MIRA INFORM REPORT

 

 

Report Date :

11.05.2013

 

IDENTIFICATION DETAILS

 

Name :

COUNTRY ROAD CLOTHING PTY. LTD.

 

 

Registered Office :

658 Church Street, Richmond, Victoria 3121

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

14.03.1978

 

 

Com. Reg. No.:

005419447

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Designing and retailing of apparel, home-wares and related accessories.

 

 

No. of Employees :

1,360 employees (Country Road Group); 27,000 employees (Woolworths Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, 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 is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name :              COUNTRY ROAD CLOTHING PTY. LTD.

Business address :        658 Church Street

Town :                          Richmond

Province :                     Victoria

Zip/postal code :           3121

Country :                       Australia

Tel :                              +61 3 92671400

Fax :                             61 3 92671300

Email :                          customerservice@countryroad.com.au

Website :                      www.countryroad.com.au

 

Registered address :     658 Church Street

Town :                          Richmond

Province :                     Victoria

Zip/postal code :           3121

Country :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered :      14/03/1978

Legal form :                              Australian Proprietary Company

Chief executive :                       Iain Nairn

Issued & paid up capital :          AUD 27,500,002

Sales turnover :                         AUD 422,291,000 (Group-Consolidated, 12 months 30/06/2012)

Net income :                             AUD 16,103,000 (Group-Consolidated, 12 months 30/06/2012)

Total fixed assets :                    AUD 146,282,000 (Group-Consolidated, 12 months 30/06/2012)

Line of business :                      Designing and retailing of apparel, home-wares and related accessories.

Staff employed :                       1,360 employees (Country Road Group); 27,000 employees (Woolworths 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

Credit amount asked :                Not described.

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 :                                             14/03/1978

Legal form : Australian Company Number:          005419447

Registration no                                                  Australian Proprietary Company

Registered authority :                                        Australian Securities and Investments Commission

Fiscal/ Tax no :                                                 Australian Business Number: 84005419447

Registry status :                                                Live/Active

Previous name :                                                THE COUNTRY ROAD CLOTHING COMPANY SHOPS PTY. LTD.

WAGGONER PTY. LTD. (initial)

Change of legal form :                                       None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          Iain Nairn

Designation :                Chief Executive Officer

 

Name :                          Sophie Holt

Designation :                Creative Director

 

Name :                          David Andrew Thomas

Designation :                Chief Operating Officer

 

Name :                          Oliver Kysela

Designation :                Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Norman William Thomson

Designation :                Director

Appointment date :        31/01/06

Address :                      2 Firdale Road

Newlands

Cape Town 7700

South Africa

Biography :                   Born on 26-06-1951 in Pretoria, South Africa.

Mr. Norman Thomson serves as Non-Executive Director at Country Road Ltd since December 6, 2000. He is currently the Group Finance Director and an Executive Director of Woolworths Holdings Limited.

He has been with Woolworths since 1991 and has held various positions in Logistics, Foods, Operations and Supply Chain. He holds a Bachelor of Commerce and is a Chartered Accountant.

 

Name :                          David Andrew Thomas

Designation :                Director and Company Secretary

Appointment date :        05/08/09

Address :                      22-23 Larnaca Court

Templestowe, VIC 3106

Australia

Biography :                   Born on 07-12-1976 in Melbourne, Victoria, Australia.

Mr. David Thomas is Chief Financial Officer and Executive Director of Country Road Limited. Mr. Thomas was appointed as Company's Chief Financial Officer and Company Secretary on July 24, 2009. He joined the Company in 2002 and held various executive roles. He holds a Bachelor of Commerce, CPA, Masters Degree of Business, Masters Degree of Marketing and an Executive Certificate in Retailing.

 

Name :                          Ian Moir

Designation :                Director

Appointment date :        23/10/98

Address :                      Unit 1 'Azamara'

15 Houghton Road

Camps Bay

Cape Town 8005

South Africa

Biography :                   Born on 10-12-1958 in Dunfermline, United Kingdom.

Mr. Ian Alexander Moir serves as Chairman of the Board of Country Road Ltd since November 18, 2011. He was the Chief Executive Officer and Executive Director of the Company from November 2000 to December 31, 2009, and Non-Executive Director from December 31, 2009, to November 18, 2011. Prior to working for the Company, he was Executive Director and Chief Operating Officer of the Woolmark Company. He has a Masters Degree in Business Administration, a Masters Degree in Economics and is a qualified Chartered Accountant.

 

Name :                          Iain Nairn

Designation :                Director

Appointment date :        02/10/12

Address :                      61 Spring Street East

Port Melbourne, VIC 3207

Australia

Biography :                   Born on 18-12-1961 in Broxburn, Scotland.

 

Name :                          Oliver Kysela

Designation :                Director

Appointment date :        02/10/12

Address :                      3 Cascade Walk

MacLeod, VIC 3085

Australia

Biography :                   Born on 22-10-1973 in Ivanhoe, Victoria, Australia.

Mr. Oliver Kysela is Company Secretary of Country Road Limited. He was Company's Financial Controller from November 2001 to December 1, 2006. He holds a Bachelor of Business (Accounting), a Graduate Diploma in Applied Finance & Investment, and is a qualified Chartered Accountant.

 

Name :                          Melissa Hennessy

Designation :                Company Secretary

Appointment date :        02/10/12

Address :                      144 Cochrane Street

Brighton, VIC 3186

Australia

Biography :                   Born on 15-02-1976 in Melbourne, Victoria Australia.

Staff employed :           1,360 employees (Country Road Group); 27,000 employees (Woolworths Group)

 

Key Advisors

 

Auditors :                      ERNST & YOUNG

8 Exhibition Street

Melbourne, VIC 3000

Australia

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital :       AUD 27,500,002

No of shares :               27,500,002 Ordinary Shares

Share par value :           AUD 1

Issued capital :              AUD 27,500,002

Paid up capital :            AUD 27,500,002

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

 

Shareholder name :       COUNTRY ROAD LIMITED

Address :                      658 Church Street

Richmond, VIC 3121

Australia

No. of shares :              27,500,002 Ordinary Shares

% of shares :                100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :                          WOOLWORTHS HOLDINGS LIMITED

Affiliation type :                        Ultimate Holding Company

Address :                      Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

Comments :                  Woolworths Holdings Limited, an investment holding company, operates a chain of retail stores under the Woolworths and Country Road brand names. Its stores offer a selected range of clothing, including women's, men's, and children's wear, as well as accessories, footwear, and beauty products; home accessories and soft furnishings, such as kitchen and bathroomware, crockery and vases,  sheeting, curtaining, and furniture products; food products; digital products; and general merchandise. The company also provides credit offerings, such as store cards and cash cards to assist customers to purchase merchandise in its Woolworths stores, as well as offers personal loans, and car and home insurance products. It operates approximately 330 corporate stores and 16 franchise stores in South Africa; 60 stores in Africa and the Middle East; and 167 retail stores or concession retail outlets across Australia and New Zealand. Woolworths Holdings Limited was founded in 1931 and is based in Cape Town, South Africa.

 

Name :                          WOOLWORTHS INTERNATIONAL (AUSTRALIA) PTY LIMITED

Affiliation type :                        Intermediate Holding Company

Address :                      658 Church Street

Richmond, VIC 3121

Australia

Comments :                  Woolworths International (Australia) Pty Limited through its subsidiary retails and markets consumer electronic products. The company was registered on 11/04/1997 and is based in Richmond, Australia. Woolworths International (Australia) Pty Limited operates as a subsidiary of Woolworths Holdings Limited.

 

Name :                          COUNTRY ROAD LIMITED

Affiliation type :                        Parent Company

Address :                      658 Church Street

Richmond, VIC 3121

Australia

Comments :                  Country Road Limited engages in the design and retail sale of apparel, homewares, and related accessories in Australia, New Zealand, and South Africa. It offers womenswear, menswear, kidswear, gift cards, gift wraps, and tailoring services. Country Road Limited sells its products through 115 owned retail stores and 76 concession outlets under the Country Road and Trenery brand names, as well as through an online store. The company was registered on 13/05/1987 and is based in Richmond, Australia. Country Road Limited is a subsidiary of Woolworths International (Australia) Pty Limited.

 

Name :                          COUNTRY ROAD CLOTHING (N.Z.) LIMITED

Affiliation type :                        Subsidiary

Address :                      164 Queen Street

Auckland Central, Auckland 1010

New Zealand

 

Name :                          COUNTRY ROAD PROPERTIES PTY. LTD.

Affiliation type :                        Sister Company

Address :                      658 Church Street

Richmond, VIC 3121

Australia

 

Name :                          COUNTRY ROAD VENTURES PTY LTD

Affiliation type :                        Sister Company

Address :                      658 Church Street

Richmond, VIC 3121

Australia

 

Name :                          COUNTRY ROAD INTERNATIONAL PTY. LTD.

Affiliation type :                        Sister Company

Address :                      658 Church Street

Richmond, VIC 3121

Australia

 

Name :                          WOOLWORTHS (PROPRIETARY) LIMITED

Affiliation type :                        Sister Company

Address :                      Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Name :                          WOOLWORTHS INTERNATIONAL (SA) (PROPRIETARY) LIMITED

Affiliation type :                        Sister Company

Address :                      Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Name :                          WOOLWORTHS DEVELOPMENTS (PROPRIETARY) LIMITED

Affiliation type :                        Sister Company

Address :                      Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Related companies and corporate affiliations comments : Other companies of the Woolworths Holdings 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 :                  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 :          30/06/12

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.98 as of 08-05-2013

 

Summarized Financial Information

 

Consolidation type :                  Group Consolidated      Group Consolidated      Group Consolidated

Currency :                                 Australia Dollar (AUD)    Australia Dollar (AUD)    South Africa, Rand (ZAR)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :        30/06/12                        30/06/11                        24/06/12

Length of accounts :                 12 months                     12 months                     12 months

Sale turnover / Income :             422,291,000                  423,791,000                  28,604,000,000

Gross profit :                            246,448,000                  252,535,000                  10,185,000,000

Operating profit :                       21,058,000                    23,477,000                    2,687,000,000

Profit before tax :                      20,495,000                    22,690,000                    2,870,000,000

Net income :                             16,103,000                    18,218,000                    2,059,000,000

Non current assets :                  70,994,000                    75,683,000                    5,011,000,000

Current assets : 7                      5,288,000                      73,597,000                    5,034,000,000

Inventories :                              45,396,000                    48,085,000                    2,216,000,000

Total assets :                            146,282,000                  149,280,000                  10,045,000,000

Current liabilities :                      45,641,000                    51,035,000                    4,296,000,000

Non current liabilities :               6,012,000                      6,521,000                      1,177,000,000

Total liabilities :                                     51,653,000                    57,556,000                   5,473,000,000

Share equity :                            94,629,000                    91,724,000                    4,572,000,000

Reserve :                                  -4,121,000                     5,087,000

Retained earning :                     24,663,000                    22,724,000

Comments :                  The group’s consolidated financial information in AUD above relates to the Subject’s Parent Company Country Road Limited and all its subsidiaries which include the Subject.

The group’s consolidated financial information in ZAR above relates to the Subject’s Ultimate Holding Company Woolworths Holdings Limited and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities :                         The Subject is engaged in designing and retailing of women's clothing, footwear &

accessories; men's clothing, footwear & accessories; children's clothing; homewares and related accessories.

Besides the Subject's retail outlets, it also sells its products online and offers additional services such as gift cards, gift wraps, gift registry, tailoring and delivery services.

The Subject is part of Country Road Limited which is an Australia-based company engaged in the apparel and accessories retail industry. The Company's principal activities are the designing and retailing of apparel homewares and related accessories through its network of retail stores and online store. During the fiscal year ended June 30, 2011, the Company opened three new Country Road and seven new Trenery retail stores across Australia and New Zealand, along with four new concession stores in Myer, Canberra City, Australian Capital Territory. In addition, two new concession stores were opened in Gauteng in South Africa. As of June 30, 2011, its wholly owned subsidiaries include Country Road Clothing Pty Ltd, Country Road Clothing (N.Z.) Ltd, Country Road Properties Pty Ltd, Country Road Ventures Pty Ltd, Country Road Ltd and Country Road International Pty Ltd. The Company's ultimate parent entity is Woolworths Holdings Limited. In October 2012, it acquired the Witchery Group.

Woolworths Holdings Limited is an investment holding company and one of the top 100 companies listed on the Johannesburg Securities Exchange in South Africa. Its core business focus is the provision of retail and financial

services to upper and middle income groups mainly in South Africa but also in Africa, Australia, New Zealand and the Middle East. It operates internationally through the following subsidiaries: Woolworths (Proprietary Limited) and Country Road Limited. Woolworths (Proprietary) Limited – a respected chain of 330 owned retail stores and 118 franchised and international stores, offering a range of quality clothing, food, homeware, beauty and financial services under its own brand name in South Africa, Africa and the Middle East.

 

Brand :                                     TRENERY

COUNTRY ROAD

 

Purchases

 

International :                Contract manufacturing conducted mainly from Asian countries

 

Sales

 

Local :                          Yes

International :                New Zealand

 

Property & Assets

 

Premises :                    The Subject operates from head office at the verified heading address consisting of a administrative office and warehouse.

Branches :                    In addition, the Country Road Group operates from 115 owned retail stores and 76 concession outlets located throughout Australia and New Zealand.

 

 

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, Telegraphic transfer, Credit up to 120 days

Sales Term

Local : Cash, Credit card

 

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.54.54

UK Pound

1

Rs.84.19

Euro

1

Rs.71.11

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.