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MIRA
INFORM REPORT
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Report No. : |
512208 |
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Report Date : |
29.05.2018 |
IDENTIFICATION DETAILS
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Name : |
MICHAEL HILL WHOLESALE PTY LTD |
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Registered Office : |
7 Smallwood Place, Murarrie,
Queensland 4172 |
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Country : |
Australia |
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Date of Incorporation : |
16.04.1987 |
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Legal Form : |
Australian Proprietary Company |
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Line of Business : |
The subject operates in the import
and wholesale of jewellery. |
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No. of Employees : |
25 full time plus casuals |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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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
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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 2017 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 |
REGISTERED NAME
MICHAEL HILL
WHOLESALE PTY LTD
ACN: 003 274 600
ABN: 19 003 274 600
Summary Panel |
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Established |
1987 |
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Incorporated
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1987 |
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Line
of Business |
Jewellery
Wholesale |
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Status |
Trading |
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Adverse
Listings |
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EXECUTIVE SUMMARY
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Michael Hill International Ltd – consolidated |
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As at 30 June 2017 |
As at 30 June 2016 |
Change (%) |
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Revenue |
$582,975,000.00
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$551,127,000.00
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5.78% |
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Profit b/tax |
$44,958,000.00
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$41,534,000.00
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8.24% |
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Profit a/tax |
$32,648,000.00
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$19,577,000.00
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66.77% |
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Net Profit Margin |
5.60% |
3.55% |
2.05% |
The subject was noted to have entered
into a Deed of Cross Guarantee pursuant to a Class Order with its Holding
entity Michael Hill International Ltd.
For the same period the closed group
recorded consolidated revenue of $455,144,000 which resulted in an operating
profit before tax of $46,450,000 and an operating profit after tax of
NZ$35,428,000.
As at 30 June 2017 the closed group
recorded consolidated working capital of $337,800,000 and a current ratio of
6.4 to 1 indicating strong liquidity levels.
At the same date the closed group
recorded consolidated Net Assets of $501,191,000. After deducting intangibles
of $8,613,000 this results in a Net Worth of $492,578,000.
CORPORATE SEARCH
Company Type Australian
Proprietary Company
Incorporation Date: 16
Apr 1987
Incorporation State: New South Wales
Registered Office 7 SMALLWOOD Place
MURARRIE,
Queensland 4172 Australia
Number of Shares Issued: 2
Paid Capital: 2
Shareholders MICHAEL HILL
JEWELLER (AUSTRALIA) P
Number
of Shares: 2
Directors SPARROW,
ANDREW DAVID
5 KIRKPATRICK ST, TINGALPA,
QLD 4173
Appointment Date: 9 Aug 2016
HILL, EMMA JANE
Resident overseas
Appointment Date: 9 Aug 2016
TAYLOR, Philip Roy
129
Coutts St
BULIMBA
QLD 4171
Appointment
Date: 26 June 2009
Secretary GREAVES,
MARY-ANNE
Appointment
Date: 9 AUG 2016
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
HEAD
OFFICE 7 Smallwood Pl
GPO
Box 2922
MURARRIE,
QLD 4172
TELEPHONE (617) 3399 0200
WEBSITE www.michaelhill.com
EMAIL inquiry@michaelhill.com.au
HOLDING
ENTITY MICHAEL HILL
JEWELLER (AUSTRALIA) LIMITED
ULTIMATE
HOLDING
ENTITY MICHAEL HILL INTERNATIONAL LTD
BANK ANZ
BANKING GROUP
EMPLOYEES 25
full time plus casuals
BACKGROUND
The
subject was incorporated in New South Wales on 16 April 1987 as Lemvex P/L,
changing name on 22 September 1987 to the current style.
The
subject was formed to operate as the wholesale arm of the group.
The
Group has its origins in 1979 when Michael Hill opened the first store in the
New Zealand town of Whangarei.
OPERATIONS
The
subject operates in the import and wholesale of jewellery.
The
Group operates a chain of retail jewellery stores involved in the retail of
jewellery and related products and services. The group maintains a total of 296
stores of which 167 are in Australia.
Activities
are conducted from premises located at the above listed trading address.
ADVERSE
A
search of records on 30 November 2017 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.
Below
is a summary of the Group’s income results for the past two financial years.
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Michael Hill New Zealand Ltd - consolidated |
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As at 30
June 2017 |
As at 30
June 2016 |
Change
(%) |
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Revenue |
$582,975,000.00
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$551,127,000.00
|
5.78% |
|
Profit b/tax |
$44,958,000.00
|
$41,534,000.00
|
8.24% |
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Profit a/tax |
$32,648,000.00
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$19,577,000.00
|
66.77% |
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Net Profit Margin |
5.60% |
3.55% |
2.05% |
The
subject was noted to have entered into a Deed of Cross Guarantee pursuant to a
Class Order with its Holding entity Michael Hill International Ltd.
For
the same period the closed group recorded consolidated revenue of $455,144,000
which resulted in an operating profit before tax of $46,450,000 and an
operating profit after tax of NZ$35,428,000.
During
fiscal 2017, the Group recorded Net Cashflows from operating activities totalling
$39,752,000.
As
at 30 June 2017 the Group recorded total current assets of $238,581,000. They
included cash of $5,676,000, receivables of $24,219,000 and inventories of
$203,583,000.
Current
liabilities at the same date totalled $79,653,000 and included payables of
$47,918,000 and deferred revenue of $25,924,000.
As
at 30 June 2017 the Group recorded Working Capital of $158,928,000 and a
current ratio of 3 to 1 indicating strong liquidity levels.
At
the same date the closed group recorded consolidated working capital of
$337,800,000 and a current ratio of 6.4 to 1 indicating strong liquidity
levels.
The
Group entered into an agreement with ANZ on 24 June 2015 that provides for a
$110,000,000 multi option borrowing facility, the availability of which is
adjusted throughout the year in line with business requirements. At balance date,
$70,000,000 was available, and of that, $45,034,000 was utilised
The
Group also has access to various uncommitted credit facility lines serving
working capital needs that, at balance date, totalled $1,957,000. No amounts
were drawn under these credit facility lines as at balance date.
Group
Net Assets totalled $202,183,000 as at 30 June 2017. At this date, the subject
further recorded a Debt to Equity ratio of 0.92 to 1.
At
the same date the closed group recorded consolidated Net Assets of
$501,191,000. After deducting intangibles of $8,613,000 this results in a Net
Worth of $492,578,000.
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Michael Hill New Zealand Ltd - consolidated |
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As at 30
June 2017 |
As at 30
June 2016 |
Change
(%) |
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Revenue |
$582,975,000.00
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$551,127,000.00
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5.78% |
|
Profit b/tax |
$44,958,000.00
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$41,534,000.00
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8.24% |
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Profit a/tax |
$32,648,000.00
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$19,577,000.00
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66.77% |
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Net Profit Margin |
5.60% |
3.55% |
2.05% |
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Current Assets |
$238,581,000.00
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$240,112,000.00
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-0.64% |
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Non Current Assets |
$150,541,000.00
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$144,085,000.00
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4.48% |
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Total Assets |
$389,122,000.00
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$384,197,000.00
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1.28% |
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Current Liabilities |
$79,653,000.00
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$100,986,000.00
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-21.12% |
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Non Current Liabilities |
$107,286,000.00
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$96,810,000.00
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10.82% |
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Total Liabilities |
$186,939,000.00
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$197,796,000.00
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-5.49% |
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Net Assets |
$202,183,000.00
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$186,401,000.00
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8.47% |
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Working Capital |
$158,928,000.00
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$139,126,000.00
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14.23% |
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Current Ratio |
3.00 |
2.38 |
25.97% |
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Debt to Equity |
0.92 |
1.06 |
-12.87% |
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.44 |
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1 |
INR 89.89 |
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Euro |
1 |
INR 79.00 |
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AUD |
1 |
INR 51.00 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
NIT |
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 |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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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.