MIRA INFORM REPORT

 

 

Report Date :            

11.06.2013

 

IDENTIFICATION DETAILS

 

Name :

NEW ZEALAND WOOL SERVICES INTERNATIONAL LIMITED

 

 

Registered Office :

First Floor, 30 Sir William Pickering Drive, Russley, Christchurch, Zip/postal code 8042

 

 

Country :

New Zealand

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

13.12.1991

 

 

Com. Reg. No.:

530665

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Marketing, processing and selling of New Zealand wool

 

 

No. of Employees :

17 employees (Subject)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

With Financials

 

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 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

New Zealand

a1

a1

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

New Zealand - ECONOMIC OVERVIEW

 

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 2% decline in 2009, but pulled out of recession late in the year, and achieved roughly 2% per year growth in 2010-12. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

 

Source : CIA

 

 

 

 

 Bottom of Form

Identification details

 

Verified Address

 

Subject name :                          NEW ZEALAND WOOL SERVICES INTERNATIONAL LIMITED

 

Other style / Business name :     WOOL SERVICES INTERNATIONAL (WSI)

 

Business address :                    First Floor, 30 Sir William Pickering Drive

Town :                                      Russley

Province :                                 Christchurch

Zip/postal code :                       8042

Country :                                   New Zealand

Tel :                                          +64 3 3578700

Fax :                                         +64 3 3578720

Email                                        info@woolserv.co.nz

Website :                                  www.woolserv.co.nz

 

 

Registered address :                 First Floor, 30 Sir William Pickering Drive

Town :                                      Russley

Province :                                 Christchurch

Zip/postal code :                       8042

Country :                                   New Zealand

 

 

Postal address :                        P.O. Box 29383

Town :                                      Fendalton

Province :                                 Christchurch

Zip/postal code :                       8540

Country :                                   New Zealand

 

 Bottom of Form

 

Summary details

 

Executive Summary

Date founded or registered :      13/12/1991

Legal form :                              Private Limited Company

Chief executive :                       Michael Brian Francis Dwyer

Issued & paid up capital :          NZD 20,000,000

Sales turnover :                         NZD 201,971,000 (Consolidated 12 months, 30/06/2012)

Net income :                             NZD 2,238,000 (Consolidated 12 months, 30/06/2012)

Total fixed assets :                    NZD 90,931,000 (Consolidated 12 months, 30/06/2012)

Line of business :                      Marketing, processing and selling of New Zealand wool.

Staff employed :                       17 employees (Subject)


Credit risk opinion

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is progressing

Management experience :          Management is adequately experienced

Financial performance :             Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

 

 

 

Statutory details

 

Registry Data

Registration date :                     13/12/1991

Legal form :                              Private Limited Company

Registration no                          530665

Registered authority :                New Zealand Companies Office

Registry status :                        Live/Active

Previous name :                        None reported.

Change of legal form :               None reported.

 

 

Management / directors

 

Key Management

Name :                          Michael Brian Francis Dwyer

Designation :                Managing Director

 

Name :                          John William Dawson

Designation :                General Manager

 

Name :                          Paul Steel

Designation :                Marketing Manager

 

 

Board of directors / other appointments

 

Appointments

Name :                          William Dougall Lempriere

Designation :                Director

Appointment date :        02/04/13

Address :                      52 McKinley Avenue

Malvern, VIC 3144

Australia

Staff employed :           17 employees (Subject)

 

Key Advisors

Auditors :          ERNST & YOUNG

20-22 Twigger Street

Addington, Christchurch 8013

New Zealand

 

Share capital

 

Composition

Authorized Capital :       NZD 20,000,000

No of shares :               20,000,000 Ordinary Shares

Share par value :           NZD 1

Issued capital :              NZD 20,000,000

Paid up capital :            NZD 20,000,000

 

 

ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name :       WSI HOLDINGS PTY LTD

Address :                      Level 7, 460 Collins Street

Melbourne, VIC 3000

Australia

% of shares :                100%

 

 

Related companies & corporate Affiliations

 

Structure

 

Name :                          LEMPRIERE (AUSTRALIA) PROPRIETARY LIMITED

Affiliation type :                        Ultimate Holding Company

Address :                      Level 7, 460 Collins Street

Melbourne, VIC 3000

Australia

 

Comments :                  Lempriere Australia Pty Ltd. manufactures and supplies wool for fashion houses

in Europe, Asia, and North America. The company was founded in 1931 and is

based in Melbourne, Australia with additional offices in Shanghai, China; Prague,

the Czech Republic; Biella, Italy; Christchurch, New Zealand; Port Elizabeth,

South Africa; Charleston, South Carolina; and Buenos Aires, Argentina.


Lempriere (Australia) Pty Limited is ultimately 100% owned by the Lempriere

Family, Australia.

 

Name :                          WSI HOLDINGS PTY LTD

Affiliation type :            Parent Company

Address :                      Level 7, 460 Collins Street

Melbourne, VIC 3000

Australia

 

Name :                          WHAKATU WOOL SCOUR LIMITED

Affiliation type :            Wholly-owned Subsidiary

Address :                      Railway Road

Hawkes Bay, Whakatu 4172

New Zealand

Comments :                  Wool processing.

 

 

Name :                          KAPUTONE WOOL SCOUR (1994) LIMITED

Affiliation type :            Wholly-owned Subsidiary

Address :                      20 Station Road

Belfast, Christchurch 8051

New Zealand

Comments :                  Wool processing.

 

 

Name :                          RAYMOND DALE WOOL MARKETING LIMITED

Affiliation type :            Wholly-owned Subsidiary

Address :                      1st Floor, 2 Kari Street

Grafton, Auckland 1010

New Zealand

Comments :                  Wool trading and marketing.

 

Related companies and corporate affiliations comments

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

 

 

 

Bank & mortgages

 

Bank Details

Name of bank :                         Bank of New Zealand Limited

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 :               Commercial Registry Filings

Financial statement date :                      30/06/12

Type of accounts :                                Full audited

Currency :                                             New Zealand, Dollar (NZD)

Exchange rate :                                     1 USD = NZD 1.27 as of 10-06-2013

 

Summarized Financial Information

Consolidation type :                              Consolidated                            Consolidated

Currency :                                             New Zealand, Dollar (NZD)         New Zealand, Dollar (NZD)

Denomination :                                      (x1) One                                    (x1) One

Date of financial year end :                    30/06/12                                    30/06/11

Length of accounts :                             12 months                                 12 months

Sale turnover / Income :                         201,971,000                              200,113,000

Gross profit :                                        11,921,000                                18,754,000

Profit before tax :                                  3,171,000                                  9,112,000

Net income :                                         2,238,000                                  6,636,000

Non current assets :                              21,022,000                               22,647,000

Current assets :                                     69,909,000                                80,171,000

Inventories :                                          42,482,000                                46,717,000

Total assets :                                        90,931,000                                102,818,000

Current liabilities :                                  54,697,000                                56,574,000

Non current liabilities :                           1,555,000                                  10,636,000

Total liabilities :                                     56,252,000                                67,210,000

Share equity :                                        34,679,000                                35,608,000

Reserve                                                2,190,000                                  2,253,000

Retained earning :                                 3,685,000                                  4,551,000

 

Comments :                                          The consolidated financial information above relates to the Subject and

its subsidiaries.

 

 

Operation details

 

Main activities :                                     The Subject is engaged in marketing, processing, export and distribution of

New Zealand wool worldwide.

 

As of February 24, 2013, the Subject operates as a subsidiary of WSI

Holdings Pty Ltd.


The Subject is ultimately owned by Lempriere (Australia) Pty Limited.

Lempriere Australia Pty Ltd. manufactures and supplies wool for fashion

houses in Europe, Asia, and North America. The company was founded in

1931 and is based in Melbourne, Australia with additional offices in

Shanghai, China; Prague, the Czech Republic; Biella, Italy; Christchurch,

New Zealand; Port Elizabeth, South Africa; Charleston, South Carolina;

and Buenos Aires, Argentina.

 

Lempriere (Australia) Pty Limited and its associated companies (together

“the Lempriere Group”) is one of the world’s largest wool merchants and

processors.

 

Product & services :

Scoured wool

Greasy wool

Brand : PURELANA

GLACIAL

RED BAND

 

Purchases

Local :                          Yes (Primarily from New Zealand)

International :                None reported.

 

Sales

Local :                          Yes

International :                Mainly to China, India, United Kingdom, Australia, Turkey, Iran, Egypt

 

Key events : 14 February 2013

Lempriere reaches 90% of Wool Services International, hitting mop-up target

 

Australian wool merchant Lempriere has reached the 90 percent target of

Wool Services International, allowing it to mop-up the remaining shares.

 

The Melbourne-based company reached 90.9 percent of acceptances

yesterday, according to a substantial security holder notice, meeting its

minimum acceptance and letting it compulsorily acquire the remaining

shares in the company.

 

Lempriere launched the takeover last year, offering 45 cents a share,

valuing WSI at $31 million, a 22 percent premium to the trading price

before the offer emerged. The shares last traded in January at 42 cents.

 

The Australian company locked up 75 percent of WSI's shares having

bought control when it acquired the majority stake owned by Allan

Hubbard-related companies Woolpak Holdings and Plum Duff and entered

into lock-up agreements with some of the firm's executives.

 

WSI's scouring assets attracted a rival bid by Cavalier Wool Holdings, a

joint venture between Cavalier Corp, Direct Capital Investments and the

Accident Compensation Corp, to build a national wool scouring monopoly,

which won Commerce Commission authority to do so.

 

Lempriere's local vehicle making the bid, WSI Holdings, said it is aware of

CWH's interest in the scouring assets, and has "no intention to dispose of

those assets."

 

The Australian company plans to undertake a strategic review of the New

Zealand wool merchant, and will align WSI's business practices, systems

and processes with Lempriere's. It will install appropriate board

representation and seek a review of WSI's trade finance terms that could

lead to changes in its capital structure.

 

Lempriere owns specialist merino wool merchant The Merino Co with

businesses in the US, Argentina and South Africa, and is one of the world's

major suppliers of fine wool to European, Japanese and American fashion

houses.

 

The 150-year-old Australian company has been held in the same family for

five generations, with William Lempriere the current managing director.

 

Source: www.scoop.co.nz

 

31 October 2012

Assurance on woolscouring assets

 

Australian company Lempriere Holdings has indicated it would not sell New

Zealand Wool Services International's scouring assets if its takeover bid is

successful.

 

Wool Services International this week received a takeover notice from WSI

Holdings Pty Ltd (WSIH), an associated company of Lempriere, for a full

takeover offer for all the ordinary shares in WSI at 45c a share.

 

In the notice, it said WSIH was aware of Cavalier Wool Holdings Ltd's

interest in the woolscouring assets of WSI and it had "no intention" of

disposing of those.

 

The future of WSI has been under a cloud for some time after the

Commerce Commission granted authorisation to Cavalier Wool Holdings in

June last year to make an offer for its woolscouring assets.

 

WSI later confirmed it was planning capital raising in its attempt to buy the

64% of the company owned by Plum Duff and Woolpak Holdings and

under the control of a receiver.

 

Last month, that stake of the company was locked up for sale to Lempriere

at 45c per share, along with a further 11% of WSI shares held by five

senior employees and another retiree.

 

WSI said it would be appointing an independent adviser to assess the offer

and give advice on the merits of it.


WSIH intended to initiate a strategic review of WSI and its subsidiaries, the

notice said.

 

Source: www.odt.co.nz

 

19 September 2012

WSI board welcomes takeover offer

 

An associated company of Melbourne wool merchant Lempriere Holdings

has announced a takeover offer for wool processor and the country's

largest wool exporter, NZ Wool Services International (WSI).

 

The bidder, WSI Holdings Pty Limited, has already secured 75 per cent of

WSI shares through lock-up agreements with the receivers of two Allan

Hubbard-associated companies which hold 64 per cent of WSI, and senior

WSI managers who hold another 11 per cent.

 

WSI Holdings Pty will make a takeover offer for all shares in WSI at 45

cents per share.

 

Shares in WSI were last trading on the NZAX about 37c a share.

 

Receivers from PricewaterhouseCoopers have been trying to offload the 64

per cent shareholding once controlled by Hubbard-associated companies

Plum Duff and Woolpak Holdings for nearly two years.

 

Once WSI's board of directors receives the takeover offer it will seek an

independent appraisal on the offer, which it would send to shareholders,

along with the board's recommendations.

 

WSI managing director Michael Dwyer and four other senior employees,

together with one retired employee, have signed lock-up agreements to sell

a combined 11 per cent shareholding held by them in WSI, to WSI

Holdings for 45c per share.

 

WSI's board of directors said that while the company had continued to

trade profitably, having a majority of its shares tied up in two companies in

receivership had meant a lengthy period of uncertainty for its employees

and customers.

 

The board therefore welcomed the prospect of a conclusion to the process,

they said

Source: www.stuff.co.nz

 

17 February 2012

New Zealand Wool Sale Expected By June

 

A sale of 64% stake in New Zealand Wool Services International is

expected to be completed by June 2012, according to Maurice Noone of

PwC, the receiver of Allan Hubbard-related companies Plum Duff and

Woolpak Holdings. "On the back of recent Commerce Commission

appeals, we are continuing discussions with interested parties with the

intention to reach some form of settlement within the next reporting period,"

he said in his latest report.

 

Property & Assets

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

consisting of an administrative office.

Branches :                    None reported.

Other property :             Wool scouring facility:

 

KAPUTONE WOOL SCOUR (1994) LIMITED, located just north of

Christchurch on the east coast of the South Island, New Zealand.

 

WHAKATU WOOL SCOUR LIMITED, located in the Hawkes Bay on the

east coast of the North Island, New Zealand.

 

Total Group NBV of property, plant and equipment as of 30-06-2012 was

NZD 14,273,000.

 

 

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 :         Westpac Limited, Transpower, Fletcher Building Limited, National Bank

of New Zealand, Fonterra Co-Operative Group Ltd, Air New Zealand Limited, The Warehouse Group Limited, Progressive Enterprises Ltd

 

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

Local :                          Prepayment, Bank transfer, D/P, Credit up to 120 days

International :                Prepayment, Telegraphic transfer, D/P, Credit up to 120 days

 

 

Sales Term

Local :                          Bank transfer, D/P, Credit up to 120 days

International :                L/C, Prepayment, Telegraphic transfer, D/P, Credit up to 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.57.78

UK Pound

1

Rs.89.71

Euro

1

Rs.76.24

 

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.