MIRA
INFORM REPORT
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Report Date : |
10.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
NAIROBI BOTTLERS
LTD |
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Registered Office : |
LR 209/7155 16th Floor Lonro Hse Standard Street |
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Country : |
Kenya |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
29.12.1978 |
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Com. Reg. No.: |
18626 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Manufacturers of Beverages
from the Coca-Cola Company Ltd i.e. they act as their agents in Nairobi,
Kenya |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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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Maximum Credit Limit : |
USD
100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUBJECT'S NAME
Registered Name: NAIROBI BOTTLERS LTD
Requested Name: NAIROBI
BOTTLERS LTD
Other Names: None found.
ADDRESS AND TELECOMMUNICATION
Physical
Address: LR 209/7155 16th floor
Lonro Hse Standard Street
Postal Address: P.o Box 18034 -00500
Nairobi
Country: Kenya
Phone: 254-20-534276
Fax: 254-20-534276
Email: nbl@wananchi.com
Website: none
CREDIT OPINION & RISK RATING
ASSESSMENT
Financial
Index as of December 2007 shows subject firm with a medium risk of credit.
However, bank and credit information obtained reveal a history of prompt
payments. We recommend Credit of USD 100,000 on 90 days.
The Company Has a Score Of B – Which Mean that the company is Apparently healthy, with adequate working capital to meet normal commitments
LEGAL
Legal Form: Limited Corporation
Date Incorporated: 29-Dec-1978
Reg. Number: 18626
National ID: P000611756Q
Nominal Capital KES 71,100,000 divided into 3,555,000 of Shares 20 each
Subscribed Capital KES 71,100,000
Paid Up Capital KES 71,100,000
Subscribed
Capital is Subscribed in the following form:
Position Shares
Mr. Chris Kirubi MD/ CEO
Mr. Michael Arthur Smith Director
Mr. Stuart Eastwood Director
Mr. Ian Robert Bishop Director
Mr. Phillip Hugo Gutshine Director
Mr. William Asiko Director
Mr. Collin Bryan Rushmere Director
Mr. Maina Karuiki Director
Mr. Barry Michael Taylor Director
Mr. Johan William Martin Jarsen Director
Coca cola Sabco (E.A) ltd Uk Chanel Island Shareholder
RELATED COMPANIES
None Parent company.
None Subsidiary company.
None Affiliated company.
None Shareholder of subject firm.
1 (Thika) in Kenya Branches of the firm
OPERATIONS
Registered to operate as manufacturers of beverages from
the Coca-Cola Company Ltd i.e. they act as their agents in Nairobi, Kenya
Imports: None
Exports: Neighboring
countries
Trademarks: Coca-cola
Terms of sale: Cash
(80%) and 30 days (20%), invoices.
Main Customers: Departmental
Stores and outlets
Employees: 500
employees.
Vehicles: Several
motor vehicles.
Territory of sales: Kenya
Location: Owned premises,
100,000 square feet
AUDITORS AND INSURANCE
Auditors: Price Water House Coopers
Insurance Brokers: Jubilee
insurance
FINANCE
Currency Reported: Kenya Shillings (KES)
Approx. Ex. Rate: 1 US Dollar = 76.4 Kenya Shillings
Fiscal Year End: December
31, 2007
Inflation: According to
information given by independent sources, the inflation at December 31st,
2007 was of 13%.
Financial Information Attached
Profit and Loss (expressed in KES)
2007
Sales 5,746,034,000
Net Profit (Loss) 396,348,000
BANK
Bank Name: KENYA COMMERCIAL BANK LIMITED
Branch: United Nations Branch, Nairobi, Kenya
Enquiry Amount: 100,000
Terms: 90 days
Bank Code: Code
-C which means good for normal Business Engagements
Comments: Overdraft None, Promissory notes- None
TRADE
REFERENCES
Experiences: Good
NOTARIAL BONDS None
CHECK
INSOLVENCIES
The checks have been
made on: The company and
shareholders
PROTESTS
AND NEGATIVE ELEMENTS
The company and the
following officers Mr. Chris Kirubi and Mr. Michael Arthur Smith
, have been checked at the Registries of companies and
with the judicial local facilities.
PROTESTS RECORDED
No protests in the name of
the company and its officers, In the past there have been protest against Mr. Chris Kirubi,
in regard to his directorship with UCHUMI supermarkets, where he was allegedly
sold assets of the said company to his friends.
, No protests on the associated concerns, No protests
on other shareholders/partners, Check on Prejudicial Events as per Commercial
Court office
NEGATIVE ELEMENTS
Researches effected
concerning possible prejudicial events
in the name of the company
revealed: No negative elements since 01/10/2008
Date of the check on protests and prejudicial events:
28/11/2008
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources
other than the subject company itself and confirmed the above subject.
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Profit and loss
account Year ended 31 December |
2007 |
2006 |
|
|
Shs'000 |
Shs'000 |
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Sales |
5,746,034 |
4,950,957 |
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Cost of sales |
(2,813,741) |
(2,490,218) |
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Gross profit |
2,932,293 |
2,460,739 |
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Other income |
37,555 |
75,529 |
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Distribution costs |
(1,120,431) |
(1,026,394) |
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Administrative expenses |
(507,836) |
(348,978) |
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Other expenses |
(774,762) |
(569,312) |
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Operating profit |
566,819 |
591,584 |
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Finance costs |
(23,210) |
(41,826) |
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Share of profit in associate |
12,146 |
3,104 |
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Profit before income tax |
555,755 |
552,862 |
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Income tax expense |
(159,407) |
(200,785) |
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Profit for the year |
396,348 |
352,077 |
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Balance sheet At 31 December |
2007 |
2006 |
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Equity |
Shs'000 |
Shs'000 |
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Share capital |
71,100 |
71,100 |
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Share premium |
307,833 |
307,833 |
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Retained earnings |
1,952,870 |
1,723,447 |
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Totai equity |
2,331,803 |
2,102,380 |
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Non-current liabilities |
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Deferred income tax |
333,874 |
179,566 |
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Borrowings |
13,210 |
138,294 |
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Total non-current liabilities |
347,084 |
317,860 |
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Total equity and non-current liabilities |
2,678,887 |
2,420,240 |
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Non-current assets |
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Property, plant and equipment |
2,955,362 |
2,537,766 |
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Prepaid operating lease rentals |
136,433 |
139,421 |
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Investments in associate |
167,325 |
155,179 |
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investment in bottler's licence |
290,353 |
290,353 |
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|
3,549,473 |
3,122,719 |
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Current assets |
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inventories |
507,934 |
453,975 |
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Receivables and prepayments |
279,338 |
261,773 |
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Current income tax |
53,281 |
23,494 |
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Cash at bank and in hand |
298,277 |
251,305 |
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|
1,138,830 |
990,547 |
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Current liabilities |
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Current income tax |
- |
41,049 |
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Payabies and accrued expenses |
1,752,947 |
1,369,762 |
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Borrowings |
256,469 |
282,215 |
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|
2,009,416 |
1,693,026 |
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Net current liabilities |
(870,586) |
(702,479) |
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2,678,887 |
2,420,240 |
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Cash flow
statement as at year ended 31 Dec |
2007 |
2006 |
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|
Shs'000 |
Shs'000 |
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Operating activities |
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|
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Cash generated from operations |
1,301,745 |
845,796 |
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Interest paid |
(38,118) |
(59,916 |
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Income tax paid |
(75,935) |
-459 |
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Net cash generated from operating activities |
1,187,692 |
785,421 |
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investing activities |
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Purchase of property, plant and equipment |
(816,560) |
(671,325 |
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Proceeds from disposal of assets held for sale |
. |
142,435 |
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Proceeds from
disposal of property, plant and equipment |
2,708 |
6,447 |
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Net cash used in investing activities |
(313,852) |
(522,443 |
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Financing activities |
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Proceeds from long term borrowing |
- |
160,000 |
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Payments on long term borrowing |
(281,181) |
(247,424 |
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Finance lease additions |
- |
6,434 |
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Finance lease principal payments |
(5,885) |
(6,327 |
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Dividends paid |
(176,038) |
(87,362 |
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Net cash used in financing activities |
(463,104) |
(174,679 |
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(Decrease)/increase in cash and cash equivalents |
(89,264) |
88,299 |
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Movement in cash and cash equivalents |
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At start of year |
249,498 |
161,199 |
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(Decrease)/increase |
(89,264) |
88,299 |
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At end of year |
160,234 |
249,498 |
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.47.32 |
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UK Pound |
1 |
Rs.74.20 |
|
Euro |
1 |
Rs.60.73 |
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%)