MIRA INFORM REPORT

 

 

Report No. :

354898

Report Date :

16.12.2015

 

IDENTIFICATION DETAILS

 

Name :

GREENSTONE LTD

 

 

Registered Office :

Hollard financial services, 58 Norwest Bvlde Bella Vista Nsw, 2153

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

11.10.1996

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

The subject operates as the holding entity for a group involved in the design, distribution and administration of personal insurance products. The group offers products in the term life, funeral, income protection and pet insurance markets.

 

 

No. of Employee :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Excellent

 

 

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

                                                                                                           

GREENSTONE LTD

ACN 075949432

ABN 83075949432

 

 

Summary Panel

 

Established

1996

 

Incorporated

1996

 

Line of Business

Insurance and financial services

Status

Trading

Managing Director

ENTHOVEN, RICHARD HENRY

Adverse Listings

Nil

 

Rating

AAA+ 3

 

 

 

EXECUTIVE SUMMARY

 

Greenstone Ltd - consolidated

 

 

As at 30 June 2015

As at 30 June 2014

Change (%)

Revenue

$249,636,000.00

$201,557,000.00

23.85%

Profit b/tax

$89,858,000.00

$67,137,000.00

33.84%

Profit a/tax

$58,538,000.00

$45,139,000.00

29.68%

Net Profit Margin

23.45%

22.40%

1.05%

 

During fiscal 2015, the subject recorded a deficiency in consolidated Net Cashflows from operating activities totalling $2,870,000.

 

At 30 June 2015 the subject maintains access to financing facilities with a limit of $176,394,000. These were drawn to $164,499,000 at this time.

 

Consolidated Net Assets totalled $219,252,000 as at 30 June 2015. After deducting intangibles of $35,196,000 this results in a Net Worth of $184,056,000.

 

 

CORPORATE SEARCH

 

Company Type             Australian Proprietary Company

 

Status Registered

 

Incorporation Date 11 Oct 1996

 

Incorporation State NSW

 

Registered Office HOLLARD FINANCIAL SERVICES,

58 NORWEST BVLDE BELLA

VISTA NSW, 2153

 

Current Directors Total: 4

Director Name ROCHE, JOHN FRANCIS

Appointment Date 07 Sep 2015

Date of Birth 19 Jan 1973

Place of Birth LIMERICK IRELAND

Gender MALE

Resident Overseas N

Address 102 WYNDHAM ST, ALEXANDRIA

NSW 2015

Document Number 7E7285258

 

Director Name DONNELLY, GAVIN JOHN

Appointment Date 04 Sep 2015

Date of Birth 16 Aug 1973

Place of Birth DURBAN SOUTH AFRICA

Gender UNKNOWN

Resident Overseas Y

Address -

Document Number 7E7347723

 

Director Name JONES, DERRICK KEITH

Appointment Date 29 Jul 2015

Date of Birth 17 Apr 1959

Place of Birth BENONI SOUTH AFRICA

Gender MALE

Resident Overseas N

Address 12 DONEGAL RD, KILLARNEY

HEIGHTS NSW 2087

Document Number 7E7174106

Director Name ENTHOVEN, RICHARD HENRY

Appointment Date 16 Feb 1999

Date of Birth 25 Sep 1970

Place of Birth DURBAN SOUTH AFRICA

Gender MALE

Resident Overseas N

Address 43 STREATFIELD RD, BELLEVUE

HILL NSW 2023

Document Number 7E3001902

 

Current Secretaries Total: 1

Secretary Name ROCHE, JOHN FRANCIS

Appointment Date 26 Sep 2012

Date of Birth 19 Jan 1973

Place of Birth LIMERICK IRELAND

Address 102 WYNDHAM STREET

ALEXANDRIA NSW, 2015

Document Number 7E4744201

 

Company Shares Total: 634666666 Amount: 268,246,666

Class ORDINARY SHARES [ ORD ]

Number of Shares Issued 634666666

Total Amount Due and Payable $0.00

Paid Capital $268,246,665.54

 

 

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).

 

Please contact us should you require a search of the PPSR.

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 58 NORWEST BVLDE

BELLA VISTA NSW, 2153

                                   

TELEPHONE                             (612) 8886 8300

 

WEBSITE                                  www.greenstone.com.au

 

ULTIMATE

HOLDING ENTITY                      IVM INTERSURER BV – The Netherlands

 

CONTROLLED ENTITIES           GREENSTONE FINANCIAL SERVICES P/L

                                                AUSTRALIAN SENIOR INSURANCE AGENCY PTY LTD

GREENSTONE ENTERPRISE SERVICES P/L

CHOOSI AUSTRALIA P/L

CHOOSI P/L

GUARDIAN INSURANCE P/L

NEW ZEALAND SENIORS INSURANCE AGENCY P/L

 

BANK                                       ST GEORGE BANK

                                                MACQUARIE BANK

                                               

EMPLOYEES                            Not determined

 

 

BACKGROUND

 

The subject was incorporated in New South Wales on 11 October 1996 as ACN 075 949 432 Pty Ltd changing name to AFS P?L changing name to Hollard Australia Group Pty Ltd, changing name to Greenstone Pty Ltd, before adopting the current style on 17 March 2015.

 

In 1999, The Hollard Insurance Company Pty Ltd (Hollard) was established in Australia. A general insurance licence was obtained from APRA in 2000 and the business commenced selling home insurance. Hollard later began to sell car insurance and sold Australia’s first ‘pay as you drive’ motor insurance product (with adjusted rates based on the number of kilometres the policyholder drives).

 

In 2005, Hollard started cross-selling basic term life insurance products to its existing general insurance customer base in Australia. The take-up rates significantly exceeded expectations.

 

To leverage this opportunity, Hollard co-founded (with a minority interest holder who assumed the role of

initial CEO) a separate life insurance distribution business, Greenstone Financial Services (the subject). This new business began selling a range of life insurance products directly to mass market consumers in 2007 through the Real Insurance brand.

 

 

OPERATIONS

 

The subject operates as the holding entity for a group involved in the design, distribution and administration of personal insurance products. The group offers products in the term life, funeral, income protection and pet insurance markets.

These insurance products are distributed through Greenstone's Proprietary Brands (Real Insurance, Australian Seniors Insurance Agency, Guardian Insurance and Prime Pet Insurance) and Affinity Brands (Medibank, Woolworths and RSPCA).

 

 

ADVERSE

                                               

A search of of on 14 December 2015 failed to trace any litigation listed against the subject at that date.

 

 

FINANCES

 

On 25 May 2015 the subject issued a Prospectus to list on the Australian securities Exchange with the intention of raising $994 million. On 10 June 2015 the group’s owners postponed the float indefinitely.

 

for the financial year ended 30 June 2015 the subject recorded consolidated revenue of $249,636,000, which resulted in an operating profit before tax of $89,858,000 and an operating profit after tax of $58,538,000 representing a Net Profit Margin of 23.45%.

 

Below is a summary of the subject’s consolidated income results for the past two financial years.

 

Greenstone Ltd - consolidated

 

 

As at 30 June 2015

As at 30 June 2014

Change (%)

Revenue

$249,636,000.00

$201,557,000.00

23.85%

Profit b/tax

$89,858,000.00

$67,137,000.00

33.84%

Profit a/tax

$58,538,000.00

$45,139,000.00

29.68%

Net Profit Margin

23.45%

22.40%

1.05%

 

During fiscal 2015, the subject recorded a deficiency in consolidated Net Cashflows from operating activities totalling $2,870,000.

 

Please note, a breakdown of the subject’s current assets and liabilities was unable to be obtained for the current enquiry.

 

As at 30 June 2015 the subject recorded total consolidated Total assets of $576,143,000. They included cash of $3,448,000, agency revenue receivables of $530,845,000 and trade receivables of $5,786,000.

 

Total  liabilities at the same date totalled $356,891,000 and included payables of $19,916,000, borrowings of $164,499,000 and deferred tax of $1339,140,000.

 

At 30 June 2015 the subject maintains access to financing facilities with a limit of $176,394,000. These were drawn to $164,499,000 at this time.

 

Consolidated Net Assets totalled $219,252,000 as at 30 June 2015. After deducting intangibles of $35,196,000 this results in a Net Worth of $184,056,000.

 

 

TRADE SURVEY

 

During the current investigation, contact with the subject’s principals was unable to be established.

 

Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.67.04

UK Pound

1

Rs.101.67

Euro

1

Rs.73.93

AUD

1

Rs.48.09

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TRU

 


 

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.