MIRA INFORM REPORT

 

 

Report Date :

25.02.2013

 

IDENTIFICATION DETAILS

 

Name :

LINCOLN SENTRY GROUP PTY LTD

 

 

Formerly Known As :

LINCOLN STREET PTY. LTD.

 

 

Registered Office :

C/o DULUXGROUP LIMITED

1956 Dandenong Road Clayton Victoria 3168

 

 

Country :

Australia

 

 

Financials (as on) :

31.05.2012 (Group Consolidated)

 

 

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

(31.03.2011)

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


IDENTIFICATION DETAILS

 

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 DULUXGROUP LIMITED

1956 Dandenong Road

Town :                           Clayton

Province :                      Victoria

Zip/postal code :            3168

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

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

 

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 :              Anthony Bova

Designation :     Director

Appointment date : 12/12/12

Address :          135 Briffins Road

Cawdor, NSW 2570

Australia

Biography :        Born on 24-04-1969 in Wollongong, New South Wales, Australia.

 

Name :              Simon Black

Designation :     Company Secretary

Appointment date : 12/12/12

Address :          100 Stony Creek Road

Red Hill, VIC 3937

Australia

Biography :        Born on 21-07-1974 in Melbourne, Victoria, Australia.

Mr. Simon Black, LLB, BCom, Cert Gov (Admin), CSA (Cert), has

been General Counsel and Company Secretary of DuluxGroup Ltd

since July 2010. He was Senior Legal Counsel at Orica Limited’s

DuluxGroup division from January 2006 to July 2010. He was Senior

Legal Counsel for Orica Limited’s Chemicals division from October

2004 to January 2006 and former Senior Legal and Business Affairs

Adviser at Universal Pictures International, London, United Kingdom.

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 :                      1956 Dandenong Road

Clayton, VIC 3168

Australia

No. of shares :               140 Ordinary B Shares

% of shares :                 100%

 


RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :              DULUXGROUP LIMITED

Affiliation type : Ultimate Holding Company

Address :          1956 Dandenong Road

Clayton, VIC 3168

Australia

Comments :      DuluxGroup Limited engages in the manufacture, marketing, sale, and distribution

of paints and other surface coatings, and home improvement and garden care

products. The company offers decorative paints, texture, and protective and

woodcare coatings products; powder and industrial coatings; and home

improvement and garden care products to consumers and professionals in the

decorating, household, building and construction, cleaning, and auto care

markets. Its products also include adhesives, sealants, fillers, and paint brushes;

garden products, including fertilizers, plant protection products, garden

accessories, lawn seeds, and potting mixes; architectural coating solutions that

are used in applications, such as aluminum windows, curtain walls, balustrades,

fencing, and interior fit out items for residential and commercial developments;

and auto refinish and industrial coatings. The company offers its products

primarily under the brand names of Dulux, Selleys, Yates, Cabot’s, British Paints,

Berger, Poly, and Hortico, as well as provides timber finishes under the Opel

brand name. It operates in Australia, New Zealand, and internationally. The

company was founded in 1918 is headquartered in Clayton, Australia.

 

Name :              ALESCO CORPORATION LIMITED

Affiliation type : Parent Company

Address :          1956 Dandenong Road

Clayton, VIC 3168

Australia

 

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 :          2/22 Princes Highway

Doveton, VIC 3177

Australia

 

Name :              ALESCO HOLDINGS PTY LTD

Affiliation type : Sister Company

Address :          1956 Dandenong Road

Clayton, VIC 3168

Australia

Name :              ALESCO FINANCE PTY LIMITED

Affiliation type : Sister Company

Address :          1956 Dandenong Road

Clayton, VIC 3168

Australia

 

Name :              ROBINHOOD AUSTRALIA PTY LIMITED

Affiliation type : Sister Company

Address :          17 Oasis Court

Clontarf, QLD 4019

Australia

 

Name :              PARGONE PTY LTD

Affiliation type : Sister Company

Address :          1956 Dandenong Road

Clayton, VIC 3168

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

Related companies and corporate

affiliations comments:     Other companies of the Duluxgroup and Alesco Group 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

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 :    Public Record Sources

Financial statement date :          31/05/12

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.97 as of 22-02-2013

 

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 Company Alesco Corporation Limited and all its subsidiaries which include

the Subject.

 

OPERATION DETAILS

 

Main activities :              The Subject is engaged in import and distribution 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's Parent Company is Alesco Corporation Limited.

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.

The Subject is ultimately owned by DuluxGroup Limited.

DuluxGroup Limited is engaged in manufacturing, marketing, selling and

distributing of paints and other surface coatings to consumers and

professionals in the Australian and New Zealand decorative markets; home

improvement products and garden care products to consumers and

professionals in New Zealand; and coatings and home improvement

products in Papua New Guinea, China and South East Asia, as well as

powder and industrial coatings in New Zealand. The Company operates in

four segments: Paints Australia, Paints New Zealand, Selleys Yates and

Offshore and Other.

On 29-01-2013, DuluxGroup Limited acquired all shares of Alesco

Corporation Limited and Alesco Corporation Limited was delisted from the

Australian Stock Exchange.

 

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 :      14 January 2013

DuluxGroup Ltd Announces Alesco Corporation Limited Takeover Offer

Closed

DuluxGroup Ltd announced that its takeover offer for Alesco Corporation

Limited (Alesco) closed on Friday, January 11, 2013. As at the close of the

offer, DuluxGroup’s relevant interest in Alesco was 96.55%. DuluxGroup

intends to acquire the remaining shares in Alesco pursuant to the

compulsory acquisition process outlined in DuluxGroup’s ASX

announcement dated December 19, 2012. DuluxGroup expects that the

acquisition of the remaining Alesco shares and the de-listing of Alesco

shares from ASX will be concluded by the end of January 2013.

Source: www.reuters.com

18 December 2012

Dulux reaches 90% holding in Alesco

Corporation

DuluxGroup Ltd has finally reached a 90 per cent stakeholding in

acquisition target Alesco Corporation Ltd, in another step toward the end of

the long running takeover saga.

In a statement to the Australian Securities Exchange, Dulux said its

relevant voting power in Alesco was now 90.1 per cent.

As a result, the group now intends to compulsorily acquire all remaining

Alesco shares.

The Dulux offer closes after the finish of trading on December 19, and the

group expects to make good on its $1.631 per share bid within five

business day.

Shareholders who meet certain criteria will also be paid a 27 cent per share

fully franked special on that date. Alesco confirmed it would make the

payment last month.

"Shareholders who do not accept DuluxGroup’s offer will have their shares

compulsorily acquired and will likely not be paid until late January 2013,"

the group said.

"It is expected that ASX will suspend quotation of Alesco shares after

compulsory acquisition commences."

In November, Dulux posted a lower annual profit but expects its underlying

performance to improve in the year ahead.

The suitor made a hostile takeover bid for Alesco in May, and Alesco

accepted the bid in early October.

At 1015 AEDT, Dulux shares were flat at $3.71, against a benchmark index

rise of of 0.55 per cent.

Source: www.businessspectator.com.au

 

Property & Assets

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

address consisting of a administrative office, warehouse and retail

showroom.

Branches : In addition, the Subject operates from 24 other retail showroom located

throughout Australia.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

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 :                                          2008: 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 up to 90 days

 

Sales Term

Local : Cash, Credit card, Prepayment, Credit up to 90 days

International : Prepayment, Telegraphic transfer, Credit 30 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.54.43

UK Pound

1

Rs.83.20

Euro

1

Rs.71.91

 

 

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.