MIRA INFORM REPORT
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Report Date : |
02.03.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
GOLF AND CO. GROUP LTD. |
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Formerly Known As : |
GOLF KITAN FASHION STORES 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 : |
11.04.1961 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, marketers and retailers of Fashion Men’s, Women’s
and Children Wearing Apparel, Footwear |
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$ 3,000,000. |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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
GOLF AND CO. GROUP LTD.
(Trading as: "GOLF & CO")
Telephone 972 3 645 15 15
Fax 972 3 647 61
04
Hadar Yossef
TEL AVIV-69512-ISRAEL
HISTORY & LEGAL FORMATION
Originally established as a private limited company, incorporated as per
file No. 51-028956-4 on the 11.04.1961, under the name of ARIGEI HADAR LTD.,
however started operations in 1987.
On the 22.01.1987 name was changed to GOLF FASHION CHAIN STORES LTD., which
changed to GOLF KITAN FASHION STORES LTD. on the 24.02.1995, which changed to
the present name on the 31.01.2002.
(Note: Subject’s present registered name in free translation to English is
GOLF GROUP A.C. LTD.)
On 24.01.1999, POLGAT CHAIN STORES LTD. was merged into subject.
On 27.02.2006 published a prospectus offering shares to the public on the
Tel Aviv Stock Exchange (TASE), raising a sum of
Following the public issuance, on 19.03.2006 converted into a public limited
company (registration number remains the same).
SHARE
CAPITAL
Authorized share capital
47,000,000 ordinary
shares of
of which 40,242,749 shares amounting to
SHAREHOLDERS
1. CLAL INDUSTRIES AND INVESTMENTS LTD., some 63%, publicly traded
on the TASE, part of the IDB Concern, controlled
by Nochi Dankner (mainly), Isaac Manor and Livnat family,
2. Institutional investors (pension
and trustee funds): DS FUNDS (5%), HAREL
INSURANCE (6.5%),
3. Shares are also traded on the Tel Aviv Stock Exchange (TASE).
DIRECTORS
1. Zvi Livnat, Chairman,
2. Dror Dotan,
3. Ari Raved,
4. Amnon Sadeh,
5. Boaz Simons,
6. Gonen Bieber,
7. Amos Mar-Haim,
8. Basil Gamsu,
9. Ms. Hagit Behar.
GENERAL
MANAGER
Mrs. Ilana Kaufman.
BUSINESS
Importers, marketers and retailers of:
1. Fashion:
men’s, women’s and children wearing apparel, footwear – 51.8% of sales in 2009
(was 52.7% in 2008).
2. “Home
Fashion”: home textile products, home toiletries and spa, household products –
48.2% of sales (was 47.3% in 2008).
Subject is managing and operating 230 retail stores chain as follows:
Apparel Fashion: 150 for men and women fashion wear, under 5 chain brands:
"Golf", "Polgat", "Intima", "Sprint"
and "Max Moretti" (latter for footwear);
Home Fashion: 80 retail stores, chain brand "Golf & Co." and
retail stores kids fashion, chain brand "Golf Kids and Baby" (some of
these stores are in Golf & Co stores).
In December 2010 subject completed the acquisition of “Blue Bird” Chain, of
surfing and young’s sports apparel, footwear and accessories, with 25 shops.
Local sole concessionaires for the following international brands (among
others):
RIP CURL, GLOBE (GALLAZ), both of
Among local suppliers: KITAN INDUSTRIES, OFFIS TEXTILE, JACQUES COBE,
TRIUMPH, ENDER TEX, SVAV OR, etc.
Having some 470 suppliers, 77% of which are foreign (46% from Chine, 22%
Sole local agents and distributors of:
CAMEL, of
Operating from:
*
*
* Rented warehouse on an area of 720 sq. meters in Emek Hafer.
* Over 200 rented retail stores nationwide on a total area of over 46,000
sq. meters.
Having 1,559 employees (had 1,486 employees as of 31.12.2009).
MEANS
B/S shows:
31.12.2009 30.09.2010
ASSETS
Current assets
Cash and cash equivalents 88,882 32,602
Negotiable securities 105,083 110,461
Customers 87,050 83,131
Other receivables 10,742 16,375
Stock 94,119 148,995
385,876 391,564
Non-current assets
Fixed assets, net 42,536 39,904
Deferred
taxes 12,038 11,652
Other non-current assets 2,591 2,070
57,165 53,626
443,041 445,190
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LIABILITIES
Current
liabilities 98,750 101,739
Non-current liabilities 2,775 2,152
Equity 341,516 341,299
443,041 445,190
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Current market value US$ 224.9 million.
In December 2006 subject completed a private
placement, issuing shares and options to institutional bodies, raising
There are no charges registered on the company's assets.
ANNUAL
SALES
Statement
of Income
Year
ended 31.12
2007 2008 2009
Revenues 663,654 705,878 665,611
Gross profit 384,873 428,872 400,690
Operating income 110,380 133,939 115,377
Profit before taxes on income 92,076 137,917 123,244
Net income 61,111 101,004 87,518
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Consolidated
first 9 months of 2010 sales
BANKERS
·
Bank
Hapoalim Ltd., Business Central Branch (No. 600), Tel Aviv.
·
The First
International Bank of Israel Ltd., Main Branch (No. 046), Tel Aviv.
·
Bank Leumi
Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
OTHER
COMPANIES
CLAL INDUSTRIES AND INVESTMENTS LTD., parent company, heading the CLAL Group operates and invests in all kind
of sectors in
KITAN CONSOLIDATED
LTD., a holding company, also holds another
affiliated company in CLAL Group Textile field:
KITAN TEXTILE
INDUSTRIES LTD., 100%, importers, manufacturers, marketers, exporters and
retailers of home textile products, e.g. bed linen, towels, bath robes, etc.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject is among the leading fashion chain stores in
The CLAL Group is part
of the local leading concern IDB, one of the largest and most influential in
Subject has an active client club with over 337,000 members.
91% of subject's revenues are from products designed by subject's
designers.
During 2007, subject opened several new shops of its new sub retail chain
"Max Moretti" for quality shoes and bags, as well as further fashion
stores, all located in shopping malls. In addition, it opened around 10 new
home textile and kids apparel shops. In March 2008 it was reported that subject
opened 10 new "Max Moretti" shops, with investment of US$ 500,000.
Subject was also checking the possibility to expand its chain abroad into
Eastern Europe and
Report in mid 2008 suggested that subject is holding negotiations for
acquiring a Creek fashion chain according to a company value of US$ 30 million
for the Greek company.
In 2008 Golf & Co launched a premium brand of bed ware under the name
“Tulip's Gallery”.
In December 2008, it was reported that subject is expanding its array of
products and will offer also furniture items in its “Golf & Co.” chain.
In mid 2008 subject’s sister company KITAN TEXTILE
launched its own retail chain, which will apparently also compete subject’s
chain, selling the products they manufacture and import. As a result it was
reported that subject and KITAN decrease the cooperation between them. KITAN’s
textile operations are considered relatively insignificant to the CLAL Group
(unlike subject).
In January 2009, it was reported that subject is negotiating to acquire
control in an Italian fashion house, as part of its strategy to find new
engines for expansion, as such acquisition expected to boost sales in
In December 2010 subject completed the acquisition of “Blue Bird” Chain of
sports fashion from MARVIDEX SURFING PROD
The
local textile and fashion market is valued at
According to surveys, around 50% and more is women's
fashion. Moreover, 40% of fashion stores in
Import of Clothing and Footwear in 2009 summed up to US$ 1,267 million,
comparing to US$ 1,402 million in 2008 (9.6% decrease) and US$ 1,188 million in
2007. Most import comes from
The decrease in 2009 reflects the slow-down trend in the local economy
during 2009, mainly in the first half of the year. The trend reversed in 2010
and import of Clothing and Footwear rose 12% in 2010 1st half comparing
to the parallel period in 2009, reaching US$ 674.6 million.
The local fashion
market has been suffering from slow-down during 2009, and the trend continued
into 2010. According to a local retail research
company, retail fashion chains witnessed in 2009 an overall decrease of over 5%
in proceeds comparing to
In addition new
international fashion players (GAP, H&M) entered in 2009/2010 to the local
fashion market, which has been highly competitive already.
According
to the Central Bureau of Statistics, the current expenditure for private
consumption in 2009 for clothing, footwear and personal items fell marginally
(0.7%) from 2008, when it rose by 4.1% from 2007 (rose then by 7% from 2006)
According
to surveys, average spending per houshold on clothing & footwear in 2008
reached NIS 483 per month and fell to around NIS 455 per month in 2009 (similar
level as 2007).
The local
household products market is considered highly competitive after reaching
market saturation. It includes household textile, tableware and kitchenware and
utensils, bath accessories and ornaments &decorative items, ceramic and
glass ware, etc. According to estimations, the local household products market
volume reaches NIS 2.5 – 3 billons annually (of which circa NIS 1 billion for
“home textile”), and includes retail, wholesale, institutional markets (Retail
chains capture 30% of the market share, specialization stores 20%, while the
institutional and workers unions sector has 50% share).
According
to the Central Bureau of Statistics (CBS), current spending for private
consumption in 2009 on equipment and items for domestic use decreased by 3.5%
from 2008, after a 2% fall from 2007 (after several years of constant rise).
That was part of the general trend in the market due to the slow down in local
markets, mainly during the 1st half 2009. Local per capita
expenditure on private consumption kept the rising trend from previous years,
yet in a much slower pace – it rose by less than 2% in 2009 from 2008 (when it
rose 6.5% from 2007).
In
general, local market has been in a recovery trend since mid 2009, continuing
into the 1st half of 2010 and indicators prove that: Expenditure per
capita on private consumption rose 7% comparing to 2009 1st half.
From CBS data,
import of Household Utensils in 2009 summed up to US$ 474.2 million, comparing
to US$ 531.9 million in 2009, representing 10.8% decrease (after a 179%
increase in 2008 from 2007). The trend reversed in 2010 1st half, with
22% increase in import (to US$ 271.3 million), comparing to 1stH 2009.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended US$ 3,000,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.12 |
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1 |
Rs.73.43 |
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Euro |
1 |
Rs.62.32 |
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.