MIRA INFORM REPORT

 

 

Report Date :

10.03.2014

 

IDENTIFICATION DETAILS

 

Name :

JUST JEANS GROUP PTY LIMITED

 

 

Formerly Known As :

JUST JEANS GROUP LIMITED

 

 

Registered Office :

Just Jeans Building, 658 Church Street, Richmond, Victoria, Zip code 3121

 

 

Country :

Australia

 

 

Financials (as on) :

27.07.2013

 

 

Date of Incorporation :

10.08.1972

 

 

Com. Reg. No.:

004947460

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

·         Subject operates as a fashion apparel retailer under the brand JUST JEANS.

·         Subject operates as a wholly owned subsidiary of Premier Investments Limited.

 

Subject product ranges includes :-

·         Fashion apparels:

·         Jeans

·         Jackets

·         Shirt

·         Polos

·         T-shirt

·         Dresses

·         Pants

·         Belts

·         Hats

·         Wallets

·         Sunglasses

 

 

No. of Employees :

6,500 employees (Just 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 :

Good

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 :              JUST JEANS GROUP PTY LIMITED

 

Business address :        Just Jeans Building

658 Church Street

Town :                          Richmond

Province :                     Victoria

Zip/postal code :           3121

Country :                       Australia

Tel :                              +61 3 94200200

Fax :                             +61 3 94260200

Email :                          justgroup@jjh.com.au

Website :                      www.justjeans.com.au

 

 

Registered address :     Just Jeans Building

658 Church Street

Town :                          Richmond

Province :                     Victoria

Zip/postal code :           3121

Country :                       Australia

 

 

Postal address :            P.O. Box 2196

Town :                          Richmond South

Province :                     Victoria

Zip/postal code :           3121

Country :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      10/08/1972

Legal form :                              Australian Proprietary Company

Chief executive :                       Mark McInnes

Issued & paid up capital :          AUD 12,108,447

Sales turnover :                         AUD 1,018,244,000 (Group-Consolidated 12 months, 27/07/2013)

Net income :                             AUD 174,473,000 (Group-Consolidated 12 months, 27/07/2013)

Total fixed assets :                    AUD 1,562,014,000 (Group-Consolidated 12 months, 27/07/2013)

Line of business :                      Fashion and apparel retailer.

Staff employed :                       6,500 employees (Just Group)

           

 


CREDIT RISK OPINION

 

Credit Risk Interpretation

Credit risk theory :                     Sound financial and operational base for the group. Small to medium credits may

be considered with confidence that the commitment will be sustained in almost all

cases. This is based on criterions such as years of establishment, number of

employees, sales turnover, profit after tax, total assets, reserve, and others.

Normal credit control policy applies.

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is steady

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 be provided if guaranteed by ultimate holding company Premier

Investments Limited.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                     10/08/1972

Legal form :                              Australian Proprietary Company

Registration no                          Australian Company Number: 004947460

Registered authority :                Australian Securities and Investments Commission

Fiscal/ Tax no :                         Australian Business Number: 49004947460

Registry status :                        Live/Active

Previous name :                        JUST JEANS GROUP LIMITED

JUST JEANS HOLDINGS LIMITED

JUST JEANS AUSTRALIA LIMITED

JUST JEANS AUSTRALIA PTY. LTD.

C.K. INVESTMENTS PTY. LTD.

JUZ TRADING PTY. LTD.

JUST JEANS (MELBOURNE) PTY. LTD.

JEAN CITY PROPRIETARY LIMITED (initial)

Change of legal form :               None reported.

 

 


MANAGEMENT / DIRECTORS

 

Key Management

Name :              Mark McInnes

Designation :                Chief Executive Officer

Name :                          Ashley John Gardner

Designation :                Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Ashley John Gardner

Designation :                Director and Company Secretary

Appointment date :        26/04/07

Address :                      10 Clemac Close

Langwarrin South, VIC 3911

Australia

Biography :                   Born on 14/05/1971 in Frankston, Victoria, Australia.

Ashley Gardner was appointed Chief Financial Officer in January

2007 and is responsible for the Groups Finance and IT departments

and joined the Just Group Board of Directors in April 2011 as an

Executive Director.

 

Ashley has impeccable finance, retail and fashion credentials

including previous positions of CFO and Executive Director at

Country Road.

 

Ashley holds a Bachelor of Commerce (Hons) from the University of

Melbourne and is also a qualified Chartered Accountant.

 

Name :                          David Alan Bull

Designation :                Director

Appointment date :        22/07/09

Address :                      95 Finch Street

Malvern East, VIC 3145

Australia

Biography :                   Born on 28/08/1962 in Melbourne, Victoria, Australia.

David became Director of Fast Fashion in July 2009 and is

responsible for two of our fast fashion brands being Dotti and

Portmans.

 

David held the position of Merchandising Director - Casualwear since

December 2006 to July 2009 responsible for the Just Jeans, Jay Jays

and Dotti Casualwear Brands. Previously David was the General

 


Manager Merchandising Casualwear since September 2005 having

been General Manager Merchandising for Just Jeans since July 2002.

 

Name :                          Mark McInnes

Designation :                Director

Appointment date :        04/04/11

Address :                      19 Hamilton Road

Malvern, VIC 3144

Australia

Biography :                   Born on 06/05/1965 in Melbourne, Victoria, Australia.

Mark McInnes was appointed Chief Executive Officer of Premier

Investments Ltd. and Chief Executive Officer of Just Group, on April

4, 2011.

 

Mark is an experienced retailer with over 25 years of success in retail,

including his most recent position as Chief Executive Officer of David

Jones Ltd. In his time as CEO of David Jones, Mark turned the

company into a fashion and financial success and generated in

excess of $2 billion dollars of Shareholder value. When he became

CEO of David Jones, the share price was $1.03 and when he left it

was $4.44. In addition, the dividend per share had grown from 6c a

share to 28c a share.

 

Mark holds a Master of Business Administration from Melbourne University.

 

Name :                          Colette Mary Garnsey

Designation :                Director

Appointment date :        17/10/12

Address :                      34 Beresford Road

Bellevue Hill, NSW 2023

Australia

 

Biography :                   Born on 07/02/1960 in Sydney, New South Wales, Australia.

Ms Garnsey was recently appointed Core Brands Director at Premier

Investments, previously Group General Manager at Pacific Brands.

She has had over 30 years’ experience in retail and was formerly in

senior management at David Jones Limited for over 20 years, most

recently holding the position of Group General Manager. She is a

board member of Australian Wool Innovation Limited (since 2011),

the L’Oréal Melbourne Fashion Festival (since 2006), a Committee

member of the TCF Innovation Council (since 2010) and a judge of

the Veuve Clicquot Business Woman of the Year.

 

Ms Garnsey has also had five years manufacturing, wholesale and

distribution experience and spent three years in consultancy across

design, retail and manufacturing for various companies within the

textile, clothing and retail industries in addition to spending three

years as an Advisory Board member of the CSIRO TCF&L Sector

Advisory Committee.


Staff employed :                       6,500 employees (Just Group)

 

Key Advisors

Auditors :                                  ERNST & YOUNG

8 Exhibition Street

Melbourne, VIC 3000

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :       AUD 12,108,447

No of shares :               63,633,334 Ordinary Shares

Share par value :           No par value

Issued capital :              AUD 12,108,447

Paid up capital :            AUD 12,108,447

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

Shareholder name :       JUST GROUP LIMITED

Address :                      Just Jeans Building

658 Church Street

Richmond, VIC 3121

Australia

No. of shares :              63,633,334 Ordinary Shares

% of shares :                100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          PREMIER INVESTMENTS LIMITED

Affiliation type :                        Ultimate Holding Company

Address :                      Level 53, 101 Collins Street

Melbourne, VIC 3000

Australia


Comments :                  Premier Investments Limited is an Australian public company limited by shares. It

has been listed on the Australian Securities Exchange (ASX) since 15 December

1987. Premier was established as an investment company to maximise growth in

capital returns to shareholders through the acquisition of controlling or strategic

shareholdings in premier Australian companies with a particular concentration on

the areas of retailing, importing and distributing.

 

For many years, Premier’s principal investment was a significant shareholding in

Coles Myer Limited (subsequently renamed Coles Group). Premier disposed of

this investment to an entity associated with Wesfarmers Limited in April 2007.

In August 2008 Premier was successful in obtaining control of the Just Group.

 

Premier now owns the brands Just Jeans, Jay Jays, Portmans, Jacqui E, Peter

Alexander, Dotti and Smiggle.

 

 

Name :                          JUST GROUP LIMITED

Affiliation type :                        Parent Company

Address :                      Just Jeans Building

658 Church Street

Richmond, VIC 3121

Australia

 

Name :                          JUST GROUP INTERNATIONAL PTY LTD

Affiliation type :                        Wholly-owned Subsidiary

Address :                      Just Jeans Building

658 Church Street

Richmond, VIC 3121

Australia

 

Name :                          JUST JEANS PTY. LTD.

Affiliation type :                        Wholly-owned Subsidiary

Address :                      Just Jeans Building

658 Church Street

Richmond, VIC 3121

Australia

 

 

Name :                          SMIGGLE PTY LTD

Affiliation type :                        Wholly-owned Subsidiary

Address :                      Just Jeans Building

658 Church Street

Richmond, VIC 3121

Australia

 

 

Related companies and corporate affiliations comments

Other companies of the Just Group and Premier Investments Group should be considered affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :                         Commonwealth Bank of Australia

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 :          27/07/13

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.10 as of 09-03-2014

 

Summarized Financial Information

Consolidation type :                  Group Consolidated                              Group Consolidated

Currency :                                 Australia Dollar (AUD)                            Australia Dollar (AUD)

Denomination :                          (x1) One                                                (x1) One

Date of financial year end :        27/07/13                                                28/07/12

Length of accounts :                 12 months                                             12 months

Sale turnover / Income :             1,018,244,000                                        870,986,000

Profit before tax :                      245,956,000                                          92,767,000

Net income :                             174,473,000                                          68,248,000

Non current assets :                  1,139,739,000                                        1,102,826,000

Current assets :                         422,275,000                                          396,730,000

Inventories :                              83,959,000                                            71,092,000

Total assets :                            1,562,014,000                                        1,499,556,000

Current liabilities :                      89,588,000                                            73,448,000

Non current liabilities :               172,060,000                                          176,302,000

Total liabilities :                                     261,648,000                                          249,750,000

Share equity :                            1,300,366,000                                        1,249,806,000

Reserve :                                  16,789,000                                            83,256,000

Retained earning :                     674,962,000                                          557,935,000

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

Ultimate Holding Company Premier Investments Limited and all its subsidiaries

which include the Subject.

 

 

OPERATION DETAILS

 

Main activities :             The Subject operates as a fashion apparel retailer under the brand JUST

JEANS.

 

The Subject operates as a wholly owned subsidiary of Premier Investments

Limited.

 

Premier Investments Limited (Premier) operates a number of speciality

retail fashion chains within the speciality retail fashion markets in Australia,

New Zealand and via a joint venture entity in South Africa. The Company

operates in two segments: investments and retail. The investments

segment is managed and operated through the Company. The retail

segment operates through subsidiaries established in their respective

markets. The Company’s brands include JUST JEANS, JAY JAYS,

JACQUI E, PETER ALEXANDER, DOTTI and SMIGGLE.

 

Product & services :

·         Fashion apparels:

·         Jeans

·         Jackets

·         Shirt

·         Polos

·         T-shirt

·         Dresses

·         Pants

·         Belts

·         Hats

·         Wallets

·         Sunglasses

 

Brand :

·         JUST JEANS

·         LEVI'S® JEANS

·         CALVIN KLEIN JEANS

·         RIDERS BY LEE JEANS

·         MAVI JEANS

 

Purchases

International :                Mainly from India, China, Italy, Turkey




Sales

Local :                          Yes

International :                New Zealand, South Africa

 

Property & Assets

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

consisting of an administrative office and warehouse.

 

Branches :                    In addition, the Subject operates from over 250 retail outlets located across

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$ 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

 

Largest companies in the country :         Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos &  aming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

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, Telegraphic transfer, D/P, Credit 30-120 days

 

 

Sales Term

Local :                          Cash, Credit card, Bank transfer, Credit 30-120 days

International :                Telegraphic transfer, D/P, Credit 30-120 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


NT HISTORY

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.99

UK Pound

1

Rs.102.07

Euro

1

Rs.84.53

 

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.