Revenue and employee numbers

Victoria tops the states

Y/H£AE XNo\ .... L.£OGE IS POWER

Super funds • stay In

the lead

28 August 30-0ctober 32012 j www.brw.com.au IYl<£/I£ KNOIYLEDGE IS POWER

I ,

FAt GAME Hard work, high productivity and strong results are hallmarks of the best privately

held companies. But will they stay private? Public peers and venture capital firms may

come knocking. Report: Asher Tan

• Private companies have never been as attractive to prospective investors.

Poor performing equities markets are encouraging buyers to look at big private companies, many of which are outperforming listed competitors.

A high level of productivity in top private companies is contributing to their appeal. For the third year in a row, the ratio of sales revenue to employees for the Top 500 has been about $550,000. This represents an historically high level of productivity; it was as low as $330,000 in 1996.

Some long-term members of the Top 500 are capitalising on the increased interest in private companies from large public companies and private equity firms.

Bob Ingham, at 81, is the sale shareholder of Australia's largest poultry producer, Inghams

Enterprises, which is ranked 13 on the Top 500. In July, he put his business up for sale. It may be good timing; revenue rose 14.1 per cent to $2.1 billion in the year to June 30, 2012. Inghams is expected to sell for about $1.5 billion.

Although attractive to foreign and local buyers for their market-beating potential, the Top 500 are not immune to broad economic trends.

Total revenue of this year's Top 500 is 1.7 per cent less than last year, at $217.6 billion.

For the year to June 30,2012, the S&PjASX 200 Index fell by 10.8 per cent.

A total of 21 companies depart the list after being acquired by a rival. Fifteen left for the same reason last year.

Earlier this month publicly listed clothing retailer Country Road announced plans to buy Continued on page 30

~~~~--~

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• f breHR Visit www.fibreHR.com.au or phone (03) 8413 0203 lr II your people are our business

- - ----{ TOP 500 PRIVATE COMPANIES }----- -

TOTAL REVENUE OF THE TOP 500, DOWN FROM

$221.4 BILLION LAST YEAR

LEADERS OF THE PACK: THE LARGEST COMPANY BY REVENUE FOR EACH SECTOR

Industry mJmI Name (balance date)

Accommodation, cafe~, restaurants

Agriculture, forestry, fishing

Basic material wholesaling

Construction "

Cultural, recreational services

Education

Electricity, gas, water supply

Fast food

Finance

Food retailing

Food, beverage, tobacco manufacturing

Health, community services

Insurance and superannuation funds

Machinery, equipment manufacturing

Machinery, motor vehicle wholesaling

Metal product manufacturing

Mining

Motor vehicle retailing and services

Non-metallic Mineral product

manufacturing

Other manufacturing

Personal, household good retailing

Personal, household good wholesaling

Personal, other services

Plastic, chemical, associated product

manufacturing

Printing, publishing, recorded media

Property, business services

Services to finance and insurance

Textile, clothing, footwear, leather

manufacturing

Transport, storage

Wood, paper product manufacturing

32 August 30-0ctober 32012 I www.brw.com.au

179 Quest Serviced Apartments (6/12)

155 Twynam Agricultural Group (6/11)A A

20 Queensland Sugar (6/12)

12 BGC (6/12)

89 WIN Corporation (6/11)A A

220 Australian Catholic University (12/11)

296 Pacific Hydro (6112)

42 Competitive Foods (6/12)

71 Credit Union Australia (6/11)

6 7-Eleven Stores (6/12)

10 Murray Goulburn Co-op (6/12)

19 St Vincent's Health Australia (6/11)

AustralianSuper (5/12)

56 Tenix (6/12)

62 CMV Group (6111)

82 ONI Resources (6/11)

23 Hancock Prospecting (6/10)

53 Freedom Fuels (6/11)

154 G James Australia (6/11)

106 Schiavello Group of Companies (6/12)

17 The Good Guys (6/11)A

24 Primo Smallgoods (61 II)

41 RACQ (12/11)

51 VIP Packaging (6111)

114 IPMG (6/12)

22 PwC Australia (6/12)

148 Cuscal (6/12)

324 AI Topper (6/12) . t

11 Linfox (6/12)

3 Visy Industries (6/12)

lill~llllllmllal!M'11I 324.45 N/C

370.00 3.6

1,672.38 -3.5

2.195.58 -1.5

565.00 -2.1

257.58 10.4

192.00 NlC

1,070.35 2.4

701.56 23.9

3.332.30 15.7

2,361.00 3.0

1.745.00 49.3

7,436.01 -24.7

900.00 28.6

8,33.95 3.6

622.62 N/C

1,472.00 85.2

973.64 10.8

370.31 - 16.5

500.00 0

1,900.00 -8.5

1,450.00 3.6

1,086.11 76.3

986.00 23.3

490.00 - 0.9

1,478.00 3.4

385.00 -3.1

170.63 2.0

2,340.00 -10

3,900.00 2.6

Continued from page 30 with $1.4 billion in revenue but a lack of new information has meant that Hancock Prospecting is judged on its 2010 numbers.

High oil prices helped fuel companies post impressive results. Refuelling Solutions Group was up 88.5 per cent to $256.8 million; Liberty Oil rose 18.8 per cent to $828.82 million; and Pacific Petroleum was up 10.3 per cent to $133.5 million.

Some manufacturers did well despite the widely held belief that the sector is struggling. Machinery and equipment manufacturing grew 16.2 per cent.

Industrial infrastructure manufacturer Tenix lifted revenue by 28.6 per cent and the grinder manufacturer ANCA had a 25.4 per cent increase in sales.

Construction, the second-largest sector on the list after property and business services, had mixed results.

Much depended on each company's specialisation and project. Residential builders generally did worse than commercial builders.

Piacentini & Son was up 77.1 per cent, and Vaughan Constructions grew 62.8 per cent, helped by projects in Victoria and Western Australia.

Climate control specialists AE Smith had the biggest sales increase of all companies on this year's list (in percentage terms). Its revenue rose by 124.4 per cent to $230 million.

The private food retailing sector lost KFC franchisee Collins Food to the ASX during the year. Convenience chain 7-Eleven, which has about 500 stores in Australia, increased revenue by 15.7 per cent to $3.3 billion.

Former top place getter on BRWs Fast 100 and Fast Franchises lists, home delivery food company Aussie Farmers Direct, increased revenue by 14.8 per cent more to $152.2 million - its best result ever. Online sales helped Crust Gourmet Pizza Bars record a 35.6 per cent increase in revenue to $135.7 million.

The high Australian dollar helped some Top 500 companies but hurt others. Wool exporter Techwool Trading's revenue shrank 14.7 per cent while De Bortoli Wines' latest full-year result was down by 9.9 per cent. As a group, food, beverage and tobacco manufacturers increased revenue by 5.7 per cent. PRW

Asher Tan is senior economic research analyst at IBISWorld. For ran kings of the BRW Top 500 Private Companies by their industry sector and head office location, go to brw. com. au for web­exclusive tables. The full rankings of the BRW Top 500 Private Companies starts on page 38.

- -----{ TOP 500 PRIVATE COMPANIES } - -----

Company

Just Cuts

JWH Group

Kailis Bros

Kane Constructions

Keema Automotive

Group

Kemp & Denning

Kennards Hire

Kennards Self Storage

Khan's IGA

Supermarkets

King & Wood Mallesons

Kings Group

KPMG

KU Children's Services

LH Perry & Sons

Leading Edge Group

Leda

Legal Super

LGSS NSW

Liberty Oil

Linfox

Lipman

Little Company of Mary

Health Care

Lowes-Manhattan

LU Simon Builders

LUCRF

Lustig & Moar

Lynch Group

MAB Corporation

Mackay Sugar

Madill Motor Group

Mainbrace Constructions

Manildra Group

Maritime Super

Masterton Group

Mater Health Services

Brisbane

Matrix Group

Maughan Thiem

MC Herd

McGrath Nicol

McNab Constructions

McWilliam's Wines

Meat & Livestock

Australia

Media Super

Melbourne Airport

Melbourne Cricket Club

Menzies International

Meriton Apartments

MG Kailis

Michell Wool

Middletons

Midfield Meat

International

Minter Ellison Legal

Group

Mission Australia

-490

177

132

128

359

498

281

435

423

133

328

36

484

467

170

239

288

21

63

11

447

45

264

209

76

343

437

225

189

398

318

38

78

273

58

384

423

248

446

390

338

331

72

93

358

279

31

476

448 428

103

136

131

Company

Moore Stephens

Moraitis Group

Motor Trades Association

of Australia

Superannuation Fund

Motorama Group of

Companies

Mounties

Mrs Mac's

Mulawa Holdings

Murray Goulbum Co-op

Na~onal Capital Motors

National Rugby League

New Town Toyota

Newcastle Permanent

NHP Electrical

Engineering Products

Non-Government

Schools Superannuation

Fund

Norco Co-op

Norman Disney & Young

Northern Co-op Meat

Norton Rose

NRMA Motoring &

Services

Office Brands

Oliver J Nilsen

oOh!media

Orionstone

Pacific Hydro

Pacific Petroleum

PAS Group

Patersons Securities

Patterson Cheney

Holdings

PAX Australia

Pellicano Builders

Penfold Motors Group

Penrith Rugby League

Club

Pentarch Holdings

People's Choice Credit

Union

Peregrine Corporation

Perron Group

Perth Airport

Petbarn

Peter Kittle Motor

Company

Peter Warren Group

Petfood Holdings

PFD Food Services

PharmaCare

Phosphate Resources

Piacentini & Son

Pinpoint

Pitcher Partners

PKF

Playcorp

-380

97

65

123

441

494

96

10

428

399

271

116

139

68

164

495

326

250

120

137

180

419

387

296

392

228

437

121

500

412

196

355

426

124

33

141

185

412

282

98

189

26

223

445

255

172

352

397

259

Company

Plumbers' Supplies

Co-op

Porter Davis Homes

Poulos Bros

PPI Corporation

Holdings

Premium Funding

Pretty Girl Fashion

PWC Australia

Prime Super

Primo Small goods

Professional

Associations Super

Oantas Staff Credit

Union

Oantas Super Plan

ONI Resources

Queensland Sugar

Ouest Serviced

Apartments

Quick Service

Restaurants Holdings

RM Insurance

RAA of SA

RAC ofWA

Racing Victoria

RACO

RACV

Ray White Group

Redox

Reed Building Group

Refuelling Solutions

Group

Regis Group

Rei Super

RESIMAC

Retail Apparel Group

Retail Employees

Superannuation Trust

Retravision

Rex Gorell Family Group

Richard Crookes

Constructions

Rider Levett Bucknall

Rip Curl

Ritchies IGA

Roadhound Electronics

Royal District Nursing

Service

RSL Care

RSM Bird Cameron

SA Liquor Distributors

Salta Properties

Salvation Army

Samex

Samuel Smith & Son

Sanger Australia

Sanitarium Health Food

Company

Sanwa

••

391

111

487

421

365

300

22

208

24

87

348

55

82

20

179

69

400

268

105

210

41

130

405

158

106

221

207

310

195

412

8

60

157

119

407

160

67

444

427

283

411

406

84

74

423

401

146

161

193

Company

Sarah Group

Sarina Russo Job

Access

Scalzo Food Industries

Schiavello Group of

Companies

Scott Group of

Companies

SCT Logistics

Seafolly

Sealanes

Sealy of Australia

Searoad Holdings

Secure Parking

Seeley International

SEMA

Shacks Holden

Silcar

Silver Chain Nursing

Sinclair Knight Merz

SMEC Holdings

SNP Security Services

Southern Cross Project

Group

SPAR Australia

Sparke Helmore

Lawyers

Spotlight

St John of God Health

Care

St Vincent de Paul

St Vincent's Health

Australia

Staging Connections

Group

Statewide Super

Steel-Line Garage Doors

Steel force Australia

Stowe Australia

Strathig Holdings

Stuart Alexander

Summit Homes Group

Sunny Queen Farms

Sunsuper

Supre Holdings

Sussan Group

Suttons Motors

Swisse Vitamins

Syd ney Adventist

Hospital

Sydney Fish Market

T & R Pastoral

Talent International

Tasplan

Teachers Credit Union

Teachers Health Fund

Techwool Trading

Ted's Camera Stores

Telstra Super

Tenix

-338

449

178

106

52

204

481

379

378

450

306

479

437

433

134

280

25

135

229

294

323

454

54

47

205

19

422

83

450

366

140

431

373 262

272

7

261

99

57

384

188

388

48

236

231

213

169

183

496

64

56

Company

Terry Shields Toyota

Terry White Chemists

The Good Guys

Tibra Capital

Tilling Group of

Companies

Timber Industry

Superannuation Scheme

Tom Stoddart

Tourism Asset Holdings

Transtar International

Freight

Trondage Enterprises

TWU Superannuation

Fund

Twynam Agricultural

Group

Tynan Motors

Tyrepower

Uni Co-op Bookshop

UniSuper

Valcorp Fine Foods

Vau9han Constructions

Ventura Bus Lines

Vesco Foods

VicSuper

Victoria Racing Club

Videopro

'VIP Au stralia' , .

VIP Packaging

Vision Super

Visy Industries

VOS Construction

Voyager Distributing

Wallace Bishop Group

Walton Construction

Weeks Group

Wesley College

Melbourne

Wesley Mission

West End Mazda

Westpoint Autos

Wilson Transformer

Company

WIN Corporation

Winning Appliances

Witchery

Woods Bagot

WorkPac

World Vision

YFG Shopping Centres

-347

49

17

396

412

186

489

457

373

493

79

155

142

167

478

4 460

243

227

373

14

363

480

473

51

80

3

488

359

443

198

356

499

393

369

367

222

89

338

212

412

86

167

410

www.brw.com.auIAugust 30-0ctober 32012 35

- --- --{ TOP 500 PRIVATE COMPANIES }------

Name (balance date)

57 62 Suttons Motors (6/12)A 1\

58 71 Mater Health Services Brisbane (6/12) ------59 64 Consolidated Travel (6/12)

60 63 Retravision (6/11) --------'-----'-------------_6_1 ___ 70_ ABN Group (6/12)

62 65 CMV Group (6/11)

63 76 Liberty Oil (6/12)

64 16 Telstra Super (6/12)

65 34 Motor Trades Association of Australia Superannuation

____ _ F...:u...:nd...:(.:..::6...:/l...:2.:...) ____________ _

66 41 CareSuper (6/12) ----------'-- '-----'--------------67 66 Ritchies IGA (6/12) ---- --'-"-'---'---'----'---'------------

_6_8 ____ 3_5_ Non-Government Schools Superannuation Fund (5/12)#

_ 6_9 ____ 7_3 __ -,-O_u...:.ic_k...:.S_e_rv_ic,-e_R_e_s_ta_u,.-ra_n_ts ___ H_o_ld_in-=g,-,s...:.(_6/_1_1..:.) _____ _

Goodstart Childcare (6/12) 70 --------------~-~----------

71 1 gO Credit Union Australia (6/11) ------72 74 Media Super (6/11) ------73 106 Barminco (6/11)

74 78 Salvation Army (6/11)1\ 1\ ------75 83 Gardner Smith (3/12) ---- --'-'--'----'----'------'----------

76 LUCRF (6/11) ---- ----'-----'--------------

77 79 Costa Group (6/11 )1\

78 81 Maritime Super (6/11)

~ ____ TWU Superannuation Fund (6/11)

80 69 Vision Super (6/12)

81 72 Grocon (6/11)

82 ONI Resources (6/11) - - --------'--'------------83 88 Statewide Super (6/11)

84 90 Salta Properties (6/12)1\ 1\

85 87 James Richardson (6/12) ------

86 89 WorkPac (6/12)

87 111 Professional Associations Super (6/11) -------~-~---~~-------

Balverona (6/12) 88 163 ----------'-----'-------------~ ~ Franchise Entertainment Group (6/11)A1\

89 95 Freehills (7112)

~~ WIN Corporation (6/11)A1\

92 86 Bakers Delight (6/12)

93 94 Melbourne Airport (6/11)

_9_4 ___ 68_ Catholic Super (6/12)

95 107 Heritage Bank (6/11)

96 103 Mulawa Holdings (6/12)

~~ Moraitis Group (6/11)

~ ~ Peter Warren Group (6/12)

99 96 Sussan Group (7/11)

~ ~ Catholic Super & Retirement Fund (6/12)

101 59 equipsuper (6/12)

102 108 ADCO Constructions (6/12)

103 102 Midfield Meat International (6/12)

104 117 Consolidated Press Holdings (6/11) ---- - --------"--'---'------ --105 80 RAC of WA (6/11) ---- - --'------'------,.------,-------106 99 DVG Automotive Group (6/11)

_1_0_6 ___ 99_ Reed Building Group (6/11)

_1_0_6 ___ 9_9_ Schiavello Group of Companies (6/12)

109 Carpet Court (6/12) - - -- --'-------'-:-:c-,.--,.-,.---------

110 Epworth Healthcare (6/11)" 1\ ---- --'--------'--~---------110

111 Porter Davis Homes (6/11) --------- ----'---'-----------

• Revenue

Total ($m) Change (%)

Employees

Total Change (%)

Industry

NSW ___ 8_8_8_.0_0_ 3.9 __ N_I_A_ N/C Motor Vehicle Retailing and Services

Old 862.89 9.6 3,350 -33.9 Health, Community Services

Vic __ 8_5_4_.7_1_ 1.6 __ 2_4_2_ 3.0 Transport, Storage

NSW ___ 8_5_4_0_ -17.4 130 0 Personal, Household Good Retailing

WA __ 8_4_5_.4_5 _____ 7.,..._1 1,609 10.7 Construction

SA __ 8_3_3_.9_5_ 3.5 __ N_I A _ ____ N_I_C_ Machinery, Motor Vehicle Wholesaling

VIC 828.82 18.8 56 3.7 Basic Material Wholesaling

VIC 820.29 -----5- 9- .8----12,-7-------3'-.3- Insurance and Superannuation Funds ---

ACT 789.00 -31.8 39 o Insurance and Superannuation Funds

Vic 788.45 -25.9 __ N_I_A_ N/C Insurance and Superannuation Funds

Vic 780.00 -2.5 __ 4_,3_00 _____ 7_.5 __ F_o_o_d_R_e_ta_il_in"'g ____________ _

NSW 778.20 -34.2 38 40.7 Insurance and Superannuation Funds

WA 745.71 11.4 3,927 -14.1 Fast Food

Old 740.00 N/C 10,727 N/C Health, Community Services

Old 701.56 23.9 N/A N/C Finance ----NSW 700.00 42.3 ____ 25_ N/C Insurance and Superannuation Funds

WA 691.05 35.4 2,351 43.2 Mining

NSW 683.00 -0.9 N/A N/C Health, Community Services -------NSW 680.32 12.9 __ 2_2_0_ 0 Basic Material Wholesaling

Vic 658.43 N/C ___ N_I_A_ N/C Insurance and Superannuation Funds

V c 650.00 -1.9 NI A N/C Personal, Household Good Wholesaling

NSW 645.60 1.3 55 N/C Insurance and Superannuation Funds

Vic 642.10 N/C NI A N/C Insurance and Superannuation Funds

Vic 637.00 -19.6 115 6.5 Insurance and Superannuation FuOds ---Vic 631.35 -17.7 226 -53.4 Construction

Old 622.62 N/C 900 N/C Metal Product Manufacturing

SA 609.67 11.2 NI A N/C Insurance and Superannuation Funds

Vic 609.00 16.0 NI A N/C Property, Business Services

Vic 597.50 5.6 1,439 8.4 Personal, Household Good Retailing

Old 572.20 5.1 362 4.0 Property, Business Services

Vic 569.79 24.0 NI A N/C Insurance and Superannuation Funds

NSW 569.55 17.7 124 -14.5 Machinery, Motor Vehicle Wholesaling

NSW 565.00 -1.7 N/A N/C Personal, Other Services

NSW 565.00 10.6 1754 2.8 Property, Business Services

NSW 565.00 -2.1 NI A N/C Cultural, Recreational Services ----Vic 564.00 -1.3 _ 1_5_,0_0_0_ ° Food, Beverage, Tobacco Manufacturing

Vic 561 .1 4 8.4 __ N_I A_ N/C Transport, Storage

Vic 549.87 -34.6 47 67.9 Insurance and Superannuation Funds ----Old 539.99 13.4 692 0.9 Finance ---- -----------

NSW 530.00 2.7 1,800 -10.7 Cultural, Recreational Services ----NSW ___ 5_2_6_.8_8 _______ 17_.8 ____ 5_9_7 _____ 6_.2_ Personal, Household Good Wholesaling

NSW 522.00 ____ 1_0_.1_ 635 2.8 Motor Vehicle Retailing and Services

ViC ___ 5_2_1._38 ______ 3_.4 ___ 4_,_10_9_ -11.1 Personal, Household Good Retailing

NSW 521.00 _____ -_4_3_.5 ____ 6_0_ 7.1 Insurance and Superannuation Funds

Vic ____ 5_18_._26 ______ -4_1_.3 ____ 4_2 _____ -_6_.7_ Insurance and Superannuation Funds

NSW 507.00 8.7 385 17.4 Construction ----------------Vic ___ 5_06_._7_1 _ ___ 5_2_.3 ____ 7_3_0 ____ 1_0_7_.4_ Personal, Household Good Wholesaling

NSW 504.96 13.6 N/A N/C Finance ---------------WA ___ 5_03_._6_1 ___ - _23_._2 __ 1_'0_00 ____ -_1_0_.0_ Personal, Other Services

WA 500.00 3.1 570 14.0 Motor Vehicle Retailing and Services ---- ----- ----NSW 500.00 24.3 383 -2.0 Construction ----

Vic ___ 5o_0_'_00 ______ 0 __ 1_,3_20 _____ 1_.5_ Other Manufacturing

Vic 499.74 ____ N_I_C _ ___ 2_9_ N/C Personal, Household Good Wholesaling

Vic 496.00 7.6 N/A N/C Health, Community Services ---- - - --- -----

Vic 493.1 7 N/C 50 N/C Construction

www.brw.com.auIAugust 30-October 32012 39