MIRA INFORM REPORT

 

 

Report Date :           

17.11.2012

 

IDENTIFICATION DETAILS

 

Name :

LINCOLN SENTRY GROUP PTY LTD

 

 

Formerly Known As :

LINCOLN STREET PTY. LTD

 

 

Registered Office :

C/O Alesco Corporation Limited, Level 24, 207 Kent Street, Sydney, New South Wales, Zip/Postal Code 2000

 

 

Country :

Australia

 

 

Financials (as on) :

31.05.2012

 

 

Date of Incorporation :

12.02.1986

 

 

Com. Reg. No.:

010624389

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Import, distribution and retail sales of cabinet hardware, window, door & glazing

products etc.

 

 

No. of Employees :

1,380 employees (Alesco 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Australia

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Australia - ECONOMIC OVERVIEW

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

 

Source : CIA

 


 

 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name :              LINCOLN SENTRY GROUP PTY LTD

 

Business address :        76 Postle Street

Town :                           Coopers Plains

Province :                      Queensland

Zip/postal code :            4108

Country :                       Australia

Tel :                              +61 7 32443200

Fax :                             +61 7 32443255

Email :                          marketing@lincolnsentry.com.au

Website :                      www.lincolnsentry.com.au

 

 

Registered address :      C/o ALESCO CORPORATION LIMITED

Level 24, 207 Kent Street

Town :                           Sydney

Province :                      New South Wales

Zip/postal code :            2000

Country :                       Australia

 

 

Summary details

 

Executive Summary

Date founded or registered :        12/02/1986

Legal form :                               Australian Proprietary Company

Chief executive :                        Mark Freeman

Issued & paid up capital :           AUD 140

Sales turnover :                          AUD 459,723,000 (Group-Consolidated 12 months, 31/05/2012)

Net income :                              AUD 6,853,000 (Group-Consolidated 12 months, 31/05/2012)

Total fixed assets :                     AUD 559,501,000 (Group-Consolidated 12 months, 31/05/2012)

Line of business :                       Import, distribution and retail sales of cabinet hardware, window, door & glazing

products etc.

Staff employed :                         1,380 employees (Alesco Group)

 

 

Credit risk opinion

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is declining

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                              No detrimental found

Payment history :                      No payment delays noted

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 : 12/02/1986

Legal form : Australian Proprietary Company

Registration no Australian Company number: 010624389

Registered authority : Australian Securities and Investments Commissions

Fiscal/ Tax no : Australian Business Number: 59010624389

Registry status : Live/Active

Previous name : The Subject was established on 12-02-1986 under the name LINCOLN STREET

PTY. LTD. and changed to the current style on 26-06-1992.

Change of legal form : None reported.

 

 

Management / directors

 

Key Management

Name :              Mark Freeman

Designation :     Managing Director

 

Name :              Luci Rafferty

Designation :     Group General Manager, Legal and Corporate Affairs

 

 

Board of directors / other appointments

 

Appointments

Name :                          Mark Freeman

Designation :                 Director

Appointment date :         30/01/12

Address :                      21 Canada Place

Arundel, QLD 4214

Australia

Biography :                    Born on 30/10/1969 in Wagga Wagga, New South Wales, Australia.

Mr. Mark Freeman has been Group General Manager - Lincoln

Sentry of Alesco Corporation Ltd since January 30, 2012. He holds a

Bachelor’s degree in Finance and Banking from the University of

Western Australia, Australia. He is a Chartered Accountant.


Name :                          Emmanuel Raymond Zammit

Designation :                 Alternate Director and Company Secretary

Appointment date :         30/01/12

Address :                      17 Highlands Avenue

Gordon, NSW 2072

Australia

Biography :                    Born on 25/12/1966 in Sydney, New South Wales, Australia.

Mr. Emmanuel Raymond Zammit, BEc, CPA, MAICD, has been Chief

Financial Officer of Alesco Corp Ltd since December 12, 2011. He is

currently the Chief Financial Officer of Wattyl Limited. He previously

worked in a variety of financial roles at MeadWestvaco Corporation.

 

Name :                          Luci Rafferty

Designation :                 Company Secretary

Appointment date :         31/01/07

Address :                      Unit 13, 22 Cliff Street

Milsons Point, NSW 2061

Australia

Biography :                    Born on 01/05/1967 in Inverell, New south Wales, Australia.

Ms. Luci Rafferty is Company Secretary and Group General Manager

- Legal and Corporate Affairs of Alesco Corporation Ltd. She has

been with Alesco since 2003 and has over 15 years legal experience

primarily in the corporate and commercial areas. Prior to Alesco, Ms.

Rafferty was general counsel and company secretary at Namoi

Cotton Co operative Ltd, a co-operative listed on the ASX. Her

qualifications include BA Llb (Hons) and ACIS.

Staff employed :             1,380 employees (Alesco Group)

 

Key Advisors

Auditors :                      GRANT THORNTON

Level 4, 102 Adelaide Street

Brisbane, QLD 4000

Australia

 

Share capital

 

Composition

Authorized Capital :        AUD 140

No of shares :                140 Ordinary B Shares

Share par value :            AUD 1

Issued capital :              AUD 140

Paid up capital :             AUD 140

 

 

ownership / shareholders

 

How listed :                   Full List


Composition

Shareholder name :        ALESCO CORPORATION LIMITED

Address :                      Level 24, 207 Kent Street

Sydney, NSW 2000

Australia

No. of shares :               140 Ordinary B Shares

% of shares :                 100%

RELA

Related companies & corporate Affiliations

 

Structure

Name :                          ALESCO CORPORATION LIMITED

Affiliation type :              Parent Company

Address :                      Level 24, 207 Kent Street

Sydney, NSW 2000

Australia

 

Comments :                  Alesco Corporation Limited, through its subsidiaries, supplies branded products to

trade and industrial customers serving the building products markets in Australia

and New Zealand. It operates in three segments: Cabinets, Windows &

Appliances; Construction Products & Equipment; and Garage Doors & Openers.

The Cabinets, Windows & Appliances segment supplies and distributes cabinet

and window products under the Lincoln Sentry brand to the residential and

commercial building markets, and kitchen and laundry appliances under the

Robinhood brand to the appliance retailer market. This segment offers hardware

and components; rangehoods, and ducting solutions; laundry tubs and ironing

centers; and waste disposers sinks and taps. The Construction Products &

Equipment segment provides concrete products, including construction

chemicals, decorative concrete and associated equipment, and specialized

construction chemicals. The Garage Doors & Openers segment manufactures

and markets a range of garage doors for domestic and commercial use, as well

as commercial and residential automatic openers under the B&D Doors, Garador,

Dominator, and Automatic Technology brands. The company was formerly known

as Atkins Carlyle and changed its name to Alesco Corporation Limited in 2001.

Alesco Corporation Limited was founded in 1896 and is headquartered in Sydney,

Australia.

The company was formerly known as Atkins Carlyle and changed its name to

Alesco Corporation Limited in 2001. Alesco Corporation Limited was founded in

1896 and is headquartered in Sydney, Australia.

ALESCO CORPORATION LIMITED is listed in Australian Stock Exchange.

 

Name :                          JOINERY PRODUCTS HARDWARE SUPPLIES PTY. LTD.

Affiliation type :              Wholly-owned Subsidiary

Address :                      80 Northgate Drive

Thomastown, VIC 3074

Australia




Name :                          PARCHEM CONSTRUCTION SUPPLIES PTY LTD

Affiliation type :              Sister Company

Address :                      7 Lucca Road

Wyong, NSW 2259

Australia

Name :                          ALESCO HOLDINGS PTY LTD

Affiliation type :              Sister Company

Address :                      Level 24, 207 Kent Street

Sydney, NSW 2000

Australia

Name :                          ALESCO FINANCE PTY LIMITED

Affiliation type :              Sister Company

Address :                      Level 24, 207 Kent Street

Sydney, NSW 2000

Australia

 

Name :                          ROBINHOOD AUSTRALIA PTY LIMITED

Affiliation type :              Sister Company

Address :                      76 Postle Street

Coopers Plains, QLD 4108

Australia

Name :                          PARGONE PTY LTD

Affiliation type :              Sister Company

Address :          `           Level 24, 45 Clarence Street

Sydney, NSW 2000

Australia

 

Name :                          ROBINHOOD LIMITED

Affiliation type :              Sister Company

Address :                      13 Sir William Avenue

East Tamaki, Auckland 2013

New Zealand

 

Name :                          B&D AUSTRALIA PTY LTD

Affiliation type :              Sister Company

Address :                      34-36 Marigold Street

Revesby, NSW 2212

Australia

Name :                          AUTOMATIC TECHNOLOGY (AUSTRALIA) PTY. LTD.

Affiliation type :              Sister Company

Address :                      6-8 Fiveways Boulevard

Keysborough, VIC 3173

Australia

Related companies and corporate affiliations comments

Other companies of the Alesco Group should be considered affiliates of the Subject.

 

 

 

 

Bank & mortgages

 

Bank Details

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 Charges:

ASIC Charge Number: 354848

Date Registered: 01-09-1992

Charge type: Fixed

Date Created: 13-08-1992

Chargees Name: ESANDA FINANCE CORPORATION LIMITED

 

ASIC Charge Number: 367327

Date Registered: 02-10-1986

Charge type: Both Fixed & Floating

Date Created: 30-09-1986

Chargees Name: NMRB PTY LTD

 

ASIC Charge Number: 1028676

Date Registered: 18-03-2004

Charge type: Both Fixed & Floating

Date Created: 04-02-2004

Chargees Name: NATIONAL AUSTRALIA BANK 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 :          31/05/12

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.96 as of 12-11-2012


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 :          31/05/12                                    31/05/11

Length of accounts :                   12 months                                 12 months

Sale turnover / Income : 459,723,000                              478,824,000

Gross profit :                             184,133,000                              191,412,000

Operating profit :                        21,851,000                                39,455,000

Profit before tax :                       12,776,000                                26,054,000

Net income :                              6,853,000                                 16,898,000

Non current assets :                   410,931,000                              428,198,000

Current assets :                         148,570,000                              180,393,000

Inventories :                               73,148,000                                81,567,000

Total assets :                            559,501,000                              608,591,000

Current liabilities :                      78,826,000                                85,805,000

Non current liabilities :                74,654,000                                90,240,000

Total liabilities :                          153,480,000                              176,045,000

Share equity :                            406,021,000                              432,546,000

Reserve :                                   5,519,000                                  3,580,000

Retained earning :                      -18,041,000                               -91,441,000

 

Comments :                              The group’s consolidated financial information above relates to the Subject’s

Parent / Ultimate Holding Company Alesco Corporation Limited and all its

subsidiaries which include the Subject.

 

 

Operation details

 

Main activities :              The Subject is engaged in the distribution and supply of hardware and

components to manufacturing industries. Its customers include kitchen

manufacturers, cabinetmakers, furniture manufacturers, shop and office

fitters, and timber joineries, as well as the window, door, and glazing

industries. The subject sells its products through its distribution centers in

Australia and New Zealand.

 

The Subject is a subsidiary company of Alesco Corporation Limited, an

ASX listed Australian company.

 

Alesco Corporation Limited (Alesco) is engaged in sourcing, manufacturing

and distribution of industrial brands to the building and renovations,

construction and mining and water management sectors. The Company

operates in three segments: construction products and equipment, which is

engaged concrete products, including construction chemicals, decorative

concrete and associated equipment, specialised construction chemicals;

functional and decorative products include home building and renovation

products to the kitchen, laundry and bathroom markets, and Garage doors

and openers is engaged in the domestic housing and light industrial

markets.

 

Product & services :

 

1) Cabinet Hardware:

Drawer Systems & Hinges

Personal Choice Products: Sinks & Basins, Electrical Appliances &

Rangehoods

Office, Shop & Wardrobe Systems: Wardrobe Hardware

Sealants, Adhesives & Fasteners

Tools & Accessories: Tapes

 

2) Window, Door & Glazing :

Window & Door Hardware

Security for Window & Door Hardware

Glass & Glazing

Sealants, Adhesives & Fasteners

Personal Protection Equipment, Storage & Handling

 

Purchases

International : Worldwide

 

Sales

Local :                          Yes

International :                 Pacific Islands

Key events :                  1 October 2012

 

Dulux extends Alesco takeover offer

DULUXGROUP has extended its takeover offer to Alesco shareholders by two months after the building products and garage door maker finally accepted its $210 million bid. DuluxGroup made a hostile takeover offer for Alesco in May which was due to expire on Monday.

 

However, Alesco made an eleventh hour acceptance of the bid on Friday to ensure its shareholders would not miss out on an extra 27 cents per share dividend.

 

If Alesco had not agreed to the offer before the weekend, Dulux would have declared the bid unconditional on Monday and gained effective control anyway, with it already holding 55.7 per cent of its target's shares.

 

Alesco shareholders would have missed out on a fully franked 27 cent a share special dividend, to be paid if Dulux lifts its holding in Alesco to 90 per cent. Dulux said on Monday in light of Alesco accepting the takeover bid it has extended the offer to December 7.

 

28 September 2012

Alesco and Dulux reach takeover agreement

 

BUILDING products group Alesco has recommended a takeover offer from paint maker DuluxGroup after reaching agreement with its suitor. Alesco said on Friday the two companies had agreed that Alesco may pay

its shareholders a special dividend of 27 cents per share on top of DuluxGroup's offer if DuluxGroup takes a 90 per cent stake in Alesco. Dulux's $210 million bid to buy Alesco has been quagmired in disagreement over dividend payments and franking credits since its launch in May.

 

Its $2.05-a-share offer includes up to 42 cents a share of fully franked dividends.

 

But Alesco had said it would only support an offer that incorporated the ability to pay fully franked dividends of up to 75 cents a share. Under the newly agreed terms, Dulux's offer could include dividends of 42 cents per share, made up of 15 cents from Dulux and 27 cents from Alesco.

 

"While the Alesco board reiterates its view that the offer does not reflect the full value of Alesco, now that DuluxGroup has received acceptances representing 55.7 per cent of Alesco shares, Alesco has reached

agreement with DuluxGroup and unanimously recommends that shareholders accept the offer," Alesco said in a statement.

 

Dulux has agreed to hold off declaring its offer unconditional while there is a chance that an additional 27 cents dividend can be paid by Alesco. "Having taken these steps and reached agreement, there is a clear pathway for Alesco shareholders to realise franking credits which we have consistently said belong to them," Alesco chairman Mark Luby said.

 

Dulux had previously said it would declare its takeover offer unconditional on or after October 1, once its holding reached 50.1 per cent Alesco Corporation Limited Appoints Chief Financial Officer Tuesday, 11 Oct 2011 Alesco Corporation Limited announced that Mr. Emmanuel Zammit has been appointed Chief Financial Officer, replacing Neil Thompson, Finance Director who will leave the Company later this year.

 

Alesco Corporation Limited To Sell Marathon Tyres Pty Ltd Thursday, 7 Apr 2011 Alesco Corporation Limited announced that it has entered into an unconditional agreement to sell its Marathon Tyres Pty Ltd to a private

company in Newcastle for AUD 23 million, on a cash-free-debt-free basis. Alesco Corporation Limited Completes Sale Of Water Products & Services Division

 

Monday, 28 Feb 2011

Alesco Corporation Limited announced that it has completed the sale of its Water Products & Services division (Total Eden) to funds managed by Anchorage Capital Partners Pty Ltd for approximately AUD 20 million.

 

Property & Assets

Premises : The Subject operates from premises located at the verified heading address consisting of an administrative office, warehouse and retail showroom.

 

Branches : In addition, the Subject operates from 29 other retail showroom located throughout Australia.

 

 

Summarized country risk

 

Central bank                                          :   Reserve Bank of Australia

Reserve of foreign exchange & gold         :   US$ 43.879 billion

Gross domestic product – GDP               :   US$ 1.586 trillion

 

GPP (Purchasing power parity)               :   954.296 billion of International dollars

 

GDP per capita - current prices               :   US$ 68,916

 

GDP - composition by sector                  :   agriculture: 4% industry: 25.6% services: 70.4%

 

Inflation :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

 

Unemployment rate                                2009: 5.6 %

2010: 5.2 %

2011:5.1 %

 

Public debt

(General Government gross

debt as a % GDP)                                  2009:  16.9%

2010:  20.4%

2011:    22.9 %

 

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                                            2009: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

 

 

 

FDI Outflows                                                                          2008: US$33,604 million

2009: US$ 16,160 million

2010: US$26,431 million

 

 

Best countries for doing business           :   10 out of 183 countries

Global competitiveness ranking               :   20 (ranking by country on a basis of 142, 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     : 76%

 

 

Payment history

 

Purchase Term

International :                 L/C, Prepayment, Credit 30-60 days

 

Sales Term

Local :                          Prepayment, 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.54.99

UK Pound

1

Rs.87.21

Euro

1

Rs.70.22

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.