MIRA INFORM REPORT

 

 

Report Date :

25.07.2012

 

IDENTIFICATION DETAILS

 

Name :

EZIBUY OPERATIONS LIMITED

 

 

Formerly Known As :

EZIBUY RETAIL LIMITED

 

 

Registered Office :

Level 4, The Textile Centre 1 Kenwyn Street Parnell Auckland 1052

 

 

Country :

New Zealand

 

 

Date of Incorporation :

14.11.2003

 

 

Com. Reg. No.:

1439405

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import & distribution of clothing apparels and homeware.

 

 

No. of Employees :

376 employees (Ezibuy Group)

 

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 :

Satisfactory

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name :              EZIBUY OPERATIONS LIMITED

Business address :        Level 4, The Textile Centre

1 Kenwyn Street

Town :                           Parnell

Province :                      Auckland

Zip/postal code :            1052

Country :                       New Zealand

Tel :                              +64 9 3797238

Fax :                             +64 9 3797241

Website :                      www.ezibuy.co.nz

 

Registered address :      Level 4, The Textile Centre

1 Kenwyn Street

Town :                           Parnell

Province :                      Auckland

Zip/postal code :            1052

Country :                       New Zealand

Postal address :            P.O. Box 137264

Town :                           Parnell

Province :                      Auckland

Zip/postal code :            1151

Country :                       New Zealand

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        14/11/2003

Legal form :                               Private Limited Company

Chief executive :                        Simon West

Issued & paid up capital :           NZD 1,000

Sales turnover :                          NZD 200,000,000 (Estimated Group consolidated 12 months, 31/03/2011)

Line of business :                       Import & distribution of clothing apparels and homeware.

Staff employed :                         376 employees (Ezibuy Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                              No detrimental records found

Payment history :                      No payment delays noted

 

STATUTORY DETAILS

 

Registry Data

Registration date :          14/11/2003

Legal form :                   Private Limited Company

Registration no              1439405

Registered authority :     New Zealand Companies Office

Registry status :            Live/Active

Previous name :             The Subject was formerly known as EZIBUY RETAIL LIMITED and changed to

the current style on 31-03-2008.

On 31-03-2008, EZIBUY DIRECT LIMITED, EZIBUY IMPORTS LIMITED and

EZIBUY RETAIL LIMITED amalgamated to become EZIBUY RETAIL LIMITED

which changed its name on amalgamation to EZIBUY OPERATIONS LIMITED

(Subject).

Change of legal form :     None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              Simon West

Designation :     Chief Executive Officer

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Gerard Francis Gillespie

Designation :                 Director

Appointment date :         14/11/03

Address :                      27 Montgomery Terrace

Hokowhitu, Palmerston North 4410

New Zealand

Staff employed :             376 employees (Ezibuy Group)

 


SHARE CAPITAL

 

Composition

Authorized Capital :        NZD 1,000

No of shares :                1,000 Shares

Share par value :            NZD 1

Issued capital :              NZD 1,000

Paid up capital :             NZD 1,000

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        EZIBUY LIMITED

Address :                      Level 4, The Textile Centre

1 Kenwyn Street

Parnell, Auckland 1052

New Zealand

No. of shares :               1,000 Ordinary shares

% of shares :                 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          EZIBUY HOLDINGS LIMITED

Affiliation type :              Ultimate Holding Company

Address :                      Level 4, The Textile Centre

1 Kenwyn Street

Parnell, Auckland 1052

New Zealand

 

Name :                          EZIBUY LIMITED

Affiliation type :              Parent Company

Address :                      Level 4, The Textile Centre

1 Kenwyn Street

Parnell, Auckland 1052

New Zealand

Comments :                  EziBuy Limited retails fashion apparel and home décor items. It offers tops,

dresses, tunics, pants, cardigans, jackets, coats and vests, shirts, skirts, knitwear,

lingerie, swimwear, shoes, accessories, and loungewear for women. The

company also offers tops, pants, jackets and coats, shirts, and knitwear for men;

and corporate uniforms for blue-chip clients and large multi-nationals. In addition,

it offers home ware products for living and bedroom, kitchen, bathroom, children

room, boutique, and indoor and outdoor applications; and cot sheet sets, bath

mats and sheets, bath towels, hand towels, face clothes, pillowcase, fitted sheets,

flat sheets, pleated and quilted valances, duvet inners, blankets, memory foam

pillows, and pillows. Further, the company provides personal care products,

jewellery, special occasion products, personalised prints, sports/outdoor products,

Christmas decors, health supplements, and special occasion products; and gifts

for men, women, kids, and pets. It also offers its products through catalogues, as

well as online. EziBuy Limited was founded in 1978 and is headquartered in

Auckland, New Zealand with a distribution centre and contact centre in

Palmerston North, New Zealand; and additional offices in Auckland, New

Zealand. It has stores in Albany, Palmerston North, Wellington, and Christchurch,

New Zealand.

 

Name :                          EZIBUY AUSTRALIA LIMITED

Affiliation type :              Sister Company

Address :                      Level 4, The Textile Centre

1 Kenwyn Street

Parnell, Auckland 1052

New Zealand

 

Name :                          EZIBUY PTY. LIMITED

Affiliation type :              Sister Company

Address :                      431 Warringah Road

Frenchs Forest, NSW 2086

Australia

 

Name :                          MAX FASHIONS LIMITED

Affiliation type :              Sister Company

Address :                      Level 4, The Textile Centre

1 Kenwyn Street

Parnell, Auckland 1052

New Zealand

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              Westpac New Zealand

Address :                      New Zealand

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 :                   None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

FINANCIAL DATA

 

Description

Source of financial statement :    External Sources

Financial statement date :          31/03/11

Type of accounts :                     Estimated key figures

Currency :                                 New Zealand, Dollar (NZD)

Exchange rate :                         1 USD = NZD 1.27 as of 24-07-2012

 

Summarized Financial Information

Consolidation type :                   Group Consolidated

Currency :                                 New Zealand, Dollar  (NZD)

Denomination :                          (x1) One

Date of financial year end :          31/03/11

Length of accounts :                   12 months

Sale turnover / Income : 200,000,000

Comments :                              The group’s estimated consolidated sales turnover above relates to the

Subject’s Parent Company Ezibuy Limited and all its subsidiaries which include

the Subject.

Private Companies in New Zealand are not required to file accounts unless

classified as "Large", which at the moment means that two out of the following

three conditions are met:

- The company has a sales turnover of over NZD 20,000,000;

- The company has total assets of over NZD 10,000,000;

- The company employs 50 people or more.

The Subject meets the criteria of being a large Private Company however is

exempted from filling their financial information.

 

OPERATION DETAILS

 

Main activities :                          The Subject engages in sourcing, buying, import & distribution of clothing

apparels and homeware.

The Subject is a wholly owned subsidiary of Ezibuy Limited. Ezibuy Limited

is a multi-channel retailer of apparels and homeware in Australasia.

EziBuy Limited offers tops, dresses, tunics, pants, cardigans, jackets, coats

and vests, shirts, skirts, knitwear, lingerie, swimwear, shoes, accessories,

and loungewear for women. The company also offers tops, pants, jackets

and coats, shirts, and knitwear for men; and corporate uniforms for

blue-chip clients and large multi-nationals. In addition, it offers home ware

products for living and bedroom, kitchen, bathroom, children room,

boutique, and indoor and outdoor applications; and cot sheet sets, bath

mats and sheets, bath towels, hand towels, face clothes, pillowcase, fitted

sheets, flat sheets, pleated and quilted valances, duvet inners, blankets,

memory foam pillows, and pillows. Further, the company provides personal

care products, jewellery, special occasion products, personalised prints,

sports/outdoor products, Christmas decors, health supplements, and

special occasion products; and gifts for men, women, kids, and pets. It also

offers its products through catalogues, as well as online. EziBuy Limited

was founded in 1978 and is headquartered in Auckland, New Zealand with

a distribution centre and contact centre in Palmerston North, New Zealand;

and additional offices in Auckland, New Zealand. It has stores in Albany,

Palmerston North, Wellington, and Christchurch, New Zealand.

 

Product & services :                   Womenswear

Menswear

Kidswear

Homeware

Gift & Health

Brand :                                      Ezibuy

 

Purchases

International :                             Asia, Europe

 

Sales

Local :                                      Yes

International :                             Australia, Oceania

Key events :                              14 May 2012

Investor says EziBuy sale premature

The Australian private equity investor with a 43.47 percent stake in EziBuy

says a report that its selling out of the clothing company founded in

Palmerston North is premature.

Investment firm UBS has been hired to explore the potential exit of

Catalyst's stake, which could fetch as much as $A300 million ($NZ384

million), the Australian Financial Review reported.

A formal sale process is expected in the second half of the year.

A spokesman for Catalyst told NZ Newswire that no decision had been

made to sell the stake, and it was also premature to speculate that a sale

mandate was in place.

Catalyst Investment Managers purchased the stake in EziBuy for an

undisclosed sum from New Zealand private equity firm Direct Capital in

2007.

The purchaser was Multichannel Ltd, which is owned by two Catalyst

funds.

Peter Gillespie, a founder of the company, declined to comment on the

report today.

Mr Gillespie and his brother founded the firm in 1978 and remained

majority shareholders and directors when Catalyst bought in.

EziBuy welcomed the arrival of Catalyst as a shareholder, saying the

private equity firm would help its growth plans in Australia.

EziBuy is known for a strong mail order business but it also has stores and

takes orders online.

2 February 2007

NEW PARTNERSHIP FOR EZIBUY

EziBuy Limited (“EziBuy”), Australasia’s largest apparel and home décor

catalogue company, has announced a significant equity investment by a

leading private equity company.

Australian-based Catalyst Investment Managers Pty Limited (“Catalyst”)

will acquire a 43.5% equity shareholding in the company through a newly

incorporated company, Multichannel Limited, which is wholly owned by

funds managed by Catalyst.

Founders, brothers Peter and Gerard Gillespie, will remain the majority

shareholders and will remain on the Board of Directors. They established

the company in Palmerston North, New Zealand in 1978 and expanded to

Australia in 1992.

EziBuy’s multi-channel retail model allows customers to purchase its

products via mail order, telephone, its website and in-store. Central to the

model is its catalogue offering which showcases the company’s apparel

and homeware brands to more than half a million Australasian customers.

This transaction is Catalyst’s second significant investment in New

Zealand in the past six months, following its acquisition of Metro GlassTech

in August 2006.

EziBuy Chief Executive, Mary Devine, says Catalyst is the right partner for

the company as it continues significant growth plans, particularly in the

Australian market.

“We have been through a robust and comprehensive process to select a

partner and investor that brings attributes to the table that support the

growth plans. Catalyst has a proven track record and extensive experience

in the apparel retail sector.”

“EziBuy has opened new stores in Hamilton and Tauranga in recent

months and further stores are planned for Wellington and Auckland. In the

Australian market, EziBuy is investigating growth opportunities to develop

the active customer base further. The core strength of EziBuy’s

multi-channel strategy is also reinforced by the fact EziBuy is consistently

ranked as the most popular apparel website in New Zealand and Australia

by ‘Hitwise.’

“We are very excited by this opportunity to invest in EziBuy and to partner

with Mary Devine and her high quality management team. EziBuy is a

vibrant and strongly profitable business, which has significant opportunities

for growth. We look forward to working with Mary and the Gillespie family to

build on their already significant achievements,” says Managing Director of

Catalyst, Trent Peterson.

“We are looking forward to working with Catalyst to optimise the potential

of the EziBuy business model,” concluded Mary Devine.

The acquisition is subject to OIO approval.

The exiting shareholders are New Zealand private equity company Direct

Capital Ltd and Direct Group Pty Ltd.

Background – EziBuy

EziBuy Limited is the largest fashion clothing and home décor catalogue

company in Australasia. It has a turnover in excess of $170 million and

employs more than 800 staff.

The company was established in Palmerston North in 1978 by brothers

Peter and Gerard Gillespie. It expanded to Australia in 1992.

EziBuy makes its core fashion and homeware collections available through

catalogues and via its website. It also has retail stores in New Zealand and

Australia.

The company’s first mailing list of organisations and clubs were drawn

from telephone books. Thirty years on, EziBuy produces over 30

catalogues that are mailed to more than half a million people in New

Zealand and Australia, and dispatches an average of 9,000 parcels a day

to Australasian shoppers.

EziBuy’s catalogues showcase the company’s core womenswear brands

– Capture, Emerge, Grace Hill, Glory and Urban – plus the extended

choice offered by exclusive European brands, Together and Apart. Sara, a

16+ women’s fashion collection, completes the range.

EziBuy also provides corporate apparel through Profile, its corporate

apparel division, which has led the New Zealand market in providing

branded clothing solutions to a range of blue-chip clients and large

multi-nationals for 13 years.

A true Kiwi success story, EziBuy is one of the few New Zealand

companies that have successfully integrated into the Australian market and

has established itself as a trans Tasman household name.

EziBuy cemented its presence in the Australian market when in February

2002 it secured the direct database from Australia’s largest catalogue

retailer, Coles Myers. Today, Australian customers account for over 50 per

cent of EziBuy’s total business.

Background – Catalyst

Catalyst Investment Managers is a leading Australasian private equity firm.

Catalyst has completed over 30 transactions in Australia and New Zealand

with a combined enterprise value of almost A$3 billion.

Catalyst makes investments in market leading businesses, with excellent

management, robust cash flows and strong growth prospects.

Catalyst has developed significant experience in investing in the

Australasian retail sector, having successfully invested in Just Group

(re-listed in 2004), Pacific Brands (listed in 2004) and Australian Discount

Retail (acquired in 2005).

 

Property & Assets

Premises :                                The Subject operates from premises located at the verified heading

address consisting of administrative office.

Branches :                                In addition, the Subject operates from distribution center located at:

31 El Prado Drive

Milson, Palmerston North 4478

New Zealand

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of New Zealand

Reserve of foreign exchange & gold :       US$ 20.562 billion

Gross domestic product - GDP :             US$ 180.548 billion

GPP (Purchasing power parity) :             126.628 billion of International dollars

GDP per capita - current prices :             US$ 40,454

GDP - composition by sector :                agriculture: 4.7%

industry: 24%

services: 71.3%

Inflation :                                               2009: 2.1%

2010: 2.3%

2011: 4%

Unemployment rate :                              2009: 6.1%

2010: 6.5%

2011: 6.5%

Public debt

(General Government gross debt as

a % GDP):                                            2009: 26.1%

2010: 32.3%

2011: 37%

Government bond ratings :                      Standard & Poor's: AA+/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$67.061 billion

Largest companies in the country :          Telecom of New Zealand, Transpower, Fletcher Building, Infratil

 

Trade & Competitiveness Overview

Total exports :                                       US$33.24 billion

Exports commodities :                           dairy products, meat, wood and wood products, fish, machinery

Total imports :                                       US$31.11 billion

Imports commodities :                            machinery and equipment, vehicles and aircraft, petroleum, electronics,

textiles, plastics

Export - major partners :                         Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6%

Import - major partners :                         Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%,

Germany 4.7%

FDI Inflows :                                          2008: US$4,598 million

2009: US$-1,293 million

2010: US$561 million

FDI Outflows :                                        2008: US$462 million

2009: US$-308 million

2010: US$589 million

Best countries for doing business :          3 out of 183 countries

Global competitiveness ranking :             25 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

Total population :                       4.37 million

Total area :                                270,467 km2

Capital :                                    Wellington

Currency :                                 New Zealand dollars (NZD)

Internet users as % of total

population:                                83%

 

PAYMENT HISTORY

 

Purchase Term

International : Prepayment, Telegraphic transfer, D/P, Credit 30-120 days

 

Sales Term

Local : Prepayment, Bank transfer, D/P, Credit 30-120 days

International : Prepayment, Telegraphic transfer, D/P, Credit 30-120 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.56.01

UK Pound

1

Rs.86.89

Euro

1

Rs.67.83

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.