MIRA INFORM REPORT

 

 

Report No. :

345204

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

COUNTRY ROAD CLOTHING PTY LTD

 

 

Formerly Known As :

COUNTRY ROAD CLOTHING COMPANY SHOPS P/L

 

 

Registered Office :

658 Church St, Cremorne, VIC 3121

 

 

Country :

Australia

 

 

Financials (as on) :

28.06.2014

 

 

Year of Establishment :

1974

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

The subject operates as a chain of retail stores involved in the sale of men’s and women’s clothing, homewares and fashion accessories.

 

 

No. of Employee :

2,000

 

 

 

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

 

 


NAME GIVEN               COUNTRY ROAD AUSTRALIA TRENERY

 

SPECIAL NOTE                       

 

A search of failed to trace any registered entity under the given style. The main trading entity in Australia Country Road Clothing Pty Ltd. It also trades as Trenery. The following report was subsequently conducted on this entity.

 

 

Company NAME     

 

COUNTRY ROAD CLOTHING PTY LTD

 

ACN: 005 419 447

ABN: 84 005 419 447

 

 

Summary Panel

 

Established

1974

 

Incorporated

1978

 

Line of Business

Apparel retailers

Chief Executive Officer

Iain Nairn

Adverse Listings

Nil

 

 

 

EXECUTIVE SUMMARY

 

On 4 September 2014 the Holding entity Country Road Group Pty Ltd (formerly Country Road Ltd) was delisted from the Australian Securities Exchange following its compulsory acquisition by Woolworths Holdings Ltd in South Africa.

 

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

 

For the financial year ended 28 June 2014 the Group recorded consolidated revenue of $855,341,000, which resulted in an operating profit before tax of $93,449,000 and an operating profit after tax of $68,856,000 representing a Net Profit Margin of 8%.

 

For the same period, the parties which make of the ‘closed group’ that for part of the Deed of Cross Guarantee recorded an operating profit before tax of $90,467,000 and an operating profit after tax of $70,277,000.

 

As at 29 June 2014, the closed group recorded Working Capital of $58,213,000 and a current ratio of 1.58 to 1.

 

At this date, the closed group recorded Net Assets of $208,478,000. After deducting intangibles of $148,036,000 this results in a Net Worth of $60,442,000.

 

 

CORPORATE SEARCH

 

Company Type                          Australian Proprietary Company

 

INCORPORATED                      14 March 1978

 

REGISTERED ADDRESS          658 Church St

                                                CREMORNE, VIC 3121

 

SHARECAPITAL                        $27,500,002                 

 

SHAREHOLDERS                     COUNTRY ROAD GROUP PTY LTD       Holds 27,500,002

 

Directors                                   DU TOIT, PETRUS JACQUES

23 Cromwell Pl

SOUTH YARRA, VIC 3141

Appointed: 17.08.2015

DOB: 17.06.1977

 

KEOGH, MATTHEW – Appointed: 8 September 2014

Resident overseas

 

MOIR, IAN

Appointment Date: 23 Oct 1998

Date of Birth: 10 Dec 1958

Gender: Male

Resident overseas

 

Secretary                                  HENNESSY, Melissa

 

 

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                 658 Church St

                                                RICHMOND, VIC 3121

 

TELEPHONE                             (613) 9267 1400

 

FACSIMILE                               (613) 9267 1312

 

WEBSITE                                  www.countryroad.com.au

 

EMAIL                                      countryroad@customerservice.com.au

 

TRADING STYLES                    COUNTRY ROAD

                                                TRENERY

 

HOLDING ENTITY                      COUNTRY ROAD GROUP PTY LTD – Australia

 

ULTIMATE HOLDING

ENTITY                                     Woolworths Holdings Limited – South Africa

 

CONTROLLED ENTITIES           Country Road Clothing (N.Z.) Ltd – New Zealand

Country Road Properties Pty Ltd – Australia

Country Road Ventures Pty Ltd– Australia

Country Road Ltd – United Kingdom

Country Road International Pty Ltd – Australia

Country Road (Hong Kong) Ltd – Hong Kong    

                       

BRANCHES                              The subject maintains 144 branches across Australia                                                                  

BANK                                       NATIONAL AUSTRALIA BANK   

                                               

EMPLOYEES                            2,000

 

 

BACKGROUND

 

The subject was incorporated in Victoria on 14 March 1978 as Waggoner P/L, changing name on 21 April 1978 to The Country Road Clothing Company Shops P/L, before adopting the current style on 24 May 1982.

 

Group operations were established as a new venture in 1974.

 

In the 1980’s and 1990’s the subject expanded the Australian base and wholesale markets and entered the US and Asian markets.

 

In the later 1990’s the US operations failed and the Australian operations became unprofitable.

 

The subject was listed on the Australian Stock Exchange on 2 July 1987.

 

Woolworth Holdings Ltd of South Africa secured a controlling interest in the subject in 1998 and the business was re-built from the bottom up.

 

In the first half of 2010 the Group introduced the new brand ‘Trenery’ which was launched on 3 September 2009.

 

On 4 September 2014 the Holding entity Country Road Group Pty Ltd (formerly Country Road Ltd) was delisted from the Australian Securities Exchange following its compulsory acquisition by Woolworths Holdings Ltd in South Africa.

 

 

OPERATIONS

 

The subject operates as a chain of retail stores involved in the sale of men’s and women’s clothing, homewares and fashion accessories.

 

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

 

 

ADVERSE

                                               

A search of records failed to trace any litigation listed against the subject at that date.

 

 

FINANCES

 

On 4 September 2014 the Holding entity Country Road Group Pty Ltd (formerly Country Road Ltd) was delisted from the Australian Securities Exchange following its compulsory acquisition by Woolworths Holdings Ltd in South Africa.

 

Lonergan Edwards and Associates valued the shares in Country Road between $14.92 and $16.22 – at least 78¢, or 4.6 per cent, below Woolworths’s $17-a-share offer.

Woolworths launched the $213 million mop-up bid last month when Mr Lew, who owns 11.88 per cent of Country Road, emerged with 9.9 per cent stake in David Jones. Woolworths feared Mr Lew would block the David Jones deal unless it bought him out of Country Road at a massive premium.

 

Country Road shares were trading at $4.83 in January but jumped to $9.50 in February and to $15.40 in early April, a week before Woolworths revealed its $2.2 billion offer for David Jones.

 

During the current investigation contact with the subject’s financial controller was unable to be established. Despite messages being left no reply has been received.

 

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Country Road Limited. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.

 

From the most recently lodged financial statements, it is noted that for the financial year ended 28 June 2014 the Group recorded consolidated revenue of $855,341,000, which resulted in an operating profit before tax of $93,449,000 and an operating profit after tax of $68,856,000 representing a Net Profit Margin of 8%.

 

For the same period, the parties which make of the ‘closed group’ that for part of the Deed of Cross Guarantee recorded an operating profit before tax of $90,467,000 and an operating profit after tax of $70,277,000.

 

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

 

Country Road Limited - consolidated

 

As at 28 June 2014

As at 29 June 2013

Change (%)

Revenue

$855,341,000.00

$711,346,000.00

20.24%

Profit b/tax

$93,449,000.00

$55,864,000.00

67.28%

Profit a/tax

$68,856,000.00

$41,149,000.00

67.33%

Net Profit Margin

8.05%

5.78%

2.27%

 

During fiscal 2014, the Group recorded consolidated Net Cashflows from operating activities totalling $97,099,000.

 

On 1 August 2012 it was announced that the subjects holding entity Witchery Holdings Pty Ltd (including the subjects operations and the associated entity Mimco P/L) would be acquired by Country Road Limited. The acquisition was completed on 2 October 2012.

 

As at 29 June 2014 the Group recorded consolidated total current assets of $199,897,000. They included cash of $83,933,000, receivables of $13,727,000 and inventories of $100,695,000.

 

Current liabilities at the same date totalled $146,738,000 and included payables of $82,479,000 and provisions of $26,634,000.

 

As at 29 June 2014, the Group recorded consolidated Working Capital of $53,159,000 and a current ratio of 1.36 to 1 indicating satisfactory liquidity levels.

 

For the same period, the closed group recorded Working Capital of $58,213,000 and a current ratio of 1.58 to 1.

 

The Group has access to financing facilities which have a combined limit of $137,513,000 at 28 June 2014. These facilities were drawn to $77,109,000 at this time.

 

Net Assets totalled $226,763,000 as at 28 June 2014. At this date, the Group further recorded a Debt to Equity ratio of 1.02 to 1. After deducting intangibles of $72,528,000 this results in a Net Worth of $154,235,000.

 

At this date, the closed group recorded Net Assets of $208,478,000. After deducting intangibles of $148,036,000 this results in a Net Worth of $60,442,000.

 

Country Road Limited - consolidated

 

As at 28 June 2014

As at 29 June 2013

Change (%)

Revenue

$855,341,000.00

$711,346,000.00

20.24%

Profit b/tax

$93,449,000.00

$55,864,000.00

67.28%

Profit a/tax

$68,856,000.00

$41,149,000.00

67.33%

Net Profit Margin

8.05%

5.78%

2.27%

Current Assets

$199,897,000.00

$200,618,000.00

-0.36%

Non-Current Assets

$257,434,000.00

$235,083,000.00

9.51%

Total Assets

$457,331,000.00

$435,701,000.00

4.96%

Current Liabilities

$146,738,000.00

$116,554,000.00

25.90%

Non-Current Liabilities

$83,830,000.00

$82,438,000.00

1.69%

Total Liabilities

$230,568,000.00

$198,992,000.00

15.87%

Net Assets

$226,763,000.00

$236,709,000.00

-4.20%

Working Capital

$53,159,000.00

$84,064,000.00

-36.76%

Current Ratio

1.36

1.72

-20.86%

Debt to Equity

1.02

0.84

20.95%

 

 

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.

 

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

 

Total Owing: $26,405

Total Past Due: $13,515

Average Late Payment Days: 15

 

Within terms: $12,890

1 – 30 days past due: $4,514

31 – 60 days past due: $8,753

61 – 90 days past due: $165

91+ days: $83

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.89

Euro

1

Rs.72.06

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

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%)

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.