MIRA
INFORM REPORT
|
Report Date : |
20.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
BRILL SHOE INDUSTRIES LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
11.07.1988 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, Importers, Marketers and Exporters of Footwear. |
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 : |
US$ 1,500,000. |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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, 2010
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name and address
BRILL SHOE
INDUSTRIES LTD.
Telephone 972 3 950 18 75
Fax 972 3 966 60 11
Old Industrial Zone
RISHON
HISTORY & LEGAL FORMATION
Originally established as a private limited company,
incorporated as per file
No. 51-130924-7 on the 11.07.1988.
Subject was
established in order to continue the activities of BRILL SHOES LTD.
(established in 1950), which following financial difficulties became non
active.
Converted into a
public limited liability company and registered as such as per file No.
52-003864-7 on the 07.02.1993, and in parallel published a prospectus offering
shares to the public on the Tel Aviv Stock Exchange.
SHARE CAPITAL
Authorized share
capital
10,000,000
ordinary shares of
SHAREHOLDERS
1. Eliezer Boskila, 33.2%,
2. Ofer Ganezi, 10.9%,
3. Moshe Ganezi, 9.7%,
4. Four Institutional investors (pension and
trust funds), holding some 36%,
5. Shares are also traded on the Tel Aviv Stock
Exchange.
DIRECTORS
1. Ofer Ganezi, Chairman,
2. Moshe Ganezi, brother of Ofer Ganezi,
3. Ms. Naomi Kanark,
4. Shlomo Boskila,
5. Nir Elimelech,
6. Yehosua Kuchinski,
7. Zerach Nativ.
GENERAL MANAGER
Yehuda Elbaz.
BUSINESS
Designers,
manufacturers, importers, marketers and exporters of footwear, apparel and
fashion accessories.
Manufacturing is also
carried out via subcontractors in
Shoes, subject's
main line, are mainly kids and youth shoes and army shoes (boots), however
selling also fashion women & men shoes.
Also operating 112
stores retail chains for the said products, including a shoe marketing chain
under the name “Gali” (72 stores) and kids fashion “Solog” (40 stores). Some 30
of the stores are operated by concessionaires.
Operating 35
stores retail chain under the SUPER BRANDS Chains: Nine West (33), Easy Spirit (2), Ann Klein (4).
Most stores are in
shopping mall centers.
Subject also
operates 14 stores of the style "Nautica" via subsidiary S.B.N. (50%)
In addition,
operating 23 "stores within store" in HAMASHBIR LAZARCHAN Department
Store chain nationwide.
Following recent
acquisition of 75% of
Via fully owned
subsidiary operating retail store chain of "Lee Cooper" (33
shops).
Major customer:
Ministry of Defense (for manufactures army boots).
Amongst brands:
Gali, Dafna, Solog, Winnie The Pooh, Brill, Hush Puppies, Caterpillar, Colman
Merel, Spalding, Barbie, Dafna, Lee Cooper, Maui, Dockers, Nautica, Nine West,
Keds, Reebok, Hummer, Maui, Street Ball, etc.
Operating from
owned premises, on an area of 2,200 sq. meters, in
Having 826
employees (incl. 90 of SUPER BRANDS) had 769 employees in the end of 2009
(excluding SUPER BRANDS).
MEANS
Current market
value US$ 70.9 million.
In September 2004,
subject completed a
There are 17 charges
for unlimited amounts registered on the company's assets, in favor of Bank
Leumi Le'Israel Ltd., Bank Hapoalim Ltd. and Union Bank of Israel Ltd.
Consolidated B/S shows
31.12.2009 31.12.2010
ASSETS
Current assets
Cash
and cash equivalents 358 603
Customers 47,078 55,608
Debtors 9,775 10,018
Other
current assets 2,851 3,150
Stock 71,776 86,580
131,838 155,959
Non-current assets
Investments & loans to subsidiaries 36,849 8,610
Intangible assets 332 22,763
Fixed assets 35,998 37,653
Other assets 1,048 1,068
74,227 75,094
206,065 231,053
======= =======
LIABILITIES
Current
liabilities 49,000 66,478
Long term
liabilities 6,130 1,647
Equity 150,935 162,928
206,065 231,053
======= =======
ANNUAL SALES
Consolidated
Statement of Income
Year
ended 31.12
2008 2009 2010
Sales 339,690 340,865 365,821
Gross profit 183,595 178,176 195,278
Operating income 40,869 39,066 36,186
Pre-tax income 38,139 41,612 39,107
Net income 27,226 32,359 30,306
======= ======= =======
OTHER COMPANIES
SUPER BRANDS LTD.,
100% -see more below,
S.B.N MARKETING
LTD., 50%, holding the NAUTICA brand rights, operates 14 stores.
KOL NAAL CENTER
LTD., 75%., operating a retail chain store under the name "
BRILL FASHION LTD.
(known as Lee Cooper Israel), 100%, designers,
manufacturers (via sub-contractors), importers and marketers of fashion wear.
Also operating retail store chain of "Lee Cooper" (33 shops).
Also hold the
following non-active subsidiaries: M. GEVA INTERNATIONAL INVESTMENTS LTD., 50%,
B. L. AMERICAN SHOES LTD. 100% and BRILL ASSETS LTD., 100%.
BOSKILA ELIEZER
& SONS LTD., controlled by Eliezer Boskila, importers and marketers of raw materials
for the shoe industry, leather and imitation leather, belts, handbags, etc.
HOLIS METAL
INDUSTRIES LTD., controlled by the Ganezi Family, designers, manufacturers and
marketers of window coverings (e.g. blinds, shades and curtain track systems).
The Ganezi family
has holdings in other companies and properties, among them control in EXPOSE
FASHION LTD., designers, importers and marketers of
ladies and kids swimwear and undergarments.
BANKERS
Bank Hapoalim
Ltd., Hagalil Branch (No. 507), Tel Aviv, account No. 215222.
A check with the
Central Banks' database did not reveal any negative information regarding
subject's a/m account.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Having ISO 9002
standard.
In August 2002,
subject decided to merge 3 of its subsidiaries, DAIRY-STEINER MANUFACTUIRNG AND
MARKETING OF SHOES LTD., SHOE STREET MARKETING LTD. and AIR SPORT MARKETING
LTD. into one company.
In December 2002,
subject reported it will transfer all its DAFNA stores into GALI stores.
"DAFNA" chain store was acquired by subject in 2001 after it
encountered grave financial difficulties.
In December 2004,
subject acquired all business activities of SOLOG KNITTED MILLS LTD., retailers
of children and babies clothes, for a sum of
In 2006 subject singed a deal with SAKAL SPORT LTD.
acquiring 25% of SAKAL activities
and brands of “Nine West”, “Keds” and “Easy Spirit”, as well as
subsidiary PLANET A “Reebok” concession, according to activities value of
In November
In July 2010
subject acquired the remaining 50% of SUPER BRANDS for
In December 2009 subject completed the sale of its shares, 50% in SAKAL
INTERNATIONAL LTD., who had the local concession for “Keds” to LIRAM EXCLUSIVE
86 LTD. in consideration of
The parties also
decided to close down the “Keds Woman” chain (separate from “Keds” concession)
of some 6 branches as part of their strategy of facing the up-coming entrance
to
In April 2007
subject and SAKAL SPORT, via joint subsidiary S.B.N. acquired the fashion brand
Nautica in
In April 2007
subject announced on a signature of a Letter of Intent with a Chinese company
called "JIHUN 3515", for the establishment of a joint shoe production
plant in the Luohe District in China with planned initial investment of €10
million. In September subject announced that the deal will not take place due
to the failure of the Chinese company to meet obligations.
In March 2008 subject signed a
In March 2009 SUPER BRANDS opened the first store of the brand “Anne
Klein" (a Nine West brand), selling women's shoes and handbags.
In November 2010 subject established BRILL FASHION LTD., in order to
acquire and continue the activities of the “Lee Cooper” Fashion chain in Israel
of CONCEPT FASHION PROD
In December 2010 subject received an order from the Ministry of Defense
of army shoes in volume of
In January 2011 subject completed the acquisition of 75% of KOL NAAL
CENTER LTD., operating 6 retail stores for an owners’ loan of
In February 2011 it was reported that subject (via SUPER BRANDS) will
represent the brand "Bandolino".
The local footwear market rolls an annual
turnover of around
According to the Central Bureau of Statistics (CBS), import of Clothing
and Footwear in 2010 increased by 13.4% comparing to 2009, summing up at
1,436.9 million, after 9.6% decrease in 2009 from 2008.
In 2009 import of footwear alone fell by 7% from 2008, reaching US$
304.5 million. Most import comes from
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.
From
CBS data, it turns that the current expenditure for private consumption in 2010
for clothing, footwear and personal items rose by circa 10% from
SUMMARY
Good for trade engagement.
Maximum unsecured
credit recommended US$ 1,500,000.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.98 |
|
|
1 |
Rs.72.68 |
|
Euro |
1 |
Rs.64.16 |
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 |
|
-- |
NB |
New Business |
-- |
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.