MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

WAREHOUSE STATIONERY LIMITED

 

 

Registered Office :

C/O Bdo New Zealand Limited, Level 8, Bdo Tower, 120 Albert Street, Auckland Central, Auckland, Zip/Postal Code 1010

 

 

Country :

New Zealand

 

 

Financials (as on) :

29.07.2012 (Group Consolidated)

 

 

Date of Incorporation :

29.03.1995

 

 

Com. Reg. No.:

670149

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged in import and retail sales of stationary, office and technology products through its 61 Warehouse Stationery stores

 

 

No. of Employees :

9,032 employees (The Warehouse 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)

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 :              WAREHOUSE STATIONERY LIMITED

Business address :        26 The Warehouse Way

Town :                          Northcote

Province :                     Auckland

Zip/postal code :           0627

Country :                       New Zealand

Tel :                              +64 9 4149500

Fax :                             +64 9 4149502

Website :                      www.warehousestationery.co.nz

 

Registered address :     C/o BDO NEW ZEALAND LIMITED

Level 8, BDO Tower

120 Albert Street

Town :                          Auckland Central

Province :                     Auckland

Zip/postal code :           1010

Country :                       New Zealand

 

 

Postal address :            P.O. Box Box 101-248

North Shore Mail Centre

Town :                          North Shore City

Province :                     Auckland

Zip/postal code :           0745

Country :                       New Zealand

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      29/03/1995

Legal form :                              Private Limited Company

Chief executive :                       Pejman Okhovat

Issued & paid up capital :          NZD 100

Sales turnover :                         NZD 206,639,000 (Non-Consolidated 12 months, 29/07/2012)

Total fixed assets :                    NZD 64,747,000 (Non-Consolidated 12 months, 29/07/2012)

Line of business :                      Import and retail sales of stationary, office and technology products through its

61 Warehouse Stationery stores.

Staff employed :                       9,032 employees (The Warehouse Group)

 

 


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 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 :         29/03/1995

Legal form :                  Private Limited Company

Registration no              670149

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 :              Pejman Okhovat

Designation :    Chief Executive Officer

Name :              Paul Stewart Judd

Designation :    Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Paul Stewart Judd

Designation :                Director

Appointment date :        02/05/11

Address :                      90B Hebron Road

Waiake, Auckland 0630

New Zealand


Name :                          Mark David Powell

Designation :                Director

Appointment date :        16/04/09

Address :                      20 Rakino Avenue

Manly, Whangaparaoa 0930

New Zealand

 

Biography :                   Mr. Mark David Powell is Group Chief Executive Officer of

Warehouse Group Limited. His training and management experience

was in the underground coal mining industry. He changed direction in

1986, joining Iceland plc, a UK food retailer with more than 600

stores. He has since held various management roles in the UK,

Canada and Spain, including responsibility for Wal-Mart Canada’s

logistics operations, supply chain and home shopping management

for Iceland plc and the logistics operations of Tesco. He has been

involved with the Company since 2002 in various capacities, including

appointments such as Interim CEO of the Australian operations,

Group General Manager Supply Chain and Commercial Support and

CEO of Warehouse Stationery. He holds a Bachelor of Applied

Theology from Carey Baptist College, Auckland, New Zealand, in

2007, Bachelor of Science (Hons) in Mining Engineering from the

University of Wales in 1983, Master of Science in Logistics

(Distribution Technology and Management) from Cranfield School of

Management, Cranfield University, the United Kingdom, in 1991,

MBA from Cardiff Business School, Cardiff University, the United

Kingdom, in 2001, and a Mine Managers First Class Certificate of

Competency from Polytechnic of Wales.

 

 

Name :                          Stephen Nicholas Small

Designation :                Director

Appointment date :        07/05/12

Address :                      11 Lowburn Avenue

Waipu, Bream Bay 0510

New Zealand

Biography :                   Mr. Stephen Small has been Chief Financial Officer of Warehouse

Group Ltd since April 23, 2012. He has spent 12 years overseas, the

last 10 of which have been in a variety of senior financial roles with

General Motors in Asia and the United States. He has served as

Chief Financial Officer for General Motors Korea.

 

Staff employed :           9,032 employees (The Warehouse Group)

 

Key Advisors

Auditors :                      PRICEWATERHOUSECOOPERS

PricewaterhouseCoopers Tower, Level 22

188 Quay Street

Auckland Central, Auckland 1010

New Zealand

 

SHARE CAPITAL

 

Composition

Authorized Capital :       NZD 100

No of shares :               100 Shares

Share par value :           NZD 1

Issued capital :              NZD 100

Paid up capital :            NZD 100

 

 

OWNERSHIP / SHAREHOLDERS

 

Composition

How listed :                   Full List

 

Composition

Shareholder name :       BOYE DEVELOPMENTS LIMITED

Address :                      26 The Warehouse Way

Northcote, Auckland 0627

New Zealand

No. of shares :              100 Shares

% of shares :                100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          THE WAREHOUSE GROUP LIMITED

Affiliation type :                        Ultimate Holding Company

Address :                      26 The Warehouse Way

Northcote, Auckland 0627

New Zealand

Comments :                  The Warehouse Group Limited is New Zealand-based retailer providing a range

of products from clothing, entertainment, technology and music to sporting,

gardening and grocery. It has two segments in the New Zealand retail sector. Its

segments include The Warehouse, Warehouse Stationery and Other Group

operations. As of 29 July, 2013, The Warehouse was a general merchandise and

apparel retailer, with 92 stores located throughout New Zealand, and Warehouse

Stationery was a stationery retailer, with 61 stores located throughout New

Zealand. Other Group operations include the Company’s property operations,

which own a number of stores and distribution centers occupied by the other

business segments. This segment also includes its corporate function and a

chocolate factory, which supplies product to The Warehouse.




Name :              THE WAREHOUSE LIMITED

Affiliation type : Intermediate Holding Company

Address :          26 The Warehouse Way

Northcote, Auckland 0627

New Zealand

 

 

Name :              BOYE DEVELOPMENTS LIMITED

Affiliation type : Parent Company

Address :          26 The Warehouse Way

Northcote, Auckland 0627

New Zealand

 

Name :              ELDAMOS INVESTMENTS LIMITED

Affiliation type : Sister Company

Address :          26 The Warehouse Way

Northcote, Auckland 0627

New Zealand

 

Name :              THE WAREHOUSE NOMINEES LIMITED

Affiliation type : Sister Company

Address :          26 The Warehouse Way

Northcote, Auckland 0627

New Zealand

 

Related companies and corporate affiliations comments

Other companies of the Warehouse 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 :          29/07/12

Type of accounts :                    Summarised audited

Currency :                                 New Zealand, Dollar (NZD)

Exchange rate :                         1 USD = NZD 1.24 as of 11-09-2013

 

Summarized Financial Information

Consolidation type :                  Non Consolidated         Non Consolidated         Group Consolidated

Currency :                                 New Zealand, Dollar      New Zealand, Dollar      New Zealand, Dollar

(NZD)                           (NZD)                           (NZD)

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

Date of financial year end :        29/07/12                        29/07/11                        29/07/12

Length of accounts :                 12 months                     12 months                     12 months

Sale turnover / Income :             206,639,000                  201,453,000                  1,732,168,000

Gross profit :                                                                                                    622,056,000

Operating profit :                       9,844,000                      10,103,000                    96,462,000

Profit before tax :                                                                                              114,936,000

Net income :                                                                                                     90,160,000

Non current assets :                                                                                          380,780,000

Current assets :                                                                                                 353,274,000

Inventories :                                                                                                      309,421,000

Total assets :                            64,747,000                    59,379,000                    734,054,000

Current liabilities :                                                                                              248,968,000

Non current liabilities :                                                                                       167,719,000

Total liabilities :                                     23,867,000                    24,688,000                    416,687,000

Share equity :                            40,880,000                    34,691,000                    317,367,000

Retained earning :                                                                                             76,434,000

Comments :                              The non consolidated financial information above relates to the Subject only.

 

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

Ultimate Holding Company The Warehouse Group Limited and all its subsidiaries

which include the Subject.

 

 

OPERATION DETAILS

 

Main activities :                                     The Subject engages in import and retail sales of stationary, office and

technology products through its 61 Warehouse Stationery stores.

 

The Subject also sells its products online via www.warehousestationery.co.nz.

 

The Subject is ultimately owned by The Warehouse Group Limited.

 

The Warehouse Group Limited is New Zealand-based retailer providing a

range of products from clothing, entertainment, technology and music to

sporting, gardening and grocery. It has two segments in the New Zealand

retail sector. Its segments include The Warehouse, Warehouse Stationery

and Other Group operations. As of 29 July, 2013, The Warehouse was a

general merchandise and apparel retailer, with 92 stores located

throughout New Zealand, and Warehouse Stationery was a stationery

retailer, with 61 stores located throughout New Zealand. Other Group

operations include the Company’s property operations, which own a

number of stores and distribution centers occupied by the other business

segments. This segment also includes its corporate function and a

chocolate factory, which supplies product to The Warehouse.

 

Product & services :

 

Stationary products: Pens, erasers, pencils, markers etc.

School Supplies

Paper and Books

Art Supplies

Craft & Party Supplies

Filing & Storage products

Gift Cards

Ink & Toner

Office Supplies

Office Furniture

Office Equipments

Postage & Packaging products

Storage Boxes & Baskets

Technology products: calculators, scanners, printers, computers, tablets,

mobile phones etc.

 

Brand :

WAREHOUSE STATIONERY

 

Purchases

Local :              Yes

International :    Mainly from Asia, Europe, United States

 

Sales

Local :              Yes

International :    No exports.

Key events :      30 July 2013

Warehouse Stationery cranks out the colours for big brand refresh

Warehouse Stationery has embarked on its biggest brand transformation in

22 years, and it's all about the new, with a new logo, new colours, new

instore environments and a new brand campaign from its new agency .99.

Warehouse Stationery opened its first store in Glenfield in October 1991.

When it first started it was branded as ‘The Warehouse Stationery’ and

featured Warehouse red. But the name was changed to Warehouse

Stationery in 1996 and it settled on its trademark blue. Blue is still the

colour of choice, but its 61 stores, the logo (which was designed by .99)

and the new uniforms for its 1,000 staff, is now a more contemporary

shade. Store upgrades and re-design will then flow through the chain over

the next two years. Head of marketing Cathy Atkins says the investment is

commercially sensitive, but says it's a multi-million dollar rebrand.

These changes flow from extensive customer research and consultation

and it is the latest stage in a four year journey that aimed to transform the

business from a traditional stationery and office supplies retailer into a

place to go for, as the slogan now says, ‘everything you need to work,

study, create, connect’, whether it be mobile phones, technology (it is an

authorised Apple reseller), furniture, and arts and crafts.

 

Atkins says it has been adding these products over the years to better

meet its customers' needs, but, with research showing many customers

weren't aware of its increased range and a desire for more revenue growth,

"it was time to pull it all together" and "future proof the brand".

 

Warehouse Stationery has enjoyed 16 consecutive quarters of same store

sales growth and has over $200 million in revenue (financial results for the

Warehouse Group are out in three or four weeks). It's also "achieved

industry leading levels of team engagement" and is moving into the

services business, being New Zealand’s only national print and copy chain

offering the ‘BizRewards’ account programme and providing full online

capability, with a ‘click and collect’ offering soon to come.

 

"In addition to providing the hard goods to our consumers, the research

showed we're seen as a friendly and helpful retailer. They trust us for our

advice." And, as it moves into the tech space, that means it needs to upskill

on product knowledge.

"We always strive to put our customers first and the changes are founded

on what customers have told us they want from us in the future. It provides

a platform for continuing the growth of the business," says Warehouse

Stationery chief executive Pejman Okhovat in a release.

Okhovat says the company’s investment in its team members, including

extensive training and the recently announced career retailer wage, meant

customers could rely upon quality, independent advice.

 

“Our team members are not paid commission to sell a particular product or

a brand and this means that they can focus entirely on what the customer

wants and needs, without the temptation to put personal commission and

incentives first ... All this adds up to an exciting improvement for

customers.”

 

From an advertising point of view, stationery isn't the sexiest of subjects.

But Atkins says the colourful, energetic new ads, which were shot by .99's

in-house film production unit and feature a fair swag of stop-motion, are

much more contemporary and do a good job of showcasing the range of

products on offer in an interesting way.

 

“It was an incredible opportunity to work with Warehouse Stationery on an

entirely new campaign from the logo to the stores to the advertising, and

we’re really proud of the result," says executive creative director Craig

Whitehead. "It’s a fantastic demonstration of what .99 can do for retailers,

and shows the power of our market-leading in-house services. We can’t

wait to see the tills ringing even louder for Warehouse Stationery.“

 

Warehouse Stationery spent over $20 million on advertising last year

according to Nielsen AIS figures (which are based on ratecard spend). The

recent pitch didn't involve media, which is held by Starcom, or

below-the-line, which is held by Federation.

Source: www.stoppress.co.nz

 

Property & Assets

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

consisting of a warehouse and an administrative office.

 

Branches :                    In addition, the Subject operates from 61 retail stores under the name Warehouse

Stationery.

 

 

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, 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.63.79

UK Pound

1

Rs.100.70

Euro

1

Rs.84.67

 

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.