MIRA INFORM REPORT

 

 

Report No. :

351860

Report Date :

03.12.2015

 

IDENTIFICATION DETAILS

 

Name :

SPOTLIGHT PTY LTD

 

 

Formerly Known As :

SPOTLIGHT STORES PTY  LTD.

 

 

Registered Office :

5, 111 Cecil St, South Melbourne, VIC 3205

 

 

Country :

Australia

 

 

Date of Incorporation :

23.04.1976

 

 

Legal Form :

Private Company

 

 

Line of Business :

·         The subject operates as Australia’s largest fabric, craft and decorating superstores.

·         Products include sewing machines, haberdashery, trims, fabrics, beading, painting supplies, crochet and knitting, needlework, adhesives, floristry, cookware, bakeware, storage solutions, blinds, curtains and party supplies.

 

 

No. of Employees :

6,500

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

 

Following two decades of continuous growth, low unemployment, contained inflation, very low public debt, and a strong and stable financial system, Australia enters 2015 facing a range of growth constraints, principally driven by a sharp fall in global prices of key export commodities. Although demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports, sharp drops in current prices have already impacted growth.

 

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, although this trend could reverse or slow due to falling 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 entered into free trade agreements (FTAs) with the Republic of Korea and Japan, and concluded an FTA with China, in 2014, adding to existing FTAs with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, and a regional FTA with ASEAN and New Zealand. Australia continues to negotiate bilateral agreements with India and Indonesia, as well as larger agreements with its Pacific neighbors and the Gulf Cooperation Council countries, and an Asia-wide Regional Comprehensive Economic Partnership that includes the ten ASEAN countries and China, Japan, Korea, New Zealand and India. Australia is also working on the Trans-Pacific Partnership Agreement with Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

 

Source : CIA

 

 

Company Name

 

REGISTERED NAME                 SPOTLIGHT PTY LTD

ACN: 005 180 861

      ABN: 39 564 861 886

 

 

Summary Panel

 

Established

1976

 

Incorporated

1976

 

Line of Business

Chain of fabric and craft stores

Status

Trading

Chief Executive Officer

Morry Fraid

 

 

EXECUTIVE SUMMARY

 

Investigations have revealed that during 2014 and 2015 the subject opened 10 new stores. As a result the subject was expecting to generate revenue of just under $1 billion for the last financial year ending 30 June 2015.

 

For the year ended 30 June 2014 the subject traded profitably and recorded revenue of close to $900,000,000.

 

Enquiries in trade quarters revealed satisfaction from suppliers contacted.

 

 

CORPORATE SEARCH

 

INCORPORATED                                                                                                   23 April 1976

 

REGISTERED ADDRESS          5, 111 Cecil St

                                                SOUTH MELBOURNE, VIC 3205

 

SHARECAPITAL                        $2                    

 

SHAREHOLDERS                     Spotlight Management Services             Holds 2 shares

           

DIRECTORS                             PALMER, Nicholas Howard Vaughan
81 Stanhope St
MALVERN, VIC 3144
 
FRIED, Isaac Jacob
                                                6, 111 Cecil St
                                                SOUTH MELBOURNE, VC 3205
 

                                                FRAID, Morry

                                                13 Meadow St

                                                ST KILDA EAST, VIC 3183

                       
SECRETARY                            BERRY, Dean Andrew

                                                FRAID, Morry

                                                BERGMAN, Ari Braham

SECURITY INTERESTS           Effective 30 January 2012 the Personal Property Securities Register (PPSR)  was introduced to give the different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system.

As a result of PPS Reform a number of existing Commonwealth, State and Territory personal property security registers will close. Interests registered on existing security interest registers will be migrated to the national PPS Register. Subsequently Registered Charges are no longer lodged with the Australian Securities and Investments Commission (ASIC).

 

 

BUSINESS STRUCTURE

 

HEAD OFFICE                          6, 111 Cecil St

                                                SOUTH MELBOURNE, VIC 3205

 

TELEPHONE                             (613) 9675 4000

 

WEBSITE                                  www.spotlight.com.au

 

EMAIL                                      deanb@spotlight.com.au 

 

HOLDING ENTITY                      SPOTLIGHT GROUP HOLDINGS PTY LTD

                                                ANACONDA GROUP PTY LTD

 

BRANCHES                              The subject maintains 125 branches across Australia.

 

BANK                                       NATIONAL AUSTRALIA BANK

                                               

EMPLOYEES                           

 

 

BACKGROUND

 

The subject was incorporated in Victoria on 23 April 1976 as Seventh Feinrab P/L, adopting the current style on 29 June 1976.

 

Operations were founded by Directors Morry Fraid and Ruben Fried in 1976.

 

HILTON, Donald William, Director was born on 13 November 1959 and was appointed to the subjects board on 30 August 2002.

                                                           

FRAID, Morry Director was born on 23 September 1951 and was appointed to the subject’s board on 6 July 1977. He co-founded the subject in 1978, which today operates stores in Australia, New Zealand and Singapore and employs more than 3,000 staff. He is active in the daily operations as joint Managing Director.

 

 

OPERATIONS

 

The subject operates as Australia’s largest fabric, craft and decorating superstores.

 

Products include sewing machines, haberdashery, trims, fabrics, beading, painting supplies, crochet and knitting, needlework, adhesives, floristry, cookware, bakeware, storage solutions, blinds, curtains and party supplies.

 

Activities are conducted from premises located at the above listed trading address.

 

 

ADVERSE

                                               

A search of of on 27 November 2015 failed to trace any litigation listed against the subject at that date.

 

 

FINANCES

 

The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.

 

During the current investigation contact with Company Secretary Dean Berry was unable to be established. Despite messages being left, no reply has been received.

 

Investigations have revealed that during 2014 and 2015 the subject opened 10 new stores. As a result the subject was expecting to generate revenue of just under $1 billion for the last financial year ending 30 June 2015.

 

For the year ended 30 June 2014 the subject traded profitably and recorded revenue of close to $900,000,000.

 

For the financial year ended 30 June 2013 the subject traded profitably and recorded revenue of $850,000,000.

 

For the year ended 30 June 2012 the subject traded profitably and recorded revenue of close to $900 million.

 

For the financial year ended 30 June 2006, the subject traded profitably and recorded revenue of $700,000,000. This compares to revenue of $680 million for the year ended 30 June 2005.

 

Current assets in June 2015 include stock on hand of $250,000,000.

 

The subject maintains access to financing facilities with its bankers which are used to assist in funding working capital requirements.

 

The subject is noted to operate in its capacity on behalf of the Spotlight Stores Trading Trust. Unsecured creditors are placed at maximum risk when dealing with a trustee company.

 

Enquiries in trade quarters revealed satisfaction from suppliers contacted.

 

 

TRADE SURVEY

 

A trade survey on the subject traced the following accounts:

 

1.             (Caprice Australia) Purchases average $6,000,000 per month on 30 day terms. Payment is met within terms and the account is considered satisfactory, having been known over 40 years.

 

2.             (Gummerson Fabrics) Nominated supplier failed to respond to correspondence despite chasing.

 

3.             (EC Birch) Nominate supplier declined to provide a reference owing to company policy.

 

Trade payment from further sources in the past 4 months have traced the following data for the subject. 

 

Total Owing: $922

Total Past Due: $0

Average Late Payment Days: 0

All Industries Late Payment Days: 7

 

-      Within terms: $922

-      1 – 30 days past due: $0

-      31 – 60 days past due: $0

-      61 – 90 days past due: $0

-      91+ days: $0

 

 

SUMMARY

 

The subject was incorporated in Victoria on 23 April 1976 as Seventh Feinrab P/L, adopting the current style on 29 June 1976.

Operations were founded by Directors Morry Fraid and Ruben Fried in 1976.

 

Current financial details pertaining to the subject were unable to be obtained for the current enquiry.

 

Further investigations have revealed that the subject generates revenue of more than $800 million per annum.

 

The subject is noted to operate in its capacity on behalf of the Spotlight Stores Trading Trust. Unsecured creditors are placed at maximum risk when dealing with a trustee company.

 

                                               


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.62

UK Pound

1

Rs.100.34

Euro

1

Rs.70.67

AUD

1

Rs.48.89

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

NIT

 

               


 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.