MIRA
INFORM REPORT
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Report Date : |
12th
February, 2007 |
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Tel. No.: |
972 8
8631000 |
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Fax No.: |
8631020 |
IDENTIFICATION
DETAILS
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Name : |
SCOPE METALS TRADING AND TECHNICAL SERVICES LTD. |
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Formerly Known as: |
SCOPE
TRADING & FOOD MARKETING LTD. |
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Registered Office : |
P.O. Box 3, Re'em Industrial Zone, Bnei
Ayish 79845 Israel |
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Country : |
Israel |
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Date of Incorporation : |
27.4.1980 |
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Com. Reg. No.: |
51-084980-5 |
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Legal Form : |
Public
Limited Company |
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Line of Business : |
International
trade, importers, exporters and marketers in the “white metal” area,
including stainless steel metals, aluminum, titanium and nickel alloys. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
SCOPE METALS TRADING AND
TECHNICAL SERVICES LTD.
Telephone 972 8 863 10 00
Fax 972 8 863 10 20
P.O.
Box 3
Re'em
Industrial Zone
BNEI AYISH 79845 ISRAEL
HISTORY
Originally incorporated as a private
limited company, registered as per file No. 51-084980-5 on the 27.4.1980, under
the name SCOPE TRADING & FOOD MARKETING LTD., which changed to the present
name on the 5.4.1981.
Converted into a public limited
liability company, registered as per file No. 52-003742-5 on the 30.4.1992.
On the 8.4.1992 published a
prospectus, offering shares to the public, raising a sum of US$ 2.5
million.
SHARE CAPITAL
Authorized share capital NIS
13,500,000.00, divided into –
13,500,000 ordinary shares of NIS
1.00 each, of which shares amounting to NIS 10,783,871.00 were issued.
SHAREHOLDERS
1. Shmuel Shilo, 36%,
2. PIMSCO HOLDINGS LTD., 27.2%, controlled by the
FIMI fund, controlled by Ishay Davidi,
3. MIGDAL HOLDINGS INSURANCE AND FINANCE LTD.,
6.2%,
4. Shares are also traded on the Tel Aviv Stock
Exchange.
In February 2006, the FIMI fund
signed a deal to acquire 2,935,000 shares in subject, for a sum of NIS 157
million. The deal was finalized in April 2006.
DIRECTORS
1. Shmuel Shilo, Chairman and Managing
Director,
2. Uri Lado,
3. Mrs. Meggy Shilo, wife of
Shmuel Shilo,
4. Shaul Kobrinsky,
5. Yehuda Keren,
6. Mati Dov,
7. Ishay Davidi, CEO of the FIMI.
BUSINESS
International trade, importers, exporters
and marketers in the “white metal” area, including stainless steel metals,
aluminum, titanium and nickel alloys.
Subject’s products include pipes,
bolts and nuts, nets and cables, etc., which are used by industrial plants and
manufacturers in the chemical, pharmaceutical, electronics, petrochemical,
food, hi-tech and other industries.
Also importers and marketers of
engineering plastic and steel products and operate in the real estate field.
Exports are to India, Cyprus,
Romania, Bulgaria, Moldova, Russia, Greece, Kenya, Egypt, Turkey and the
Ukraine.
Subject provides also stock
storage facilities, cutting and sawing services ("one-stop-shop"
model).
Among subject’s clientele are:
ISRAEL AIRCRAFT INDUSTRIES, RAFAEL ARMAMENT DEVELP., INCOMAC, GOLD BAR, M.G.T.
ISRAEL TASIYOT- MIFALEI TRIFMAN, ENERGETICA GENERAL ENGINEERING AND HEAT
SYSTEMS, BERMAD, etc.
Among
local suppliers: BETH EL ZIKHRON YAAQOV INDUSTRIES
Local agents of:
COLOMBUS STAINLESS (PTY) LTD.,
ALMAC STAINLESS TUBE (PTY) LTD.,
ANDREW MENTIS (PTY) LTD., all of
South Africa,
ROLDAN S.A., of Spain,
STAR STAINLESS SCREW CO., of the
U.S.A.,
REDAELLI TECNA SPA, of Italy.
Operating from owned premises on
an area of 50,000 sq. meters, in the Re'em Industrial Zone, Bnei Ayish, and
from branches in the USA, China, and the Czech Republic.
Having 539 employees, serving the
whole SCOPE Group.
MEANS
Consolidated B/S shows:
NIS
(thousands)
30.09.2006 31.12.2005
ASSETS
Current Assets
Cash
& cash equivalents 41,442 114,662
Negotiable securities 204,590 36,566
Customers 331,848 242,795
Other
debtors 19,421 16,990
Stock __530,697 381,847
1,127,998 792,860
Long term debit 747 -
Fixed assets (net) 192,931 183,692
Other assets (net) ___15,835 __5,565
1,337,511 982,117
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LIABILITIES
Current liabilities 317,716 280,352
Long term liabilities 490,774 410,552
Minority rights 3 494
Equity __529,018 290,719
1,337,511 982,117
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Current market value US$ 211.7
million.
In 2006 subject's market value
were US$ 83 million in January and US$ 145 million in September, which led to
its inclusion in the Tel Aviv Stock Exchange's 2nd important index –
"the Tel Aviv 100".
In April 2005, subject raised NIS
40 million by issuing shares to institutional investors.
In September 2005, subject signed
a deal to receive a NIS 50 million loan from
CLAL INSURANCE.
There are no charges registered
on the company's assets.
ANNUAL SALES
Consolidated
Statements of Income
NIS
(thousands)
Year
ended December 31st
2003 2004 2005
Revenues 285,883 501,186 603,846
Gross profit 92,922 174,557 177,915
Operating income 40,552 108,692 88,241
Pre-Taxes Income 24,698 91,350 58,272
Net income 16,399 57,790 42,010
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Consolidated first 3 quarters of 2006
sales NIS 743,079,000 (66.5% increase compared to the parallel period in 2005),
making a gross profit of NIS
224,136,000, an operating income of NIS 117,308,000, and a net income of NIS
62,379,000.
OTHER COMPANIES
ADIT INDUSTRY BUILDINGS LTD., 100%,
ILERLI TIN PROCESSING LTD., 100%,
EL-ZON HOLDINGS LTD., 100%, non
active,
RAAS METALS, 100%, non active,
GILINOX S.R.L., 100%, Romania,
non active,
PRIMAPOL METAL SPOT S.R.O., 100%,
Czech Republic,
SHINTU INC., 90%, USA, fully owns
the 2 u/m U.S. subsidiaries:
MATERIALS TECHNOLOGY SOLUTIONS
INC. (M.T.S.),
HADCO.
BANKERS
Mercantile Discount Bank Ltd.,
Beit Maiya Branch (No. 656), Tel Aviv,
account No. 56782.
A check with the Central Banks' data base
did not reveal negative information regarding subject’s a/m account.
Bank Leumi LeIsrael Ltd.,
Hahashmonaim Business Branch (No. 817), Tel Aviv,
Bank Leumi LeIsrael Ltd., Central
Branch (No. 800), Tel Aviv,
Bank Hapoalim Ltd., Central
Branch (No. 600), Tel Aviv,
CHARACTER AND REPUTATION
On the 31.7.2001 it was published that an
American firm, PECHINE ROLLED PRODUCTS filed the Tel Aviv District Court a NIS
2.5 million lawsuit against subject, claiming subject owes them this sum for
supply of metals.
Apart from that, nothing unfavorable learned.
Subject is ISO 9002 certified.
In March 2002, subject signed a
deal to acquire all the activities (including goodwill, stock, machinery and
equipment) of 2 sister companies FEINGOLD STEEL INDUSTRIES LTD. and FEINGOLD
STEELS (1960) LTD., for a sum of US$ 3.6 million. Both companies operate in the
steel field.
The 2 companies’ annual income on
average for the previous 3 years was
NIS 23 million (together).
In August
2002, subject filed a proposal for the acquisition of some of the FEUCHTWANGER
Group activities (a leading local industrial group which went into financial
difficulties), however the deal was not finalized.
In May 2003, it was reported that
subject is negotiating a deal to merge its activities with ISRAEL MENDELSON
TECHNICAL AND ENGINEERING SUPPLIES LTD.
In August 2004, it was reported
that both sides resumed negotiations, however, in November 2004 MENDELSON was
acquired by a third party and all negotiations came to a halt.
In June 2004, it was reported that
subject acquired all stock of GLOBAL METALS, a local metal company which went
into receivership.
In July 2004, it was reported
that subject won a NIS 30 million deal to provide metal to the ISRAEL AIRCRAFT
INDUSTRIES. In September 2005, the deal was expended by further NIS 85 – 100
million.
Also In July 2004, it was
reported that subject signed a deal to acquire 51% of an American metal trading
company, for a sum of US$ 500,000.
In October 2004, subject
established a new subsidiary in the Czech Republic.
In March 2005, subject signed a
deal to acquire the activities of a metal trading Czech company, for a sum of €
895,000.
In September 2005, subject signed
a US$ 36 – 38 million deal to buy aluminum during a 1 year period.
In December 2005, subject signed
a deal to acquire a metal subcontracting activity through HADCO, a subsidiary
established for this purpose in the USA, for a sum of US$ 11 million. The deal
was finalized in February 2006.
In May 2006, subject opened a
branch in China.
In June 2006, subject acquired a
10,000 sq. meters plot in Romania, for a sum of € 600,000.
In December 2006 subject reported
it has signed an agreement to purchase aluminum products in volume of US$ 40-44
million from a European plant. This is in the framework of subject's
international expansion plans. Products will be marketed worldwide, as well as
in Israel.
In January 2007 subject's Board
decided to pay cash dividends in total of NIS 25 million.
FIMI, one of subject's
shareholders, is a leading local investment fund. Founded in 1997, FIMI is
Israel's first dedicated mezzanine and buy-out fund. FIMI, managed by
entrepreneur Ishay Davidi, has over 36 major transactions valued at more than
US$ 400 million. Its investors list includes institutional and private
investors from the United States and Israel.
Metal prices in Israel increased
significantly in the last couple of years as part of the global trend, which
affected the sales figures of companies operating in these related areas.
According to the Chairman of the
Metal and Electricity sectors at the Manufacturers’ Association, overall sales
of the various metal related sectors in 2005 increased by 13% in real terms
comparing to 2004, reaching NIS 57 billion. Sales to the local market increased
by 16% form 2004, summing up to NIS 34.7 billion. The metal products branch in
particular noted an impressive 21.8% increase up to NIS 21.5 billion, comparing
to NIS 17.6 billion in 2004. Basic metal sales amounted to NIS 4.2 billion, a
17.8% increase.
According to the Industrialists
Association economic review published in February 2006, import of iron and
steel to the local industry increased in 2005 by 2% comparing to the previous
year, summing up to US$ 1.3 billion. In addition, a 16% rise was noticed in the
import of stainless steel metals, reaching US$ 725 million.
SUMMARY
Good for
trade engagements.
Maximum
unsecured credit recommended up to several US$ millions.
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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