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MIRA INFORM REPORT
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Report No. : |
499640 |
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Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
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Name : |
PSEA DEPT STORES PTY LTD |
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Registered Office : |
657-673 Parramatta Road, Leichhardt NSW,
2040 |
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Country : |
Australia |
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Date of Incorporation : |
08.11.2000 |
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Legal Form : |
Australian Proprietary Company |
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Line of Business : |
The subject operates as a chain of department’s stores involved in the
import and retail of homewares, Manchester, men’s and women’s clothing,
kitchen electrical, personal care and laundry products through a network of
50 stores. |
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No. of Employees : |
9,213 (Australian Group) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 2018 facing a range of growth constraints, principally driven by the
sharp fall in global prices of key export commodities. Demand for resources and
energy from Asia and especially China has stalled and sharp drops in current
prices have 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 benefited from a dramatic surge in its terms of trade in
recent years, although this trend has reversed 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 WTO, APEC, the G20, and other trade forums.
Australia’s free trade agreement (FTA) with China entered into force in 2015,
adding to existing FTAs with the Republic of Korea, Japan, 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 10 ASEAN countries and China, Japan, Korea, New
Zealand and India.
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Source
: CIA |
CORPORATE
REPORT
REGISTERED NAME PSEA DEPT STORES PTY LTD
ACN:
095 018 803
ABN:
83 095 018 803
ADDRESS Level 1 Building
8
Bontanicca
Corporate Park
Swan
St Richmond VIC 3121
Summary
Panel
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Established |
1849 |
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Incorporated |
2000 |
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Line of Business |
Retail department stores |
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Status |
Trading |
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EXECUTIVE
SUMMARY
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Steinhoff Asia Pacific Group Holdings P/L - consolidated |
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|
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As at 1 Oct 2017 – 5months |
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Sales |
$2,293,614,000.00 |
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Profit b/tax |
$17,364,000.00 |
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Profit a/tax |
$60,803,000.00 |
|
Net Profit Margin |
2.65% |
The subject is noted to have entered into a Deed of Cross Guarantee
pursuant to a Class Order with Steinhoff Asia Pacific Group Holdings P/L. Steinhoff
Asia Pacific Group Holdings P/L was incorporated on 8 June 2017 and the end of
financial year was 1 October 2017. Subsequently the financial results for the
last financial year represent only 5 months of trading.
For the same period the closed group recorded revenue of $2,148,069,000
which resulted in an operating Profit before tax of $38,121,000 and an
operating profit after tax of $81,564,000.
As at 1 October 2017 the closed group recorded a deficiency in Working
Capital of $222,621,000 and a current ratio of 0.68 to 1.
At the same date the closed group recorded Net Assets of $455,869,000.
After deducting intangibles of $566,845,000 this results in a deficiency in Net
Worth of $110,976,000.
The ultimate holding entity has made a number of statements potentially
negatively impacting its financial statements. These include concerns over the
validity and recoverability over a large value of its assets and other
accounting irregularities which will require its accounts to be restated.
This has the potential to impact the Australian Group as it has
borrowings of $478,338,000 at 1 October 2017 which includes $333,824,000 of
borrowings from related parties
The Australian group accounts were prepared on a going concern basis.
CORPORATE
SEARCH
Company Type Australian Proprietary Company
Status Registered
Incorporation Date 08 Nov 2000
Incorporation State SA
Registered Office 657-673 Parramatta Road
Leichhardt NSW, 2040
Current Directors Total: 4
Director Name DEAN, GRAHAM PAUL
Appointment Date 02 Sep 2014
Date of Birth 21 Jul 1965
Place of Birth BASINGSTOKE HANTS UNITED
KINGDOM
Gender MALE
Resident Overseas N
Address 113 SOUTH RD, BRIGHTON VIC3186
Director Name MILLIST, PETER LEIGH
Appointment Date 14 Sep 2012
Date of Birth 25 Nov 1959
Place of Birth MELBOURNE VIC
Gender MALE
Resident Overseas N
Address 20 WYONG RD, MOSMAN NSW2088
Director Name MURRAY, JASON ADAM
Appointment Date 14 Sep 2012
Date of Birth 04 Jan 1968
Place of Birth NEWCASTLE NSW
Gender MALE
Resident Overseas N
Address 25 SCOTT GVE, GLEN IRIS VIC3146
Director Name MACDONALD, IAIN DAVID
Appointment Date 14 Sep 2012
Date of Birth 25 Apr 1960
Place of Birth NKANA ZAMBIA
Gender MALE
File Number 242980053
Resident Overseas N
Address 12 WARWILLA AVE,
WAHROONGA NSW 2076
Current Secretaries Total: 1
Secretary Name MAVRO, STEVEN
Appointment Date 04 Jan 2010
Date of Birth 20 Mar 1967
Place of Birth WHYALLA SA
Address 12 EVERGREEN PARADE
FLAGSTAFF HILL SA, 5159
Current Other Organisation Officers Total: 2
Officer Role Appointed Auditor
Officer Name DELOITTE TOUCHE TOHMATSU
ACN 059513987
Appointment Date 24 Sep 2004
Address LEVEL 17, 11 WAYMOUTH
STREET ADELAIDE SA, 5000
Company Shares Total: 11867 Amount: $13,031
Class ORDINARY SHARE CLASS [ORD]
Number of Shares Issued 11867
Paid Capital $13,031.00
Total Amount Due and Payable $0.00
Current Shareholders
Shareholder Name HARRIN AUSTRALIA PTYLIMITED
ACN 123876184
ABN 56123876184
Number Held 11867
Beneficially Held Y
Fully Paid Y
Jointly Held N
Address LEVEL 3, 10-14 SPRING STREET
SYDNEY NSW, 2000
Class ORD
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).
BUSINESS
STRUCTURE
TRADING ADDRESS Level
1 Building 8
Bontanicca
Corporate Park
Swan
St Richmond VIC 3121
TELEPHONE 1300
304 505
WEBSITE http://www.harrisscarfe.com.au
BRANCHES The
subject maintains 55 branches.
HOLDING ENTITY HARRIN
AUSTRALIA
AUSTRALIAN
HOLDING ENTITY STEINHOFF
ASIA PACIFIC GROUP HOLDINGS PTY LTD - Australia
ULTIMATE HOLDING
ENTITY STEINHOFF
INTERNATIONAL HOLDINGS LTD
BANK ANZ
BANKING GROUP
EMPLOYEES 9,213
(Australian Group),
BACKGROUND
The subject was incorporated in South Australia on 8 November 2000 as
Rythane P/L changing name on 21 November 2000 to Epaper Alliance P/L changing
name to Harris Scarfe Australia P/L before adopting the current style on 28
November 2016.
The subject was founded in Adelaide, South Australia in 1849, when the
founding partners, Mr. George Peter Harris and Mr. John C. Lanyon, arrived in
Adelaide to establish a hardware and ironmongery business. One of their first
known adverts in the local Adelaide paper was on 11 April 1850. Mr Lanyon left
the partnership on 22 February 1855 and returned to London where he
subsequently opened up a buying house for Mr Geo.
The 1990s, Harris Scarfe began an era of unprecedented growth, both
within South Australia and interstate. It expanded from its single large store
in Rundle Mall into a smaller format for suburban and regional shopping
centres. At Harris Scarfe’s peak, the company operated 38 stores in all
Australian States.
In 2001, Harris Scarfe's faced with cash-flow problems and subsequently entered
voluntary receivership. As a result its shares were withdrawn from the
Australian Stock Exchange. Examination of the company’s books revealed that
assets had been re-valued well above market value in an effort to conceal its
spiralling losses. This practice had left the company with multimillion-dollar
debts. It owed creditors about $200 million.
Harris Scarfe was sold to a private consortium, with the shareholders
receiving little or no proceeds of the sale.
In 2002 Harris Scarfe opened its first new store after the
revitalisation at Werribee in Victoria.
In 2004, the Allens department store chain in New South Wales and the
ACT was taken over by Harris Scarfe from the Allen family.
In 2006, Harris Scarfe reopened their completely refurbished store at
Colonnades SA, as part of the centre's refurbishment.
On 16 March 2007 Momentum Private Equity took a controlling interest in
Harris Scarfe in a deal worth $80 million
In June 2012 the subject was sold to South
African retail group Pepkor.
In 2014 Pepkor was acquired by Steinhoff.
OPERATIONS
The subject operates as a chain of department’s stores involved in the
import and retail of homewares, Manchester, men’s and women’s clothing, kitchen
electrical, personal care and laundry products through a network of 50 stores.
Activities are conducted from premises located at the above listed
trading address.
ADVERSE
A search of records of on 27 March 2018 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 Steinhoff Asia Pacific
Group Holdings P/L. The effect of the Deed is that each party that forms part
of the closed group guarantee the debts of each other.
Steinhoff Asia Pacific Group Holdings P/L was incorporated on 8 June
2017 and the end of financial year was 1 October 2017. Subsequently the
financial results for the last financial year represent only 5 months of
trading.
Below is a summary of the Group’s income results for the past financial
years (5 months of trading).
|
Steinhoff Asia Pacific Group Holdings P/L - consolidated |
|
|
|
As at 1 Oct 2017 – 5months |
|
Sales |
$2,293,614,000.00 |
|
Profit b/tax |
$17,364,000.00 |
|
Profit a/tax |
$60,803,000.00 |
|
Net Profit Margin |
2.65% |
For the same period the closed group recorded revenue of $2,148,069,000 which
resulted in an operating Profit before tax of $38,121,000 and an operating
profit after tax of $81,564,000.
During fiscal 2017 Group recorded Net Cashflows from operating
activities totalling $77,574,000.
As at 1 October 2017 the Group recorded total current assets of
$459,552,000. They included receivables of $76,410,000 and inventories of
$363,487,000.
Current liabilities at the same date totalled $762,384,000 and included
payables of $296,575, external borrowings of $59,770,000 and related borrowings
of $333,824,000.
As at 1 October 2017 the Group recorded a deficiency in Working Capital
of $302,832,000 and a current ratio of 0.6 to 1 showing some tightness in
liquidity levels.
For the same period the closed group recorded a deficiency in Working
Capital of $222,621,000 and a current ratio of 0.68 to 1.
Net Assets totalled $411,431,000 as at 1 October 2017. At this date, the
Group further recorded a Debt to Equity ratio of 2.25 to 1.
At the same date the closed group recorded Net Assets of $455,869,000.
After deducting intangibles of $566,845,000 this results in a deficiency in Net
Worth of $110,976,000.
The group is dependent on the financial support of the ultimate holding entity
Steinhoff International Holdings NV, (SIH) to continue as a going concern.
SIH has made a number of statements potentially negatively impacting its
financial statements. These include concerns over the validity and
recoverability over a large value of its assets and other accounting
irregularities which will require its accounts to be restated.
This has the potential to impact the Australian Group as it has
borrowings of $478,338,000 at 1 October 2017 which includes $333,824,000 of
borrowings from related parties
The Australian group accounts were prepared on a going concern basis.
|
Steinhoff Asia Pacific Group Holdings P/L - consolidated |
|
|
|
As at 1 Oct 2017 – 5months |
|
Revenue |
$2,293,614,000.00 |
|
Profit b/tax |
$17,364,000.00 |
|
Profit a/tax |
$60,803,000.00 |
|
Net Profit Margin |
2.65% |
|
Current Assets |
$459,552,000.00 |
|
Non Current Assets |
$876,885,000.00 |
|
Total Assets |
$1,336,437,000.00 |
|
Current Liabilities |
$762,384,000.00 |
|
Non Current Liabilities |
$162,622,000.00 |
|
Total Liabilities |
$925,006,000.00 |
|
Net Assets |
$411,431,000.00 |
|
Working Capital |
($302,832,000.00) |
|
Current Ratio |
0.60 |
|
Debt to Equity |
2.25 |
TRADE
SURVEY
Trade payment records from further sources in the past 4 months have
traced the following data for the subject.
Total Owing:
$37,439
Total Past Due:
$29,004
Average Late
Payment Days: 42
All Industries
Late Payment Days: 8
Within terms: $8,435
1 – 30 days past due: $9,047
31 – 60 days past due: $3,125
61 – 90 days past due: $0
91+ days: $16,831
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.04 |
|
|
1 |
INR 92.28 |
|
Euro |
1 |
INR 80.62 |
|
AUD |
1 |
INR 49.96 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.