MIRA
INFORM REPORT
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Report Date : |
20.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SALOMON A. ANGEL LTD. |
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Registered Office : |
1 Kanfei Nesharim Street, Kiryat Moshe Industrial Zone, Jerusalem
95464 |
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Country : |
Israel |
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Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
1927 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
A bakery, Manufacturers and Marketers of Bread, Pastries and Cakes |
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$ 3,000,000. |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SALOMON A. ANGEL
LTD.
(Also known as: ANGEL’S BAKERY).
Telephone 972 2 658 05 55
Fax 972 2 651 12 38
P.O. Box 34243
(91342)
1 Kanfei Nesharim Street
Kiryat Moshe Industrial Zone
JERUSALEM 95464
ISRAEL
HISTORY
Originally established
in 1927 as a non-registered business by the Angel family.
Converted into a private limited company and registered as such as per
file No. 51-017241-4 on the 5.11.1957.
Converted into a
public limited liability company and registered as such as per file No.
52-003513-0 on 19.6.1984.
In 1984 published
a prospectus offering shares to the public on the Tel Aviv Stock Exchange and
since then shares are traded on the stock exchange.
SHARE CAPITAL
Authorized share
capital NIS 5,555,555.00, divided into - 5,555,555 ordinary shares of NIS 1.00
each, of which shares amounting to NIS 5,360,000.00 were issued.
SHAREHOLDERS
1. Gad Angel, 22.6%,
2. Yaron Angel, 22.4%
3. Ygal Hiat, 9.9%,
4. Ms. Eva Angel, 8.5%
5. Mrs. Ruth Meron, 5.4%,
6. Itzhak Sela 5.4%
7. ARIAD FINANCE AND INVESTMENTS LTD., a
subsidiary, 2.6%,
8. Shares are also traded on the Tel Aviv
Stock Exchange.
DIRECTORS
1. Daniel Angel - Chairman,
2. Yaron Angel -
General Manager,
3. Yigal Khayat,
4. Gad Angel,
5. David Shavit,
6. Mrs. Ruth Meron - CFO,
7. Yecheskel Dovrat,
8. Yehoshua Agassi.
BUSINESS
A bakery,
manufacturers and marketers of bread, pastries and cakes.
Producing some 500
types of pastries.
Among local
suppliers: SHARON PURATUS, PACA INDUSTRIES, ISRAELI FLOUR
MILLS, etc.
Operating from
main owned premises (offices and bakery), on an area of 18,400 sq. meters, of
which 12,600 sq. meters are built, in 1 Kanfei Nesharim Street (Shlomo Angel
Square), Jerusalem. Also operating from 4 bakeries, also via subsidiaries, in
Lod (on an owned area of 20,700 sq. meters, of which 9,100 sq. meters are
built), Netivot, Beit Shemesh and Kfar Hahoresh), and from a pastries marketing
chain nationwide.
Having 1,752
employees, most are permanent ones.
MEANS
Consolidated B/S
shows:
NIS
(thousands)
ASSETS 30.09.2007 31.12.2006
Current assets
Cash and cash equivalents 3,098 1,091
Negotiable securities 515 5,853
Clients 112,305 110,670
Other debtors 13,778 13,895
Stock __7,922 __5,759
137,618 137,268
Long-term receivables 963 1,266
Real estate for investment 17,450 17,738
Fixed assets 181,716 155,337
Intangible assets,
net __5,406 __5,755
343,153 317,364
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LIABILITIES
Current liabilities 189,223 190,939
Long term liabilities 60,097 61,834
Equity _93,833 _64,591
343,153 317,364
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Current market
value US$ 47.4 million.
There are over 100
charges for unlimited amounts registered on the company assets, mostly equipment
and machinery, in favor of local banks and companies.
ANNUAL SALES
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2004 2005 2006
Sales 399,709 419,749 472,072
Gross profit 149,629 152,560 196,803
Operating income 8,739 505 36,607
Profit (loss)
before taxes on income (602) (9,054) 28,619
Net income (loss) 125 (10,886) 25,255
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Consolidated first 3 quarters of 2007 sales were NIS 366,220,000 (5%
increase compared to the parallel period in 2006), making a gross profit
of NIS 146,022,000, an operating income
of NIS 22,156,000 and a net profit of
NIS 12,154,000.
OTHER COMPANIES
ARIAD FINANCE AND
INVESTMENTS LTD., 100%,
BEL (G.I.I.R.)
LTD., 100%,
MAGDANIAT ANGEL
LTD., 100%,
ORANIM REGIONAL
BAKERY LTD., 50%.
BANKERS
Bank Leumi
LeIsrael Ltd., Main Branch (No. 901), Jerusalem,
account No. 175600/94.
Bank Hapoalim
Ltd., Kikar Zion Branch (No. 783), Jerusalem,
account No. 51921.
A check with the Central
Banks’ database did not reveal any negative information regarding subject’s a/m
accounts.
CHARACTER AND REPUTATION
In December 2006 a
motion for class action was filed against 3 large bakeries, subject being one
of them, for misleading labeling regarding the amount of calories in their
"light bread". The motion filed for sum of NIS 200 million (for all 3
companies, not detailed), but still has to be approved as a class action by the
court.
In 2006 there were
also publications regarding commercial conflicts between subject and main rival
BERMAN BAKERY, which reached the courts.
On the background
of an internal conflict among subject's shareholding family, in December 2006,
subject's director and shareholder Gad Angel filed a lawsuit to the Labor Court
against subject and several of its principals. Gad Angel was fired from the
Board of Directors towards the end of 2007 and later returned to be a director
for limited period (he asks for compensation if eventually fired).
Nothing
unfavorable learned apart of that.
Subject is the
largest bakery in Israel, with 35% market share in the industrial pastries
field and estimated 20% in the bread market.
The local bread
and pastry market has an estimated annual turnover of NIS 2 billion, where NIS
350 million of which is bread under the Ministry of Industry & Trade
supervision (some 17% of the bread supply in Israel).
On the background
of the rise of inputs prices for the bread industry, the local large bakeries
who produce common bread under price supervision demanded the Ministry of
Industry & Trade to allow them to elevate consumer prices. The Minister,
Eli Yishay, refused the appeal, saying he will resist it as long as the
government does not compensate the lower classes adequately.
In July 2001, it was
reported that subject will acquire 50% of the ORANIM bakery, for a sum of NIS 6
million (deal completed).
In February 2002,
it was reported that subject acquired the activities of EILAT BAKERY, for a sum
of NIS 12 million.
In November 2002, it
was reported that subject will develop a new Russian bread brand.
In May 2006, it
was reported that subject is investing NIS 1 million in new line of bread
gourmet products.
In November 2007,
subject completed the acquisition of all the pastry activities (production,
marketing goodwill and baking equipment) from LEHEM HAI LTD., in consideration
of US$ 3.5 million. LEHEM HAI sales comprise 5% of subject's consolidated
sales.
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended US$ 3,000,000.
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. |
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%)