MIRA
INFORM REPORT
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Report Date : |
08.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
PEPKOR RETAIL LTD |
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Formerly Known as : |
SMART-HOLD LTD |
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Registered Office : |
36 Stellenberg Road, Parow Industria, Western Cape
Province |
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Country : |
South Africa |
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Date of Incorporation : |
28.08. 1986 |
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Com. Reg. No.: |
1986/003435/06 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
PEP and ACKERMANS are a cash chain selling family fashions
and basics in clothing, footwear and textiles |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME
PEPKOR RETAIL LTD
Formerly SMART-HOLD LTD, the name having been changed on 29 February 2004.
TRADING DIVISION
ACKERMANS
PEP
PEPCLO
PEPKOR FIN (Corporate services)
PHYSICAL ADDRESS
36 Stellenberg Road
PAROW INDUSTRIA
Western Cape Province
POSTAL ADDRESS
P O Box 6100
PAROW EAST
7501
TELEPHONE NUMBER: 021 933 5137
FAX NUMBER: 021 933 5075
SHAREHOLDERS
100% PEPKOR LTD which in turn is owned 100% by PEPKOR HOLDINGS LTD
It was stated that PEPKOR, which delisted from the JSE Securities Exchange South Africa in February 2004 in an offer that valued the group at R2 660 000 000, had sold 7.5% of its shares to a black consortium for R208 000 000 in cash. The company has sold the stake to MEDU CAPITAL and J & J PRIVATE EQUITY FUND.
MEDU CAPITAL was founded by Nhlanganiso Mkwanazi and Ernest January. Its other investments include Ampaglas, Capital Outsourcing Group, VitalAire and Zest.
J & J PRIVATE EQUITY was founded by former cabinet minister Jay Naidoo and Jayendra Naidoo and hold stakes in information technology, financial services and industrial companies.
ASSOCIATE AND SUBSIDIARY COMPANIES
PEPKOR CLOTHING INDUSTRIES LTD
PEPKOR MANUFACTURING LTD
ACKERMANS LTD (holding investment company)
DUNNS STORES (PTY) LTD
BEST AND LESS LTD in Australia
METRO TOY (PTY) LTD
SHOE CITI HOLDINGS (PTY) LTD. The assets and operations of the company have been incorporated as a division into DUNNS STORES (PTY) LTD with two divisions DUNNS AND SHOE CITI
Plus other companies within the PEPKOR group.
In October 2000 PEPKOR restructured its operations extensively. It unbundled its holdings in the South African food retailer SHOPRITE and in the UK retail group BROWN & JACKSON PLC to its shareholders. In the case with BROWN & JACKSON, the shares were housed in a new company TRADEHOLD, now listed on the JSE Securities Exchange South Africa and the shares of TRADEHOLD unbundled to PEPKOR shareholders on a pro rata basis.
At the same time PEPKOR’s pyramid structure was collapsed and its ultimate holding company, PEPGRO, delisted from the JSE Securities Exchange South Africa. This left PEPKOR with the discount clothing retailers PEP, ACKERMANS and BEST & LESS, having previously disposed of STUTTAFORDS and CASHBUILD.
DIRECTORS
M BARKHUYSEN ID No. 5612145085004
M BARTENS ID No. 5806105144088
J B CILLIERS ID No. 5909155218008
C A CRONJE ID No. 6001185065002
T M GERHARDI
J H DU TOIT ID No. 6102055097008
P J ERASMUS ID No. 6510025150089
L M LOURENS ID No. 6603155037083
A T MEYER ID No. 6008135032008
J F PIENAAR ID No. 5608175119002
G M STEYN ID No. 5904085013082
G ZAVERDINOS ID No. 5204175124083
J D WASSERFALL
J S VAN ROOYEN
M NEETHLING
J L HAMMAN
E A MORKEL (Ms)
S N N CARDINAAL
C J KLEM
L S BRAND
M M BANGA
M S LAURENCE (Ms)
BANKERS
It was stated that the PEP and PEPKOR FIN divisions bank with FIRST NATIONAL BANK, Corporate Branch, Cape Town. The PEPCLO division banks with ABSA BANK, Corporate Cape Town Branch.
It was stated that the divisions are managed by a cash management scheme controlled by the PEPKOR FIN division of the subject.
DATE REGISTERED
28 August 1986
Registration Certificate Number 1986/003435/06
VAT NUMBER
Each division has its own VAT number
MAJOR OPERATION
PEP and ACKERMANS are a cash chain selling family fashions and basics in clothing, footwear and textiles to middle to lower-income consumers. ACKERMANS owns the largest babywear brand marketed in Southern Africa, under the brand name ABC Baby Company. To further its fashion positioning and strengthen its appeal to teens, Ackermans has opened a small number of stand alone brand name stores Hang Ten Stores. PEPCLO is a manufacturer of clothing. PEPKOR FINANCE deals with administration and finance for the company
MAJOR SUPPLIERS
Each division has its own major suppliers. It was deemed not necessary for trade references to be submitted by respondents in view of the standing of the subject.
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Pep and Ackermans deal with the general public. Pepclo deals with Ackermans and Pep
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
It was stated that the Pep division exports to neighbouring countries e.g. Malawi, Zambia and Mozambique.
TOTAL EMPLOYEES
21 300
OTHER PREMISES
The Pep and Ackermans divisions have a total of 1880 stores throughout South Africa and the neighbouring countries of Botswana, Lesotho, Swaziland, Namibia, Zambia, Mozambique and Malawi. Pepclo has a factory at the heading address
OWNED OR LEASED
The heading premises are owned by PEPKOR LTD and most of the
branches are retail outlets that are leased
AUTHORISED SHARE CAPITAL
R4 000 divided into 4 000 ordinary shares of R1 each
ISSUED SHARE CAPITAL
R1
Full financial information was not forthcoming from respondents at the company and outside authorities were unable to assist in this respect.
The new PEPKOR, however, is a dominant player in the South African cash clothing discount market with an annual turnover well in excess of R4 billion and the subject does an annual turnover of R9 billion.
AUDITORS
PRICEWATERHOUSECOOPERS
YEAR END
JUNE
INSURANCE BROKERS
GLENRAND MIB
TRADE REFERENCES
NOT APPLICABLE
COMMENTS
This is a well established company, which was recently restructured. In view of the standing of the subject, it is considered equal to its normal business engagements.
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%)