MIRA
INFORM REPORT
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Report Date : |
18.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
L & G TOOLS AND MACHINERY DISTRIBUTORS LTD |
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Registered Office : |
6 Kyalami Road Westmead, Durban, Kwa-Zulu Natal |
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Country : |
South Africa |
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Date of Incorporation : |
18.10.1973 |
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Com. Reg. No.: |
1973/012834/06 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and Wholesaler Distributors of Hardware,
Bathroom Accessories, Brackets, Boards, Tools, Garden Equipment and Garage
Equipment |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME
L & G TOOLS AND MACHINERY DISTRIBUTORS LTD
PHYSICAL ADDRESS
6 Kyalami Road
Westmead
DURBAN
Kwa-Zulu Natal
POSTAL ADDRESS
P O Box 15313
WESTMEAD
3608
TELEPHONE NUMBER: 031 717 6800
FAX NUMBER: 031 717 6868
The subject moved from premises at 282 Point Road, Durban.
SHAREHOLDERS
50.5% MONTEAGLE MERCHANT GROUP SOUTHERN HOLDINGS LTD,
which in turn is owned by MONTEAGLE SOCIÉTÉ ANONYME – registered in Luxembourg (quoted on the JSE Securities Exchange South Africa)
49.5% DES LYLE FAMILY TRUST
SUBSIDIARY COMPANIES
ABAC AIR COMPRESSORS SA (PTY) LTD
ELECTRONIC WELDING SOLUTIONS (PTY) LTD
COMPOPAK (PTY) LTD
DIRECTORS
G K VACY-LYLE
D C MARSHALL
R I SAWKINS
A V NAIDOO
W H MARSHALL
I AHMED
BANKERS
FIRST NATIONAL BANK, Kloof branch, account number 6000041342 (current account) and 62012496164 (debtors finance account). It was stated that the subject enjoys a combined facility to an extent of R49.5 million of which R11.5 million is for overdraft, which is secured by property, debtors and stock. It was stated that the subject factors its book with First Factors to an extent of R38 million.
DATE REGISTERED
18 October 1973
Registration certificate number: 1973/012834/06
VAT NUMBER
4400103265
MAJOR OPERATION
Importers and wholesale distributors of hardware, bathroom accessories, brackets, boards, tools, garden equipment and garage equipment e.g. compressors, machinery, pneumatic tools, automotive accessories and welders
MAJOR SUPPLIERS
The subject imports most of its supplies from the Far East and Italy and deals locally with:
THE WOODMASTER Durban
LASHER TOOLS Johannesburg
LUMEX CLIPSAL Johannesburg
CHISA WELDING Ladysmith
SUN COURIERS Durban
The subject undertakes its clearing in-house.
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Hardware industry and all the hyper stores in the country.
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
Africa, Botswana, Malawi and Namibia except Zimbabwe
TOTAL EMPLOYEES
250
OTHER PREMISES
It was reported that the subject has a warehouse in Cape Town which is leased.
OWNED OR LEASED
The head office premises are reported to be owned by the subject and valued in the region of R18 million, bonded in favour of MARIOTT MERCHANT BANK to an extent of R6 million.
AUTHORISED SHARE CAPITAL
R200 000 divided into 200 000 ordinary shares of R1 each
ISSUED SHARE CAPITAL
R200 000
The following estimated financial situation was submitted:
STOCK ±R 73 000 000
DEBTORS R63 000 000 – R 71 000 000
FIXED ASSETS excl. property R5 000 000 – R 7 000 000
PROPERTY R 18 000 000
TOTAL LIABILITIES R 56 000 000
CREDITORS R 15 000 000
LOANS FROM SHAREHOLDERS & DIRECTORS R 6 700 000
TURNOVER per annum R274 000 000
AUDITORS
RSM BETTY & DICKSON
YEAR END
SEPTEMBER
INSURANCE BROKERS
MARSH
TRADE REFERENCES – APRIL 2006
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 1992 R150 000 R20 000 60 days 60 days Very good
2. 2001 R159 000 R70 000 30 days 30 days Very good
3. 11 yrs R50 000 R20 000 30 days 30 days Very good
TRADE REFERENCES – DECEMBER 2006
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 10 yrs R100 000 R100 000 30 days 30 days Very good
2. 10 yrs declined declined 30 days 30 days Very good
3. 7 yrs R938 000 R350 000 - 30 days 30 days Very good
R650 000 2.5% 2.5%
TRADE REFERENCES – JULY 2007
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 10 yrs+ R300 000 R 30 000- 30 days 30 days Good
R 50 000
2. ±4 yrs R1 500 000 R1 500 000 30 days 30 days Good
3. ±7 yrs R 350 000 R 574 000 30 days 30 days Good
2.5% 2.5%
4. 01/2001 R 140 000 R 6 000 30 days 30 days Good
c/l
CURRENT TRADE REFERENCES
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. Old acc open R1 200 000 - 30 days 30 days Very good
R2 000 000
2. 6 yrs R350 000 R 545 000 30 days 30 days Good
2.5% 2.5%
3. 10 yrs open varies 30 days 30 days Good
4. Last purchased a year ago Good
5. Do not give trade references
COMMENTS
This is an established company that is not a general credit seeker locally. The subject is well connected and is effecting a substantial turnover. The subject is considered equal to US$1 000 000 on a spread basis. The fact that the debtors book is stated to be factored should be borne in mind.
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%)