MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

COUNTRY ROAD CLOTHING PTY. LTD.

 

 

Formerly Known As :

THE COUNTRY ROAD CLOTHING COMPANY SHOPS PTY. LTD.

 

 

Registered Office :

658 Church Street Richmond Victoria 3121

 

 

Country :

Australia

 

 

Financials (as on) :

29.06.2013

 

 

Date of Incorporation :

14.03.1978

 

 

Com. Reg. No.:

005419447

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Design and retail of apparel, home-wares and related accessories

 

 

No. of Employees

3,370

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

 

 


Company name and address

 

Subject name :                          COUNTRY ROAD CLOTHING PTY. LTD.

Other style / Business name :     COUNTRY ROAD / TRENERY

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 711,346,000 (Group-Consolidated, 12 months 29/06/2013)

Net income :                             AUD 41,149,000 (Group-Consolidated, 12 months 29/06/2013)

Total fixed assets :                    AUD 435,701,000 (Group-Consolidated, 12 months 29/06/2013)

Line of business :                      Design and retail of apparel, home-wares and related accessories.

Staff employed :                       3,370 employees (Country Road Group); 26,908 employees (Woolworths Group)

 

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is progressing

Management experience :          Management is adequately experienced

Financial performance :                         Group Financial performance is very good

Organization structure :              Organizational structure is consistent

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 Proprietary Company

Registration no Australian Company Number:     005419447

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.

Other registration :                                             The Subject owns the following business names:

TRENERY

COUNTRY ROAD

SECOND BEST

DYNAMITE APPAREL

DYNAMITE DENIM

DYNAMITE

COUNTRY ROAD WEEKENDER

DYNAMITE

DYNAMITE CLOTHING

THE CHAPEL STREET CAFE

CAFE COUNTRY ROAD

COUNTRY ROAD EYEWEAR

CR EYEWEAR

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name : Iain Nairn

Designation : Chief Executive Officer

 

Name : Sophie Holt

Designation : Creative Director

 

Name : Oliver Kysela

Designation : Chief Financial Officer

 


 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

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 :                      47 South Wharf Drive

Docklands, VIC 3008

Australia

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

 

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 :           3,370 employees (Country Road Group); 26,908 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 operates a chain of retail stores. The companys

stores offer a selected range of clothing, including womens, mens, and childrens

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. It operates approximately 330 corporate stores and 17

franchise stores in South Africa, 49 stores operated on Engen forecourts, and 65

stores in Africa and the Middle East under the Woolworths brand; 163 retail stores

and concession retail outlets in Australia and New Zealand under the Country

Road and Trenery brands; and 291 retail stores and concession retail outlets in

Australia and New Zealand under the Witchery and Mimco brands. 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 founded in 2005 and is

based in Bella Vista, 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 designs and retails apparel, home ware, and related

accessories in Australia, New Zealand, and South Africa. It offers clothing

products, such as dresses, jackets and coats, jeans, knitwear, pants, skirts,

shorts, shirts, suits, sweats, swimwear, and T-shirts and tops; accessories,

including belts, handbags, cosmetic bags, hats and gloves, hosiery, scarves and

sarongs, tote bags, wallets and leather goods, socks, and ties; footwear; and

sleepwear for women, men, and children. The company also provides bed and

bath products, which include bed covers and blankets, bed linen, and towels and

mats; home accessories comprising baskets, candles and holders, cushions,

frames, throws and blankets, and vases and decorators; tableware consisting of

cutlery, dining, glasses, serving, tea towels and accessories, and table linen and

accessories; and beach towels. It operates retail stores under the Country Road,

Witchery, Mimco, and Trenery names, as well as operates online stores. The

company was founded in 1974 and is headquartered in Richmond, Australia.

Country Road Limited is a subsidiary of Woolworths International (Australia) Pty

Limited.

 

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

Affiliation type :            Wholly-owned Subsidiary

Address :          164 Queen Street

Auckland Central, Auckland 1010

New Zealand

 

Name :              COUNTRY ROAD PROPERTIES PTY. LTD.

Affiliation type : Wholly-owned Subsidiary

Address :          658 Church Street

Richmond, VIC 3121

Australia

 

Name :              COUNTRY ROAD INTERNATIONAL PTY. LTD.

Affiliation type : Wholly-owned Subsidiary

Address :          658 Church Street

Richmond, VIC 3121

Australia

Name :              COUNTRY ROAD INTERNATIONAL PTY. LTD.

Affiliation type : Wholly-owned Subsidiary

Address :          658 Church Street

Richmond, VIC 3121

Australia

 

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 :          29/06/13

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.07


 

Summarized Financial Information

 

Consolidation type :     Group Consolidated     Group Consolidated     Group Consolidated

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

 (AUD)     

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

Date of financial year end :       29/06/13 3         0/06/12             30/06/13

Length of accounts :                 12 months         12 months        12 months

Sale turnover / Income :             711,346,000      422,291,000      35,399,000,000

Gross profit :                            444,983,000      246,448,000      13,553,000,000

Profit before tax :                      55,864,000       20,495,000        3,647,000,000

Net income :                             41,149,000        16,103,000        2,638,000,000

Non current assets :                  235,083,000      70,994,000        6,778,000,000

Current assets :                         200,618,000      75,288,000        5,347,000,000

Inventories :                              77,747,000        45,396,000        2,901,000,000

Total assets :                            435,701,000      146,282,000      12,188,000,000

Current liabilities :                      116,554,000     45,641,000        4,376,000,000

Non current liabilities :               82,438,000       6,012,000          1,908,000,000

Total liabilities :                                     198,992,000      51,653,000        6,284,000,000

Share equity :                            236,709,000     94,629,000       5,904,000,000

Retained earning :                     65,812,000        24,663,000

 

Comments :      The group consolidated financial information in AUD above relates to the Subject's

Parent Company Country Road Limited and all its subsidiaries which includes the

Subject.

The group consolidated financial information in ZAR above relates to the Subject's

Ultimate Holding Company Woolworths Holdings Limited and all its subsidiaries

which includes the Subject.

 

 

OPERATION DETAILS

 

Main activities :             The Subject engages in design and retail 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 via online and

offers additional services such as gift cards, gift wraps, gift registry,

tailoring and delivery services.

The Subject is a wholly owned subsidiary of Country Road Limited which is

an Australia-based company engaged in the apparel and accessories retail

industry.

The Subject's ultimate holding company is Woolworths Holdings Limited.

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.

Product & services : Fashion apparels

Fashion accessories

Homewares

 

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 the verified heading address consisting of an

administrative office and warehouse.

Branches : In addition, the Subject operates from 136 Country Road retail stores and

13 Trenery retail stores.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :    US$ 46.714 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 : 2010: 2.8%

2011: 3.4%

2012: 2.7%

Unemployment rate :                             2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP)

: 2010: 20.4%

2011: 22.9%

2012: 24%

Government bond ratings :        Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

Shares                                      : US$1.198 trillion

 

Trade & Competitiveness Overview

Total exports :               US$263.9 billion

Exports commodities : Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport

equipment

Total imports :               US$239.7 billion

Imports commodities :   Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners : China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners : China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

 

FDI Inflows :                 2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

 

FDI Outflows :               2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

 

Best countries for doing business :        10 out of 185 countries

Global competitiveness ranking :            20 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

Total population :          22.68 million

Total area :                    7,692,024 km2

Capital :                        Canberra

Currency :                     Australian dollars (AUD)

Internet users as % of total

Population                    : 79%

 

 

PAYMENT HISTORY

 

Purchase Term

International : L/C, D/P, Telegraphic Transfer, Credit Up To 120 Days

 

Sales Term

Local : Cash, Credit Card

International : Telegraphic Transfer, 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.59.34

UK Pound

1

Rs.99.18

Euro

1

Rs.80.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.