MIRA INFORM REPORT

 

 

Report Date :

22.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ALLIANCE GROUP LIMITED

 

 

Registered Office :

Level 2, 51 Don Street, Invercargill 9810

 

 

Country :

New Zealand

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

02.03.1948

 

 

Com. Reg. No.:

154786

 

 

Legal Form :

NZ Co-Operative Company

 

 

Line of Business :

Engages in producing, processing and export of meat and meat-related products in New Zealand and internationally.

 

 

No. of Employees

2,500

 

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)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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 pulled out of recession late in 2009, and achieved 2-3% per year growth in 2010-13. 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 :                          ALLIANCE GROUP LIMITED

Business address :                    Level 2, 51 Don Street

Town :                                       Invercargill

Zip/postal code :                        9810

Country :                                   New Zealand

Tel :                                          +64 3 2142700

Fax :                                         +64 3 2142708

Email :                                      cor@alliance.co.nz

Website :                                  www.alliance.co.nz

Registered address :                  Level 2, 51 Don Street

Town :                                       Invercargill

Zip/postal code :                        9810

Country :                                   New Zealand

Postal address :                        P.O. Box 845

Town :                                       Invercargill

Zip/postal code :                        9840

Country :                                   New Zealand

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        02/03/1948

Legal form :                               NZ Co-Operative Company

Chief executive :                        Grant R. Cuff

Issued & paid up capital :           NZD 70,555,299

Sales turnover :              NZD 1,383,610,000 (Consolidated 12 months, 30/09/2013)

Net income :                              NZD 5,614,000 (Consolidated 12 months, 30/09/2013)

Total fixed assets :                     NZD 485,036,000 (Consolidated 12 months, 30/09/2013)

Line of business :                       Producing, processing, and export of meat and meat-related products.

Staff employed :                         2,500 employees (Subject)

 

 

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 good

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      02/03/1948

Legal form :                               NZ Co-Operative Company

Registration no                          154786

Registered authority :                 New Zealand Companies Office

Fiscal/ Tax no :                          9429040268064

Registry status :                        Live/Active

Previous name :                         None reported.

Change of legal form :                 None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Grant R. Cuff

Designation :                 Chief Executive Officer

Name :                          John Mcgarth

Designation :                 Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Douglas Alexander Brown

Designation :                 Director

Appointment date :         14/12/01

Address :                      Punchbowl

Waimotu Rd - Maheno

6 O R D, Oamaru

New Zealand

Name :                          Murray Wilson Arthur Donald

Designation :                 Director

Appointment date :         16/12/91

Address :                      Spar Bush, No 4 Rd

Invercargill 9874

New Zealand

Name :                          John Andrew Lindsay

Designation :                 Director

Appointment date :         20/12/02

Address :                      Wakefield Farm

R D, Dipton

New Zealand

Name :                          Graeme Roderick Milne

Designation :                 Director

Appointment date :         01/04/13

Address :                      725 French Pass Road

Rd 4, Cambridge 3496

New Zealand

Name :                          Donald George Morrison

Designation :                 Director

Appointment date :         13/12/13

Address :                      3 Waikaka Road

Rd 5, Gore 9775

New Zealand

Name :                          Hilary Dawn Sangster

Designation :                 Director

Appointment date :         16/12/11

Address :                      834 Ranfurly-patearoa Road

Rd 4, Ranfurly 9398

New Zealand

Name :                          Vanessa Cynthia May Stoddart

Designation :                 Director

Appointment date :         01/04/14

Address :                      28 Aldred Road

Remuera, Auckland 1050

New Zealand

Name :                          Murray James Taggart

Designation :                 Director

Appointment date :         17/12/10

Address :                      2045 Oxford Road

Rd 1, Oxford 7495

New Zealand

Name :                          John Anthony Waller

Designation :                 Director

Appointment date :         01/01/09

Address :                      11 Maungakiekie Avenue

Greenland, Auckland 1051

New Zealand

Staff employed :             2,500 employees (Subject)

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :        NZD 70,555,299

No of shares :                70,555,299 Shares

Share par value :            NZD 1

Issued capital :              NZD 70,555,299

Paid up capital :             NZD 70,555,299


 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Major Shareholders Only

Composition

Shareholder name :        LANDCORP FARMING LIMITED

Address :                      15 Allen Street

Wellington 6011

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        E.G. LUDEMANN LIMITED

Address :                      C/o Harvie Green Wyatt

Level 5,229 Moray Place

Dunedin 9016

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        MOUNT LINTON STATION LIMITED

Address :                      C/o Crowe Horwath (NZ) Ltd

173 Spey Street

Invercargill 9810

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        W PINCKNEY LIMITED

Address :                      C/o Jackson Valentine Limited

3rd Floor, 258 Stuart Street

Dunedin 9016

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        N.E. PARKES & SONS LIMITED

Address :                      266 Hardy Street

Nelson 7010

New Zealand

No. of shares :               145,000 Shares

% of shares : 0.21%

Shareholder name :        LONE STAR FARMS

Address :                      Level 2, 295 Trafalgar Street

Nelson 7010

New Zealand

No. of shares :               145,000 Shares

% of shares : 0.21%

Shareholder name :        GLEN ISLAY LIMITED

Address :                      C/o Harvie Green Wyatt

Level 5,229 Moray Place

Dunedin 9016

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        SUMMIT FARMING NZ LIMITED

Address :                      C/o BDO Christchurch

30 Sir William Pickering Drive

Burnside, Christchurch 8053

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        WILKINS FARMING COMPANY LIMITED

Address :                      15a Hokonui Drive

Gore 9710

New Zealand

No. of shares :               145,000 Shares

% of shares :                 0.21%

Shareholder name :        PETERS FARMS LIMITED

Address :                      3 Fairfield Street

Gore 9710

New Zealand

No. of shares :               145,000 Shares

% of shares : 0.21%

Comments :                  The Subject is a co-operative and wholly owned by its farmers. It has around

5,000 shareholders.

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          NEW ZEALAND HOLDINGS (UK) LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      140-142 St, John St

London, EC1V 4UB

United Kingdom

Name :                          WAITAKI INTERNATIONAL LIMITED

Affiliation type :              Wholly-owned Subsidiary

Address :                      C/o ALLIANCE GROUP LIMITED

Level 2, 51 Don Street

Invercargill 9810

New Zealand

Name :                          PORKCORP NEW ZEALAND LIMITED

Affiliation type :              Associate

Address :                      94 Vagues Road

Northcote, Christchurch 8052

New Zealand

Name :                          THE NZ AND AUSTRALIAN LAMB COMPANY LTD

Affiliation type :              Associate

Address :                      10 Shorncliffe Road

Etobicoke ON M9B 3S3

Canada

Name :                          THE LAMB CO-OPERATIVE INC

Affiliation type :              Associate

Address :                      United States of America

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              The Australia and New Zealand Banking Group Limited (ANZ)

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 :    Commercial Registry Filings

Financial statement date :          30/09/13

Type of accounts :                     Full audited

Currency :                                 New Zealand, Dollar (NZD)

Exchange rate :                         1 USD = NZD 1.16 as of 21-05-2014

Summarized Financial Information

Consolidation type :                                           Consolidated                 Consolidated

Currency :                                                         New Zealand, Dollar       New Zealand, Dollar

(NZD)                            (NZD)

Denomination :                                                  (x1) One                        (x1) One

Date of financial year end :                                  30/09/13                        30/09/12

Length of accounts :                                           12 months                     12 months

Sale turnover / Income :                          1,383,610,000                1,369,954,000

Gross profit :                                                     52,930,000                    -18,927,000

Profit before tax :                                               8,398,000                      -70,551,000

Net income :                                                      5,614,000                      -50,800,000

Non current assets :                                           248,766,000                  247,949,000

Current assets :                                                 236,270,000                  331,758,000

Inventories :                                                       126,640,000                  189,948,000

Total assets :                                                    485,036,000                  579,707,000

Current liabilities :                                              66,973,000                    82,721,000

Non current liabilities :                                        120,740,000                  202,253,000

Total liabilities :                                                  187,713,000                  284,974,000

Share equity :                                                    297,323,000                  294,733,000

Retained earning :                                              187,529,000                  181,915,000

 

 

OPERATION DETAILS

 

Main activities :                          The Subject engages in producing, processing and export of meat and

meat-related products in New Zealand and internationally.

The Subject processes approximately 6 million lambs, 1 million sheeps,

200,000 cattles and 115,000 deers annually.

The Subject is a farmer-owned co-operative and has around 5,000

shareholders, who supply more than 85% of the livestock processed.

 

Product & services :                   Meat: Chilled and frozen lamb, mutton, venison and beef

Meat related products

Wool

Hides

Pelts

Casings

 

Brand :                                      PURE SOUTH

ASHLEY

FOUR SEASONS CERVENA VENISON

SPRING LAMB

FRESH LAMB

 

Purchases

Local :                                      Yes

Sales

Local :                                      Yes

 

International :                             Worldwide: United States of America, China, United Kingdom, Europe,

Middle-East

 

Key events :                              December 20, 2013

Alliance Takeover Talks End With Blue Sky

Alliance Group Limited talks about a potential takeover of Blue Sky Meats

(NZ) Ltd. have ended when Blue Sky withdrew after a failure to agree on

key terms. Blue Sky withdrew from the “respectful and amicable” talks

early December after being approached by Alliance a couple of months

ago, Blue Sky Chairman Graham Cooney said in a statement.

Source: Businessweek

Property & Assets

Premises :                                The Subject operates from the verified heading address consisting of an

administrative office.

Branches :                                In addition, the Subject operates from eight processing plants which are

located throughout the South Island and lower North Island, New Zealand.

Other property :                         Total NBV of property, plant and equipment as of 30-09-2013 was NZD

203,102,000.

 

 

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

 

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

Local :                          Cash, Prepayment, Bank Transfer, D/P, Credit 30-120 days

Sales Term

Local :                          Prepayment, Bank Transfer, D/P, Credit 30-120 days

International :                 Prepayment, L/C, 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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.77

UK Pound

1

Rs.99.01

Euro

1

Rs.80.56

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.