MIRA INFORM REPORT

 

 

Report Date :

14.05.2013

 

IDENTIFICATION DETAILS

 

Name :

BRISCOES (NEW ZEALAND) LIMITED

 

 

Registered Office :

36 Taylors Road, Morningside  Auckland  1025

 

 

Country :

New Zealand

 

 

Financials (as on) :

27.01.2013

 

 

Date of Incorporation :

31.05.1932

 

 

Com. Reg. No.:

69313

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

The Subject engages in the retail sales of home ware, kitchen ware, furniture, electrical products, bathroom ware under the brand name BRISCOES    HOMEWARE and LIVING & GIVING.

 

 

No. of Employees :

1,800 employees (Briscoe Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 


IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                            : BRISCOES (NEW ZEALAND) LIMITED

Other style / Business name       : BRISCOES HOMEWARE / LIVING & GIVING

Business address                      : 36 Taylors Road

Town                                        : Morningside

Province                                   : Auckland

Zip/postal code                         : 1025

Country                                     : New Zealand

Tel                                            : +64 9 8153737

Fax                                           : +64 9 8153738

Website                                    : www.briscoes.co.nz

 

Registered address                   : 36 Taylors Road

Town                                        : Morningside

Province                                   : Auckland

Zip/postal code                         : 1025

Country                                     : New Zealand

Postal address                          : PO Box 884, Shortland Street

Town                                        : Auckland Central

Province                                   : Auckland

Zip/postal code                         : 1140

Country                                     : New Zealand

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered        : 31/05/1932

Legal form                                : Private Limited Company

Chief executive                         : Rodney Adrian Duke

Issued & paid up capital            : NZD 500,000

Sales turnover                           : NZD 452,702,000 (Group-Consolidated 12 months, 27/01/2013)

Net income                               : NZD 30,468,000 (Group-Consolidated 12 months, 27/01/2013)

Total fixed assets                      : NZD 191,831,000 (Group-Consolidated 12 months, 27/01/2013)

Line of business                        : The Subject engages in the retail sales of home ware, kitchen ware, furniture,

electrical products, bathroom ware under the brand name BRISCOES    HOMEWARE and LIVING & GIVING.

Staff employed                         : 1,800 employees (Briscoe Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk                   : Country risk is minimal

Operation trend             : Operational trend is progressing

Management experience : Management is extremely experienced

Financial performance   : Financial performance is very good

Organization structure    : Organizational structure is consistent

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 :         31/05/1932

Legal form :                  Private Limited Company

Registration no              69313

Registered authority :    New Zealand Companies Office

Registry status :            Live/Active

Previous name :            BRISCOE E.W. MILLS AND COMPANY LIMITED (until 29-09-1961)

Change of legal form :   None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :              Rodney Adrian Duke

Designation :    Managing Director

 

Name :              Alaister John Wall

Designation :    Deputy Managing Director

 

Name :              Geoffrey Peter Scowcroft

Designation :    Chief Financial Officer

 

Name :              Peter William Burilin

Designation :    Chief Operating Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Rodney Adrian Duke

Designation :               Director

Appointment date :        12/03/92

Address :                      99 Arney Road

Remuera, Auckland 1050

New Zealand

Biography :                   Mr. Rodney (Rod) Adrian Duke is Executive Deputy Chairman of the Board and Group Managing Director of Briscoe Group Ltd. He has spent all his working life in the retail sector. After leaving school in Adelaide, he commenced work with retailers in South Australia before moving to Waltons Ltd in Sydney in 1980. From 1981 to 1988, he held the positions of New South Wales Manager of Homecraft/Eric Anderson Stores, a Senior Merchandise Executive for Grace Brothers then Managing Director of Norman Ross Ltd. In September 1988, he accepted the position of Managing Director of Briscoes (New Zealand) Limited, at that time a subsidiary of Hagemeyer of the Netherlands, with a mandate of returning the company to profitability and preparing it for sale. In January 1990, he reached agreement for the RA Duke Trust to purchase 100% of the shares of Briscoes and he has continued to be the Group’s Managing Director. In 1996, he established, and in subsequent years expanded, the Rebel Sport chain of sporting goods stores in New Zealand as a business within the Briscoe Group.

 

Name :                          Geoffrey Peter Scowcroft

Designation :                Director

Appointment date :        07/05/03

Address :                      35A Churchouse Road

Greenhithe, Auckland 0632

New Zealand

Biography :                   Geoff began his career in finance with an accounting role with Associated Wholesalers Ltd. After completing a B.Com degree at Auckland University he then spent 15 years with the major food retailing group Woolworths (NZ) Ltd. His last position there was as Financial Controller where he was responsible for all Finance functions including Company Secretary and Treasury duties.

Geoff joined Briscoes as Chief Financial Officer in October 2002 with responsibility for Finance, IT and Administration.

 

Name :                          Alaister John Wall

Designation :                Director

Appointment date :        12/03/92

Address :                      24 Seaview Road

Remuera, Auckland 1050

New Zealand

Biography :                   Mr. Alaister John Wall is Deputy Managing Director and Executive Director of Briscoe Group Ltd. He joined Briscoes (New Zealand) Limited in 1970. During his 33 years with the Group, he held a variety of accounting and administration positions before being appointed Group Accountant in 1981, then Finance Director and Company Secretary in 1987. Since 1987, he has managed the legal, financial accounting and financing functions of the Group, including the expansion of the network of Briscoes stores, the establishment and development of Rebel Sport into the New Zealand market and the restructure of the Group in preparation for the public Share offer.

Staff employed :           1,800 employees (Briscoe Group)

 

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital :       NZD 500,000

No of shares :               500,000 Shares

Share par value :           NZD 1

Issued capital :              NZD 500,000

Paid up capital :            NZD 500,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

 

Shareholder name :       BRISCOE GROUP LIMITED

Address :                      36 Taylors Road

Morningside, Auckland 1025

New Zealand

No. of shares :              500,000 Shares

% of shares :                100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :              NATIONAL AUSTRALIA BANK LIMITED

Affiliation type : Ultimate Holding Company

Address :          500 Bourke Street

Melbourne, VIC 3000

Australia

Comments :      National Australia Bank Limited, together with its subsidiaries, provides various banking and financial products and services. The company’s deposit products include term deposits, transaction accounts, savings accounts, and investment accounts, as well as specialized accounts, such as farm management accounts and foreign currency accounts. Its loan portfolio comprises home loans; personal loans, including car loans and debt consolidated loans; personal overdrafts; and business loans, business overdrafts, invoice finance, vehicle and equipment finance, international and domestic trade finance, and agribusiness loans and finance. In addition, the company offers insurance products consisting of home, car, landlords, travel, mortgage protection, personal loan cover, credit card cover, life, business insurance, asset protection, revenue protection, ownership protection, income protection, employees protection, and agricover insurance; and margin lending, investment funds, superannuation investments, and pensions. Further, it provides business, payment, charge, credit, and access cards; and online trading, financial advisory, online and mobile banking, payments and merchants, and risk management solutions. Additionally, the company offers international banking, investment banking, wealth management, funds management, and trustee and nominee services. It operates approximately 1,750 stores and service centers. The company has operations primarily in Australia, New Zealand, Asia, the United Kingdom, and the United States. National Australia Bank Limited is based in Melbourne, Australia.

 

Name :              NATIONAL WEALTH MANAGEMENT HOLDINGS LIMITED

Affiliation type : Superior Holding Company

Address :          Ground Floor, MLC Building

105–153 Miller Street

North Sydney, NSW 2060

Australia

Comments :      National Wealth Management Holdings Ltd. primarily engages in the provision of various life insurance products. It also offers funds management products and financial advisory services. The company is based in North Sydney, Australia.

National Wealth Management Holdings Limited operates as a subsidiary of National Australia Bank Limited.

 

Name :              JBWERE (NZ) NOMINEES LIMITED

Affiliation type :            Intermediate Holding Company

Address :          Level 38, Vero Centre

48 Shortland Street

Auckland Central, Auckland 1010

New Zealand

 

Name :             BRISCOE GROUP LIMITED

Affiliation type : Parent Company

Address :          36 Taylors Road

Morningside, Auckland 1025

New Zealand

Comments :      Briscoe Group Limited is a New Zealand-based, non-trading holding company.

The Company provides management services to its subsidiaries. The Company is organized into two segments: homeware and sporting goods. As of January 27, 2013, the Group had 58 Briscoes Homeware and Living & Giving stores and 32 Rebel Sport stores. The Company's wholly owned subsidiaries include Briscoes (New Zealand) Limited, which is engaged in homeware retail; The Sports Authority Limited (trading as Rebel Sport), which is engaged in sporting goods retail; Rebel Sport Limited, which is engaged in name protection, and Living and Giving Limited, which is engaged in name protection.

 

Name :              THE SPORTS AUTHORITY LIMITED

Affiliation type : Sister Company

Address :          36 Taylors Road

Morningside, Auckland 1025

New Zealand

Comments :      Trading as Rebel Sport.

 

Related companies and corporate affiliations comments             : Other companies of the Briscoe Group should be considered affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank :             Bank of New Zealand

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     : Public Record Sources

Financial statement date            : 27/01/13

Type of accounts                      : Full audited

Currency                                   : New Zealand, Dollar (NZD)

Exchange rate                           : 1 USD = NZD 1.21 as of 13-05-2013

 

Summarized Financial Information

 

Consolidation type                    : Group Consolidated Group Consolidated

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

Denomination :                           (x1) One                                   (x1) One

Date of financial year end :        27/01/13                                    29/01/12

Length of accounts :                 12 months                                 12 months

Sale turnover / Income :             452,702,000                              438,037,000

Gross profit :                            181,104,000                              173,104,000

Operating profit :                       40,970,000                                36,666,000

Profit before tax :                      42,672,000                                38,363,000

Net income :                             30,468,000                                27,529,000

Non current assets :                  47,107,000                                47,168,000

Current assets :                         144,724,000                              160,137,000

Inventories :                              64,573,000                                62,057,000

Total assets :                            191,831,000                              207,305,000

Current liabilities :                      62,675,000                                65,521,000

Non current liabilities :               575,000                                     572,000

Total liabilities :                         63,250,000                                66,093,000

Share equity :                            128,581,000                              141,212,000

Retained earning :                     85,977,000                                99,223,000

Comments :                              The group consolidated financial information above relates to the Subject’s Parent Company Briscoe Group Limited and all its subsidiaries which include the

Subject.

 

 

OPERATION DETAILS

 

Main activities :             The Subject engages in the retail sales of home ware, kitchen ware, furniture, electrical products, bathroom ware under the brand name BRISCOES HOMEWARE and LIVING & GIVING.

The Subject is a wholly owned subsidiary of Briscoe Group Limited a New Zealand retail chain with 90 stores throughout New Zealand under the brand name BRISCOES HOMEWARE, LIVING & GIVING and REBEL SPORT.

Briscoe Group Limited is a New Zealand-based, non-trading holding company. The Company provides management services to its subsidiaries. The Company is organized into two segments: homeware and sporting

goods. As of January 27, 2013, the Group had 58 Briscoes Homeware and Living & Giving stores and 32 Rebel Sport stores. The Company's wholly owned subsidiaries include Briscoes (New Zealand) Limited, which is engaged in homeware retail; The Sports Authority Limited (trading as Rebel Sport), which is engaged in sporting goods retail; Rebel Sport Limited, which is engaged in name protection, and Living and Giving Limited, which is engaged in name protection.

 

Product & services        : The product line of the Subject includes home furnishings, bathroom and bedroom products, cushions and floor coverings, indoor and outdoor

furniture, gardening accessories etc.

 

Purchases

 

International :                Mainly from Asia, Europe

 

Sales

Local :                          Yes

International :                No exports.

 

Property & Assets

 

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

consisting of an administrative office.

Branches :                    In addition, the Subject operates from a network of approximately 58 retail

stores under the brand name BRISCOES HOMEWARE and LIVING & GIVING.

 

 

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

 

International :                L/C, Telegraphic transfer, D/P, D/A, Credit 30-120 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.54.91

UK Pound

1

Rs.84.44

Euro

1

Rs.71.31

 

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.