MIRA
INFORM REPORT
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Report Date : |
03.10.2007 |
IDENTIFICATION DETAILS
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Name : |
LINK INTERNATIONAL CO LTD |
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Registered Office : |
7-3-6 Minamiaoyama Minatoku |
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Country : |
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Financials (as on) : |
31.08.2007 |
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Date of Incorporation : |
Dec 2003 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Clothing store chain operator |
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 : |
Yen 404.6 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
LINK INTERNATIONAL
CO LTD
REGD NAME
KK Link
International
MAIN OFFICE
7-3-6 Minamiaoyama
Minatoku
Tel : 03-3407-7502
Fax : 03-3407-7481
URL : http://www.link-theory.com
E-Mail
address: info@link-theory.com
ACTIVITIES
Clothing
store chain operator
STORES
99
stores nationwide
OVERSEAS
OFFICERS
Chikara
Sasaki, ch MAKOTO
HATA, PRES
Hidetsugu
Onishi, dir Shin’ichi
Kobuse, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 20,939 M
PAYMENTS REGULAR CAPITAL Yen 10 M
TREND STEADY WORTH Yen
2,836 M
STARTED 2003 EMPLOYES 80
COMMENT
CLOTHING STORE CHAIN OPERATOR, WHOLLY OWNED BY LINK THEORY
HOLDINGS CO LTD. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 404.6 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company was established on the basis of a retailing
division separated from Link Theory Holdings Co Ltd, Theory Brand clothing
wholesaler, at the caption address (See REGISTRA- TION). This is a clothing store chain operator (mostly
in-shops in department stores nationwide), handling Theory Brand and
others. In Sept 2003, purchased Theory
Group,
FINANCIAL
INFORMATION
The sales volume for Aug/2006 fiscal term amounted to Yen 20,939 million, a 15% rise from Yen 18,262 million for irregular 8 months from the inception in the previous term. The sales growth rate is adjusted on a 12-month basis. The growth is thanks to the new openings of 5-10 stores during the term. The net profit, on the other hand, decreased to Yen 1,165 million from Yen 1,466 million a year ago. This is referred to the rising costs & overheads for new store openings.
For the term ended Aug 2007 the net profit was projected and believed posted at Yen 1,170 million, on a 5% rise in turnover, to Yen 22,000 million. New store openings continued
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 404.6 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 2003
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 800 shares
Issued: 200 shares
Sum: Yen 10 million
Major shareholders (%): Link
Theory Holdings Co Ltd*(100)
*..Wholesaler of Theory Brand clothing, at the caption address, founded 1998, listed Tokyo (Mothers) S/E, capital Yen 6,354 million, turnover Yen 47,707 million, recurring profit Yen 3,248 million, net profit Yen 1,551 million, total assets Yen 43,889 million, net worth Yen 13,294 million, employees 1,740, pres Chikara Sasaki, concurrently ch at the subject company. Theory Brand sales account for 83% of total sales. Financials are as attached.
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Clothing store chain operator, mostly in-shops at
department stores & supermarkets, operating a total 99 stores nationwide
and 6 stores overseas (
(Handling Items):
For Ladies: jackets, suits, black & white, evening dresses, sports wear, shoes, bags, boots, small leather goods, others;
For men:
sweater, shirts, pants, jackets, coats, sports wear, suits, other.
(Brands handled): Theory (83%), Kulson (3%), Rosner (10%), others 4%): Helmut Lang, Premise, Proof, PLS+1, Jean-Michael Cazabat, other.
Clients: [Consumers, department stores (in-shops)] Seibu Department Stores, Mitsukoshi, Takashimaya, Isetan, Keio Department Store, Kintetsu Department Store, Hankyu Department Store, Sogo, Daimaru, Iwataya, Izutsuya, other.
No. of
accounts: 100 (Wholesaling Div)
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Marubeni Corp, Itochu Corp, Mitsubishi Corp, Shikibo Ltd, Daito Woolen Spinning & Weaving Co, other.
Payment
record: Regular
Location: Business area in
Bank References
Mizuho
Bank (Aoyama)
SMBC
(Shibuya)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
31/08/2007 |
31/08/2006 |
31/08/2005 |
31/08/2004 |
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Annual
Sales |
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22,000 |
20,939 |
18,262 |
10,987 |
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Recur.
Profit |
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Net
Profit |
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1,170 |
1,165 |
1,466 |
302 |
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Total
Assets |
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8,996 |
6,602 |
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Current
Assets |
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7,327 |
5,120 |
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Current
Liabs |
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6,040 |
3,817 |
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Net
Worth |
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2,836 |
2,671 |
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Capital,
Paid-Up |
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10 |
10 |
10 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
5.07 |
14.66 |
10.81 |
.. |
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Current Ratio |
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121.31 |
134.14 |
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N.Worth Ratio |
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31.53 |
40.46 |
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R.Profit/Sales |
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.. |
.. |
.. |
.. |
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N.Profit/Sales |
5.32 |
5.56 |
8.03 |
2.75 |
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Return On Equity |
.. |
41.08 |
54.89 |
.. |
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Notes: The 31/08/2004 is the initial 8 month term from the inception. Growth rate is adjusted on a 12-month basis.
Forecast
(or estimated) for the 31/08/2007 fiscal term.
ATTACHMENTS
FINANCIALS
OF THE PARENT, LINK THEORY HOLDINGS CO LTD
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/08/2006 |
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INCOME STATEMENT |
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Annual Sales |
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47,707 |
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Cost of Sales |
22,091 |
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GROSS PROFIT |
25,616 |
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Selling & Adm Costs |
22,293 |
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OPERATING PROFIT |
3,323 |
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Non-Operating P/L |
-75 |
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RECURRING PROFIT |
3,248 |
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NET PROFIT |
1,551 |
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BALANCE SHEET |
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Cash |
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13,792 |
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Receivables |
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3,832 |
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Inventory |
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8,852 |
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Securities, Marketable |
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Other Current Assets |
2,729 |
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TOTAL CURRENT ASSETS |
29,205 |
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Property & Equipment |
3,407 |
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Intangibles |
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18,537 |
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Investments, Other Fixed Assets |
3,637 |
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TOTAL ASSETS |
54,786 |
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Payables |
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4,767 |
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Short-Term Bank Loans |
3,066 |
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Other Current Liabs |
5,441 |
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TOTAL CURRENT LIABS |
13,274 |
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Debentures |
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13,264 |
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Long-Term Bank Loans |
8,622 |
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Reserve for Retirement Allw |
800 |
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Other Debts |
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970 |
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TOTAL LIABILITIES |
36,930 |
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MINORITY INTERESTS |
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Common
stock |
6,335 |
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Additional
paid-in capital |
7,922 |
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Retained
earnings |
3,703 |
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Evaluation
p/l on investments/securities |
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Others |
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(105) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
17,855 |
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TOTAL EQUITIES |
54,785 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/08/2006 |
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Cash
Flows from Operating Activities |
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-754 |
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Cash
Flows from Investment Activities |
-16,760 |
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Cash
Flows from Financing Activities |
20,452 |
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Cash,
Bank Deposits at the Term End |
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13,789 |
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ANALYTICAL RATIOS Terms ending: |
31/08/2006 |
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Net
Worth (S/Holders' Equity) |
17,855 |
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Current
Ratio (%) |
220.02 |
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Net
Worth Ratio (%) |
32.59 |
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Recurring
Profit Ratio (%) |
6.81 |
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Net
Profit Ratio (%) |
3.25 |
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Return
On Equity (%) |
8.69 |
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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. |
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%)