name : Sam Marrari
Designation : National Store Support and Planning Manager
Board of directors / other
appointments
Appointments
Name : Ian Bailey
Designation : Director
Appointment date : 29/01/08
Address : 75 Dendy Street
Brighton, VIC 3186
Australia
Biography : Born on 18-06-1966 in London, United Kingdom.
Name : Richard James Barr Goyder
Designation : Director
Appointment date : 29/01/08
Address : C/o WESFARMERS LIMITED Level 11, Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
Biography : Born
on 18-01-1960 in Tambellup, Western Australia, Australia.
Mr. Richard Goyder serves as Chief Executive Officer, Group
Managing
Director, Executive Director of Wesfarmers Limited. He
holds a
Bachelor of Commerce degree from the University of Western Australia and has
completed the Advanced Management Program at the Harvard Business School. He
held a number of positions with Tubemakers of Australia, particularly business
development roles, before joining Wesfarmers in 1993. He is a director of
Gresham Partners Holdings and a number of Wesfarmers group subsidiaries and
related companies.
Name : Terence
James Bowen
Designation : Director
Appointment date : 01/05/09
Address : C/o WESFARMERS LIMITED Level 11,
Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
Biography : Born
on 24-12-1966 in London, United Kingdom.
Mr. Terry J.
Bowen is the Finance Director, Executive Director of Wesfarmers Limited. He
appointed in 2009 as an executive director (non-independent). He holds a
Bachelor of Accountancy degree and is a Fellow of CPA Australia. He has held a
number of finance positions with Tubemakers of Australia Ltd, culminating in
his appointment as General Manager Finance. He joined Wesfarmers in
1996 and
undertook various roles with Wesfarmers Landmark, where he was appointed Chief
Financial Officer, until its acquisition by AWB Limited in 2003. He was then
appointed the inaugural Chief Financial Officer for Jetstar Airways, prior to
rejoining Wesfarmers as Managing Director, Wesfarmers Industrial and Safety in
November 2005. He became Finance Director, Coles in 2007, and was appointed
Finance Director, Wesfarmers in May 2009. He is also a director of Gresham
Partners Holdings Ltd, the Western Australian Opera Company Incorporated, the Western
Australian Institute for Medical Research Incorporatedand a number of
Wesfarmers Group subsidiaries. He is a member of both the National Executive of
the Group of 100 Inc and Curtin University School of Accountancy Advisory
Board.
Name : Gaetano
Alfred Gerrard Russo
Designation : Director
Appointment date : 10/11/08
Address : 14
Myamyn Street
Armadale, VIC 3143
Australia
Biography : Born
13-07-1959 in Sydney, New South Wales, Australia.
Mr. Guy Russo
serves as Managing Director - Kmart of Wesfarmers Limited. He was Managing
Director and Chief Executive Officer of McDonald's Australia between 1999 and
2005, and President of McDonald's Greater China region between 2005 and 2007.
He started at McDonalds in 1974, working his way through the ranks
while
completing management development training at McDonald's in-house university as
well as at Macquarie University Graduate School of Management in Sydney. He
held all key operations positions within the Australian business including
Regional Manager of the market, NSW/ACT, from 1991; in 1995 he became a Vice
President of McDonald's Australia and in 1997 was appointed advisory director
to the Australian Board. During this time he also served on numerous
international task forces within the global corporation. After leaving
McDonalds in 2007, he ran his own consulting firm advising public and private
ventures with commercial interests in China, as well as other markets.
Name : David
Graham Matheson
Designation : Director
Appointment date : 25/03/11
Address : 19
Hartley Road
Wonga Park, VIC 3115
Australia
Biography : Born on 20-06-1964 in Capetown, South
Africa. Name : Marnie Kronja
Designation : Company Secretary
Appointment date : 04/02/11
Address : 72
Carr Street
West Perth, WA 6005
Australia
Biography : Born on 07-01-1975 in Subiaco, Western
Australia, Australia. Staff employed : 25,500 (Subject) 200,000 (Wesfarmers
Group)
Key Advisors
Auditors : ERNST & YOUNG Ernst & Young
Building
11 Mounts Bay Road
Perth, WA 6000
Australia
Share capital
Composition
Authorized Capital : AUD 340,000,000
No of shares : 8,160,000 Ordinary A Shares / 7,840,000
Ordinary B Shares / 3,240,000
Redeemable Preference Shares
Share par value : AUD 1 for Ordinary A & Ordinary B Share / AUD 100 for
Redeemable Preference
Share
Issued capital : AUD 340,000,000
Paid up capital : AUD
340,000,000
ownership / shareholders
How listed : Full List
Composition
Shareholder name : WESFARMERS LIMITED
Address : Level 11, Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
No. of shares :
8,160,000 Ordinary A Shares / 7,840,000
Ordinary B Shares / 3,240,000
Redeemable
Preference Shares
% of shares : 100%
Related companies & corporate Affiliations
Structure
Name : WESFARMERS LIMITED
Affiliation type : Parent
Company
Address :
Level 11, Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
Comments : Wesfarmers Limited engages in retail,
coal mining, gas processing and distribution, electricity generation,
insurance, chemicals and fertilizers, and industrial and safety product
distribution activities. It operates 742 Coles and BI-LO supermarkets; 766
liquor stores under the Liquorland, Vintage Cellars, and 1st Choice Liquor
Superstores brands; 619 fuel and convenience stores under the Coles Express
brand; 96 hotels; and an online supermarket, as well as retails and supplies
home improvement and outdoor living, building products, and office and
technology products. The company also offers clothing and homewares through
290 Target and
Target Country stores; sells general merchandise and apparel through 186 Kmart
stores; engages in automotive service, repair, and tyre business through 251
Kmart Tyre and Auto Service stores; involves in open-cut mining business; and
produces metallurgical and steaming coal with mining interests in Australia, as
well as provides insurance broking and underwriting, and financial services to
individual, SME, and corporate customers. In addition, Wesfarmers manufactures
and markets chemicals, including ammonia, ammonium nitrate, sodium cyanide,
polyvinyl chloride resin, and wood-plastic composite products; manufactures,
imports, and distributes phosphate, nitrogen, and potassium based fertilizers;
produces, distributes, and markets LPG; and produces and supply electricity, as
well as offers industrial and safety supplies and services. Additionally, the
company operates a softwood sawmill; provides investment banking advisory and
structured finance services; and manages investment funds in private equity and
property. It primarily operates in Australia and New Zealand. The company was
founded in 1914 and is based in Perth, Australia.
Name : COLES GROUP LIMITED
Affiliation type : Sister Company
Address : 800 Toorak Road
Hawthorn East, VIC 3123
Australia
Name : BUNNINGS GROUP LIMITED
Affiliation type : Sister Company
Address : 16-18 Cato Street
Hawthorn East, VIC 3123
Australia
Name : TARGET AUSTRALIA PTY LTD
Affiliation type : Sister Company
Address : 12-14 Thompson Road
North Geelong, VIC 3215
Australia
Name : WESFARMERS RESOURCES LIMITED
Affiliation type : Sister Company
Address : Level 31, Central Plaza One
345 Queen Street
Brisbane, QLD 4000
Australia
Name : CURRAGH QUEENSLAND MINING PTY LTD
Affiliation type : Sister Company
Address : Private Mail Bag
Blackwater, QLD 4717
Australia
Name : WESFARMERS CURRAGH PTY LTD
Affiliation type : Sister Company
Address : GPO Box 51
Brisbane, QLD 4000
Australia
Name : OAMPS (UK) LIMITED
Affiliation type : Sister Company
Address : Windsor House
High Street, Esher
Surrey KT10 9RY United Kingdom
Name : BENGALLA MINING COMPANY PTY LIMITED
Affiliation type : Sister
Company
Address :
Bengalla Road
Muswellbrook, NSW 2333
New South Wales
Australia
Name : LUMLEY GENERAL INSURANCE (NZ) LIMITED
Affiliation type : Sister
Company
Address :
Level 21, Lumley Centre
88 Shortland Street
Auckland
New Zealand
Related companies and corporate affiliations
comments
Other companies of the Wesfarmers Limited should be considered affiliates of the Subject.
Bank & mortgages
Bank Details
Name of
bank :
Australia And New Zealand Banking Group
Limited
Address :
Australia
Account
details :
Current Account
Name of
bank :
National Australia Bank Limited
Address :
Australia
Account
details :
Current Account
Comments : It is generally not the policy of local
banks to provide credit status information to non related parties, however
interested parties would be advised to consult first with the Subject if
banker's references are required.
Mortgages : Satisfied
Charge Details
ASIC Charge Number: 81634
Date Registered: 03-08-1979
Date Created: 27-07-1979
Chargees Name: NATIONAL MUTUAL LIFE NOMINEES LIMITED
ASIC Charge Number: 81703
Date Registered: 21-09-1979
Date Created: 31-08-1979
Chargees Name: NATIONAL MUTUAL LIFE NOMINEES LIMITED
ASIC Charge Number: 81727
Date Registered: 23-10-1979
Date Created: 15-10-1979
Chargees Name: NATIONAL MUTUAL LIFE NOMINEES LIMITED
Legal Fillings
Bankruptcy
fillings : None reported.
Court
judgements : None reported.
Tax
liens : None
reported.
Others : None reported.
financial data
Description
Source of financial statement : Public
Record Sources
Financial statement date : 30/06/11
Type of accounts : Full audited
Currency : Australia Dollar (AUD)
Exchange rate : 1 USD = AUD 1.01 as of 22-11-2011
Summarized Financial Information
Consolidation type : Group
Consolidated Group
Consolidated Currency : Australia Dollar (AUD) Australia Dollar (AUD) Denomination : (x1) One (x1) One
Date of financial year end : 30/06/11 30/06/10
Length of accounts : 12 months 12 months
Sale turnover / Income : 54,875,000,000 51,827,000,000
Profit before tax : 2,706,000,000 2,215,000,000
Net income : 1,922,000,000 1,565,000,000
Non current assets : 30,596,000,000 29,562,000,000
Current assets : 10,218,000,000 9,674,000,000
Inventories : 4,987,000,000 4,658,000,000
Total assets : 40,814,000,000 39,236,000,000
Current liabilities : 8,722,000,000 7,852,000,000
Non current liabilities : 6,763,000,000 6,690,000,000
Total liabilities : 15,485,000,000 14,542,000,000
Share equity : 25,329,000,000 24,694,000,000
Retained earning : 1,774,000,000 1,414,000,000
Comments : The group’s consolidated financial
information above relates to the Subject’s Parent / Ultimate Holding Company
Wesfarmers Limited and all its subsidiaries which include the Subject.
The Subject
reported sales turnover of AUD 4,036 million with EBIT of AUD 204 million for
financial year end 30-06-2011 compared to sales turnover of AUD 4,019
million and EBIT of AUD 196 million for financial year end 30-06-2010.
Operation details
Main activities :
The Subject owns and operates a network
of discount department stores in Australia and New Zealand under the name KMART
and KMART TYRE & AUTO SERVICE.
The Subject is
part of Wesfarmers Limited, which is an Australia based company. The Company’s
principal activities are retailing operations, including supermarkets, general
merchandise and specialty department stores; fuel, liquor and convenience
outlets; retailing of home improvement and outdoor living products and supply
of building materials; retailing of office and technology products; coal mining
and production; gas processing and distribution; insurance; industrial and
safety product distribution; chemicals and fertilizers manufacture, and
investments. It operates in 10 segments: coles; home improvement and office
supplies; resources; insurance; KMART; Target; industrial and safety; energy;
chemicals and fertilizers, and other. During the fiscal year ended June 30,
2010, the Company operated 742 supermarket stores, 766 liquor outlets and 96
hotels.
KMART is
engaged in the retail sales of apparel and general merchandise, including toys,
leisure, entertainment, home and consumables.
KMART TYRE
& AUTO SERVICE is engaged in the provision of automotive service, repairs
and tyre service.
Brand : KMART
KMART TYRE & AUTO SERVICE
Purchases
International : Worldwide
Sales
Local : Yes
International : New Zealand
History : Kmart Australia Limited was born out of
a joint venture between G.J
Coles
& Coy Limited (Coles) and S.S. Kresge Company in the US, with
Kresge
owning 51% of the common stock in the company. They began
organising
to develop Kmart stores in Australia in 1968.
The first store opened in Burwood East, Victoria in April
1969. The
Burwood store
opened to intense interest, with over 40,000 people passing through the
checkouts on the first day. The doors had been closed 45 minutes after opening
as a safety measure.
In 1978 Kresge
exchanged it's 51% stake in Kmart Australia for a 20% stake in Coles, then in
1994 Coles bought back all Coles shares from Kresge.
A long-term
licensing agreement allows Wesfarmers to use the Kmart name in Australia and
New Zealand.
In 2006, Coles
Group announced its plans for Kmart, along with BI-LO and the Coles Group
liquor brands, to be merged into the Coles brand. The merger would have seen a
variety of Coles stores with different purposes,
including food,
merchandise, petrol and liquor. The plan was for the first re-branded store to
open in 2007, with 40 stores, mostly former 'Super K' stores divided last
decade into separate Coles and Kmart stores, reformed into Coles Superstores.
However, in March 2007, Coles Group announced that the plans for these super
centres were being deferred, pending the sale of all or part of Coles Group. In
August 2007, Wesfarmers CEO Richard Goyder said super centres would almost certainly
not be part of the Wesfarmers approach after taking over Coles Group.
Kmart's
performance immediately prior to the Wesfarmers takeover was poor. In May 2007,
it reported a sales drop of 3.2% for the third quarter, and an overall drop in
sales of 3.9% for the first three quarters. Announcing its plans in August 2007
for Coles Group following their expected takeover, Wesfarmers said it would
consider selling all or part of Kmart, or converting some stores to the Target
brand.
Wesfarmers took control of Coles Group in November 2007 and
by March 2008 had decided to retain Kmart and invest $300m in the chain over
the next five years.
During the
first financial year of the Wesfarmers takeover (November 2007 to June 2008),
Kmart reported revenue of A$2.45 billion, and EBIT of A$111 million. Kmart's
performance during the 2009 financial year was quite poor; reporting revenue of
A$4 billion and an EBIT of A$109 million. The 2010 financial year saw Kmart
with a large increase in EBIT, reporting revenue of A$4.02 billion and an EBIT
of A$190 million, which was an increase in EBIT of over 74%.
Future development : One new Kmart store and six Kmart Tyre
& Auto Service stores are planned to open in the 2012 financial year.
Property & Assets
Premises : The Subject operates from head office
located at the verified heading address consisting of administrative office.
Branches : In addition, the Subject operates from
187 Kmart stores and 251 Kmart Tyre & Auto Service centres located
throughout Australia and New Zealand.
Summarized country risk
Central bank : Reserve Bank of Australia
Reserve of foreign exchange & gold : US$ 41.385 billion
Gross domestic product – GDP : US$ 1.235 trillion
GPP (Purchasing power parity) : 918.529 billion of International dollars
GDP per capita - current prices : US$ 55,590
GDP - composition by sector : agriculture: 4.1% industry: 26% services: 70%
Inflation : 2008: 4.4%
2009: 1.8%
2010: 2.8%
Unemployment rate 2008: 4.2 %
2009: 5.6 %
2007:5.2 %
Public debt
(General Government gross
debt as a % GDP) 2008: 11.6%
2009: 17.6%
2010: 22.3 %
Government bond
ratings Standard
& Poor's: AAA-/Stable/A-1+
Moody's rating: Aaa
Moody's outlook: STA
Market value of publicly traded shares US$ 1.258 trillion
Largest
companies in the country : Commonwealth Bank (Banking), BHP
Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials),
National Australia Bank (Banking), ANZ Banking (Banking), Telstra
(Telecommunications)
Trade & Competitiveness Overview
Total exports US$210.7
billion
Exports commodities coal,
iron ore, gold, meat, wool, alumina, wheat
Total imports US$187.2
billion
Imports commodities machinery and
transport equipment, computers and office machines, telecommunication equipment
and parts, crude oil and petroleum products
Export - major partners Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India
5.5%, UK 4.2%
Import - major partners China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany
5.2%, UK 4.3%, Thailand 4.2%
FDI Inflows 2007: US$45,477 million
2008: US$46,722 million
2009: US$22,572 million
FDI Outflows 2007: US$16,822 million
2008: US$32,819 million
2009: US$ 18,426 million
Best countries for doing business : 10
out of 183 countries
Global competitiveness ranking : 16
(ranking by country on a basis of 133, the first is the best)
Country and Population Overview
Total population :
22.23 million
Total area :
7,692,024 km2
Capital : Canberra
Currency : Australian Dollars (AUD)
Internet
users as % of total population
: 74.00%
Payment history
Purchase Term
Local : Prepayment, Credit up to 120 days
International : L/C, Prepayment, Credit up to 120 days
Sales Term
Local : Cash, Credit card
International : Credit 30-60 days
Trade Reference/ Payment Behaviour
Comments : As local and international trade
references were not supplied, the Subject's payment track record history cannot
be appropriately determined but based on our research, payments are believed to
be met without delay.
Investigation Note
Sources : Interviews and material provided by the
Subject
: Other
official and local business sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.25 |
|
UK Pound |
1 |
Rs.81.23 |
|
Euro |
1 |
Rs.69.83 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.