MIRA INFORM REPORT

 

Report Date :

14th March, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

SAVCIO HOLDINGS (PTY) LTD

 

 

Formerly Known as:

MICAWBER 407 (PTY) LTD

 

 

Registered Office :

1st Floor, South Block, Bruma Boulevard, 20 Zulberg Close, Bruma, Bedfordview, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

23.12.2004

 

 

Com. Reg. No.:

2004/036123/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Providing maintenance and repair service for rotating electrical equipment and transformers.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Status :

New Company

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

COMPANY NAME     

 

WILEC

 

 

PHYSICAL ADDRESS    

 

6 Old Mutual Mini Park

Heidelburg Road

 

 

POSTAL ADDRESS             

 

P O Box 86330

CITY DEEP

2049

 

 

TELEPHONE NUMBER

 

(011) 613 1811

 

 

FAX NUMBER

 

(011) 613 7107

 

On investigation it was established that the subject became a trading division of SAVCIO HOLDINGS (PTY) LTD with effect from September/October 2005

 

Please see report attached on SAVCIO HOLDINGS (PTY) LTD

 

 

COMPANY NAME

 

SAVCIO HOLDINGS (PTY) LTD

 

Formerly MICAWBER 407 (PTY) LTD, the name having been changed on 1 September 2005.

 

 

TRADING DIVISION

 

LH MARTHINUSEN

Denver

Durban

Cape Town

Phalaborwa

MARTHINUSEN AND COUTTS

Cleveland

Welkom

REID MITCHELL

Benoni

TEMSO

Rustenburg

WILEC

TRANSWIRE

METPLUS

Robertsham

LOCO COIL TECHNOLOGIES

Denver

COMPRO ENGINEERING

ESP (Equipment Spare Parts)

AMT SERVICES

BUKUBUHLE WIRE

GET WAREHOUSE

 

 

PHYSICAL ADDRESS    

 

1st Floor

South Block

Bruma Boulevard

20 Zulberg Close

BRUMA

Bedfordview

Gauteng

 

 

POSTAL ADDRESS

 

Postnet Suite 112

Private Bag X4

BEDFORDVIEW

2008

 

TELEPHONE NUMBER

 

011 615 6002

 

 

FAX NUMBER

 

011 616 9458

 

 

SHAREHOLDERS

 

25%      ETHOS PRIVATE EQUITY

13%      AKA CAPITAL

13%      SPHERE HOLDINGS (PTY) LTD

25%      ACTIS OCOVANGO

15%      OLD MUTUAL ASSET MANAGEMENT

9%       THE MANAGEMENT TRUST

 

 

ASSOCIATE COMPANIES:

 

The subject owns various dormant companies.

 

A M T SERVICES (PTY) LTD - dormant

 

 

DIRECTORS

 

A I J CARIM                  ID No. 7106015248089 (Sphere Holdings)

C B ROOS                    ID No. 7111185269089 (Sphere Holdings)

G A JARVIS                  ID No. 5906245011088 (Old Mutual)

G MOROLO                  ID No. 5807285879089 (ESP)

J B HINSON                  ID No. 7306205329083) – (Actis)

J F LARCOMBE            ID No. 7408015182080 (Savcio)

L VAN VUGHT               ID No. 4305285080080 (Actis)

L M CORLET                 ID No. 7410300599085 (Old Mutual)

M DENALANE               ID No. 7603080297082 (AKA Capital)

M E GEVERS               ID No. 6303035028085 (AKA Capital)

N O DAVIES                 ID No. 3603065043083 (Ethos)

S NEMATSWERANI      ID No. 5911025842082

 

 

BANKERS

 

The subject’s main banker is FIRST NATIONAL BANK.  It was stated that the divisions’ bank with various bankers and that each has their own account number.  It was stated that the divisions are managed by a cash management scheme controlled by the subject.

 

 

DATE REGISTERED

 

23 December 2004

Registration Certificate Number 2004/036123/07

 

SAVCIO HOLDINGS (PTY) LTD was formed in 2005 in one of the biggest private equity deals of the year when a private equity consortium, including BEE investors, acquired the Repairs & Services and Replacement Parts Divisions of DELTA ELECTRICAL INDUSTRIES LTD for a sum of R1.3 billion.  It was stated that each business entity within the subject continues to operate under its original brand name.

 

 

VAT NUMBER

 

4010221820

 

Each division has its own VAT number.

 

 

MAJOR OPERATION

 

The subject’s primary business is providing maintenance and repair service for rotating electrical equipment and transformers.  The subject focuses on maintaining and repairing medium-to-large-size equipment.

 

The Wirelec business supplies input materials to the electrical manufacturing and repair industry, wire and insulation products e.g. magnet wire, copper, aluminium strips, insulation materials for both high and low voltage machines and VPI resins and impregnating varnishes.  Wirelec also markets self-adhesive tapes and coated and bonded abrasives.

 

The Transwire business manufacture magnet wire and shaped conductor products and products for the transformer manufacturing and repair industry.

 

The Equipment Spare Part (ESP):  The replacement parts business specialises in the procurement and distribution of aftermarket replacement parts, which include ground engaging tools, undercarriage for earthmoving equipment, parts for diesel engines, transmissions and heavy trucks.

 

The Get Warehouse division wholesales ground engaging tools.

 

 

MAJOR SUPPLIERS

 

MORGAN CARBON

ATAVIC ENGINEERING

DEEP BLUE ENGINEERING

BEARING WISE

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Government entities e.g. Spoornet

Mining e.g. Anglo, Rio Tinto, Goldfields

Steel production e.g. Mittal Steel, Highveld and Columbus Stainless

Petrochemical e.g. Sasol, Petronas and Caltex

Paper and pulp e.g. Sappi and Mondi

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

African countries

 

 

TOTAL EMPLOYEES

 

1 600 employees in the group

 

 

OTHER PREMISES

 

9 workshops, 16 distribution centres and two manufacturing

facilities throughout South Africa.  The subject also has agents in Botswana, East London, Nelspruit, Port Elizabeth, Swaziland, Kimberley, Machadadorp, Middelburg, Nelspruit, Polokwane.  The Get Warehouse is situated at 49 Apex Road West Apex Industrial Park, Benoni.

 

 

OWNED OR LEASED

 

It was stated that most of the premises are reported to be leased.

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 divided into 1 000 ordinary R1 shares.

 

 

ISSUED SHARE CAPITAL

 

R1

 

Full financial information was not forthcoming from respondents at the company and outside authorities were unable to assist in this respect.

 

 

AUDITORS

 

DELOITTE  Johannesburg

 

 

FINANCIAL YEAR END

 

SEPTEMBER

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES INSURANCE BROKERS

 

 

TRADE REFERENCES – DECEMBER 2006

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    5 months      R30 000         R6 000 -          30 days    30 days        Good/New

                          c/l                 R10 000

 

2.    1999             R30 000         R30 000          30 days    30 days        Very good

 

3.    Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

             ACCOUNT   HIGHEST   AVERAGE     TERMS   PAYMENT      EXPERIENCE

             OPENED     CREDIT     CREDIT                       PATTERN

 

1.          15 yrs+       R250 000   R250 000       30 days   30 days          Very good

                                                                    2.5%       2.5%

 

2.          1 yr             R200 000   R100 000       30 days   30 days          Very good

 

3.          Old acc.      R400 000   R380 000       30 days   30 days         Very good

 

 

COMMENTS

 

This is a very new company, which commenced active operations when it acquired the Repairs and Service and Replacement Parts divisions of a large and well-established group.  We have not traced dealings to an extent of US$1 million DA and would prefer to see such dealings on a spread and secured basis.

 

 

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