MIRA INFORM
REPORT
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Report Date : |
16.06.2011 |
IDENTIFICATION DETAILS
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Name : |
SCOPE METALS GROUP LTD. |
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Formerly Known As : |
SCOPE METALS TRADING AND TECHNICAL SERVICES LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
27.04.1980 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Global Distribution and |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 |
company Name & address
SCOPE METALS GROUP LTD.
Telephone 972 8 863 10 00
Fax 972 8 863 10 20
Re'em Industrial
Zone
BNEI AYISH-60860-ISRAEL
HISTORY & LEGAL FORMATION
Originally incorporated
as a private limited company, registered as per file No. 51-084980-5 on the
27.04.1980.
Originally
registered under the name SCOPE TRADING & FOOD MARKETING LTD., which
changed to SCOPE METALS TRADING AND TECHNICAL SERVICES LTD. on the 05.04.1981,
which changed to the present name on the 19.08.2007.
Converted into a
public limited liability company, registered as per file No. 52-003742-5 on the
30.04.1992 and in parallel published a prospectus, offering shares to the
public, raising a sum of US$ 2.5 million.
SHARE CAPITAL
Authorized share
capital
30,000,000 ordinary shares of
of which
10,893,972 shares amounting to
SHAREHOLDERS
1. Shmuel Shiloh, 36%,
2. FIMSCO HOLDINGS LTD., 30.4%,
of the FIMI Fund, controlled by Ishay Davidi,
3. CLAL INSURANCE ENTERPRISES HOLDINGS LTD., 10.5%, an
institutional investor,
4. Shares are also traded on the
Tel Aviv Stock Exchange.
In February 2006,
the FIMI fund signed a deal to acquire 2,935,000 shares in subject, for a sum
of
DIRECTORS
1.
Shmuel Shiloh, Chairman,
2.
Ishay Davidi, CEO of the FIMI,
3.
Matityahu (Mati) Dov,
4.
Amiram Boehm,
5.
Shalom Singer,
6.
Ms. Margit (Maggie)
7.
Uzi Nethanel,
8.
Dan Sion.
GENERAL MANAGER
Gil Haver.
BUSINESS
A Leading Global
Distribution and industrial metal supply center, handling a wide range of
metals & engineering plastic products under one roof. Subject & Group
operate as trades, importers, exporters and marketers in the alloys “white
metal” area, including Steel & Stainless Steel, Aluminum, Copper, Bronze,
Brass, Titanium, Lead and Zinc.
Products include
pipes, bolts & nuts, fittings, welding equipment, nets and cables,
fasteners, etc., for the various industries and construction. Have
inventory
of 55,000 tons of over 80,000 different items.
Subject provides
also stock storage facilities, cutting and sawing services
("one-stop-shop" model).
Also operate in
the real estate field.
Subject has over
4,500 clients in
Some 35% of sales
are for export. Exports are to
Among clientele
are: ISRAEL AEROSPACE INDUSTRIES, SOLEL SOLAR SYSTEMS, RAFAEL ARMAMENT DEVELP.,
INCOMAC, GOLD BAR, M.G.T.
ISRAEL TASIYOT- MIFALEI TRIFMAN, ENERGETICA GENERAL ENGINEERING AND HEAT SYSTEMS,
BERMAD, A.Z. INDUSTRIES, SHATAL ENGINEERING, SELA
ELECTRONICS SYSTEMS, ALUM ESHET (OMAN), VERED EROSIA, HATECHOF ISI YOGEV, A.B.M
PLASTIC INDUSTRIES, ELCON MAMAB CONTROL INSTRUMENTS, INCO ENGIENERING SERVICES,
AHARON YOSEF & SONS PACKAGING INDUSTRIES, K & K PLASTIC ENGINEERING, etc.
Among local suppliers: BETH EL ZIKHRON YAAQOV INDUSTRIES, KIDRON TRADING
& AGENCIES, etc.
Sole local agents of:
· COLOMBUS STAINLESS (PTY) LTD., ALMAC STAINLESS TUBE (PTY) LTD.,
·
ANDREW MENTIS (PTY) LTD., all of
·
ROLDAN
·
STAR STAINLESS SCREW CO., of the
·
REDAELLI TECNA SPA, of
Operating from
premises, a site which includes owned area of 50,360 sq. meters and 27,500
leased area (of which 35,600 sq. meters are built), in
Having some 600
employees serving the whole SCOPE Group. At the end of 2008 had 718 employees
in the Group, of which some
MEANS
Current market
value US$ 136.9 million (Note: Subject’s market value was at peak of around
double over 3 years ago. Current market value started to fall in early 2008 due
to the fall in metal prices and later the collapse due to the global economic
crisis, as reflected in the deterioration in subject’s financial performance).
In April 2005,
subject raised
In March 2007,
subject completed a raise of
Subject intended
to offer some 26% of its shares and raise US $100 million through the New York
Stock Exchange, and already submitted draft prospectus to the American SEC,
however it decided to back-off the issuance the public offering due to
unfavorable market condition.
Subject owns
30,000 sq. meters of agricultural land in Mazkeret Batya, which is not used for
its activities.
There are no
charges registered on the company's assets.
Consolidated B/S
shows:
31.12.2009 30.09.2010
ASSETS
Current assets
Cash
& cash equivalents 247,260 205,791
Negotiable
securities 8,999 27,304
Customers 266,092 265,042
Other debtors 21,291 18,394
Stock 665,775 574,250
1,209,417 1,090,781
Non-current
assets
Fixed assets (net) 303,351 293,604
Goodwill & intangible assets 28,558 27,847
Other non-current assets 29,039 27,635
360,948 349,086
1,570,365 1,439,867
======== ========
LIABILITIES
Current liabilities
Short-term credit from banks & others 222,423 170,846
Other current liabilities 179,809 189,108
402,232 359,954
Long-term liabilities
Short-term credit from banks & others 313,856 306,113
Debentures 230,413 165,391
Deferred taxes 23,192 24,648
567,461 496,152
Equity 600,672 583,761
1,570,365 1,439,867
======== ========
ANNUAL SALES
Consolidated
Statements of Income
Year
ended December 31st
2007 2008 2009
Revenues 1,284,593 1,328,848 868,921
Gross profit 356,625 276,207 202,070
Operating income 158,905 42,757 22,760
Profits (loss)
before taxes on income 81,865 (28,244) (15,730)
Net income (loss) 53,885 (19,027) (14,363)
======== ======== ========
Consolidated
sales for the first 9 months of 2010 were NIS 722,649,000 (16% increase compared
the parallel period in 2009), making a gross profit of NIS 184,282,000, an
operating income of NIS 47,288,000, and a net profit of NIS 16,596,000
(compared to a net loss of NIS
OTHER COMPANIES
ADIT INDUSTRY
BUILDINGS LTD., 100%, real estate holdings,
ILERLI TIN
PROCESSING LTD., 100%,
EL-ZON HOLDINGS
LTD., 100%, non active,
RAAS METALS,
100%,
GILINOX S.R.L.,
100%,
PRIMAPOL METAL
SPOT S.R.O., 100%,
DALIAN BEST
METALS CO. LTD. (D.B.M.), 100%,
SCOPE METALS USA
INC. (formerly SHINTU), 99.9%,
BANKERS
· Bank Leumi Le’Israel Ltd., Central Branch (No. 800), Tel Aviv.
· Bank Hapoalim Ltd., Central Branch (No. 600), Tel Aviv.
· Israel Discount Bank Ltd., Main Branch (No. 010), Tel Aviv.
·
Mizrahi Tefahot Bank Ltd.,
· The First International Bank of Israel Ltd., Tel Aviv Main Branch (No. 046), Tel Aviv.
Also working
with: Mercantile Discount Bank Ltd., Beit Maiya Branch (No. 656), Tel Aviv, account
No. 56782.
A check with the Central Banks' data base
did not reveal negative information regarding subject’s a/m account.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Yet, the global
economic crisis took its toll from subject: The decrease in the global activity
caused a decrease in demands for metals and metal’s prices fell drastically. As
a result, subject wrote-off total of
Subject is ISO
9002 certified.
Subject is
considered a local leading company in the "white metals" sector.
Founded in 1997, the FIMI Fund,
which invested in subject, is one of the leading local investment funds with
equity of circa US$ 1.25 billion. It is
In March 2002,
subject signed a deal to acquire all the activities (including goodwill, stock,
machinery and equipment) of 2 sister companies FEINGOLD STEEL INDUSTRIES LTD.
and FEINGOLD STEELS (1960) LTD., for a sum of US$ 3.6 million. FEINGOLD was a
veteran and well-known Group in the steel field, hence contributed to subject’s
capacities.
In June 2004, it
was reported that subject acquired all stock of GLOBAL METALS, a local metal
company which went into receivership.
Also In July
2004, it was reported that subject signed a deal to acquire 51% of an American
metal trading company M.T.S., for a sum of US$ 500,000.
In October 2004,
subject established a new subsidiary in the
In February 2006,
subject completed a deal acquiring an American metal trading firm through
HADCO, a subsidiary established for this purpose in the
In June 2006,
subject acquired a 10,000 sq. meters plot in
In December 2006
subject reported it has signed an agreement to purchase aluminum products in
volume of US$ 40-44 million from a European plant, in the framework of
subject's international expansion plans.
During 2007, subject
reported it has been increasing its penetration efforts in Esatern European
markets, via its subsidiaries.
Subject's significant
customer, ISRAEL AEROSPACE INDUSTRIES, informed subject that as of 2008, subject
will no longer be their sole supplier for aerospace products (in the metal
field) anymore.
In February 2009
HADCO acquired the activities of a distribution center for a total sum of US$
315,000.
In June 2009, Gil
Haver replaced subject’s long serving General Manager Mr. Shmuel Shiloh (also
founder and major shareholder). Mr Shiloh continues to serve as Chairman.
In December 2009 it
was reported that subject will install a solar system by GINERGIA on the roofs
of its plant for
According
to the Chairman of the Metal and Electricity sectors at the Manufacturers’
Association, sales of the various metal and electricity related industrial
sectors were expected to fall by 20% in 2009 (from 2008, when sales reached NIS
70 billion) due to the significant slow-down in the local economy, affected by
the global
financial and economic crisis. Overall sales were forecasted to reach
The above
industries contracting trend was evident in 2008 after the long and significant
growth trend since 2004 (in 2007 the sectors’
overall sales reached a climex of
The
sectors have been witnessing a gradual recovery that started in mid 2009, into
2010, paralell to the improvement in the global markets.
The
aluminum sector has been facing a drastic fall in aluminum prices, after metal
prices in
According
to the Central Bureau of Statistics (CBS), import of raw materials
for the local metal sector in 2009 was as follows: Iron and Steel - US$ 1,349.1
million (38% decrease from 2008), Precious Metals - US$ 117.5 million (35.3%
decrease from 2007), Non-ferrous Metals - US$ 584.4 million (44.3% decrease
from 2007).
Import of raw materials for the local metal sector in the first half of 2010
shows improvement in all segments comparing to 2009 1st half: an
increase by 47.5%, 39% and 44% in the segments of Iron and Steel, Precious
Metals and Non-ferrous Metals, respectively.
SUMMARY
Good for trade engagements.
Maximum unsecured credit recommended up to several US$ millions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.68 |
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1 |
Rs.73.05 |
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Euro |
1 |
Rs.64.29 |
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 |
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.