MIRA INFORM REPORT
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Report Date : |
2nd May 2006 |
IDENTIFICATION DETAILS
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Name : |
E.F. DESIGNS LP
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Registered Office : |
2 Haetzel Street New Industrial Zone RISHON LE-ZION 75105 ISRAEL |
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Date of Incorporation : |
28.8.2003 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Importers, retailers and marketers of furniture,
household products, lighting elements, textile goods, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$
1,000,000. |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME & ADDRESS
E.F. DESIGNS LP
Telephone 972
3 953 64 00
Fax 972 3 961 17 89
2 Haetzel Street
New Industrial
Zone
RISHON LE-ZION 75105 ISRAEL
HISTORY
A limited partnership, registered as per
file no. 55-021484-5 on 28.8.2003.
Subject was incorporated in order to merge
all retail activities of the BEITILI and I.D. DESIGN retail marketing chains,
which were transferred to subject on 1.9.2003.
PARTNERS
1. IKOO DESIGNS LTD., 49.5%, a
fully owned subsidiary of CARMEL HOLDINGS (I.L) LTD. LTD., a public limited company whose
shares are traded on the Tel-Aviv Stock Exchange, controlled by the Eitani
family.
2. F.C.P. DESIGN LTD., (trading
as I.D.DESIGN), 49.5% controlled by local businessman Eliezer Fishman.
3. E.F. HOME DESIGNS LTD., 1%,
equally controlled by the 2 above mentioned partners.
GENERAL MANAGER
Aviv Eitani
BUSINESS
Importers, retailers and marketers of
furniture, household products, lighting elements, textile goods, etc.,
operating 3 marketing chains under the brand names BEITILI (15 stores) and I.D.
DESIGN (5 stores), and RICH & TAYLOR (3 stroes).
55% of purchases are imports.
Among suppliers: IKOO, SHIR FURNITURE, etc.
Operating from offices in CARMEL HOLDINGS premises in 2 Haetzel Street, Rishon
Le-Zion, and from 23 retail stores nationwide.
Having 300 employees.
MEANS
Financial data is included in the
consolidated B/S of parent company, CARMEL HOLDINGS (I.L) LTD. LTD., which shows:
NIS
(thousands)
31.12.2004 31.12.2005
ASSETS
Current
assets
Cash
and cash equivalents 819 19,792
Negotiable
securities 111 24,798
Customers 58,974 59,188
Other
debtors 16,144 11,112
Stock 32,964 36,079
109,012 150,969
Long
term debit 9,455 9,450
Fixed
assets (net) 30,319 36,607
Deferred
expenses ___67 _2,810
148,853 199,836
====== ======
LIABILITIES
Current
liabilities 108,964 99,044
Long
term liabilities 13,204 63,346
Capital
notes 950 1,011
Equity _25,735 36,435
148,853 199,836
====== ======
CARMEL HOLDINGS
current market value US$ 16.3 million.
Subject’s stock
is valued at NIS 30,000,000.
ANNUAL SALES
CARMEL HOLDINGS
(I.L) LTD.
Consolidated statement of Income
NIS (thousands)
Year
ended on the 31.12:
2003 2004 2005
Revenues 182,154 168,190 175,618
Gross
Profit 74,841 69,827 71,261
Operating
Income 6,495 6,115 8,186
Net
Income (loss) before taxes 4,475 1,294 10,676
Net
Income (loss) 3,110 1,206 7,982
====== ===== ======
Subject’s 2004
sales claimed to be NIS 168,000,000.
Subject’s 2005
sales claimed to be NIS 186,000,000.
OTHER COMPANIES
CARMEL HOLDINGS (I.L) LTD., parent-company,
dealing in furniture, household goods, etc. Also controls:
BETILI
INVESTMENTS (1997) LTD., 100%,
IKOO DESIGNS
LTD., 100%,.
CAESAREA CARPETS
(97) LTD., 100%,
CARPETEC LTD., 100%,
TIMBER PARQUET
LTD., 51%,
SHAKED CARPETS
LTD., 50%.
E. F. DESIGN LP, 50%,
E.P HOME DESIGN
LTD., 50%,
K.A FURNITURE
LTD., 50%.
F.C.P. DESIGN LTD., parent-company, a
holding company.
BANKS
Bank Leumi LeIsrael B.M., Main branch (no.
800), Tel Aviv, account no. 785500/68.
A check with the central bank database did
not reveal anything detrimental on subject’s a/m account.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Subject officials refused to disclose any
details.
In June 2002, CARMEL HOLDINGS announced it is conducting negotiations
to merge its stores, with I.D DESIGN, operated by F.C.P DESIGN LTD., of the
Eliezer Fishman Group.
On the 21.7.2003, both sides signed an agreement to merge some of the
activities.
According to the deal, as of the 1.9.2003, the companies established a
new limited partnership, under the name E.F. DESIGNS LP which took over the
"Beitili" Marketing Chain (13 stores) and the I. D. DESIGN Chain (6
stores). Sales of both chains in 2002 amounted to NIS 210 million.
Both chains keep their commercial logos, however all administrative and
logistic activities were merged.
On the 28.8.2003, the deal was approved by the Commissioner of Trade
Restrictions.
According to the
Chairman of the Wood and Furniture Association in the Industrialist
Association, furniture sales to the local market during the first half of 2005
increased by 3% to a total of NIS 4.9 billion.
After 7 bad
years, in which 10,000 employees were retrenched from the branch, during the
first half of 2005, 160 new employees entered the sector, in which a total of
10,800 employees are currently employed.
The import of
furniture in the first half of 2005 totaled at a sum of US$ 120 million,
similar to the parallel period in 2004.
Export of
furniture in the first half of 2005 amounted to US$ 20.1 million, a 23%
increase.
SUMMARY
Maximum unsecured credit recommended US$ 1,000,000.
RATING EXPLANATIONS
RATING
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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 |