MIRA
INFORM REPORT
|
Report Date : |
10.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ARAD TEXTILE INDUSTRIES LTD. |
|
|
|
|
Registered Office : |
Textile House, 2, Kaufman Street, Tel Aviv 68012 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
1976 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, exporters and marketers of towels. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
ARAD TEXTILE
INDUSTRIES LTD.
Textile House
2, Kaufman Street
TEL AVIV 68012
ISRAEL
Telephone 972 3 519 37 77
Fax 972 3 519 37 85
HISTORY
Originally established in 1976, and incorporated as a private limited company as per file No. 51-088494 on the 27.4.1981.
Converted into a public limited liability company as per file No.
52-003955-3 on the 27.6.1993.
In July 1993 published a prospectus offering shares to the public on the
Tel Aviv Stock Exchange.
In October 2001, following a successful tender offer, subject’s shares
were de-listed from trade in the Tel Aviv Stock Exchange.
Originally registered under the name ARAD TOWELS LTD., which changed to
the present name on the 1.1.2003.
SHARE CAPITAL
Authorized share capital NIS 41,250,000.00
divided into - 41,250,000 ordinary shares of NIS 1.00 each, of which shares amounting
to NIS 39,987,129.00 were issued.
SHAREHOLDERS
According to the Registrar of Companies, shareholders are as follows:
1. STANDARD TEXTILE EUROPE
LTD., 77.9%, controlled by STANDARD TEXTILE CO. INC, USA, controlled by Gary
Heyman & family, of the USA,
2. D. G. T. (HOLDINGS) LTD.,
9.9%,
3. BANK LEUMI LEISRAEL
REGISTRATION CO. LTD., 6.6%,
4. S.T.E. INDUSTRIES &
TECHNOLOGIES LTD., 4.7%,
5. Ms. Miriam Sheler, holding
1 single share,
6. Gadi Graus, holding 1
single share,
7. Hagai Laron, holding 1
single share,
8. R. I. A. TRUSTEES LTD.,
holding 1 single share.
In practice, subject is fully owned by
STANDARD TEXTILE EUROPE LTD., which acquired the public shares in subject in
October 2001.
DIRECTORS
1. Gary
Heyman, Chairman,
2. Dov
Lautman,
3. Moshe
Birnboim.
GENERAL MANAGER
Yehoshua Kutchinsky
BUSINESS
Manufacturers, exporters and marketers of towels.
Also manufacturers, exporters and marketers of fabrics (mainly apparel
and accessories for the operation rooms).
Manufacturing is also via affiliated Jordanian plant (C.I.G.).
Local customers are mainly institutional: hotels, hospitals, Israel
Defense Force, etc.
90% of sales are for export. 60% of sales are to parent company in the
USA. Other export is mainly to the U.K., France, etc. Sales for export are
mainly to institutional clients, including hospitals and hotel chains.
Among clients: MARRIOTT Hotel Chain.
Among local suppliers: P.A.T. COMPRESSED AIR TECHNOLOGY, CARGAL,
FRIDENSON LOGISTIC SERVICES TRANSPORT, HAMENIA PUMPS, TCHELET DYEING &
FINISHING, etc.
Operating from offices in 2 Kaufman Street, Textile House, Tel Aviv, and from 2 plants in Migdal Haemek (owned, on an area of
4,000 sq. meters) and Arad (one third owned, on an area of 50,000 sq. meters).
Having 750 employees (had 700 employees in the beginning of 2007).
MEANS
B/S to the 30.09.2001 totaled NIS 220,863,000.
Equity to the 30.09.2001 totaled NIS 179,494,000.
Later financial data not forthcoming.
Subject is an “Approved Enterprise” and as such enjoys State incentives
and tax benefits.
In July 1997, the Investment Center Administration approved a US$ 2 million
investment plan for the expansion of subject’s plant.
In August 2001, the Investment Center Administration approved a further
expansion of subject’s plant (US$ 9.6 million).
In January 2005, the Investment Center Administration approved another expansion
of subject’s plant (US$ 5.4 million).
There are 5 fixed and floating charges for unlimited amounts registered
on the company’s assets, in favor of the State of Israel Mizrahi Tefahot Bank
Ltd., The First International Bank of Israel Ltd., Bank Leumi LeIsrael Ltd. and
Bank Hapoalim Ltd.
ANNUAL SALES
Consolidated 2003 sales claimed to be US$ 70,000,000, 90% for export.
Consolidated 2004 sales claimed to be US$ 70,000,000, 90% for export.
Consolidated 2005 sales claimed to be US$ 80,000,000, 90% for export.
Consolidated 2006 sales claimed to be US$ 90,000,000, 90% for export.
Consolidated 2007 sales claimed to be US$ 100,000,000, 90% for export.
Estimated pre-tax profit according to
reports from October 2007, stand on US$ 11-12,000,000.
OTHER COMPANIES
ARAD TOWELS ASSETS (1986) LTD.,
STANDARD TEXTILE
EUROPE LTD., a holding company,
C.I.G., 50% controlled by STANDARD TEXTILE USA and 50% by a Jordanian
company, a sewing plant located in Irbid, Jordan.
BANKERS
Bank Leumi LeIsrael Ltd., Central Branch
(No. 800), Tel Aviv, account No. 265700/07,
Bank Hapoalim Ltd., Yahalom Branch (No. 537), Tel Aviv, account No.
76026.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m accounts.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Parent company, STANDARD TEXTILE CO. INC, are global manufacturers of
healthcare, hospitality and institutional textiles, apparel, surgical,
incontinence care, decorative products & linen. With 3,600 employees
worldwide in 24 plants over 14 countries, it has global annual sales of US$ 600
million.
In January 1999 subject’s parent, STANDARD TEXTILE (EUROPE) LTD.
acquired some 41% of subject's shares from D.G.M.A., of the DELTA GALIL INDS.
Group, in consideration of US$ 17.5 million.
In December 1999 STANDARD purchases further 5% of subject's shares from
Yossef Geva, in consideration of US$ 2.4 million.
Later, in October 2001, STANDARD reached full ownership in subject,
after it acquired the reminder of D.G.M.A. shares, in consideration of
allocating them 15% in STANDARD.
Dov Lautman, subject's director, is a shareholder and founder of DELTA
GALIL INDS. Group.
In November 2003, it was reported that following an increase in
production, subject will hire 50 new employees.
In September 2006, it was reported that subject invested NIS 800,000 in
new branding of its products for addressing the retail market in Israel and
abroad.
In March 2007 it was
reported that subject is erecting a retail chain store for home textile under
the name "Bed & Bath Home Collection".
In the first
stage, 7 stores will be opened, 5 in the South of Israel and 2 in the North,
with overall investment of NIS 2.1 million.
According to the
Chairman of the Textile and Fashion division of the Industrialists’
Association, the sales of the textile industry in 2006 reached NIS 10 billion,
a 6% rise comparing to 2005. Sales to the local market rose 13% to NIS 5.18
billion.
Sales by the
industry to the local market in the 1st half of 2007 rose by 3%
comparing to the parallel period in 2006, reaching close to NIS 2 billion.
The Israel Export
and International Cooperation Institute published that the export by the
Textile, Footwear and Leather industries in 2006 grew by 1% and reached US$
1.085 billion. Export in the 1st half of 2007 fell to US$ 522.3
million, 4.3% decrease comparing to the parallel
period in 2006.
Most exports were
to the North American markets (49%).
The local industry
has been strageling in face of fierce import competition, forcing streamlining
process, the shift of textile manufacturing to low labor cost countries.
According to the Industrialists’ Association, the large plants moved most
manufacturing activities abroad in recent years, while dozens plants and
workshops were closed down (10 manufacturing firms ceased activities during
2006).
1,500 workers were
fired in the textile industry during 2005 and 500 during 2006. However,
2007 marks the first time after 12
years, that new employees were recruited to the local textile industry. There
are 18,600 total currently employed in the textile sector.
According to
estimations, the local household products market volume reaches NIS 3 billon
annually. Retail chains capture 30% of the market share, specialization stores
20%, while the institutional and workers unions sector has 50% share. The
"Home Textile" market rolls, according to estimations in the branch,
NIS 600 million annually.
SUMMARY
Good for trade engagements.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)