MIRA INFORM REPORT
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Report No. : |
342100 |
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Report Date : |
25.09.2015 |
IDENTIFICATION DETAILS
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Name : |
MYER PTY LIMITED |
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Registered Office : |
7/800
Collins Street Docklands, Victoria 3008 |
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Country : |
Australia |
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Financials (as on) : |
25.07.2015 (Consolidated) |
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Date of Incorporation : |
09.02.1928 |
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Legal Form : |
Australian Proprietary Company |
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Line of Business : |
The subject operates as Australia’s largest department store chain involved in the retail of clothing, electronics, furniture, homewares, fashion accessories, shoes, computers, giftware |
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No. of Employees : |
12500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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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.
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Source
: CIA |
Company
name
MYER PTY LIMITED
ACN: 004 143 239
ABN: 83 004 143 239
Summary
Panel
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Established |
1900 |
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Incorporated |
1928 |
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Status |
Trading |
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Line of Business |
Department store chain |
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Chief Executive Officer |
UMBERS, RICHARD BOOK |
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Adverse Listings |
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EXECUTIVE
SUMMARY
The subject is noted to have entered into a Deed of Cross
Guarantee pursuant to a Class Order with its Ultimate Holding entity Myer
Holdings Limited and other parties within the group.
for the last financial year ended 25 July 2015 the closed group
recorded sales of $3,194,597,000 resulting in an operating profit before tax of
$50,062,000 and after tax of $30,610,000.
During fiscal 2015, the Group recorded consolidated Net cashflows
from operating activities totalling $96,915,000.
As at 25 July 2015, the closed group Working capital of
$10,222,000 and a current ratio of 1.02 to 1.
At the same date the closed group recorded Net Assets of
$871,878,000. After deducting intangibles of $915,525,000 this result in a Net
Worth of $43,647,000.
CORPORATE SEARCH
Company Type Australian
Proprietary Company
Incorporation Date: 09
Feb 1928
Incorporation State: Victoria
Registered Office 7/800
COLLINS Street
DOCKLANDS,
Victoria 3008 Australia
Number of Shares Issued: 9394765
Paid Capital: 841532130
Shareholders MYER
GROUP PTY LTD
Number
of Shares: 6894765
THE MYER EMPORIUM PTY LTD
Number of Shares: 2500000
Current Directors Total: 3
Director Name BRACKEN, DANIEL SPENCER
Appointment Date 27 Apr 2015
Date of Birth 08 Feb 1968
Place of Birth LONDON UNITED KINGDOM
Gender MALE
Resident Overseas N
Address 19 MARGARITA ST, HAMPTON
VIC 3188
Document Number 7E6927895
Director Name UMBERS, RICHARD BOOK
Appointment Date 02 Mar 2015
Date of Birth 13 Dec 1966
Place of Birth FOLKESTONE UNITED
KINGDOM
Gender MALE
Resident Overseas N
Address 17 ADELAIDE ST, ARMADALE VIC
3143
Document Number 7E6794945
Director Name LAUDER, CHRISTOPHER JOHN
Appointment Date 26 Mar 2014
Date of Birth 08 Jun 1975
Place of Birth MELBOURNE VIC
Gender MALE
Resident Overseas N
Address 10 MALEI CT, TEMPLESTOWE
VIC 3106
Document Number 7E5937899
Current Secretaries Total: 1
Secretary Name AMOS, RICHARD WILLIAM
Appointment Date 06 Jul 2015
Date of Birth 24 Jan 1971
Place of Birth SYDNEY NSW
Address 11 FRASER STREET RANDWICK
NSW, 2031
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 800 COLLINS Street
VICTORIA
HARBOUR, Victoria 3008 Australia
TELEPHONE (613)
8667 6050
FACSIMILE (613)
8342 2021
WEBSITE www.myer.com.au
EMAIL myer.invester.relations@myer.com.au
TRADING STYLES MYER
GRACE
BROS
MYER
GRACE BROS
MEGAMART
GOOD BUY WAREHOUSE
STORES The
subject maintains 67 stores across Australia
HOLDING ENTITY MYER
GROUP LIMITED - Australia
ULTIMATE HOLDING
ENTITY MYER
HOLDINGS LTD
BANK Not
determined
EMPLOYEES 12,500
BACKGROUND
The subject was incorporated in Victoria on 9 February 1928 as
Paterson Powell & Sandford P/L, changing name on 13 October 1941 to
Paterson Powell P/L, changing name on 17 March 1953 to The Myer Emporium
(Ballarat) P/L, changing name on 1 September 1964 to Myer (Ballarat) P/L,
changing name on 1 August 1967 to Myer Southern Stores Ltd, changing name on 30
April 1984 to Myer Stores Ltd, before adopting the current style on 9 February
2007.
The subject has origins that date back to 1900 when Sidney Myer
and his brother opened the first Myer Store.
In 1989 Myer joined with Grace Bros to become the largest
department store group in Australia.
In 1998, the subject launched Megamart stores.
In March 2006 the subjects former holding entity Coles Myer
announced the sale of the subject to Newbridge Capital and the Myer Family for
$1.4 billion.
On 23 November 2007 Coles Myer Ltd was acquired by Wesfarmers Ltd
for consideration of $18.6 billion.
On 2 November 2009 the ultimate holding entity Myer Holdings Ltd
re-listed on the Australian Stock exchange after a $2 billion capital raising.
On 2 March 2011 the parent entity acquired 65% of the issued share
capital of Boogie & Boogie Pty Ltd, the owner of Sass & Bide. Sass
& Bide is one of Australia’s most respected and successful women’s fashion
brands.
OPERATIONS
The subject operates as Australia’s largest department store chain
involved in the retail of clothing, electronics, furniture, homewares, fashion
accessories, shoes, computers, giftware.
Activities are conducted from premises located at the above listed
trading address.
ADVERSE
A search of of on 22 September 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 Myer
Holdings Limited and other parties within the group. Pursuant to the Class
Order, the subject is relieved from its requirements to lodge financial
statements.
From the groups most recently released preliminary annual
financial statements, it is noted that for the last financial year ended 25
July 2015 the subject recorded consolidated revenue of $3,195,626,000, which
resulted in an operating profit before tax of $49,034,000 and after tax of
$29,826,000 representing Net Profit Margin of 0.93%.
For the same period the closed group recorded sales of $3,194,597,000
resulting in an operating profit before tax of $50,062,000 and after tax of
$30,610,000.
During the past six months, management
has been actively
addressing the underlying issues in the
business, Implementing a series of initiatives that are consistent with the New
Myer strategic direction including the introduction of a large number of wanted
brands and initiatives to improve flexibility of our in-store labour to better
align our workforce with customer demand.
Below is a summary of the groups consolidated income results for
the past two financial years.
|
Myer Holdings Ltd - consolidated |
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As at 25 Jul 2015 |
As at 26 July 2014 |
Change (%) |
|
Revenue |
$3,195,626,000.00 |
$3,143,027,000.00 |
1.67% |
|
Profit b/tax |
$49,034,000.00 |
$138,398,000.00 |
-64.57% |
|
Profit a/tax |
$29,826,000.00 |
$98,542,000.00 |
-69.73% |
|
Net Profit Margin |
0.93% |
3.14% |
-2.20% |
During fiscal 2015, the Group recorded consolidated Net cashflows from
operating activities totalling $96,915,000.
As at 25 July 2015 the Group recorded total consolidated current
assets of $480,804,000. They included inventories of $381,907,000 and cash of
$53,323,000.
Current liabilities at the same date totalled $481,389,000 and
included payables of $387,182,000.
As at 25 July 2015, the Group recorded a deficiency in
consolidated Working capital of $585,000 and a current ratio of 1 to 1.
At this time the closed group Working capital of $10,222,000 and a
current ratio of 1.02 to 1.
As at 25 July 2015 the Group recorded consolidated Net Assets of
$863,016,000 and a Debt to equity ratio of 1.19 to 1. After deducting
intangibles of $932,598,000 this results in a Deficiency in Net Worth of
$39,185,000.
At the same date, the closed group recorded Net Assets of
$871,878,000. After deducting intangibles of $915,525,000 this result in a Net
Worth of $43,647,000.
In June 2015, the syndicated debt
facility, now totalling $600
million, was successfully refinanced, with
more favourable
pricing, increased tenor, and improved
terms.
Net debt increased by $40 million to
$388 million, reflecting
lower profitability and higher working
capital.
|
Myer Holdings Ltd - consolidated |
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As at 25 Jul 2015 |
As at 26 July 2014 |
Change (%) |
|
Revenue |
$3,195,626,000.00 |
$3,143,027,000.00 |
1.67% |
|
Profit b/tax |
$49,034,000.00 |
$138,398,000.00 |
-64.57% |
|
Profit a/tax |
$29,826,000.00 |
$98,542,000.00 |
-69.73% |
|
Net Profit Margin |
0.93% |
3.14% |
-2.20% |
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Current Assets |
$480,804,000.00 |
$480,460,000.00 |
0.07% |
|
Non Current Assets |
$1,405,744,000.00 |
$1,452,204,000.00 |
-3.20% |
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Total Assets |
$1,886,548,000.00 |
$1,932,664,000.00 |
-2.39% |
|
Current Liabilities |
$481,389,000.00 |
$530,881,000.00 |
-9.32% |
|
Non Current Liabilities |
$542,143,000.00 |
$508,370,000.00 |
6.64% |
|
Total Liabilities |
$1,023,532,000.00 |
$1,039,251,000.00 |
-1.51% |
|
Net Assets |
$863,016,000.00 |
$893,413,000.00 |
-3.40% |
|
Working Capital |
($585,000.00) |
($50,421,000.00) |
-98.84% |
|
Current Ratio |
1.00 |
0.91 |
10.36% |
|
Debt to Equity |
1.19 |
1.16 |
1.96% |
NEWS
22.09.2015 – Sydney
Morning Herald
The retail component of Myer's capital raising has fallen
embarrassingly short, with mum and dad shareholders taking up just $3.7 million
worth of shares in an entitlement offer Myer hoped would bring in about $120
million.
The offer was announced on September 1 with a price of 94˘ and was
almost immediately under pressure when Myer's share price fell to 90˘ two days
later. The stock closed at 86˘ on Monday.
The offer closed on Thursday and Myer announced on Monday
afternoon that shareholders had bought only about four million new shares.
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 from further sources in the past 4 months have
traced the following data for the subject.
Total Owing: $279,384
Total Past Due: $187,486
Average Late Payment Days:
42
All Industries Late
Payment Days: 9
Within terms: $91,898
1 – 30 days past due: $162,539
31 – 60 days past due: $13,458
61 – 90 days past due: $5,893
91+ days: $5,596
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.10 |
|
UK Pound |
1 |
Rs.100.89 |
|
Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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.