MIRA INFORM REPORT

 

 

Report Date :

23.12.2008

 

IDENTIFICATION DETAILS

 

Correct 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 :

Propriety Limited

 

 

Line of Business :

Provider of 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.

Small

 

Status :

New Company

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

COMPANY NAME

 

WIRE ELECTRIC (PTY) LTD

 

 

TRADING NAME 

 

WILEC

 

 

PHYSICAL ADDRESS    

 

Warehouse 6 & 7

Old Mutual Mini Park

Cnr Heidelberg & Outspan Roads

City Deep

Gauteng

Telephone Number:     011 613 1811

 

On investigation it was established that the subject became a trading division with effect from September/October 2005 of SAVCIO HOLDINGS (PTY) LTD, which report should be consulted.

 

 

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

BUKUBUHLE WIRE

 

 

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

 

It was stated by the respondent that the ESP and AMT Services Division had recently been sold.  Further details were not forthcoming.

 

 

SHAREHOLDERS

 

25%      ETHOS PRIVATE EQUITY

25%      ACTIS OCOVANGO

15%      OLD MUTUAL ASSET MANAGEMENT

12%      AKA CAPITAL

13%      SPHERE HOLDINGS (PTY) LTD

9%       THE MANAGEMENT TRUST

2%       DIRECTORS

 

 

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 K A MOROLO            ID No. 5807285879089 (ESP)

L C VAN VUGHT           ID No. 4305285080080 (Actis)

M DENALANE               ID No. 7603080297082 (AKA Capital)

M E GEVERS               ID No. 6303035028085 (AKA Capital)

N O DAVIES                 ID No. 3603065043083 (Ethos)

N S NEMATSWERANI   ID No. 5911025842082

R B SPOON                  ID No. 5803045062082

M MAHLARE                 ID No. 7802145439081

B G HITCHCOCK           ID No. 5803065099009

N K MATHEBULA          ID No. 6801025262085

M NAIDOO                    ID No. 7104045210088

L J THOMAS                 ID No. 7704170117089

 

BANKERS

 

The subject’s main banker is ABSA 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. 

 

 

MAJOR SUPPLIERS

 

Each division deals with its own suppliers.

 

MORGAN CARBON

ATAVIC ENGINEERING

DEEP BLUE ENGINEERING

BEARING WISE

The WIRE ELECTRIC DIVISION deals locally with:

 

AFRICAN CAPACITORS

TRANSWIRE

GLOCAL COIL

BKUKUBUHLE

 

 

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

 

590

 

 

OTHER PREMISES   

 

Approximately 9 workshops, 16 distribution centres and two manufacturing facilities throughout South Africa.  The subject also has agents in various areas.

 

 

OWNED OR LEASED

 

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

 

 

AUTHORISED SHARE CAPITAL

 

5 163 530 ordinary and preference shares of no par value

 

 

ISSUED SHARE CAPITAL

 

5 163 530 ordinary and preference shares of no par value

 

Full financial information was not forthcoming from respondents at the company, however, it was stated that the annual turnover is R1.3 billion.

 

 

AUDITORS    

 

ERNST & YOUNG

 

 

YEAR END    

 

SEPTEMBER

 

 

INSURANCE BROKERS 

 

ALEXANDER FORBES

 

 

TRADE REFERENCES – DECEMBER 2006

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    5 months      R30 000         R  6 000 -        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


TRADE REFERENCES – NOVEMBER 2006

 

      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

 

 

TRADE REFERENCES – JUNE 2007

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    15 yrs           R500 000       R100 000        30 days    30 days        Excellent

                                                                     2.5%        2.5%

 

2.    20 yrs           R  40 000       R  30 000        30 days    30 days        Very good

                                                                     2.5%        2.5%

3.    10 yrs+         R400 000       R150 000        30 days    30 days        Very good

                          c/l

 

 

TRADE REFERENCES – NOVEMBER 2007

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    15 yrs           R20 000         R    3 000 -      30 days    30 days        Excellent

                                               R  50 000        2.5%        2.5%

 

2.    5 yrs            open              R100 000        30 days    30 days        Good

 

3.    Old acc        open              declined          30 days    30 days        Good

 

 

TRADE REFERENCES – MAY 2008

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        R296 000       R150 000 -      30 days    30 days        Excellent

                                               R296 000        2.5%

 

2.    20 yrs           R  80 000       R  10 000 -      30 days    30 days        Very Good

                                               R  80 000        2.5%

 

3.    Old acc        declined         declined          30 days    30 days        Good

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.       Do not give trade references.

 

2.       Closed for Christmas.

 

3.       Closed for Christmas.

 

 

COMMENTS

 

This is new company which commenced operations when it obtained the assets and operations of a division of a large and well established group.  In view of the standing of the subject they are considered equal to. $1 000 000 on a spread basis. The lack of financial information and trade references should be borne in mind.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.99

UK Pound

1

Rs.72.49

Euro

1

Rs.68.44

 

 

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