MIRA INFORM REPORT

 

 

Report Date :

04.07.2007

 

IDENTIFICATION DETAILS

 

Name :

MAURITIUS STATIONERY MANUFACTURERS LIMITED (MSM)

 

 

Registered Office :

Old Moka Road, Bell Village

 

 

Country :

Mauritius

 

 

Financials (as on) :

30.06.2006

 

 

Date of Incorporation :

28.02.1966

 

 

Com. Reg. No.:

1511

 

 

Legal Form :

Public

 

 

Line of Business :

Provider of printing and packaging products and services.

 

 

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 :

Regular

 

 

Litigation :

Clear

 

 

NAME OF COMPANY

 

MAURITIUS STATIONERY MANUFACTURERS LIMITED (MSM)

                            

 

ADDRESS

 

OLD MOKA ROAD

BELL VILLAGE

TEL: (230) 202-0800

FAX: (230) 212-0910

EMAIL:  info@msm-ltd.com

 

 

INCORPORATED

 

28.02.1966

 

 

STATUS

 

Public

 

 

CO NO

 

1511

 

 

DIRECTORS

 

Mr. Jean Cyril LAGESSE

Mr. Georges LEUNG SHING

Mr. Cyril LECLEZIO

Mr. Thierry LAGESSE

Mr. Arnaud Cyril LAGESSE

Mr. Didier Vivian DESCROIZILLES

Mr. Rajendra PUDDOO

 

 

SHAREHOLDERS            SHARES

 

Cie d’Investissement & De Dev Ltd                                  1,280,047

The Mts Dev Investment Trust Ltd                                       514,855

Cie Desmen Ltd                                                                 488,890

The Anglo Mts Assurance Ste Ltd                                        95,402

First Republic Fund Ltd                                                       73,579                    

 

 

ISSUED CAPITAL

 

RS 35,376,000

 

 

ACTIVITIES

 

Provider of printing and packaging products and services.

 

 

SIZE

 

Company’s head office is situated at Old Moka Road, Bell Village and two of the divisions are based as follows:

 

• Corrugated Carton Division:                               Petit Verger, Petite Riviere

• Continuous Stationery & Security Divisions:       Camp Benoit, Petite Riviere

• Registered office:                                             11th Floor, Swan Group centre

10, Intendence Street – Port Louis

 

 

IMPORTS

 

Subject imports from sources mainly in South Africa, France, UK and Singapore.

 

 

EMPLOYMENT

 

300 – 500

 

 

FINANCE       (2006)

 

Turnover:                                   MUR 433m

Loss:                                        MUR 55m

 

 

BUSINESS ANTECEDANT

 

Mauritius Stationery Manufacturers Ltd was created in 1966, specialising in the printing and packaging sectors and is today a regional leader. MSM offers a wide range of products and is organised into six departments as follows:

 

• Industrial Printing

• Corrugated Carton

• Commercial Printing

• Security Printing

• Continuous Printing

• Flexography

 

The company is a subsidiary of the Mon Loisir Group and is listed on the Stock Exchange of Mauritius since 1989. Subject has expanded its activities in Madagascar through its subsidiary companies.

 

 

SOME PRODUCTS & SERVICES

 

• Pre-press

• Folding cartons & labels

• Corrugated carton packages

• Printed rolls

• Flexographic press print

• Books & Diaries

• Chequebooks & Secure documents

• Business stationeries etc.

 

 

OBSERVATION

 

The turnover and profitability of MSM have grown extensively over the past six years. During the financial year ending 30th June 2006, the company’s turnover increased by 10% and a number of measures enabled profit from operations to rise by 32% to reach MUR 30m. However, subject accused a deficit of MUR 55.7m during the year.

 

 

PROSPECTS

 

The local authorities are keen to expand the publishing and printing sector for higher growth. This can be achieved through exports to foreign markets. Recently Enterprise Mauritius organised a forum on this sector and many opportunities for Mauritius export were identified namely in the African markets. The participants would come up with a strategic plan for the sector which would be submitted to Government. Subject’s medium term strategy is geared towards export development through product innovation.

 

 

COMMENTS

 

Interim results for the six months to 31st December 2006 shows a turnover and a profit before tax of MUR 225m and MUR 4.6m respectively. The subsidiaries in Madagascar continue to operate within uncertain and precarious conditions. Management is currently reassessing the company’s corrugated carton operations in Madagascar which is under continued pressure.

 

 

CREDIT OPINION

 

Buyer is a major player in the printing & packaging sector and as such is reported good for normal business engagement.

 

 

BANKERS

 

The Mauritius Commercial Bank Ltd

Barclays Bank PLC

 

 

MAURITIUS STATIONERY MANUFACTURERS LIMITED

 

BALANCE SHEETS AS AT 30 JUNE 2006

 

 

 

THE GROUP

THE COMPANY

 

RS'000

RS'000

ASSETS

 

 

NON CURRENT ASSETS

 

 

Property, plant and equipment

418,945

363,667

Investment property

34,000

-

Intangible assets

17,172

5,559

Investments in subsidiary companies

-

97,377

Investment in associate

10,824

20,450

Available-for-sale investments

492

445

Other financial assets

-

6,786

 

----------------------------

----------------------------

 

481,433

494,284

 

----------------------------

----------------------------

CURRENT ASSETS

 

 

Inventories

125,404

102,217

Trade and other receivables

119,151

98,330

Cash resources

18,036

9,745

 

----------------------------

----------------------------

 

262,591

210,292

 

----------------------------

----------------------------

Total Assets

744,024

704,576

 

=============

==============

EQUITY AND LIABILITIES

 

 

Equity & Reserves

 

 

Share Capital

35,376

35,376

Share premium

23,819

23,819

Other reserves

45,433

62,782

Retained earnings

164,511

178,295

 

----------------------------

----------------------------

 

269,139

300,272

Minority interests

164,369

-

 

----------------------------

----------------------------

Total equity

269,508

300,272

 

----------------------------

----------------------------

NON CURRENT LIABILITIES

 

 

Borrowings

216,382

188,587

Deferred tax liabilities

20,713

16,407

Other liabilities

-

5,143

Retirement benefit obligation

9,602

9,602

 

----------------------------

----------------------------

 

246,697

219,739

 

---------------------------

----------------------------

CURRENT LIABILITIES

 

 

Trade and other payables

78,594

59,431

Borrowings

140,789

116,698

Income tax payable

476

476

Shareholders for dividend

7,960

7,960

 

----------------------------

----------------------------

 

227,819

184,565

 

----------------------------

----------------------------

Total equity and liabilities

744,024

704,576

 

==============

==============

 

 

 

INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006

 

 

THE GROUP

THE COMPANY

 

RS'000

RS'000

Turnover

511,910

433,003

Cost of sales

(419,583)

(346,101)

 

----------------------------

----------------------------

Gross Profit

92,327

86,902

Other income

6,720

5,522

Administrative expenses

(75,129)

(55,068)

Other expenses

(7,318)

(7,318)

 

----------------------------

----------------------------

Operating Profit

16,600

30,038

Finance income

298

2,704

Finance costs

(34,312)

(22,763)

Profit on disposal of an associate

1,158

-

Share of loss of an associate

(3,769)

-

 

----------------------------

----------------------------

Loss before exceptional item

(20,025)

9,979

Exceptional item

-

(63,000)

 

----------------------------

----------------------------

Loss before taxation

(20,025)

(53,021)

Income tax (expenses)/ release

(2,778)

(2,700)

 

----------------------------

----------------------------

Loss for the year

(22,803)

(55,721)

 

==============

==============

 

 

 

Attributable to:-

 

 

Equity shareholders of the parent

(20,798)

 

Minority interests

(2,005)

 

 

----------------------------

 

 

(22,803)

 

 

==============

 

Loss per share

RS (5.88)

RS (15.75)

 

==============

==============

 

 

 

 

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/normal.

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions