MIRA INFORM REPORT

 

 

 

 

Report Date :

06.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SILVER FERN FARMS LTD

 

 

Registered Office :

218 George Street, Dunedin 9016

 

 

Country :

New Zealand

 

 

Date of Incorporation :

30.09.1948

 

 

Legal Form :

NZ Co-operative Company

 

 

Line of Business :

Meat Marketing and Processing Company

 

 

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 – December 31, 2010

 

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


REGISTERED NAME      

 

SILVER FERN FARMS LTD

 

 

CORPORATE SEARCH

 

 

Entity Type:

NZ Co-operative Company

Incorporated:

30 Sep 1948

Current Status:

Registered

Constitution Filed:

Yes

Annual Return Filing Month:

March

 

Registered Office

218 George Street, Dunedin 9016

 

Address for Service

218 George Street, Dunedin 9016

 

Directors

BALFOUR, Antony John

238 Littles Road, Rd 1, Queenstown, 9371

 

BURT, Trevor John

58 Old Tai Tapu Road, Kennedys Bush, Christchurch, 8025

 

GARDEN, Eoin Reay Hamilton

Avenel, Millers Flat, R D 2, Roxburgh 9572

 

HEWETT, Robert James

Manuka Gorge Highway, Rd 3, Lawrence 9593

 

MABIN, Angus Collis

Taniwha, R D 1, Waipukurau 4281

SHAW, David Alfred

Clutha Downs Road, Rd 3, Balclutha, 9273

SOMERVILLE, Richard John

320 Beacon Point Road, Wanaka, 9305

 

ULRICH, Peter Herstall

Rock Farm, Rd 13, Pleasant Point, South Canterbury 7983

 

 

Shareholdings

 

Total Number of Shares:

126,434,072

Extensive Shareholdings:

Yes

 

397,766

1977962

GLENTHORNE STATION LIMITED

Brown Glassford & Co Limited, Level 1, 55 Kilmore Street, Christchurch, Null

354,833

1185808

FNZ CUSTODIANS LIMITED

Level 7, 256 Lambton Quay, Wellington, Null, 6011

189,865

148341

FORSYTH BARR CUSTODIANS LIMITED

Forsyth Barr House, Cnr Octagon & Stuart Street, Dunedin, Null

166,632

GARDEN, Eoin Reay Hamilton

Avenel, Millers Flat, R D 2, Roxburgh 9572

164,067

1925333

GRAY BROTHERS LIMITED

127 Ruataniwha Street, Waipukurau, 4200

155,288

1218647

ORARI GORGE STATION LIMITED

Tripp Rolleston & Co, 251 Stafford Street, Timaru, Null

150,000

1209785

HEWETT FARM LIMITED

Shand Thomson Ltd, 102 Clyde Street, Balclutha, Null

150,000

1234958

LIVESTOCK HOLDINGS LIMITED

Dairy Holdings Ltd, 7b Sophia Street, Timaru, Null, 7910

 

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 218 George Street
P O Box 941

Dunedin
9054
New Zealand

 

TELEPHONE                            (643) 477 3980

 

FACSIMILE                                 (643) 474 1087

 

LEATHER DIVISION                     Mersey St

                                                          PONDRA, NAPIER

 

ASSOCIATES                            AUSTRALIAN LAMB COMPANY

                                           NEW ZEALAND LAMB COMPANY LTD

                                           MEW ZEALAND LAMB COMPANY INC

                                         NEW ZEALAND LAMB COMPANY (NORTH AMERICA)

                                        NEW ZEALAND LAMB CO-OPERATIVE INC

                                            NEW ZEALAND LAMB HOLDINGS INC

 

CONTROLLED ENTITIES            Richmond Group Holdings New Zealand

Richmond (NZ) Singapore Pte Ltd Singapore

Richmond Speciality Beef Importers Ltd USA

Richmond New Zealand Ltd UK

Silver Fern Farms NV (formerly Richmond (Europe) NV)

Silver Fern Farms GmbH (formerly Richmond (Deutschland) GmbH) 100%

Richmond Lonsdale Limited UK

PPCS Superannuation Limited New Zealand

CFM Management Limited New

Richmond Enterprises (1996) Limited

Richmond Equities Limited New Zealand

Kiwi Fern Limited New Zealand

PPCS Investments Ltd New Zealand

Slink Skins Canterbury Limited New Zealand

Venison Rotorua Limited New Zealand

Farm Enterprises New Zealand

Waitotara Europe BV Belgium

Silver Fern Farms (UK) Ltd

B. Brooks (Norwich) Limited UK

PPCS USA Inc USA

Global Technologies Limited

OFFICES                                   CHRISTCHURCH, NZ

                                                HASTINGS, NZ

 

BANKERS                                WESTPAC BANKING CORP

HSBC

RABOBANK

COMMONWEALTH BANK OF AUSTRALIA

                                               

EMPLOYEES                            6,000

           

 

BACKGROUND

 

The subject was incorporated in New Zealand on 30 September 1948 as Primary Producers Co-Operative Society Ltd, changing name n 13 January 1999 to PPCS Ltd, before adopting the current style on 3 June 2008.

 

The subject was formed as a meat marketing company in 1947, when it was known as Primary Producers Co-operative Society (Otago) Limited, (PPCS). PPCS was established purely as a marketing company and initially did not own any of its processing facilities. At that time the business contracted external meat processing

companies to process stock on its behalf.

 

In 1982 PPCS took a significant step to securing its own processing capability when it acquired a 49% shareholding in the Canterbury Frozen Meat Company.

 

In 1988 PPCS acquired a selection of assets from Waitaki International Limited including the processing plants at Finegand and Marlborough, and the closed down plants at Burnside and Islington which were subsequently reopened.

 

 In the 1990s PPCS progressively expanded through the acquisition of a number of small operators, then in 2001 it launched a major takeover for Richmond Meats Limited (Richmond). Following the purchase of Richmond, Silver Fern Farms comprised 26 processing facilities from Dargavillein the North to Kennington in the South.

                                                                       

 

OPERATIONS

 

The subject operates as New Zealand’s foremost meat marketing and processing company and currently accounts for more than one third of New Zealand’s sheep meat and beef exports and 54 per cent of venison exports.

The company is structured as a farmer cooperative, and is therefore owned by about 9,000 farmer suppliers. The subject owns or leases 24 processing facilities throughout the country, employing more than 8,000 staff in the peak of the season. It also supports its key markets in North America, the United Kingdom and Europe, Asia and the Middle East though a network of international offices. employing key marketing staff that are in daily touch with the company’s extensive customer base.

 

FINANCES

 

From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 September 2010 the subject recorded consolidated revenue of $1,833,194,000, which resulted in an operating Loss before tax of $15,415,000 and an operating Loss after tax of $14,019,000.

 

Included in the loss for the last financial year was a one off restructuring fee of NZ$7.2 million.

 

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

 

 

Silver Fern Farms Ltd - consolidated

 

As at 30 September 2010 - 13 months NZ$

As at 31 August 2009 - 12 months NZ$

Change (%)

Revenue

$1,833,194,000

$2,001,934,000

-8.43%

Profit b/tax

($15,415,000)

$43,359,000

-135.55%

Profit a/tax

($14,019,000)

$43,597,000

-132.16%

 

 

During fiscal 2010, the subject recorded consolidated Net Cashflows from operating activities totalling $72,794,000.

 

As at 30 September 2010 the subject recorded consolidated total current assets of $229,604,000. They included cash of $3,182,000, receivables of $106,199,000 and inventories of $76,141,000

 

Current liabilities at the same date totalled $170,110,000 and included payables of $77,263,000 and bonds payable of $75,052,000.

 

As at 30 September 2010 the subject recorded consolidated Working Capital of $59,494,000 and a current ratio of 1.35 to 1 indicating satisfactory liquidity levels.

 

Consolidated Net Assets (excluding Members shares) totalled $367,771,000 as at 30september 2010. At this date, the subject further recorded a Debt to Equity ratio of 0.63 to 1.

 

 

Silver Fern Farms Ltd - consolidated

 

As at 30 September 2010 - 13 months NZ$

As at 31 August 2009 - 12 months NZ$

Change (%)

Revenue

$1,833,194,000

$2,001,934,000

-8.43%

Profit b/tax

($15,415,000)

$43,359,000

-135.55%

Profit a/tax

($14,019,000)

$43,597,000

-132.16%

Net Profit Margin

-0.76%

2.18%

-2.94%

Current Assets

$229,604,000

$307,733,000

-25.39%

Non-Current Assets

$370,637,000

$295,464,000

25.44%

Total Assets

$600,241,000

$603,197,000

-0.49%

Current Liabilities

$170,110,000

$89,119,000

90.88%

Non-Current Liabilities

$62,360,000

$197,817,000

-68.48%

Total Liabilities

$232,470,000

$286,936,000

-18.98%

Net Assets (excluding Members Shares)

$367,771,000

$316,261,000

16.29%

Working Capital

$59,494,000

$218,614,000

-72.79%

Current Ratio

1.35

3.45

-60.91%

Debt to Equity

0.63

0.91

-30.33%

 

 

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 New Zealand on 30 September, before adopting the current style on 3 June 2008.

                                                                       

The subject was formed as a meat marketing company in 1947.

 

For the financial year ended 30 September 2010 the subject recorded consolidated revenue of $1,833,194,000, which resulted in an operating Loss before tax of $15,415,000 and an operating Loss after tax of $14,019,000.

 

During fiscal 2010, the subject recorded consolidated Net Cashflows from operating activities totalling $72,794,000.

 

As at 30 September 2010 the subject recorded consolidated Working Capital of $59,494,000 and a current ratio of 1.35 to 1 indicating satisfactory liquidity levels.

 

Consolidated Net Assets (excluding Members shares) totalled $367,771,000 as at 30september 2010.

 

                       

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.45.05

UK Pound

1

Rs.73.05

Euro

1

Rs.63.81

 

 

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.