MIRA
INFORM REPORT
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Report Date : |
19th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
BRILL SHOES INDUSTRIES LTD |
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Registered Office : |
20 Yaakov Friman
Street Old
Industrial Zone Rishon Le-Zion 75358 Israel |
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Country : |
Israel |
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Date of Incorporation : |
11.7.1988 |
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Legal Form : |
Private limited company |
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Line of Business : |
Designers, manufacturers, importers and retailers
of shoes, clothes and fashion accessories |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
NAME & ADDRESS
BRILL
SHOES INDUSTRIES LTD.
Telephone 972
3 950 18 75
Fax 972
3 966 60 11
20 Yaakov Friman Street
Old
Industrial Zone
RISHON LE-ZION 75358 ISRAEL
HISTORY
Originally
established as a private limited company, incorporated as per file No.
51-130924-7 on 11.7.1988.
Subject
was established in order to continue the activities of BRILL SHOES LTD.
(established in 1950) which following financial difficulties became non active.
Converted
into a public limited liability company and registered as such as per file No.
52-003864-7 on the 7.2.1993.
In
February 1993 published a prospectus offering shares to the public on the Tel
Aviv Stock Exchange.
SHARE CAPITAL
Authorized
share capital NIS 10,000,000.00, divided into -
10,000,000
ordinary shares of NIS 1.00 each, of which shares amounting to NIS 4,145,226.00
were issued.
SHAREHOLDERS
1.Eliezer
Boskila, 35.98%,
2. Ofer
Ganezi, 18.56%,
3.
Moshe Ganezi, 17.13%,
4. Bank
Leumi mutual funds, 9.13%,
5. DASH
mutual funds, 6.87%,
6.
Shares are also traded on the Tel Aviv Stock Exchange.
DIRECTORS
1 Ofer
Ganezi, Chairman,
2.
Moshe Ganezi,
3. Ms.
Naomi Kenerk,
4.
Shlomo Boskila,
5. Oded
Erez,
6.
Yehoshua Minivitzky.
GENERAL MANAGER
Yehuda
Elbaz.
BUSINESS
Designers,
manufacturers, importers and retailers of shoes, clothes and fashion
accessories.
Operating
a shoe marketing chain under the name GALI, SOLOG, and DAFNA.
Sales
are to the Ministry of Defense, shoe stores and private customers.
Amongst
brands: GALI, WINNIE THE POOH, BRILL, HUSH PUPPIES, CATERPILLAR, COLMAN MEREL,
SPALDING, BARBIE, DAFNA, LEE COOPER, MAUI, DOCKERS.
Operating
from owned premises, on an area of 2,200 sq. meters, in 20 Yaakov Friman
Street, Old Industrial Zone, Rishon Le-Zion and from 94 stores nationwide (70
Gali stores and 24 Solog stores).
Having
555 employees, serving the whole Group (had 600 in 2005).
MEANS
Consolidated
B/S shows:
NIS
(thousands)
31.12.2005 31.03.2006
ASSETS
Current
Assets
Cash
and cash equivalents 626 467
Customers 48,830 45,138
Debtors 3,479 5,574
Stock 58,923 73,241
111,858 124,420
Fixed
Assets 31,360 32,725
Investments 10,000 10,000
Other
Assets 2,683 650
Deferred
taxes 718 236
156,619 168,031
====== ======
LIABILITIES
Current
Liabilities 44,226 58,099
Long Term
Liabilities 50,160 48,376
Equity 62,233 61,556
156,619 168,031
====== ======
Market
value US$ 47.0 million.
There
are 11 charges for unlimited amounts registered on the company's assets, in
favor of local banks and companies.
ANNUAL SALES
Consolidated Statement of
Income
NIS (thousands)
Year ended 31.12
2003 2004 2005
Sales 207,211 245,947 292,420
Gross profit 106,484 125,738 150,325
Operating income 19,002 31,441 39,115
Pre-tax income 14,548 27,424 34,131
Net income 11,144 19,768 23,023
====== ====== =======
Consolidated
first quarter of 2006 sales NIS 71,823,000 (22.5% increase compared to the
parallel period of 2005), making a gross profit of NIS 34,602,000, an operating income of NIS 7,992,000 and a net
income of NIS 4,872,000.
OTHER COMPANIES
M. GEVA
INTERNATIONAL INVESTMENTS LTD., 50%,
B. L.
AMERICAN SHOES LTD. 100%,
BRILL
ASSETS LTD., 100%,
BOSKILA ELIEZER
& SONS LTD., controlled by Eliezer Boskila, importers and marketers of raw
materials for the shoe industry, leather and imitation leather, belts,
handbags, etc.
HOLIS
METAL INDUSTRIES LTD., controlled by the Ganezi Family, Designers,
manufacturers and marketers of window coverings.
BANKERS
Bank
Hapoalim Ltd., Hagalil Branch (No. 507), Tel Aviv, Account No. 215222.
A check
with the central banks' database did not reveal any negative information
regarding subject's a/m account.
CHARACTER AND REPUTATION
In May
2003, it was reported that the securities authority filed an indictment against
Ofer Ganezi, claiming he did not report to the authority on time, regarding his
dealings in BRILL shares in 2001, and that in 2000, BRILL won a NIS 30 million
tender to supply boots to the Ministry of Defense, however, the company filed a
report to the Stock Exchange only 13 days after they knew they won the tender.
Indictments were also submitted against BRILL and its Finance Manager.
In
December 2003, subject reached a compromise according to which it will pay a
fine of NIS 100,000.
In May
2005, an indictment against subject and 4 of its directors (as part of an
indictment against 89 defendants) was submitted, due to allegedly operating an
unlicensed store in Petach Tikva.
Apart
from that, nothing unfavorable learnt.
Having
ISO 9002 standard.
In
February 2002, it was reported that GALI will redesign its stores, in an
investment of US$ 5 million.
In
August 2002, subject decided to merge 3 of its subsidiaries, DAIRY-STEINER
MANUFACTUIRNG AND MARKETING OF SHOES LTD., SHOE STREET MARKETING LTD. and AIR
SPORT MARKETING LTD. into one company.
In
October 2002, it was reported that the Ministry of Defense cancelled a NIS 30
million order from subject.
In
December 2002, it was reported that subject will transfer all its DAFNA stores
into GALI stores.
In July
2003, it was reported that GALI invested US$ 1 million in 6 new stores.
In
November 2003, it was reported that subject signed a deal to operate the shoe
department in HAMASHBIR HAHADASH LAZARCHAN stores.
In
February 2004, it was reported that subject will provide shoes to the Ministry
of Defense, for a sum of NIS 7 million.
In July
2004, it was reported that subject signed a NIS 7.5 million deal to supply
shoes to the Ministry of Defense. A further NIS 11 million deal was signed in
November 2004.
In
September 2004, subject completed a NIS 50 million capital raise by issuing
convertible bonds.
In
December 2004, subject acquired all activities of SOLOG (retailers of children
clothes), for a sum of NIS 7.3 million.
In
August 2005, subject signed a NIS 4 million deal to supply shoes to the
Ministry of Defense.
In
December 2005, subject signed another NIS 20 million contract with the Ministry
of Defense.
In
April 2006, subject signed NIS 5.5 million contract with the Ministry of
Defense.
The shoes market in Israel is estimated at circa NIS 2
billion per annum. During 2003, the number of employees in the branch was
around 1,800 – similar to 2002. Among the leading local manufacturers are TEVA
NAOT, NIMROD, CALIGULA, BEAUTIFUL, GALI-BRILLM DAFNA, HULTA, BRENNER and
NURIEL.
According to the Chairman of the shoe branch in the
Industrialists Association, sales to the local market by local shoe
manufacturers in 2003 increased by 1% comparing to 2002, summing up to NIS 1.06
billion.
Import of shoes in 2003 reached US$ 201 million, same
as in 2002. Exports of the branch reached US$ 82 million, a 3% decrease from
2002.
SUMMARY
Good for US$ 1,500,000.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |