MIRA
INFORM REPORT
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Report Date : |
14.07.2011 |
IDENTIFICATION DETAILS
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Name : |
AMIAD FILTRATION SYSTEMS LTD. |
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Formerly Known As : |
AMIAD FILTRATION IRRIGATION SYSTEMS |
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Registered Office : |
Mobile Post Upper Galilee Amiad 12335 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.11.1972 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers, marketers and exporters of water filtration solutions for irrigation and industrial use, made of plastic, metal and stainless steel, chemical and fertilizer injection systems, irrigation equipment and allied goods. |
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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Maximum Credit Limit : |
US$ 1,500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name and address
AMIAD FILTRATION
SYSTEMS LTD.
Telephone 972
4 690 95 00
Fax 972
4 960 98 17
Mobile Post Upper
Galilee
AMIAD 12335 ISRAEL
HISTORY & LEGAL FORMATION
Originally established as a limited partnership, registered as per file
No. 55-000175-4 on the 29.11.1972, under the name AMIAD FILTRATION IRRIGATION
SYSTEMS, continuing Kibbutz Amiad business activity from 1962.
Converted into a private limited company and registered as such per file
No. 51-249769-4 on the 22.06.1997 under the name AMIAD FILTRATION
SYSTEMS (1997) LTD. Operations started on 01.01.1998.
In December 2005 subject preformed an IPO on the AIM London Stock Exchange (AFS.L), converting into a public limited company, keeping
the same registration No.
On the 15.11.2005 name changed to the present one.
SHARE CAPITAL
Authorized share capital NIS 11,500,000.00,
divided into –
23,000,000 ordinary
shares of NIS 0.50 each,
of which 22,521,690 shares amounting to NIS 11,260,845.00 were issued
SHAREHOLDERS
1. KIBBUTZ
AMIAD, 45%, a cooperative society, operating a communal agricultural
settlement,
2. VIOLA
PRIVATE EQUITY, 19.6%, a private equity investment
fund, part of the DOVRAT Group, controlled by Shlomo Dovrat, Avi Zeevi and
Harel Beit-On PRIVATE EQUITY,
3. BERMAD
INDUSTRIES AGRICULTURAL COOPERATIVE ASSOCIATION LTD., 9%, owned by Kibbutz Evron (75%) and Kibbutz Sa'ar (25%), both co-operative societies
operating agricultural communal settlements,
4. Kibbutz
Beit Zera, 4.5%,
5. IMPAX
ASSETS MANAGEMENT, 4.4%,
6. AXA
Framlington Investment Managers, 3.7%,
7. Shares
are also traded on the London Stock Exchange.
In January 2009 VIOLA acquired 23% of
subject for US$ 9 million.
DIRECTORS
1.
Tal Yeshua, Chairman,
2.
Arik Dayan, General Manager,
3.
Izhar Ben-Shlomo,
4.
Dan Falk,
5.
Michael Rosenberg
6.
Harel Beit-On,
7.
Zeev Holender,
8.
Ms. Osnat Ronen,
9.
Simon Olswang,
10.
Amos Shalev.
BUSINESS
Developers, manufacturers, marketers and exporters of water filtration
solutions for irrigation and industrial use, made of plastic, metal and
stainless steel, chemical and fertilizer injection systems, irrigation
equipment and allied goods.
89% of sales are
export, mainly to North America (23%), Europe (21%) and Australia (13.5%).
Products are exported to some 500 clients in 120 countries worldwide, via
subsidiaries.
Among local
clients: JOHN DEERE WATER, JAFORA – TABORI.
Among
local suppliers: BACCARA GEVA, SHOSHANI & WEINSTEIN, FRIEDRICH MOULDS, ILAN
& GAVISH AUTOMATION SERVICE, etc.
Operating from
facilities and offices, on an area of 8,000 sq. meters, on a plot of 40,000 sq.
meters, in Kibbutz Amiad (owned by the Kibbutz), in the Upper Galilee region
(country's north).
Note: "D.N.
Galil Elyon" means "M.P. Upper Galilee" (Mobile Post Galil
Elyon)
Having some 400
employees serving AMIAD Group.
MEANS
In December 2005
subject raised US$ 14 million issuing shares on the AIM London Stock Exchange.
Current market
value £ 41.79 million.
There are 15 charges for unlimited amounts
registered on the company’s assets, in favor of The State of Israel, Bank Leumi
Le'Israel Ltd., Bank Hapoalim Ltd., Mizrahi Tefahot Bank Ltd. and companies.
Consolidated B/S
shows:
US$
(thousands)
31.12.2010 31.12.2009
ASSETS
Current assets
Cash and cash equivalents 11,293 8,575
Financial assets 2,513 254
Accounts receivables from trade 36,428 20,348
Other receivables 3,134 1,869
Other current assets 900 1,128
Inventories 23,285 15,964
77,553 48,138
Non-current assets
Property & Equipment 6,850 3,440
Intangible assets 18,743 6,471
Other non-current assets 2,451 2,657
28,044
12,568
105,597 60,706
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LIABILITIES
Current
liabilities 45,528 25,116
Non-current
liabilities 14,081 3,468
Equity 45,988 32,122
105,597 60,706
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REVENUES
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2010 2009 2008
Sales 89,431 69,102 73,277
Gross profit 38,793 33,239 33,857
Operating profit 4,258 7,939 7,691
Profits before taxes on income 3,476 8,674 6,667
Net profit 3,057 6,458 5,279
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OTHER COMPANIES
Subsidiaries (100%
unless otherwise stated):
ARKAL FILTRATION SYSTEMS ACS LTD., developers, manufacturers, exporters and
marketers of filters and water filtering systems for the agricultural and
industrial fields, fully owns PEP FILTERS INC, USA, ARKAL CHINA, ARKAL
SINGAPORE and ARKAL COSTA RICA.
AMIAD USA INC., USA,
FILTRATION LTD., Israel,
FILTRATION & CONTROL SYSTEMS PTE LTD., Singapore,
YIXING TAIXING ENVIRONTEC CO. LTD., China,
AMIAD AUSTRALIA PTY LTD., Australia,
AMIAD FILTRATION SOLUTIONS LTD., Germany,
AMIAD FRANCE SARL, France,
FITRASYON ARITIM SISTEMLERI SANAYIVE TICARET FTS, 51%, Turkey,
EUROPEAN FILTRATION SOLUTIONS COOPERATIEF U.A EFS Holland,
AMIAD FILTRATION SYSTEMS (INDIA) PRIVATE LTD., 60%, India,
AMIAD ANDINA S.A., 50%, Chile,
JSK ENGG. PRIVATE LTD., 40%, India.
VIOLA-LM PARTNERS L.P., a private equity
investment group, comprised of focused independent best of class partnerships
including CARMEL VENTURES, PLENUS, VINTAGE and VIOLA PRIVATE EQUITY. Having
close to US$ 2 billion under management.
BERMAD INDUSTRIES ACA LTD., part of the BERMAD Water Control Solutions Group, manufacturers, marketers
and exporters of hydraulic control valves for water irrigation (agricultural
and municipal) systems.
BANKERS
Bank Hapoalim Ltd,
Rosh Pina Branch (No. 542), Rosh Pina, account No. 136600,
Mizrahi Tefahot
Bank Ltd., Kiryat Shmona Branch (No. 487), Kiryat Shmona, account No. 338300.
A check with the central
bank database did not reveal anything detrimental on subject’s a/m accounts.
Bank Leumi
Le'Israel Ltd., Haamakim Business Branch (No.745), Afula.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject is among
the leading global companies in its field. In the water filtration for
irrigation systems it had some 25% of world's market share in 2009.
Kibbutz Amiad was established in 1946, and located in the Northern part of
Israel, having some 200 members. The Kibbutz
also engaged in faming and agricultural activities, cultivating some 3,000,000
sq. meters of agricultural land, growing livestock for meat, grow olive trees
in the Jordan Valley, operates hen houses, offers tourist attractions and a
guest house.
Subject's shareholders VIOLA PARTNERS is a
well-known investment group in Israel. VIOLA is a leading innovative private
equity investment group, part of the well-known businessman Shlomo Dovrat.
In year 2000
subject acquired its local competitor FILTRATION LTD., for NIS 4 million.
In 2005 subject
acquired its distribution company in China for US$ 2 million.
In 2008 subject
acquired 51% in a Turkish distribution company for US$ 1 million.
In April 2010 subject completed the acquisition of ARKAL FILTRATION SYSTEMS
from its former shareholders (paying cash and in shares): Kibbutz Beit Zera;
and BERMAD, 33%, controlled by Kibbutz Evron (75%) and Kibbutz Saar. The acquisition
was part of re-organization in Kibbutz Beit Zera, which
held 66%, after Kibbutz Beit Zera encountered grave financial difficulties and
heavy debts which were intensified by the global economic crisis (that also
severely affected ARKAL 's revenues).
The acquisition by subject designed to strengthen their position in world
markets turning the merged companies into a leading force in the global water
filtration area.
In February 2011,
subject has acquired the remaining 34% of the issued share capital of AMIAD
FRANCE SARL.
In April 2011 it
was reported that TELDOR will install an ERP SAP system in subject for NIS 6
million.
Export by the
local water-related industries is valued at US$ 900 million per annum and
increasing, with new companies and startups in this field join the trend of the
growing demand for drinking water. Israel has tiny part in the global market,
which is valued at US$ 400 billion. However, Israel is considered as pioneer in
the field and in its reputation for water management capabilities.
The global water
purification through UV technology market is estimated at
US$ 1.5 billion and is growing on permanent basis on account of traditional
water technologies.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended US$ 1,500,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.59 |
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1 |
Rs.71.07 |
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Euro |
1 |
Rs.62.40 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.