MIRA INFORM REPORT

 

 

Report No. :

321938

Report Date :

16.05.2015

 

IDENTIFICATION DETAILS

 

Name :

TARGET AUSTRALIA PTY. LIMITED

 

 

Registered Office :

11th House 40/0 The Esplanade Perth, Western Australia 6000

 

 

Country :

Australia

 

 

Date of Incorporation :

1925

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Chain of discount department stores

 

 

No. of Employee :

24,622

 

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 :

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.

 

 

 

SRI LANKA - ECONOMIC OVERVIEW

 

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.

Source : CIA

 

 

Company name

 

REGISTERED NAME                TARGET AUSTRALIA PTY. LIMITED

ACN: 004 250 944

ABN: 75 004 250 944

 

 

Summary Panel

 

Established

1925

 

Incorporated

1947

 

Line of Business

chain of discount department stores

Status

Trading

 

 

CONTENTS

 

Company Search

 

Adverse

 

Business Structure

 

Finances

 

Background

 

Trade Survey

 

Operations

 

Corporate Rating

 

 

 

EXECUTIVE SUMMARY

 

Wesfarmers Limited - consolidated

 

As at 30 June 2014

As at 30 June 2013

Change (%)

Revenue

$60,181,000,000.00

$57,749,000,000.00

4.21%

Profit b/tax

$2,544,000,000.00

$3,036,000,000.00

-16.21%

Profit a/tax

$1,605,000,000.00

$2,128,000,000.00

-24.58%

Net Profit Margin

2.67%

3.68%

-1.02%

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Ultimate Holding entity Wesfarmers Limited.

 

For the year ended 30 June 2014, the members of the closed group which form part of the Deed of Cross Guarantee recorded an operating profit before tax of $3,629,000,000 and after tax and discontinued operations of $4,135,000,000.

 

During fiscal 2014 the group recorded Net Cashflows from operating activities totaling $3,226 million.

 

At 30 June 2014, the members of the closed group which form part of the Deed of Cross Guarantee recorded a deficiency in Working Capital of $186 million and a current ratio of 0.98 to 1.

 

At the same date, the members of the closed group which form part of the Deed of Cross Guarantee recorded Net Assets of $26,677 million. After deducting Intangibles of $18,906 million this results in a Net Worth of $7,771 million.

 

 

CORPORATE SEARCH

 

Company Type             Australian Proprietary Company

 

Incorporation Date:                    12 Mar 1947

 

Incorporation State:                   Victoria

 

Registered Office                      11TH HOUSE 40/0

                                                THE ESPLANADE PERTH, Western Australia 6000

 

Number of Shares Issued:         105,000,100

 

Paid Capital:                             $210000100

 

Shareholders                             COLES GROUP LIMITED

                                                Number of Shares: 105000100

 

Directors                                   MYERS, ANDREW ROBERT

4506, 1 QUEENSBRIDGE SQ

SOUTHBANK VIC 3006

 

RALPH, GLENDA

28 Glenbrook Abe

MALVERN, VIC 3145

 

WADE, Philip Richard

                                                2 Caroline Apartments

                                                3 Male St

                                                BRIGHTON, VIC 3186

                                   

                                                JONES, Richard

104, 155 BEACH ST

PORT MELBOURNE, VIC 3207

 

JENKINS, Graeme McKinlay

20 Graham St

ALBERT PARK, VIC 3206

 

NORMAN, Archibald John

Resident overseas

 

MACHIN, Stuart Barry

49 Mary St

            ST KILDA WEST, VIC 3182

 

BOWEN, Terence James

11th House

            40 The esplanade

            PERTH, WA 6000

 

GOYDER, Richard James

            11th House

            40 The esplanade

            PERTH, WA 6000

           

Secretary                                  KRONJA, Marnie

 

 

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

 

HEAD OFFICE              12 to 14 Thompson Rd

                                    GEELONG NORTH, VIC 3215                

 

TELEPHONE                 (613) 5246 2000

 

FACSIMILE                   (613) 5246 2257

 

WEBSITE                      www.target.com.au

 

TRADING STYLES        TARGET

                                    TARGET COUNTRY

                                    BABY TARGET

 

BRANCHES                  The subject maintains 308 stores across Australia at 30 June 2014                      

 

HOLDING ENTITY          COLES GROUP LIMITED

 

ULTIMATE HOLDING

 

ENTITY                         WESFARMERS LTD

 

BANK                           NATIONAL AUSTRALIA BANK                           

 

EMPLOYEES                24,622

 

 

BACKGROUND

 

The subject was incorporated in Victoria on 12 March 1947 as Lindsay & McKenzie Pty Ltd, changing name on 18 August 1969 to Lindsay’s Target Pty Ltd, adopting the current style on 14 March 1973. disclose Share Capital of $210,000,100.

 

The operations of the subject were founded in 1925 by George Lindsay and Alex Mckenzie.

 

By 1968, Lindsay & Mckenzie P/L had grown to 14 small stores around Victoria.

 

In 1969 Myer Emporium Ltd, purchased the business, which was renamed Lindsays Target Pty Ltd.

 

In 1996, Fosseys and Target merged.

 

In 1999, Fosseys stores were converted into Target Country.

 

On 7 November 2007, the majority of Coles Group Limited shareholders voted in favour of Wesfarmers Limited acquiring Coles Group.

 

Coles Meyer Limited, was listed on the Australian, London, New York and New Zealand Stock Exchanges and was Australia’s largest non-government employer with over 160,000 reg.

 

Coles Myer has origins, which date back to 1900 when Sidney and Elcon Myer opened a small store in Bendigo, Victoria.

 

Wesfarmers Limited has origins which date back to 1914 and was listed on the Australian Stock Exchange in 1984.

 

 

OPERATIONS

 

The subject operates a chain of discount department stores.

 

Products include apparel and accessories, homewares, manchester, bed linen and dιcor, cosmetics, fragrances, health and beauty products and a full range of toys, games and entertainment.

 

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

 

 

ADVERSE

                                               

A search of of on 11 May 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.

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Ultimate Holding entity Wesfarmers Limited. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other. Pursuant to the Class Order, the subject is relieved from its requirements to lodge financial statements.

 

For the year ended 30 June 2014, the group recorded revenue of $60,181,000,000 which resulted in an operating profit before tax of $2,544,000,000 and an operating profit after tax of $1,605,000,000 representing a Net Profit Margin of 2.67%.

 

For the same period, the members of the closed group which form part of the Deed of Cross Guarantee recorded an operating profit before tax of $3,629,000,000 and after tax and discontinued operations of $4,135,000,000.

 

During fiscal 2014 the operations of Target generated revenue of $3,501 million which resulted in an operating profit of $86 million.

 

Below is a summary of the groups consolidated income results for the past two financial years.

 

Wesfarmers Limited - consolidated

 

As at 30 June 2014

As at 30 June 2013

Change (%)

Revenue

$60,181,000,000.00

$57,749,000,000.00

4.21%

Profit b/tax

$2,544,000,000.00

$3,036,000,000.00

-16.21%

Profit a/tax

$1,605,000,000.00

$2,128,000,000.00

-24.58%

Net Profit Margin

2.67%

3.68%

-1.02%

 

During fiscal 2014 the group recorded Net Cashflows from operating activities totaling $3,226 million.

 

As at 30 June 2014 Wesfarmers Limited recorded total consolidated current assets of $9,311 million. They included inventories of $5,336 million and receivables of $1,584 million.

 

Current liabilities at the same date totalled $8,229 million and included payables of $5,417 million, interest bearing loans and borrowings of $745 million and provisions of $1,473 million.

 

As at 30 June 2014, Wesfarmers Limited recorded consolidated Working capital of $1,082 million and a current ratio of 1.13 to 1 indicating a sound liquidity position.

 

At this date, the members of the closed group which form part of the Deed of Cross Guarantee recorded a deficiency in Working Capital of $186 million and a current ratio of 0.98 to 1.

 

At 30 June 2014 the group access to financing facilities with a combined limit of $4,399 million. These facilities were drawn to $242 million at this time.

 

As at 30 June 2014, Wesfarmers Limited recorded consolidated Net Assets of $25,987 million and a Debt to equity ratio of 0.53 to 1.

 

At the same date, the members of the closed group which form part of the Deed of Cross Guarantee recorded Net Assets of $26,677 million. After deducting Intangibles of $18,906 million this results in a Net Worth of $7,771 million.

 

For the 6 months ended 31 December 2014 the group recorded consolidated revenue of $31,970 million which resulted in an operating profit after tax of $1,376 million.

 

For this period the Target operations recorded earnings of $70 million, which were in line with the previous corresponding year.

 

Other Financial Information

 

Wesfarmers Limited - consolidated

 

As at 30 June 2014

As at 30 June 2013

Change (%)

Revenue

$60,181,000,000.00

$57,749,000,000.00

4.21%

Profit b/tax

$2,544,000,000.00

$3,036,000,000.00

-16.21%

Profit a/tax

$1,605,000,000.00

$2,128,000,000.00

-24.58%

Net Profit Margin

2.67%

3.68%

-1.02%

Current Assets

$9,311,000,000.00

$10,586,000,000.00

-12.04%

Non-Current Assets

$30,416,000,000.00

$32,569,000,000.00

-6.61%

Total Assets

$39,727,000,000.00

$43,155,000,000.00

-7.94%

Current Liabilities

$8,229,000,000.00

$9,572,000,000.00

-14.03%

Non-Current Liabilities

$5,511,000,000.00

$7,561,000,000.00

-27.11%

Total Liabilities

$13,740,000,000.00

$17,133,000,000.00

-19.80%

Net Assets

$25,987,000,000.00

$26,022,000,000.00

-0.13%

Working Capital

$1,082,000,000.00

$1,014,000,000.00

6.71%

Current Ratio

1.13

1.11

2.31%

Debt to Equity

0.53

0.66

-19.70%

\

 

TRADE SURVEY

 

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

 

As a result, details pertaining to the subject’s suppliers were unable to be obtained and a trade survey could not be conducted.

 

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

 

Total Owing: $2,545,405

Total Past Due: $86,717

 

Within terms: $2,458,688

1 – 30 days past due: $35,016

31 – 60 days past due: $46,628

61 – 90 days past due: $5,073

91+ days: $0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.643.84

UK Pound

1

Rs.100.65

Euro

1

Rs.72.88

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

 

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.