MIRA INFORM REPORT

 

 

Report Date :

19.02.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

BRAVO GROUP MANUFACTURING (PTY) LTD 

 

 

Formerly Known As :

BAKKER AND STEYGER (PTY) LTD

 

 

Registered Office :

Cnr Main Reef Road & Avon Roads, Longdale Ext 2, Johannesburg, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

11.09.1991

 

 

Com. Reg. No.:

1991/005029/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacturing of domestic furniture, beds, bases and mattresses

 

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

 

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

South Africa

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

COMPANY NAME

 

ALPINE LOUNGE

 

 

PHYSICAL ADDRESS

 

27 – 29 Junction Road

Tygerberg Business Park

Parow

Cape Town

Western Cape

Telephone Number:                              (021) 951 7150

 

On investigation it was established that ALPINE LOUNGE is a trading division of BRAVO GROUP MANUFACTURING (PTY) LTD (Registration Certificate Number:  1991/005029/07), which report should be consulted.

 

Note:

(The information contained in this report, other than comment by outside authorities, has been voluntarily supplied by officials of the subject):

 

 

COMPANY NAME

 

BRAVO GROUP MANUFACTURING (PTY) LTD

 

·         Formerly BAKKER AND STEYGER (PTY) LTD, the name having been changed on 10 August 2007;

·         Formerly STEINHOFF FURNITURE (PTY) LTD, the name having been changed on 12 March 2007;

·         Formerly GOMMAGOMMA EXPORTERS (PTY) LTD, the name having been changed on 15 April 1996

 

 

TRADING DIVISIONS

 

·         SLEEP PRODUCTS DIVISION

·         EDBLO

·         SLUMBERLAND

·         SEALY (under licence)

·         KING KOIL (which is manufactured under license for Ellerines)

·         IMPORT DIVISION

·         GLOBAL SOURCING

·         LOUNGE DIVISION

·         ALPINE LOUNGE

·         BRAVO GROUP LOUNGE DURBAN

·         GRAFTON EVEREST

·         MILANO

·         GOMMAGOMMA

·         CASE GOOD DIVISION

·         PAT CORNICK

·         HIGH POINT/

·         VICTORIA LEWIS

·         VALENTI

 

It was stated that the VALENTI division’s production facility was incorporated into the HIGH POINT division, while the GRAFTON EVEREST division changed its name to BRAVO GROUP LOUNGE DURBAN and is manufacturing under the GRAFTON EVEREST and MILANO DÉCOR brands.

 

It was stated that the IFCC division was sold in 2010.

 

PHYSICAL ADDRESS: 

Cnr Main Reef Road & Avon Roads

Longdale Ext 2

Johannesburg

Gauteng

POSTAL ADDRESS:

P O Box 43563

Industria

2042

Telephone Number:                  011 661 1300

Fax Number:                            011 661 1316

 

It was stated that the ALPINE LOUNGE division is situated at the premises:  27-29 Junction Street, Tygerberg Business Park, Parow, Cape Town.

 

 

SHAREHOLDERS

 

100%                BRAVO GROUP (PTY) LTD

(Registration Certificate Number: 2007/012824/07), which in turn is owned 49% by ABSA CAPITAL a division of ABSA LTD, 30% by BRAVO GROUP MANCO (PTY) LTD (Registration Certificate Number:  2007/016056/07), and 21% by NEW GX PARTNERSHIP which is a BEE partnership.

 

 

ASSOCIATE COMPANIES

 

100% BRAVO GROUP PROPERTIES (PTY) LTD

(Registration Certificate Number: 2006/018611/07)

 

100% BRAVO GROUP LOGISTICS (PTY) LTD

(Registration Certificate Number: 2000/013330/07)

 

 

DIRECTORS

 

G M BOULLE (Financial Dir)                   ID No. 5602145038087

R H COX (Technical Dir)             ID No. 4203235089089

W J DE LANGE                                     ID No. 5605255028004

C A DIRKS (Marketing Dir)                      ID No. 6705235053089

P M GRIFFITHS (Managing Dir)               ID No. 6310065078088

M I LAWRENCE                                    ID No. 4812125079081

P S NIEUWOUDT                                  ID No. 6710045138086

G J VAN DER MERWE                          ID No. 6001275054080

L G WEBSTER                                      ID No. 5108265033007

M G VAN NIEKERK                               ID No. 6701175024089

M A MACDONALD                                 ID No: 6107125069085

 

It was stated that the directors, except for G J VAN DER MERWE, were previously employed in the Steinhoff group.

 

BANKERS

 

ABSA BANK, Industria branch, Account Number: 4068796704. 

 

Respondent stated that each division has its own account with ABSA BANK.  It was also stated that the subject is managed by a cash management scheme controlled by the holding company.

 

Respondents stated that the subject recently changed from STANDARD BANK.

 

 

DATE REGISTERED

 

11 September 1991

Registration Certificate Number: 1991/005029/07

 

It was stated that Steinhoff disposed of its South African furniture manufacturing interests to a private equity consortium led by ABSA Capital, a division of ABSA Bank Ltd and BRAVO group management for a purchase consideration of R1 375 000 000, which was unconditionally approved by the Competition Tribunal on 1 August 2007.

 

 

VAT NUMBER

 

4200237503 (HO)

 

Respondents stated that each division has its own VAT number.

 

 

MAJOR OPERATION

 

Manufacturing of domestic furniture, beds, bases and mattresses.

 

 

MAJOR SUPPLIERS

 

The suppliers to GRAFTON EVEREST are as follows:

 

·         VITAFOAM, Durban

·         HANS MARENSKY TIMBER

·         J B TIMBER, Durban

·         UPHOLSTERY & GENERAL, Durban

·         MACBEEN PLASTICS, Durban

It was stated that each division has its own suppliers. The suppliers to ALPINE LOUNGE are:

 

·         VITAFOAM

·         MARIO LEVI

·         FLEXY TRADE

·         PROCBROC

·         HANNITAN

 

GLOBAL SOURCING import 99% of its supplies and deal locally with:

 

·         IMPSON FREIGHT

·         FOCUS FORMS

·         FUTURE PACKAGING

·         LEO’S TRANSPORT

·         BLOEM VANTRA

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Chain stores such as J & D Group, Ellerines, Shoprite and independent retailers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Neighbouring countries

 

 

TOTAL EMPLOYEES

 

Approximately 5 000 total employees

 

 

OTHER PREMISES

 

It was stated that the subject has bedding factories in Cape Town, Johannesburg and Isithebe. 

 

It was established that the HIGH POINT division is situated in Johannesburg and Nancefield the PAT CORNICK division is situated in Brits, the GLOBAL SOURCING division is situated in Durban, the ALPINE LOUNGE division is situated in Cape Town, the BRAVO GROUP LOUNGE DURBAN division is situated in Canelands (Durban), Johannesburg and in Isithebe (Durban).

 

OWNED OR LEASED

 

The head office premises are reported to be owned by BRAVO GROUP PROPERTIES (PTY) LTD. 

 

It was stated that some of the division premises are owned, while others are leased.

 

 

ISSUED CAPITAL & SHARE PREMIUM

 

R1 000 000

 

Full financial information was not forthcoming from respondents at the company and outside authorities were unable to assist in this regard, however it was previously stated that the annual turnover was in excess of

R 2 000 000 000.

 

 

AUDITORS    

 

DELOITTE,  Pretoria, Tel No: 012 482 0000

 

 

YEAR END    

 

JUNE

 

 

INSURANCE BROKERS 

 

MARSH VIKELA BROKERS

 

 

TRADE REFERENCES – MARCH 2009

(ALPINE DIVISION)

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.               1999             R10 000 000   R1 000 000-     60 days    60 days        Very Good

                                      C/L                R2 000 000      5%

 

2.               Oct 2007      R     500 000  R   250 000-    30 days    30-32 days    Excellent

                                                          R   500 000

 

3.               ±18 years     R  1 600 000  R   550 000     30days     30 days        Excellent

                                     

4.               ±5 years       R  3 000 000  R1 500 000-     30 days    30-32 days    Excellent

                                                          R2 000 000

 

 

TRADE REFERENCES – SEPTEMBER 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    3 years         Declined        R     30 000     60 days    60 days        Very Good

 

2.    Old Acc        R13 000 000   R1 000 000      30 days    30 days        Very Good

                          c/l

 

3.    Old Acc        Declined        Figures           30 days    30 days        Very Good

 

 

TRADE REFERENCES – MAY 2010 

(GRAFTON EVEREST DIVISION)

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2000             R10 000 000   R1 600 000-     60 days    60 days        Excellent

                          c/l                 R1 700 000

 

2.    Old acc        R500 000       R   400 000     30 days    35 days        Fair

 

3.    1996             R1 000 000+  R1 000 000+    30 days    30 days        Excellent

 

 

TRADE REFERENCES – NOVEMBER 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Prior 1998     R20 000 000   R1 500 000-     60 days    60 days        Excellent

                          c/l                 R2 500 000

 

2.    15 years       open              R   200 000-    30 days    30 days        Excellent

                                               R1 700 000      2.5%        2.5%

 

3.    Old acc        R  1 500 000  R1 500 000±    30 days    30 days        Excellent

                          c/l                                       2.5%        2.5%

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1998             R10 000 000   R1 500 000      60 days    60 days        Very good

                          c/l                 -R2 500 000

 

2.    12 years       R1 200 000    R800 000        30 days    30 days        Excellent

                          Open account -R1 200 000                    1˝%

 

3.    Old acc        R6 000 000    R2 000 000      30 days    30 days        Excellent

                          Open account -R6 000 000

 

 

COMMENTS

 

This is a well established and well connected company, which has taken over the South African manufacturing interests which were formerly under the Steinhoff Group.  The subject is meeting its commitment timeously.  No adverse comments have been heard. The subject is considered equal to US$1 000 000 over 30 days.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.73.04

Euro

1

Rs.61.43

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.