MIRA
INFORM REPORT
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Report Date : |
25.07.2007 |
IDENTIFICATION DETAILS
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Name : |
L & G TOOLS & MACHINERY DISTRIBUTORS LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
18.10.1973 |
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Com. Reg. No.: |
1973/012834/06 |
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Legal Form : |
Limited Liability |
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Line of Business : |
Importers and wholesale distributors of hardware, bathroom accessories, brackets, boards, tools, garden equipment and garage equipment e.g. compressors, machinery, pneumatic tools, automotive accessories and welders |
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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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 |
COMPANY NAME
L & G TOOLS & MACHINERY DISTRIBUTORS LTD
PHYSICAL ADDRESS
Westmead
Kwa-Zulu
POSTAL ADDRESS
WESTMEAD
3608
TELEPHONE NUMBER : 031 717 6800
FAX NUMBER : 031 717 6868
SHAREHOLDERS
50.5% MONTEAGLE MERCHANT GROUP SOUTHERN HOLDINGS LTD, which is in turn owned by
MONTEAGLE
SOCIÉTÉ ANONYME – registered in
Exchange
49.5% DES LYLE FAMILY TRUST
ASSOCIATE COMPANIES
None in
Subsidiary Company:
ABAC AIR COMPRESSORS SA (PTY) LTD
DIRECTORS
G K VACY-LYLE
D C MARSHALL
R I SAWKINS
A V NAIDOO
W H MARSHALL
BANKERS
FIRST NATIONAL BANK, Kloof branch, account number 6000041342 (current account) and 62012496164 (debtors finance account). It was stated that the subject enjoys a combined facility to an extent of R49.5 million of which R11.5 million is for overdraft, which is secured by property, debtors and stock. It was stated that the subject factors its book with First Factors to an extent of R38 million. The respondent stated that they no longer use a confirming company for imports.
DATE REGISTERED
18 October 1973
Registration certificate number: 1973/012834/06
VAT NUMBER
4400103265
MAJOR OPERATION
Importers and wholesale distributors of hardware, bathroom accessories, brackets, boards, tools, garden equipment and garage equipment e.g. compressors, machinery, pneumatic tools, automotive accessories and welders
MAJOR SUPPLIERS
The subject imports most of its supplies from the Far East and
THE WOODMASTER
LASHER TOOLS
LUMEX CLIPSAL
CHISA WELDING Ladysmith
The subject undertakes its clearing in-house.
MAJOR CUSTOMERS OR
BUSINESS SECTORS
Hardware industry and all the hyper stores in the country.
AREA OF DISTRIBUTION
AND SELLING
EXPORTS
Africa,
TOTAL EMPLOYEES
250
OTHER PREMISES
It was reported that the subject has a warehouse in
OWNED OR LEASED
The premises are reported to be owned by the subject and valued in the region of R16.5 million, bonded in favour of MARIOTT MERCHANT BANK to an extent of R5.8 million.
AUTHORISED SHARE
CAPITAL
R200 000 divided into 200 000 ordinary shares of R1 each
ISSUED SHARE CAPITAL: R200 000
The following estimated financial situation was submitted:
STOCK ±R 60 000 000
DEBTORS R 55 000 000 – R 60 000 000
FIXED ASSETS excl. property R 5 440 000
PROPERTY R 16 500 000
TOTAL LIABILITIES R 56 000 000
CREDITORS R 14 600 000
LOANS FROM SHAREHOLDERS & DIRECTORS R 6 700 000
TURNOVER per annum R257 000 000 – R258 000 000
AUDITORS
RSM HILLS HOWARD
YEAR END
SEPTEMBER
INSURANCE BROKERS
MARSH
TRADE REFERENCES –
APRIL 2006
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 1992 R150 000 R20 000 60 days 60 days Very good
2. 2001 R159 000 R70 000 30 days 30 days Very good
3. 11 yrs R50 000 R20 000 30 days 30 days Very good
TRADE REFERENCES –
DECEMBER 2006
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 10 yrs R100 000 R100 000 30 days 30 days Very good
2. 10 yrs do not disclose figures 30 days 30 days Very good
3. 7 yrs R938 000 R350 000 - 30 days 30 days Very good
R650 000 2.5% 2.5%
CURRENT TRADE
REFERENCES
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 10 yrs+ R300 000 R 30 000- 30 days 30 days Good
R 50 000
2. ±4 yrs R1 500 000 R1 500 000 30 days 30 days Good
3. ±7 yrs R 350 000 R 574 000 30 days 30 days Good
2.5% 2.5%
4. Jan 2001 R 140 000 R 6 000 30 days 30 days Good
c/l
COMMENTS
This is an established company that is not a general credit seeker locally. The subject is well connected and is effecting a substantial turnover. The fact that the debtors book is stated to be factored should be borne in mind. The subject is considered equal to US$1 000 000 over 150 days.
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%)