MIRA INFORM REPORT
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Report No. : |
350464 |
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Report Date : |
24.11.2015 |
IDENTIFICATION DETAILS
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Name : |
SIMS METAL MANAGEMENT LTD |
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Registered Office : |
'Sir Joseph Banks, Corporate Park' Suite 3, Level 2, 32 Lord Street,
Botany NSW, 2019 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
20.06.2005 |
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Legal Form : |
Australian Proprietary
Company |
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Line of Business : |
The subject is an
Australian domiciled corporation, with a primary share listing on the
Australian Securities Exchange and ADRs trading |
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No. of Employee : |
5,429 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Excellent company |
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Payment Behaviour : |
Regular |
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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) |
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Australia |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
SIMS METAL MANAGEMENT
LTD
ACN: 114 838 630
ABN: 69 114 838
630
Summary
Panel
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Incorporated |
2005 |
|
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Line of Business |
Metal recycling |
|
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Status |
Trading |
|
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Chief Executive Officer |
CLARO, GALDINO JOSE |
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Adverse Listings |
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EXECUTIVE
SUMMARY
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Sims Metal Management Ltd |
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As at 30 June 2015 |
As at 30 June 2014 |
Change (%) |
|
Revenue |
$6,328,100,000.00 |
$7,036,400,000.00 |
-10.07% |
|
Profit b/tax |
$137,000,000.00 |
$62,700,000.00 |
118.50% |
|
Profit a/tax |
$109,800,000.00 |
$16,300,000.00 |
573.62% |
|
Net Profit Margin |
1.74% |
0.23% |
1.50% |
During fiscal 2015, the subject recorded consolidated Net Cashflows from
operating activities totalling $298,100,000.
As at 30 June 2015, the subject recorded consolidated Working Capital of
$600,200,000 and a current ratio of 1.99 to 1 indicating sound liquidity
levels.
Net Assets totalled $2,112,800,000 as at 30 June 2015.
CORPORATE SEARCH
Company Type Australian
Proprietary Company
Status Registered
Incorporation Date 20 Jun
2005
Incorporation State VIC
Registered Address
'SIR JOSEPH BANKS
CORPORATE PARK' SUITE 3
LEVEL 2, 32 LORD STREET
BOTANY NSW, 2019
Current Directors
Total: 10
Director Name NELSON,
GEORGIA
Appointment Date 01 Nov
2014
Date of Birth 04
Feb 1950
Place of Birth ALTADENA,
CALIFORNIA UNITED
STATES
Gender UNKNOWN
Resident Overseas Y
Address -
Document Number 7E6491286
Director Name O'TOOLE,
DEBORAH MARY
Appointment Date 01 Nov
2014
Date of Birth 15
Dec 1956
Place of Birth DUBLIN
IRELAND
Gender FEMALE
Resident Overseas N
Address 18
LETCHWORTH RD,
COORPAROO QLD 4151
Document Number 7E6491286
Director Name CLARO,
GALDINO JOSE
Appointment Date 04 Nov
2013
Date of Birth 09
May 1959
Place of Birth PINDAMONHANGABA
BRAZIL
Gender UNKNOWN
Resident Overseas Y
Address -
Document Number 7E5622907
Director Name BASS,
ROBERT JAY
Appointment Date 10 Sep
2013
Date of Birth 26
Aug 1949
Place of Birth NEW
YORK CITY, NY UNITED
STATES
Gender UNKNOWN
Resident Overseas Y
Address -
Document Number 7E5505450
Director Name SATO,
TAMOTSU
Appointment Date 01 Apr
2013
Date of Birth 18
Feb 1952
Place of Birth TOKYO
JAPAN
Gender UNKNOWN
Resident Overseas Y
Address -
Document Number 7E5122884
Director Name DILACQUA,
JOHN THOMAS
Appointment Date 01 Sep
2011
Date of Birth 01
May 1952
Place of Birth PHILADELPHIA,
PENNSYLVANIA
UNITED STATES
Gender UNKNOWN
Resident Overseas Y
Document Number 7E3923683
Director Name RIDOUT,
HEATHER
Appointment Date 01 Sep
2011
Date of Birth 07
Feb 1954
Place of Birth DENILIQUIN
NSW
Gender FEMALE
Resident Overseas N
Address 3
LITTLE ST, MOSMAN NSW 2088
Document Number 7E3923683
Director Name THOMPSON,
JAMES THEODORE
Appointment Date 20 Nov
2009
Date of Birth 18
Aug 1950
Place of Birth MADISON,
WISCONSIN UNITED
STATES
Gender UNKNOWN
Resident Overseas Y
Document Number 7E2563900
Director Name BRUNSDON,
GEOFFREY NORMAN
Appointment Date 20 Nov
2009
Date of Birth 03
Jan 1958
Place of Birth SYDNEY
NSW
Resident Overseas N
Address 35
COOLAWIN RD,
NORTHBRIDGE NSW 2063
Document Number 7E2563900
Gender MALE
Director Name RENWICK,
CHRISTOPHER JOHN
Appointment Date 12 Jun
2007
Date of Birth 29
Sep 1942
Place of Birth RICHMOND
VIC
Gender MALE
Veda File Number 548460827
Resident Overseas N
Address 14
SEYMOUR GVE, BRIGHTON
VIC 3186
Document Number 7E1150490
Current Secretaries
Total: 2
Secretary Name MORATTI,
FRANCIS MARTIN
Appointment Date 22 Jun
2005
Date of Birth 18 May
1958
Place of Birth SYDNEY
NSW
Address 3
FOURTH AVENUE
WILLOUGHBY NSW, 2068
Document Number 5E1392311
Secretary Name MILLLER,
SCOTT ALAN
Appointment Date 21 May
2008
Date of Birth 01
Nov 1955
Place of Birth CLEVELAND,
OHIO UNITED
STATES
Address 81
BEACON HILL ROAD, PORT
WASHINGTON, NEW YORK 11050
UNITED STATES
Document Number 7E1619836
Company Shares
Total: 205461146
Amount: $205,461,146
Class ORDINARY
[ORD]
Number of Shares
Issued 205461146
Paid Capital $205,461,146.00
Total Amount
Due and Payable $0.00
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 Sir Joseph Banks
Corporate Park
Suite 3, Level 2
32–34 Lord Street
Botany NSW 2019
TELEPHONE (612) 8113 1600
HEAD OFFICE 16 West 22nd Street, 10th Floor
New York, NY 10010
United States
Telephone: (1 212) 604-0710
WEBSITE http://www.simsmm.com
CONTROLLED
ENTITIES Sims Group Australia Holdings Limited Australia
Sims Aluminium Pty Limited 1 Australia
Sims E-Recycling Pty Limited Australia
Simsmetal Holdings Pty Limited Australia
Simsmetal Properties Qld Pty Limited
Australia
Sims Industrial Pty Limited Australia
Simsmetal Services Pty Limited 1 Australia
Simsmetal Properties NSW Pty Limited
Australia
Sims Group Holdings 3 Pty Limited Australia
Universal Inspection and Testing Company Pty
Limited Australia
Sims Group Holdings 1 Pty Ltd Australia
Sims Group Holdings 2 Pty Ltd Australia
Electronic Product Stewardship Australasia
Pty Limited Australia
Sims Recycling Solutions Austrian Holding
GmbH Austria
Sims Recycling Solutions Austrian
Intermediate Holdings GmbH Austria
Sims metrade GmbH Austria
Sims Recycling Solutions NV Belgium
Sims Group Recycling Solutions Canada Ltd
Canada
Sims Group Canada Holdings Limited Canada
Sims Lifecycle Services s.r.o. Czech Republic
Sims Recycling Solutions FZE Dubai
Sims Group German Holdings GmbH Germany
Sims M+R GmbH
Sims Lifecycle Services GmbH Germany
Sims Metal Management Asia Limited Hong Kong
Sims Metal Management China Holdings Limited
Hong Kong
Sims Metal Management Dragon Holdings Limited
Hong Kong
Sims Lifecycle Services Kft. Hungary
Trishyiraya Recycling India Private Limited
India
Sims Recycling Solutions India Private
Limited India
Sims Recycling Solutions Ireland Limited 3
Ireland 100% 0%
Mirec BV Netherlands
Sims Recycling Solutions Coöperatief B.A.
Netherlands 1
Sims Lifecycle Services BV Netherlands
Sims E – Recycling (NZ) Limited New Zealand
Simsmetal Industries Limited New Zealand
Sims Recycling Solutions A/S Norway
PNG Recycling Limited Papua New Guinea
Gaukara Company No. 2 Limited Papua New
Guinea
Sims Lifecycle Service Sp z.o.o. Poland
Sims Recycling Solutions Africa Pty Ltd
Republic of South Africa
Sims Recycling Solutions Pte. Ltd. Singapore
Sims Recycling Solutions AB Sweden
Sims Group UK Holdings Limited UK
Sims Group UK Intermediate Holdings Limited
UK
Sims Group UK Limited UK
C Herring & Son Limited
Life Cycle Services Limited 2 UK
All Metal Recovery Limited UK
All Metal Recovery Cradley Heath Limited UK
Evans & Mondon Limited 2 UK
Sims Recycling Solutions UK Holdings Limited
UK
Sims Recycling Solutions UK Group Limited UK
Sims Recycling Solutions UK Limited UK
United Castings Limited UK
Sims Group UK Pension Trustees Limited UK
Cooper Metal Recycling Ltd UK
Dunn Brothers (1995) Limited UK
Cheque Swap Limited UK
Deane Wood Export Limited UK
S3 Interactive Limited UK
Sims FE Mottram Limited UK
Sims Recycling Solutions Inc. US
Sims Recycling Solutions Holdings Inc. US
Sims Metal Management USA GP US
Sims Group USA Holdings Corporation US
Dover Barge Company US
Simsmetal East LLC US
Sims Municipal Recycling of New York LLC US
Schiabo Larovo Corporation US
Simsmetal West LLC US
Sims Group Global Trade Corporation US
Sims Group USA Corporation US
Metal Management, Inc. US
Metal Dynamics Detroit LLC US
SMM Gulf Coast LLC US
Metal Management Midwest, Inc. US
CIM Trucking, Inc. US
Metal Management Indiana, Inc. US
Metal Management Memphis, L.L.C. US
Metal Management Ohio, Inc. US
SMM – North America Trade Corporation US
Metal Management Pittsburgh, Inc. US
Metal Management Arizona, L.L.C. 2 US
Proler Southwest Corporation US
SMM South Corporation US
Naporano Iron & Metal, Inc. US
Metal Management Northeast, Inc. US
SMM New England Corporation US
New York Recycling Ventures, Inc. US
Reserve Iron & Metal Limited Partnership
US
Port Albany Ventures, LLC US
SMM Southeast LLC
BANK Not
determined
EMPLOYEES 5,429
BACKGROUND
The subject was incorporated in Victoria on 20 June 2005 as Sims CO Ltd,
changing name to Sims Group Ltd on 20 October 2005 before adopting the current
style on 24 November 2008.
The subject was formed to facilitate the merger of Sims Metal and Hugo
Neu effective 31 October 2005.
The group has origins that date back to 1917.
In October 2005 the subject listed on the Australian Stock Exchange.
Over the past 20 years, the subject has expanded from an Australian
based division of a mining conglomerate to become the only truly global metals
recycling company with operations in Australia, Malaysia, India, China, UK, US
and Canada.
With completion of the merger with US-based Metal
Management, Inc., in March 2008, Sims became one of the world’s, as well as North
America’s and Australasia’s, largest metal and electronics recyclers. Sims
today has over 230 locations in 20 countries on four continents, and some
6,000.
OPERATIONS
The subject is an Australian domiciled corporation, with a primary share
listing on the Australian Securities Exchange and ADRs trading in the United
States on the OTC Market.
The subject is the world’s leading publicly listed metal recycler, with
operations encompassing the buying, processing and selling of ferrous and
non-ferrous recycled metals. The metals recycling operations are geographically
diverse, with operations in five continents, including the United States,
Australia and the United Kingdom, comprising a network of processing
facilities, many with deep-water port access, supported by an extensive network
of feeder yards from which to source recyclable ferrous and non-ferrous metals.
Sims Recycling Solutions is the world’s leading publicly listed
electronics recycler. Sims Recycling Solutions is a global e-recycling business,
with established operations in the United Kingdom, Continental Europe and North
America and a developing presence in the Asia-Pacific region and Africa.
ADVERSE
A search of of
on 25 November 2015 failed to trace any litigation listed against the subject
at that date.
FINANCES
From the subjects most recently lodged financial statements, it is noted
that for the financial year ended 30 June 2015 the subject recorded
consolidated revenue of $6,328,100,000, which resulted in an operating profit before
tax of $137,000,000 and an operating profit after tax of $109,800,000
representing a Net Profit Margin of 1.74%.
The subject has managed to materially improve full year financial
performance. Underlying net profit after tax (NPAT) of $102 million, increased
17% over the prior year. The strong earnings growth in difficult conditions
demonstrates that the Company’s strategic internal initiatives are adding
considerable value.
Below is a summary of the subject’s consolidated income results for the
past two financial years.
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Sims Metal Management Ltd |
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||
|
|
As at 30 June 2015 |
As at 30 June 2014 |
Change (%) |
|
Revenue |
$6,328,100,000.00 |
$7,036,400,000.00 |
-10.07% |
|
Profit b/tax |
$137,000,000.00 |
$62,700,000.00 |
118.50% |
|
Profit a/tax |
$109,800,000.00 |
$16,300,000.00 |
573.62% |
|
Net Profit Margin |
1.74% |
0.23% |
1.50% |
During fiscal 2015, the subject recorded consolidated Net Cashflows from
operating activities totalling $298,100,000.
As at 30 June 2015, the subject recorded consolidated total current
assets of $1,206,200,000. They included cash of $316,000,000, receivables of
$396,600,000 and inventories of $476,400,000.
Current liabilities at the same date totalled $606,000,000 and included
payables of $527,700,000 and provisions of $64,000,000.
As at 30 June 2015, the subject recorded consolidated Working Capital of
$600,200,000 and a current ratio of 1.99 to 1 indicating sound liquidity
levels.
Net Assets totalled $2,112,800,000 as at 30 June 2015. At this date, the
subject further recorded a Debt to Equity ratio of 0.36 to 1 showing low levels
of gearing.
Strong operational cash flows and prudent capital management helped
improve the Company’s net cash position to $314 million as of 30 June 2015.
Capital expenditure in FY15 increased to a sustainable $95 million, up from $64
million in the prior year.
|
Sims Metal Management Ltd |
|
||
|
|
As at 30 June 2015 |
As at 30 June 2014 |
Change (%) |
|
Revenue |
$6,328,100,000.00 |
$7,036,400,000.00 |
-10.07% |
|
Profit b/tax |
$137,000,000.00 |
$62,700,000.00 |
118.50% |
|
Profit a/tax |
$109,800,000.00 |
$16,300,000.00 |
573.62% |
|
Net Profit Margin |
1.74% |
0.23% |
1.50% |
|
Current Assets |
$1,206,200,000.00 |
$1,107,000,000.00 |
8.96% |
|
Non Current Assets |
$1,675,600,000.00 |
$1,542,400,000.00 |
8.64% |
|
Total Assets |
$2,881,800,000.00 |
$2,649,400,000.00 |
8.77% |
|
Current Liabilities |
$606,000,000.00 |
$677,600,000.00 |
-10.57% |
|
Non Current Liabilities |
$163,000,000.00 |
$137,900,000.00 |
18.20% |
|
Total Liabilities |
$769,000,000.00 |
$815,500,000.00 |
-5.70% |
|
Net Assets |
$2,112,800,000.00 |
$1,833,900,000.00 |
15.21% |
|
Working Capital |
$600,200,000.00 |
$429,400,000.00 |
39.78% |
|
Current Ratio |
1.99 |
1.63 |
21.84% |
|
Debt to Equity |
0.36 |
0.44 |
-18.15% |
TRADE
SURVEY
Trade payment from
further sources in the past 4 months have traced the following data for the
subject.
Total Owing: $7,621
Total Past Due: $2,972
Average Late Payment Days: 3
All Industries Late Payment Days: 6
Within terms: $4,649
1 – 30 days past
due: $2,972
31 – 60 days
past due: $ 0
61 – 90 days
past due: $0
91+ days: $0
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.35 |
|
|
1 |
Rs.100.66 |
|
Euro |
1 |
Rs.70.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
ASH |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.