MIRA
INFORM REPORT
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Report Date : |
23.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
FORMEX WOOD
INDUSTRIES LTD. |
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Registered Office : |
P.O. Box 32,
Industrial Area, Migdal Tefen 24959 |
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Country : |
Israel |
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Date of Incorporation : |
14.9.1999 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Manufacturers and
marketers of veneer and postforming plates, used for packaging and office
furniture. |
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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Maximum Credit Limit : |
US$ 200,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
FORMEX WOOD INDUSTRIES
LTD.
P.O. Box 32
Industrial Area
MIGDAL TEFEN 24959 ISRAEL
Telephone 972 4 987 33 34
Fax 972 4 987 33 20
HISTORY
A private limited
company, incorporated as per file No. 51-283015-9 on the 14.9.1999.
Subject took over all
manufacturing activities in the field of post forming plates from the u/m companies:
BIRMAN WOOD &
HARDWARE LTD., established in January 1992.
DESKO WOOD PRODUCTS
(1987) LTD., a private limited company established in August, 1987.
SHARE CAPITAL
Authorized share
capital NIS 35,000.00, divided into - 35,000 ordinary shares of NIS 1.00 each,
of which shares amounting to NIS 1,000.00 were issued.
SHAREHOLDERS
G. GONEN INDUSTRIES
LTD., 17.5%, owned by Tzvi Letzter,
T. EL-GAL LTD., 17.5%,
owned by Michael Kolan,
AL LADAM
ENTREPRENEURSHIP LTD., 17.5%,
AD HAPOSKIM INDUSTRIES
LTD., 17.5%,
S.A. BAGEL INVESTMENTS
AND ASSETS LTD., 10%,
DESKO WOOD PRODUCTS
(1987) LTD., 10%,
M. S. MORAN INDUSTRIES
LTD., 10%.
In August 2005, BIRMAN
WOOD & HARDWARE LTD., which controlled subject with 30% of the shares,
signed an agreement with other 4 existing shareholders (a/m shareholders nos. 1
– 4, which held 10% of subject each), to sell them their 30%, equally split
among the 4, in consideration of NIS 180,000, BIRMAN's owners' loan, as well as
cancelling all BIRMAN's guarantees given to subject's bankers.
The deal was finalized
on the 19.10.2005.
DIRECTORS
1. Michael Kolan - General Manager,
2. Jacob Weilinger,
3. Yossef Hayu, CFO,
4. Amit Sarig,
5. Tzvi Letzter.
BUSINESS
Manufacturers and marketers
of veneer and postforming plates, used for packaging and office furniture.
Amongst subject’s
clients: PYRAMID EXPORT, A.P. FORMICA CENTER, MAKOR HAFORMICA, MEZONIT Y S R,
ETZ YAROK, AVERBUCH FORMICA CENTER, AMBIN, SIMHA COHEN TRADING CO., etc.
85% of purchases are
imports.
Amongst subject’s
local suppliers: BIRMAN WOOD & HARDWARE, etc.
Operating from rented
premises, on an area 5,000 sq. meters in the Industrial Area, Migdal Tefen.
Having 55 employees
(had 50 employees in 2005).
MEANS
Current stock is
valued at NIS 5,000,000 (was NIS 4,000,000 in mid 2005).
There are 14 charges
for unlimited amounts registered on the company’s assets, in favor of local
banks and companies.
B/S shows:
NIS
31.12.2005 31.12.2006
ASSETS
Current Assets
Cash 4,906 5,252
Customers 8,766,227 10,900,029
Other debtors 434,164 262,600
Stock _3,976,125 _4,002,462
13,181,422 15,170,343
Fixed assets 4,561,839 5,057,020
Deferred taxes _____8,750 _________-
17,752,011 20,227,363
========= =========
LIABILITIES
Current
liabilities 14,844,515 16,196,481
Long-term liabilities 3,124,554 3,547,069
Equity (deficit) _(217,058) ___483,813
17,752,011 20,227,363
========= =========
ANNUAL SALES
2003 sales were NIS 26,242,007,
making a net profit of NIS 69,081.
Statement of Income
NIS
Year ended 31.12
2004 2005 2006
Sales 24,825,565 27,056,897 30,229,109
Gross profit 5,099,170 4,784,389 5,502,621
Operating income 971,835 822,646 1,767,013
Profit before taxes on income 158,061 89,265 1,032,894
Net income (loss) 115,158 (49,777) 700,871
========= ========= =========
BANKERS
The First
International Bank of Israel Ltd., Haifa Bay Branch (No. 004), Haifa, account No.
403172.
Bank Leumi LeIsrael
Ltd., Hamifratz Business Branch (No. 898), Haifa, account No. 239800/57.
A check with the
Central Banks' database did not reveal anything detrimental on subject’s a/m
account.
CHARACTER AND REPUTATION
On 22.6.2004, SEFEN
filed a request for the liquidation of subject due to an unpaid debt of NIS
750,000, claiming subject is insolvent.
In return, subject
claimed that the request was not submitted in good faith, and that subject
merely deducted part of its payment to SEFEN due to damages caused to subject
by SEFEN violations of their agreement.
The SEFEN group was
one of subject’s competitors, and therefore we believe that it may be the
affair was part of a business conflict between the companies.
Apart from that,
nothing unfavourable learnt.
According to Industrialists' Association data for 2005, revenues of the Furniture and Wood products branches summed up to US$ 1.574 billion, a 7.5% increase from 2004, of which US$ 49.4 million derived from exports.
Investments in machinery and equipment in the branches noted a 28% increase in 2005.
The import of wood products and furniture in 2005 reached US$ 701.9 million, which represents a 5% increase from 2004. The wood and timber are imported mostly for construction as well as for the furniture industries.
According to the Chairman of the Furniture Industry Union at the Industrialists' Association, sales of furniture (alone) to the local market for the first 3 quarters of 2006 reached NIS 54.12 million, a 4.5% rise from the parallel period in 2005.
The import of furniture in the first 3 quarters of 2006 summed up to US$ 121.4 million (a 20% increase). Export of furniture for the period was US$ 17 million, representing a 15% decrease comparing to the previous year.
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended US$ 200,000.
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)