MIRA INFORM REPORT

 

 

Report Date :

27.05.2011

 

IDENTIFICATION DETAILS

 

Name :

PEPKOR RETAIL LTD

 

 

Formerly Known As :

SMART-HOLD LTD

 

 

Registered Office :

36 Stellenberg Road Parow Industria Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

28.08.1986

 

 

Com. Reg. No.:

1986/003435/06

 

 

Legal Form :

Limited Company

 

 

Line of Business :

PEP and ACKERMANS are a cash chain selling family fashions and basics in clothing, footwear and textiles to middle to lower-income consumers.  ACKERMANS owns the largest babywear brand marketed in Southern Africa, under the brand name ABC Baby Company. 

 

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 :

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, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

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

PEPKOR RETAIL LTD

 

Formerly SMART-HOLD LTD, the name having been changed on 29 February 2004.

Formerly TRADEGRO ADMIN LTD, the name having bee changed on 19 December 1986.

Formerly TRADEGRO MANAGEMENT SERVICES LTD, the name having been changed on 28 August 1986.

 

TRADING DIVISION:    

ACKERMANS

PEP

PEPCLO

PEPKOR FIN (Corporate services)

 

 

PHYSICAL ADDRESS

 

36 Stellenberg Road

PAROW INDUSTRIA

Western Cape

 

POSTAL ADDRESS:    

P O Box 6100

PAROW EAST

7501

 

TELEPHONE NUMBER: 021 929 4800

 

FAX NUMBER:                          021 933 5075

 

 

SHAREHOLDERS

 

100%    PEPKOR LTD (Registration Certificate Number: 1965/007765/06),

            which in turn is owned 100% by PEPKOR HOLDINGS LTD

            (Registration Certificate Number: 2003/020009/06).

 

It was stated that PEPKOR, which delisted from the JSE Securities Exchange South Africa in February 2004 in an offer that valued the group at R2 660 000 000, had sold 7.5% of its shares to a black consortium for R208 000 000 in cash.  The company has sold the stake to MEDU CAPITAL and J & J PRIVATE EQUITY FUND. 

 

MEDU CAPITAL was founded by Nhlanganiso MkwanazI and Ernest January. Its other investments include Ampaglas, Capital Outsourcing Group, VitalAire and Zest.

 

J & J PRIVATE EQUITY FUND was founded by former cabinet minister Jay Naidoo and Jayendra Naidoo and hold stakes in information technology, financial services and industrial companies.

 

ASSOCIATE AND SUBSIDIARY COMPANIES

 

PEPKOR CLOTHING INDUSTRIES LTD

(Registration Certificate Number: 1965/005478/06)

PEPKOR MANUFACTURING LTD

(Registration Certificate Number: 1969/009505/06)

ACKERMANS LTD

(Registration Certificate Number: 1992/002170/06)

DUNNS STORES (PTY) LTD

(Registration Certificate Number: 1998/007991/07)

BEST AND LESS LTD in Australia

 

SHOE CITI HOLDINGS (PTY) LTD. The assets and operations of the company have been incorporated as a division into DUNNS STORES (PTY) LTD with two divisions DUNNS AND SHOE CITI

 

Plus other companies within the PEPKOR group.

 

In October 2000 PEPKOR restructured its operations extensively. It unbundled its holdings in the South African food retailer SHOPRITE and in the UK retail group BROWN & JACKSON PLC to its shareholders. In the case with BROWN & JACKSON, the shares were housed in a new company TRADEHOLD, now listed on the JSE Securities Exchange South Africa and the shares of TRADEHOLD unbundled to PEPKOR shareholders on a pro rata basis.

 

At the same time that the PEPKOR pyramid structure was collapsed and its ultimate holding company, PEPGRO, delisted from the JSE Securities Exchange South Africa.  This left PEPKOR with the discount clothing retailers PEP, ACKERMANS and BEST & LESS, having previously disposed of STUTTAFORDS and CASHBUILD.

 

 

DIRECTORS

 

M BARKHUYSEN          ID No. 5612145085004

M BARTENS                 ID No. 5806105144088

L S BRAND                   ID No. 6009155054088

S N N CARDINAAL        ID No. 6712225176001

J B CILLIERS                ID No. 5909155218008

C A CRONJE                 ID No. 6001185065002

J H DU TOIT                  ID No. 6102055097008

P J ERASMUS              ID No. 6510025150089

J L HAMMAN                ID No. 7011295010083

R G HANEKOM             ID No. 6911055023081

C J KLEM                     ID No. 7209265146084

MS M S LAURENCE      ID No. 7007140243088

MS L M LOURENS        ID No. 6603155037083

E A MORKEL                ID No. 6807110158088

J F  PIENAAR               ID No. 5608175119002

G M STEYN                  ID No. 5904085013082

J S VAN ROOYEN         ID No. 6512135225082

J D WASSERFALL        ID No. 6709285006086

N TOM                          ID No. 7212010777088

MS M L HAMMAN         ID No. 7108110056086

MS A HANSEN             ID No. 7302090081087

MS A O SMITH              ID No. 7405300119082

 

 

BANKERS

 

It was stated that the PEP and PEPKOR FIN divisions bank with FIRST NATIONAL BANK, Corporate Branch, Cape Town. The PEPCLO division banks with ABSA BANK, Corporate Cape Town Branch.  The ACKERMANS division banks with FIRST NATIONAL BANK, ABSA  and NEDBANK.

 

It was stated that the divisions are managed by a cash management scheme controlled by the PEPKOR FIN division of the subject.

 

 

DATE REGISTERED

 

28 August 1986

Registration Certificate Number: 1986/003435/06

 

 

VAT NUMBER    

 

Each division has its own VAT number

 

 

MAJOR OPERATION

 

PEP and ACKERMANS are a cash chain selling family fashions and basics in clothing, footwear and textiles to middle to lower-income consumers.  ACKERMANS owns the largest babywear brand marketed in Southern Africa, under the brand name ABC Baby Company.  To further its fashion positioning and strengthen its appeal to teens, Ackermans has opened a small number of stand alone brand name stores Hang Ten Stores.  PEPCLO is a manufacturer of clothing. PEPKOR FINANCE deals with administration and finance for the company.

 

 

MAJOR SUPPLIERS

 

Each division has its own major suppliers. It was deemed not necessary for trade references to be submitted by respondents in view of the standing of the subject.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Pep and Ackermans deal with the general public. Pepclo deals with Ackermans and Pep

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

It was stated that the Pep division exports to neighbouring countries e.g. Malawi, Zambia and Mozambique.

 

 

TOTAL EMPLOYEES

 

±28 000 in the group

 

 

OTHER PREMISES

 

The Pep and Ackermans divisions have a total of ±2 800 stores throughout South Africa. There are group companies  situated in Botswana, Lesotho, Swaziland, Namibia, Zambia, Mozambique and Malawi. Pepclo has a factory at the heading address.

 

 

OWNED OR LEASED

 

 The heading premises are owned by a group property company and most of the branches are retail outlets that are leased

 

 

AUTHORISED SHARE CAPITAL

 

R4 000 divided into 4 000 ordinary shares of R1 each


 

ISSUED SHARE CAPITAL

 

R1

 

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this respect.

 

The new PEPKOR, however, is a dominant player in the South African cash clothing discount market with an annual turnover as at May 2011 well in excess of  R10 000 000 000

 

 

AUDITORS    

 

PRICEWATERHOUSECOOPERS                  Tel no: 021 529 2000

 

 

YEAR END    

 

JUNE

 

 

INSURANCE BROKERS 

 

GLENRAND MIB

 

 

TRADE REFERENCES

 

NOT APPLICABLE

 

 

COMMENTS

 

This is a well established company that is well connected.  The subject is considered as equal to a maximum amount of US$1 000 000 over DA terms.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.29

UK Pound

1

Rs.73.84

Euro

1

Rs.64.18

 

 

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%)

 

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.