MIRA INFORM REPORT

 

 

 

Report Date :

04.10.2008

 

IDENTIFICATION DETAILS

 

Name :

HIMA CEMENT

 

 

Registered Office :

P.O Box 37, Kasese

 

 

Country :

Uganda

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

14.12.1994

 

 

Com. Reg. No.:

28881 Kampala, Uganda

 

 

Legal Form :

Limited Liability Company, Limited by Shares

 

 

Line of Business :

Retailers of Mkate, Food Stuffs etc

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 100,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

COMPANY REPORTED  

 

HIMA CEMENT

Other Name                                   HIMA CEMENT 1994 LTD

 

 

Principal Address   

 

P.o Box 37, Kasese, Uganda

Telephone:                                     +256-41-44064/44242/ 44

Fax:                                              +256-41-341553

Email:                                           None

Internet:                                         None

 

 

Established    

 

14/12/1994

 

 

Registration  

 

No. 28881 Kampala, Uganda

 

 

Legal Form     

 

Limited Liability Company, Limited by shares

 

 

Stock Listing 

 

Not Listed

 

 

Workforce

 

2007                                                                                         

240                                                                                           

 

 

Office & Factories  

 

Head offices                                   2nd Floor, Diamond Trust Building, Kansese,Kampala, Uganda

Branches                                       Fort Portal Road, Kasese, Uganda

 

 

Company Profile

 

Paid in Capital                               UGX. 20,500,000,000

Subscribed Capital                         UGX. 9,540,000,000

 

 

Shareholders     

 

Name                                           Position                          Amount                         Ratio

Mr. G C D Groom                           CEO                                                             

Mr. James M Shiganga                                                       Director                                

Mr. Alain Lemeur                            Director                                                         

Bamburi Cement Ltd                       Holding company                                            100.00%

Total                                                                                                                  100.00%

 

Credit Opinion

 

Our proposed credit amount of USD 100,000 is recommendable

 

 

Affiliated Companies   

 

Company (1)                     BAMBURI SPECIAL PRODUCTS

Company (2)                     LAFARGE ECO SYSTEMS

 

 

Management/ Directors    

 

President/ CEO (1)

 

Name

Mr. G C D Groom

Remarks

Top Decision Maker

 

President/ CEO (2)

 

Name

Mr. James M Shiganga  

 

Ž  Top decision maker is the person who has the ultimate authority or power to make important managerial decisions. He/She may or may not be officially registered as a president or an executive director.

 

 

Business Activities 

 

Retailers of Mkate, food stuffs etc

 

 

Terms of payment

 

Buying terms                     30% in cash, 70% on credit

Selling terms                     80% in cash, 20% on credit

                                       

 

Suppliers   

 

Various.

 

 

Customers 

 

Local agencies , Distributors, and outlets

                                       

 

Recent Sales  

 

KSHS. 700,000,000  (2007)

 

 

Exports

 

None

 

 

Export Ratio  

 

0.0%

 

 

Import Ratio  

 

20.0%

 

 

Domestic Market Share    

 

30.0%

 

 

Banking relationship  

 

Main Banks                      Standard Chartered Bank

 

 

Credit Check of Subject, President & CEO (as of report date)

 

Payment Morale: In the documents at our disposal nothing adverse has been shown so far.

CREDIT RATING :Financial situation is average.

 

 

COMMENTS

 

According to restricting the company was owned by Beaver Enterprises Sa & Ubique Services Ltd, but later sold the company to Bamburi Cement Ltd, in 1999, which is in turn indirectly controlled by Lafrage Group of France and Blue Circle Plc of U.K. The former is the second largest cement group in the world. Bamburi Cement Ltd, is a public quoted company on the Nairobi Stock Exchange. 
 
Maximum credit we recommend is USD 100,000 outstanding at any one time.

CONSOLIDATED BALANCE SHEET

 (In Million KShs.)
 
 

Year End Results as of 31 December

2007

2006

2005

ASSETS

 

 

 

Noncurrent assets

 

 

 

Property, plant and equipment

9,030

9,395

9,080

Operating lease rentals

9

9

9

Intangible assets

40

56

72

Capital work in progress

1,449

643

350

Investments in subsidiaries

0

1

1

Other equity investments

2,886

2,610

1,803

Goodwill

217

217

217

 

13,631

12,931

11,532

Current assets

 

 

 

Inventories

3,501

2,385

2,027

Trade and other receivables

3,201

1,137

853

Tax recoverable

16

3

-

Cash and cash equivalents

371

2,057

920

 

7,089

5,582

3,800

Total Assets

20,720

18,513

15,332

EQUITY AND LIABILITIES

 

 

 

Capital and reserves

 

 

 

Share capital

1,815

1,815

1,815

Capital redemption reserve

2

2

2

Revaluation surplus

2,786

2,965

2,821

Fair value reserve

2,540

2,264

1,457

Translation reserve

(108)

-70

-338

Retained earnings

7,194

6,041

4,922

Shareholders’ funds

14,229

13,017

10,679

Minority interest

846

719

602

 

15,075

13,736

11,281

Non-current liabilities

 

 

 

Deferred tax

1,951

1,951

1,932

Provision for liabilities and charges

471

368

342

 

2,422

2,319

2,274

Current liabilities

 

 

 

Trade and other payables

2,870

2,187

1,168

Tax payable

120

167

108

Borrowings

112

 -

417

Provision for liabilities and charges

101

84

64

Unclaimed dividends

20

20

20

 

3,223

2,458

1,777

Total equity and liabilities

20,720

18,513

15,332

 

 

INCOME STATEMENTS

 

Year End Results as of 31 December

2004

2005

2006

2007

Sales

15,142

14,393

16,488

22,111

Net Income

1,901

2,155

2,799

3,810

 

 

CONSOLIDATED INCOME STATEMENTS

 

 

2007

2006

 

Kshs'million

Kshs’million

Revenue

22,111

16,488

Other operating income

437

173

Investment income

102

62

 

22,650

16,723

Cost of manufactured/purchased goods

 

 

and related services

(11,768)

(8,429)

Staff costs

(1,827)

(1,581)

Other operating costs

(2,887)

(2,081)

Finance costs-net

(70)

(121)

Depreciation

(636)

(646)

Amortization

(19)

(27)

Profit before taxation

5,443

3,838

Taxation charge

(1,633)

(1,039)

Profit for the year

3,810

2,799

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.88

UK Pound

1

Rs.82.97

Euro

1

Rs.64.99

 

 

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