MIRA
INFORM REPORT
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Report Date : |
23.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
CARMEL HOLDINGS (I.L) LTD. |
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Registered Office : |
2 Haetzel Street, New Industrial Zone,
Rishon Le-Zion 75105 |
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Country : |
Israel |
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Date of Incorporation : |
1.1.1991 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, importers, marketers and retailers of furniture,
lighting elements, home textile and household goods. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 1,800,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CARMEL HOLDINGS
(I.L) LTD.
(also known as BETILI)
2 Haetzel Street
New Industrial
Zone
RISHON LE-ZION 75105 ISRAEL
Telephone 972 3 953 64 00
Fax 972 3 961 17 89
HISTORY
Originally
established as a private limited company, incorporated as per No. 51-153506-4
on the 1.1.1991.
Company took over
the business activities of HAIM EITANI CARMEL CARPET, established in 1960.
In February 1994,
subject purchased the assets of CARMEL CARPETS.
Converted into a
public limited liability company and registered as such as per file No. 52-004319-1
on the 19.5.1997.
In June 1997
published a prospectus offering shares to the public in the Tel Aviv stock
exchange, raising NIS 10 million according to a company value of NIS 40
million.
Originally
registered under the name BETILI LTD., which changed to the present name on
1.7.2004.
SHARE CAPITAL
Authorized share
capital NIS 100,000,000.00, divided into - 100,000,000 ordinary shares of NIS
1.00 each, of which shares amounting to NIS 8,024,005.00 were issued.
SHAREHOLDERS
1. Aviv Eitani, 25.10%,
2. Ofer Eitani, 22.80%,
3. Haim Eitani, 20.90%,
4. GAZIT INC., 11.80%, controlled by Haim Katzman,
5. HAREL INVESTMENTS IN INSURANCE LTD, 6.50%,
6. Shares are also
traded on the Tel Aviv Stock Exchange.
In June 2005, Haim
Katzman acquired 10% in subject, for a sum of NIS 6 million.
DIRECTORS
1. Haim Etani,
Chairman,
2. Ofer Eitani,
General Manager,
3. Aviv Eitani,
4. Avi Elkind,
5. Ms. Ora Eitani,
6. Ms. Orna Angel,
7. Rami Herman.
BUSINESS
Subject, directly and
through its subsidiaries, operates as manufacturers, importers, marketers and
retailers of furniture, lighting elements, home textile and household goods.
Also (through
subsidiaries) manufacturers, marketers and exporters of carpets and parquet
floors.
On top of its
retail activities, subject also sells to hotels, contractors, workers' unions,
etc.
Operating from
main offices in rented premises on an area of 1,200 sq. meters in 2, Haetzel
Street, Rishon Le-Zion, from a rented plant on an area of 8,500 sq. meters in
Shaked, and from a plant and logistic center in Industrial Zone, Barkan (15,350
sq. meters, rented).
Also operating 15
branches nationwide under the name "Betili", 5 stores under the name
"I. D. Design", 3 stored under the name "Rich & Taylor",
and 21 shops under the name “Carmel Carpets”.
Subject also runs one more store under the name “Hazorea Furniture
Center”.
Having in all 495
employees, serving the whole Group.
MEANS
Current market
value US$ 19.5 million.
In December 2005, subject completed a NIS 50 million capital raise in a
public offering of convertible bonds.
There are 18
charges for unlimited amounts registered on the company's assets.
Consolidated B/S
shows:
NIS
(thousands)
30.09.2006 31.12.2005
ASSETS
Current assets
Cash
and cash equivalents 7,635 19,792
Negotiable securities 42,388 24,798
Customers 71,186 59,188
Other debtors 18,634 11,112
Stock _60,346 36,079
200,189 150,969
Long term debit 9,821 9,450
Fixed assets (net) 72,427 36,607
Other assets and
deferred expenses __1,806 __3,345
284,243 200,371
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LIABILITIES
Current liabilities 175,878 99,044
Long term
liabilities 67,784 63,881
Capital notes 1,050 1,011
Equity _39,531 _36,435
284,243 200,371
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ANNUALL SALES
Consolidated statement of Income
NIS
(thousands)
Year ended on the 31.12
2003 2004 2005
Revenues 182,154 168,190 175,618
Gross Profit 74,841 69,827 71,261
Operating Income 6,495 6,115 8,186
Income before
income taxes 4,475 1,294 10,676
Net Income 3,110 1,206 8,088
====== ====== ======
Consolidated first 3 quarters of 2006 sales NIS 166,536,000 (28% increase
compared to the parallel period in 2005), making a gross profit of NIS
59,990,000, an operating income of NIS 9,081,000 and a net income of
NIS 4,490,000.
OTHER COMPANIES
BETILI INVESTMENTS
(1997) LTD., 100%,
IKOO DESIGNS LTD.,
100%,
CAESAREA CARPETS
(97) LTD., 100%,
CARPETEC LTD.,
100%,
TIMBER PARQUET
LTD., 51%,
SHAKED CARPETS
LTD., 50%,
E. F. DESIGN LP,
50%,
E.P HOME DESIGN
LTD., 50%,
K.A FURNITURE
LTD., 50%.
The Eitani family
also owns, among other companies:
HAIM EITANI
HOLDINGS LTD.
CLASSIGAN LTD.
BANKERS
Bank Leumi
LeIsrael Ltd, Rishon Le-Zion Business Branch (No. 671), Rishon Le-Zion, account
No. 35000/16.
A check with the Central Banks' database did
not reveal anything detrimental on subject’s a/m account.
CHARACTER AND
REPUTATION
In October 2004,
it was reported that a NIS 6.6 damages lawsuit was submitted against subject.
Apart from that, nothing
unfavorable learned.
In July 2000 it
was reported that subject invested some NIS 10 million in re-designing of its
12 sale departments, this is part of its preparation in confronting the
increasing competition in the furniture retail area, especially in the light of
the entrance of IKEA (of Sweden) in April 2001.
Subject targets
the above mediocre client, so as officials figure their sales will not be
harmed. On top of the investment in design, subject invests NIS 2,.5 million in
a marketing campaign.
In May 2001 it was
reported that CLASSIGAN, manufacturers and importers of garden furniture are
about to open “Store within Store” in subject’s outlets. CLASSIGAN will pay
subject NIS 2,000,000 or 33% of turnover (the higher).
Another
manufacturer, KIMHI, leading company in the lighting field, signed an agreement
with subject to sell its products within subject’s stores.
Until then,
subject used to import independently lighting products.
In August 2001 the
initial campaign was launched to promote the venture.
In June 2001
subject reported to be investing NIS 6 million in the “Oriental Month”,
promoting furniture imported from the Near and Far East.
In November 2001 it was reported that CARMEL CARPETS, controlled by
subject’s subsidiary, acquired SHOMRON CARPETS, for a sum of US$ 800,000 after
SHOMRON CARPETS stumbled over financial difficulties.
Between December 2001 and February 2002,
subject launched 3 advertising campaigns, in a total investment of US$ 1
million, and in May 2002, subject launched another advertising campaign, with
an investment of NIS 1 million.
In March 2002, it
was reported that subject intends to open 2 new branches in 2002 in Netanya and
Ga’ash, with an investment of US$ 3 million.
In September 2002,
it was reported that subject opened an outlet store in Ilanot, on an area of
800 sq. meters, with an investment of US$ 100,000.
In 2002, subject
conducted negotiations to merge its stores, with I.D Design, operated by F.C.P
DESIGN LTD., of the Eliezer Fishman Group.
F.C.P DESIGN LTD.
are importers, retailers and marketers of furniture and household products,
operating a retail chain store under the name "I.D. Design"., with
annual sales of some NIS 90 million.
On the 21.7.2003,
both sides signed an agreement to merge some of the activities. According to
the deal, as of the 1.9.2003, the companies established a new limited
partnership, under the name A. P. DESIGN LP which took over subject's
"Beitili" marketing chain (13 stores) and the I. D. Design chain (6
stores). Sales of both chains in 2002 amounted to NIS 210 million.
Both chains keep their commercial logos, however all administrative and
logistic activities were merged.
On the 28.8.2003, the deal was approved by the Commissioner of Trade
Restrictions.
In October 2003, it was reported that subject is negotiating a deal to
sell its CARMEL CARPETS chain to an American investor.
In February 2005, it was reported that subject will start marketing
mattresses.
In March 2005, it was reported that subject will also start marketing
lighting elements and electrical appliances.
In June 2005, it was reported that subject is negotiating a deal to
acquire OPTICA HALPERIN, according to a company value of NIS 61.25 million.
In May 2006, subject acquired 50.1% of the
carpet plant ATLS in Turkey with an investment of US$ 9 million. Subject signed
the deal with the Turkish family Cetinkaya, owners of the plant, and the two
will establish a new company.
ATLAS is a leading carpets manufacturer in Turkey,
with 2005 sales of US$ 32 million and a global reputation.
According to the Chairman of the Furniture
Industry Union at the Industrialists' Association, sales of furniture (alone)
to the local market for the first 3 quarters of 2006 reached NIS 54.12 million,
a 4.5% rise from the parallel period in 2005.
The import of furniture in the first 3
quarters of 2006 summed up to US$ 121.4 million (a 20% increase).
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended US$ 1,800,000.
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%)