An Important Message From Our Director

by Carlisle Homes

As a business, Carlisle Homes continues to go from strength to strength – our Domestic Building Insurance has just received a significant increase, giving you even greater confidence that your new build is in the safest of hands.

I am pleased to announce that after a thorough assessment by the Victorian Managed Insurance Authority (VMIA), Carlisle Homes’ Domestic Building Insurance (DBI) limit has been increased by 500 million dollars to 1.15 billion dollars.

In determining whether to provide eligibility for DBI to a builder, the VMIA will consider the risk of the builder becoming insolvent. The assessment includes a review of the builder’s and its directors’ past building performance, their abilities with respect to the quantity and type of projects they propose to undertake, and their management and technical skills. The assessment also involves a review of the builder’s business history, recent financial reports, and key financial indicators associated with the business to demonstrate its solvency and ongoing financial viability.

The financial assessment process includes (but is not limited to) the following:

• Net tangible assets
• Net turnover growth
• Shareholders’ funds/sales
• Gross & net profit margins
• Interest cover (times covered)
• Work in Progress reports
• Debtor collection days
• Creditor payment days
• Working capital position
• Return on equity
• Return on assets
• Cash flow projections against actuals
• Statement of assets and liabilities of the directors/sole trader/partners
• Trust deeds