MIRA
INFORM REPORT
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Report Date : |
15.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
NAAMAN PORCELAIN LTD |
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Registered Office : |
P. O. Box 2066,
Har Atzmon Street Nesher Industrial Zone, Ramle 72100 |
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Country : |
Israel |
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Date of Incorporation : |
30.07.1972 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, marketers, wholesale distributors, and retailers of
household goods, kitchenware and giftware |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 and address of the company
NAAMAN PORCELAIN
LTD.
Telephone 972 8 918 88 88
Fax 972 8 918 88 89
P. O. Box 2066
Har Atzmon Street
Nesher Industrial
Zone
RAMLE 72100 ISRAEL
HISTORY
Originally
incorporated as a private limited company as per file No. 51-061678-2 on the 30.7.1972,
under the name RESINES AND POLYMERS 1972 LTD., which changed to RAMY CERAMICS
INDUSTRIES LTD. on 6.3.1989, then changed to RESINES AND POLYMERS (K.T.) LTD.
on 16.1.1991, and finally changed to the present name on 13.3.1993.
The company
continued activities originally founded in 1945 in Kibbutz Kfar Masaryk.
In early 1993
subject took over the activities of one of the plants of KOOR CERAMIC WORKS
LTD. (of the KOOR Group) and resumed activities as manufacturers and marketers
of porcelain and refractory kitchens products.
In January 1996
subject was acquired by M.Z.P.K. LTD. (later SAGIEL INVESTMENTS LTD.) from the
KOOR Concern and in parallel to the acquisition, all subject’s activities in
the field of manufacturing were sold to NAAMAN REFRACTORIES LTD. (later BARBOUR
NAAMAN LTD., owned by different shareholders).
Subject converted
into a public limited liability and registered as such as per file
No. 52-004438-9 on
21.11.1999.
In December 1999
issued its shares for trading on the Tel Aviv Stock Exchange, after raising NIS
29.6 million from the public.
SHARE CAPITAL
Authorized share
capital NIS 20,000,000.00, divided into -20,000,000 ordinary shares of NIS 1.00
each, of which shares amounting to NIS 8,949,541.00 were issued.
SHAREHOLDERS
1. BEE GROUP RETAIL LTD.,
56.35%, subsidiary of BLUE SQUARE - ISRAEL LTD., 60% controlled by the ALON
GROUP, controlled by Dudi Weissman,
2. D.S. APEX HOLDINGS LTD., 18.89%,
institutional investor,
3. Shares are also traded on the Tel Aviv Stock
Exchange.
In October 2007,
BLUE SQUARE – ISRAEL, via subsidiary BEE GROUP RETAIL, completed deals for the
acquisition of 51.5% of subject's shares from Roy Gil, Eitan Eldar, Israel
Mayo, and the Strauss family, in consideration of
NIS 97 million.
DIRECTORS
1. Avner Katz, Chairman,
2. Ms. Limor Ganor,
3. Dror Moran,
4. Haim Aharon,
5. Uri Falach,
6. Ilan Buchris,
7. Amir Tamari,
8. Ms. Kimberly Tara Shoham Nir.
MANAGEMENT
1. Itzhak Mayo, President,
2. Israel Mayo, General Manager.
BUSINESS
Importers, marketers,
wholesale distributors, and retailers of household goods, kitchenware and
giftware (kitchen utensils, cutlery, dinner sets, etc.).
Also importers of
porcelain items, on which they perform printing decoration works, i.e. graphic
design and decals printing.
Sales are to 3
sectors:
1. Leading local marketing
chains and wholesalers (main client is sister company's chain store
"Sheshet").
2. Institutional markets (e.g. hotels,
restaurants, banquet halls, catering companies, enterprises, etc.).
3. Subject’s retail chain, which includes 17
stores.
Operating from a
rented premises (offices, showroom, logistic center and warehouses), on an area
of 15,500 sq. meters in Har Atzmon Street, Nesher Industrial Zone, Ramle, and
from 17 stores nationwide.
Having 107
employees. Also using manpower services at peak seasons.
MEANS
Current market value US$ 28.4 million.
In 2005 subject offerred bonds and options to the public thrugh the
Stock Exchange, raising NIS 30 million.
Consolidated B/S
shows
NIS (thousands)
31.12.2006 30.09.2007
ASSETS
Current assets
Cash and
cash equivalents 12,685 152
Customers 19,266 33,120
Other
debtors 3,174 9,669
Stock _27,074 _28,451
62,199 71,392
Fixed assets 7,572 7,939
Other assets __4,456 __4,040
74,227 83,371
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LIABILITIES
Current liabilities 15,124 28,912
Long term
liabilities 27,036 8,045
Equity _32,067 _46,414
74,227 83,371
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There are no charges registered on the company's
assets.
ANNUAL SALES
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2004 2005 2006
Sales 83,993 101,169 116,844
Gross profit 38,950 48,130 55,485
Operating income 9,446 15,982 19,388
Pre-tax income 3,840 12,461 16,767
Net income 5,650 8,663 11,583
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Consolidated sales for the first 3 quarters of 2007 were NIS 104,601,000
(9% increase compared to the parallel period of 2006), making a gross profit
of NIS 51,581,000, an operating income
of NIS 21,565,000 and a net income of
NIS 13,963,000.
OTHER COMPANIES
MILBO LTD., 100%,
import services for subject and others.
Subject also holds
the following non-active subsidiaries (100%, unless otherwise stated): NAAMAN
SECURITIES LTD., AMBAT PLUS LTD., DROR INVESTMENTS LTD., TENE GUY INVESTMENTS
LTD., BAYIT VEOD LTD., (75%).
BEE GROUP RETAIL
LTD. (formerly HAMACHSAN HAMERKAZI KFAR HASHAASHUIM LTD.), the BLUE SQUARE
Group non-food retail arm (baby products, clothes, games, health and beauty,
etc.) – see more below.
BLUE SQUARE -
ISRAEL LTD., a public limited liability
company, shares of which are traded on the Tel Aviv Stock Exchange and the New
York Stock Exchange, with current market value of US$ 571.7 million.
It is controlled (70.65%) by “ALON” ISRAEL OIL
COMPANY LTD., controlled by businessmen Shraga Biran and David (Dudi) Weissman
(jointly 40%), the National Kibbutzim Movement (34%) and the AFRICA ISRAEL
Group (26%, controlled by businessman Lev Leviev).
The ALON Group
also controls the DOR ALON ENERGY and ALON USA, operating in the energy fields,
including petrol stations operation.
BANKERS
Israel Discount
Bank Ltd., Hamoshavot Square Branch (No. 014), Tel Aviv.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject is veteran
and a local well-known chain, among the leading in their field.
BLUE SQUARE-ISRAEL LTD. is a leading retailer in Israel. It is the
second largest retail chain in Israel, with 182 supermarkets under different
formats spread nationwide.
BEE GROUP RETAIL
is one of the local largest non-food retail chains, with some 230 stores spread
countrywide (partly operated by concessionaires), including "Kfar
Hashaashuim" (toys and games chain, 74 stores), "Sheshet" (45
stores), "All in $1" (40 stores), "Vardinon" (home textile,
30 stores), "Rav-Kat" (babies products, 20 stores) and subject.
In April 2000 subject completed the acquisition of one of its main
rivals MILBO LTD., in consideration of US$ 6 million.
In June 2002 all of MILBO LTD activities (logistic, marketing,
administration, offices and showrooms) were merged with subject.
In June 2007, subject and TIV TA'AM, local supermarket chain, acquired
jointly 60% (equally split) of the DOMO retail chain for exclusive household
products, in consideration of NIS 7 million. As part of the transaction, TIV
TAAM received the option to acquire subject's shares in the deal (30%).
On 30.10.2007, the option was exercised.
In July 2007 BEE GROUP RETAIL LTD., 60% subsidiary of BLUE SQUARE,
signed an agreement to acquire the controlling interest of subject. The
transaction has been completed. This was part of the BLUE SQUARE Group strategy
of expansion into the Non-Food sector. Following the acquisition, BEE GROUP
RETAIL holds (partially through franchisees) 234 retail outlets branches, with
activities in the toy, houseware, gift, baby products, and textile sectors.
In December 2007,
subject reported that as part of its expansion strategy, it is observing 2
possibilities:
1) Acquiring sister
company chain store SHESHET HOUSHOLD CHAIN STORES LTD. (fully owned by BEE
GROUP RETAIL) in a shares swap transaction. SHESHET, also subject's client (20%
of sales), are importers, marketers, distributors and retailers of household
goods, giftware, small electrical appliances, home textile and camping
products, operating the "Sheshet" chain store countrywide.
2) Acquiring from parent BEE GROUP RETAIL all the
shares of its subsidiary WARDINON TEXTILE LTD., a public company whose shares
are also traded on the Tel Aviv Stock Exchange, market value US$ 11 million,
importers, manufacturers, marketers and retailers of home textile.
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%)