MIRA INFORM REPORT

 

 

Report Date :

02.06.2008

 

IDENTIFICATION DETAILS

 

Name :

WOOLWORTHS (PTY) LTD

 

 

Registered Office :

Woolworths House, 93 Longmarket Street, Cape Town, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

06.03. 1956

 

 

Com. Reg. No.:

1956/000518/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

One of the largest Retailers of Clothing, Homeware and Food in South Africa.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

COMPANY NAME

 

WOOLWORTHS (PTY) LTD

 

 

TRADING NAME

 

WOOLWORTHS INTERNATIONAL SA (PTY) LTD (agency company)

 

 

PHYSICAL ADDRESS

 

Woolworths House

93 Longmarket Street

CAPE TOWN

Western Cape

 

 

POSTAL ADDRESS   

 

P O Box 680

CAPE TOWN

8000

TELEPHONE NUMBER: 021 407 9111

FAX NUMBER:  021 407 3924 

 

It was stated by a respondent that the subject’s distribution warehouse is situated at 48 Montague Drive, Montague Gardens.

 

 

SHAREHOLDERS

 

100%    WOOLWORTHS HOLDINGS LIMITED (Reg. No. 1929/001986/06) Quoted on the JSE LTD

 

 

ASSOCIATE COMPANIES

 

WOOLWORTHS CLAREMONT SHARE BLOCK (PTY) LTD (property owning company)

COUNTRY ROAD LTD – quoted on the Australian Stock Exchange.

 

Subsidiary Companies:

 

WOOLWORTHS (LESOTHO) (PTY) LTD (dormant)

WOOLWORTHS (SWAZILAND) (PTY) LTD  (dormant)

WOOLWORTHS (NAMIBIA) (PTY) LTD (dormant)

WOOLWORTHS INTERNATIONAL SA (PTY) LTD which has an agency agreement with WOOLWORTHS (PTY) LTD

WOOLWORTHS PHARMACEUTICALS (PTY) LTD

WOOLWORTHS FINANCIAL SERVICES (PTY) LTD

VIRTUAL MARKET PLACE (PTY) LTD

 

Plus other companies within the WOOLWORTHS group.

 

 

DIRECTORS

 

S N SUSMAN (Chairman /CEO) ID No. 5005015195088

Z RYLANDS (Ms)(alternate)                    ID No. 6411100181083

R J  D INSKIP                                        ID No. 6204145040004

A R JENNINGS                                      D.O.B.480917

N W THOMSON                                    ID No. 5106265076083

 

 

BANKERS

 

STANDARD BANK, Adderley Street Branch, Cape Town is the main account of the subject, while the Woolworths’ branches deal with STANDARD BANK throughout South Africa.

 

It was stated that the branches are managed by a cash management scheme controlled by the subject.

 

 

DATE REGISTERED

 

6 March 1956

Registration Certificate Number: 1956/000518/07

 

On investigation it was established that the subject changed its name and entity in October 1997 from WOOLWORTHS’ HOLDINGS (PTY) LTD. A dormant company was utilised and WOOLWORTHS HOLDINGS LTD commenced in 1997.

 

 

VAT NUMBER    

 

4550102216

 

 

MAJOR OPERATION

 

The subject is one of the largest retailers of clothing, homeware and food in South Africa.

 

 

MAJOR SUPPLIERS

 

The subject imports most of its supplies and deals locally with:

 

DAIRYBELLE CORPORATION  Cape Town

BIBETTE  Cape Town 

MASTERSPORTS  Cape Town

CAPE UNDERWEAR  Cape Town

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

General public

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

The subject has franchise outlets in Africa and the Middle East.

 

 

TOTAL EMPLOYEES

 

16 337 in the group.

 

 

OTHER PREMISES

 

The subject is reported to have approx. 200 retail stores nationwide.

 

 

OWNED OR LEASED

 

The heading premises are owned by a group company, while some of the branch premises are leased and some are owned.

 

 

AUTHORISED SHARE CAPITAL

 

R200 divided into 100 ordinary shares of R2 each

 

 

ISSUED SHARE CAPITAL

 

R200

 

Full financial information was not forthcoming from respondents at the company, however, please see historical information dated June 2004:

 

STOCK                                     R   380 343 000

DEBTORS                                 R1 899 651 000

FIXED ASSETS net book value   R   810 016 000

CREDITORS                              R   892 982 000

SHAREHOLDERS LOANS         R   906 446 000

TURNOVER per annum              R8 503 197 000

           

 

AUDITORS    

 

ERNST & YOUNG Cape Town and SAB & T INC.

 

 

YEAR END    

 

JUNE

 

 

INSURANCE BROKERS

 

UNISON RISK MANAGEMENT

 

 

TRADE REFERENCES – NOVEMBER 2006

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         1994                 R      15 000      R      10 000      30 days             30 days             Very good

 

2.         Old acc.            R10 000 000      R10 000 000        7 days                        7 days             Excellent

 

3.         5 yrs+               do not disclose figures                30 days             30 days             Very good

 

 

TRADE REFERENCES – APRIL 2007

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         1994                 R      15 000      R      10 000      30 days             30 days             Good

 

2.         20 yrs               R8 000 000        R10 000 000      30 days             30 days             Very good

 

3.         Do not give trade references.

 

 

TRADE REFERENCES – FEBRUARY 2008

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         10 yrs              declined            declined            30 days             30 days             Very good

 

2.         Old acc             open                 R10 000 000      30 days             30 days             Very good

 

3.         Old acc             R30 000 000      declined            30 days             30 days             Very good

 

 

 CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         Old acc            declined            declined            30 days             30 days             Very good

 

2.         Old acc             R30 000 000      declined            30 days             30 days             Very good

                                    c/l

 

3.         Old acc             open                 R15 000 000      30 days             30 days             Excellent

 

 

COMMENTS

 

This is a well-established and well-connected company meeting its commitments timeously.  The subject is considered equal to US$1 500 000 over 30 days

 

 

 

 

 

 

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