MIRA INFORM REPORT

 

 

 

Report Date :

22.08.2008

 

IDENTIFICATION DETAILS

 

Name :

COLIBRI TOWELLING (PTY) LTD

 

 

Formerly Known As :

UNION COTTON MILLS (PTY) LTD

 

 

Registered Office :

Algoa Road, Cnr Newbolt Street, UITENHAGE, Eastern Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.05.1949

 

 

Com. Reg. No.:

1949/033638/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture Terri-Towelling Products. 

 

 

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

 

 

COMPANY NAME

 

COLIBRI TOWELLING (PTY) LTD

 

Formerly INDUSTEX (EASTERN CAPE) (PTY) LTD, the name having been changed on the 1 July 1998. Formerly: UNION COTTON MILLS (PTY) LTD, the name having been changed on the 4 October 1990.

 

 

TRADING DIVISION 

COLIBRI TOWELLING

H K MANUFACTURING

 

 

PHYSICAL ADDRESS

 

Algoa Road

Cnr Newbolt Street

UITENHAGE

Eastern Cape

 

 

POSTAL ADDRESS   

 

P O Box 253

UITENHAGE

6014

 

TELEPHONE NUMBER: 041 995 3400

 

FAX NUMBER:  041 922 7740 / 992 069

 

Newbolt Street is actually in Uitenhage and not in Neave Township, Port Elizabeth and the telephone number 041 922 7913 submitted by our client, no longer exists.

 

 

SHAREHOLDERS

 

100%    BELGO TEXTILES (PTY) LTD, which in turn is owned by EERSTEFLOAMBLAU HUUR (EDMS) BPK, which in turn is owned by THE TOM AND DEBBIE HICKMAN FAMILY TRUST, ERIC LAUBSCHER FAMILY TRUST and D E TRUST in which Mr. Myburg is a trustee.

 

 

ASSOCIATE COMPANIES

 

COLIBRI TOWELLING FACTORY SHOP (PTY) LTD

COLIBRI TOWELLING (WESTERN CAPE) (PTY) LTD


DIRECTORS

 

T HICKMAN (FD)

E L LAUBSCHER  (Sales and Marketing Director)

H F MYBURG (Western Cape Operational Director)

R JONSSON

 

 

BANKERS

 

NEDBANK, The Bridge, Bellville, account number 2805713901.  It was stated that the group enjoys a total facility to an extent of approximately R9 000 000, secured by the shareholder’s guarantees.  Utilisation of the overdraft is stated to fluctuate. 

 

The group also banks with ABSA BANK, Tiger Valley Commercial Centre, account number:  4053744631.  It was stated that the subject enjoys overdraft facilities to an extent of R1 500 000, secured by the directors’ guarantees.  Utilisation of the overdraft is stated to fluctuate.

 

 

DATE REGISTERED

 

18 May 1949

Registration certificate number 1949/033638/07

 

Colibri Towelling has been in existence since the early 1950’s. 

 

Respondent stated that the subject incorporated the assets and operations of HK MANUFACTURING (PTY) LTD on 1 December 2006.

 

It was stated that Colibri Towelling and Belgotex Towels merged in 2001.

 

It was stated that prior to taking over the subject, the present shareholders were shareholders in a company namely, BELGOTEX (PTY) LTD.

 

 

VAT NUMBER

 

4660101579

 

 

MAJOR OPERATION

 

COLIBRI TOWELLING manufacture terri-towelling products. 

H K MANUFACTURING manufacture baby products such as bibs, baby hooded towels and occasionally blankets.

 

 

MAJOR SUPPLIERS

 

The subject imports machine spares from Europe and towelling products from China and India and deals locally with:

 

IMBONO FUELS Cape Town

ROHLIG GRINDROD Cape Town

CLARIANT Durban

PRILLA 2000 Pietermaritzburg

FRAME TEXTILES (Spinning Division)  Durban

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Major retail chain groups and wholesalers such as Pick ‘n Pay, Edgars, Mr Price, Sheet Street, Makro, Shoprite and hospitality industry.

 

 AREA OF DISTRIBUTION AND SELLING:         South Africa

 

EXPORTS:        Namibia

 

TOTAL EMPLOYEES:    291 waged and 86 permanent staff

 

 

OTHER PREMISES   

 

The subject is reported to have agents throughout South Africa and Namibia.  The COLIBRI TOWELLING DIVISION has a factory and offices in Algoa Road, Uitenhage.  It was stated that the buildings are owned by an associate group company.  The H K MANUFACTURING DIVISION has a factory in Parow Industria which is also owned by an associate group company.

 

AUTHORISED SHARE CAPITAL:           R670 000 divided into 335 000 ordinary shares of R2 each.

 

ISSUED SHARE CAPITAL:        R618 826

 

The following estimated financial information dated June 2008 was submitted:

 

STOCK                                                 R  23 000 000

DEBTORS                                             R  15 800 000

FIXED ASSETS net book value               R  10 000 000

CREDITORS                                          R  16 000 000

LOANS banks                                       R    5 000 000

TURNOVER per annum                          R127 000 000

TURNOVER for the group per annum       R188 000 000

 

 

AUDITORS    

 

IMMELMAN FERREIRA INC, Cape Town 021 975 1002

 

YEAR END:       JUNE

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES

 

 

TRADE REFERENCES – SEPTEMBER 2006

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1a.        10 yrs               R   500 000       R200 000 -        60 days             60 days             Good

                                                            R300 000

 

1b.        10 yrs               R   500 000       R300 000 -        60 days             60 days             Good

                                                            R400 000

 

2.         2004     R1 900 000        R650 000 -                    90 days             90 days             Good

                                                R800 000

 

Do not give trade references

 

 

 TRADE REFERENCES – SEPTEMBER 2007

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         2001                 R500 000          R500 000          30 days             30 days             Very Good

 

2.         Old acc             R500 000          R400 000 -        60 days             60 days             Good

                                    R500 000

 

3.         Awaiting a fax trade reference

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         Old acc             R300 000          R300 000          45 days             45 days             Excellent

                                                                                    by arrangement

 

2.         Old acc             R300 000          R200 000 -        60 days             70 days+           Slow

                                                            R300 000

 

3.         2004                 R500 000          R500 000          90 days             95/100 days      Satisfactory

 

 

COMMENTS

 

This is an established business meeting its commitments slowly.  It should be borne in mind that the textile industry in South Africa has been negatively impacted by cheap imports over the past few years.  It is suggested that dealings be well spread and on a fully secured basis only.

 

 

 

             

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.38

UK Pound

1

Rs.81.34

Euro

1

Rs.64.55

 

 

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.

 

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