MIRA INFORM REPORT
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Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
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Name : |
GOLF AND CO. GROUP LTD. |
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Formerly Known As : |
GOLF KITAN FASHION STORES LTD. |
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Registered Office : |
P.O. Box 24138 (61241), 57 Pinhas Rosen Street, Hadar Yossef, Tel Aviv 69512 |
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Country : |
Israel |
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Financials (as on) : |
30.06.2011 |
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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 include men’s, women’s and children
wearing apparel and Home Fashion include home textile products, home
toiletries and spa |
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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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
GOLF AND CO. GROUP LTD.
(Trading as: "GOLF & CO")
Telephone 972 3 645 15 15
Fax 972 3 647 61 04
P.O. Box 24138 (61241)
57 Pinhas Rosen Street
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 NIS 76 million.
Following the public
issuance, on 19.03.2006 converted into a public limited company (registration
number remains the same).
SHARE
CAPITAL
Authorized share capital NIS 470,000.00, divided into -
47,000,000 ordinary
shares of NIS 0.01 each,
of which 40,258,290 shares amounting to NIS 402,582.90 were issued.
SHAREHOLDERS
1. CLAL INDUSTRIES AND INVESTMENTS LTD., 62.1%, publicly traded on
the TASE, part of the IDB Concern (73.5% controlled), controlled by Nochi Dankner (mainly), Isaac Manor
and Livnat family (other companies in the CLAL Group, as
institutional investors additional 4%),
2. Institutional investors (pension
and trustee funds): DS FUNDS (6.3%), HAREL INSURANCE (6.9%),
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. Avraham Odes.
GENERAL
MANAGER
Mrs. Ilana Kaufman.
BUSINESS
Importers, marketers and retailers of:
1. Fashion:
men’s, women’s and children wearing apparel, footwear – 49.1% of sales in 2010
(was 51.8% in 2009).
2. “Home
Fashion”: home textile products, home toiletries and spa, household products –
50.9% of sales (was 48.2% in 2009).
Subject is managing and operating 259 retail stores chain as follows:
Apparel Fashion: 179 for men and women fashion wear, under 6 chain brands:
"Golf", "Polgat", "Intima", "Sprint",
"Blue Bird" and "Max Moretti" (latter also 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).
Subject has an active client club with over 256,000 members.
Local sole concessionaires for the following international brands (among
others):
RIP CURL, GLOBE (GALLAZ), both of Australia,
NO FEAR, SECTOR NINE, BEACH BUNNY, SANUK, WORLD INDUSTRIES, OSHKOSH, all of
the U.S.A,
DANIEL HECHTER, of France.
CAMEL, of Germany.
Having some 550 suppliers/ sontractors, 79% of which are foreign (56.5%
from China, 14% Europe, and 9.3% other Far Eastern countries).
Among local suppliers: KITAN INDUSTRIES, OFFIS TEXTILE, JACQUES COBE,
TRIUMPH, ENDER TEX, SVAV OR, etc.
Operating from:
* 57 Pinhas Rosen Street, Tel Aviv, rented: headquarters (part of the
“Kitan Compound”), on an area of 1,500 sq. meters, main store, on and area of
3,000 sq. meters, and warehouse on an area of 1,250 sq. meters.
* Yakum Industrial Park, rented: logistic center on an area of 5,800 sq.
meters.
* Rented warehouse on an area of 720 sq. meters in Emek Hafer.
* Rented retail stores nationwide.
Having 1,651 employees (had 1,486 employees as of 31.12.2009), including
part-timers.
MEANS
B/S shows:
NIS
(thousands)
31.12.2010 30.06.2011
ASSETS
Current assets
Cash and cash equivalents 76,068 72,531
Negotiable securities 109,950 106,005
Customers 89,805 85,978
Other receivables 9,096 16,521
Stock 132,671 128,256
417,590 409,271
Non-current assets
Fixed assets, net 42,671 40,888
Deferred
taxes 11,670 11,301
Other non-current assets 8,159 8,491
62,500 60,680
480,090 469,951
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LIABILITIES
Current
liabilities 98,205 102,769
Non-current liabilities 1,049 1,074
Equity 380,836 366,108
480,090 469,951
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Current market value US$ 167.9 million.
In December 2006 subject completed a private
placement, issuing shares and options to institutional bodies, raising NIS 38
million.
There are no charges registered on the company's assets.
SALES
Statement
of Income
NIS
(thousands)
Year
ended 31.12
2008 2009 2010
Sales 705,878 665,611 657,153
Gross profit 428,872 400,690 397,005
Operating income 133,939 115,377 99,490
Profit before taxes on income 137,917 123,244 105,144
Net income 101,004 87,518 77,923
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Consolidated first 6 months
of 2011 sales NIS 338,397,000 (8.8% increase compared to the parallel period of
2010), making a gross profit of NIS 207,023,000, an operating income of NIS
42,536,000, and a net income of
NIS 31,860,000.
OTHER
COMPANIES
CLAL INDUSTRIES AND INVESTMENTS LTD., parent company, an investment and
holding company, heading CLAL Group, current
market value US$ 718 million. It
is part of I.D.B Concern, via IDB DEVELOPMENT CORPORATION LTD. and its parent company IDB HOLDINGS CORPORATION LTD. having numerous holdings in various sectors (see
CHARACTER).
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.
IDB Concern, headed by I.D.B. HOLDINGS CORP. LTD., is controlled by:
1. GANDEN HOLDINGS LTD., 54.7%, controlled Nochi Dankner (56.3%), Ms.
Shelly Bergman (16.6%), a foreign trust fund on behalf of the Shimel family
(9.9%) and Avi Fischer (9.1%),
2. Avraham Livnat & sons (Zvi, Zeev and Shay), 13.3%,
3. Isaac Manor, 13.3%.
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.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject is among the leading fashion chain stores in Israel.
The CLAL Group is part
of the local leading concern IDB, one of the largest and most influential in
Israel.
Some 90% of subject's sales are from products designed by subject's
designers. Most manufacturing of goods designed and sold by subject is in
China, however in view of the rising trend in salaries in China, subject plans
on shifting part of manufacturing to Bangladesh and The Philippines, as well as
working directly with suppliers, thus saving intermediary costs.
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 Mediterranean countries.
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).
IDB is a local leading concern, controlled by
Nochi Dankner, one of the largest and most influential in Israel. Via its
several holdings groups arms, which includes CLAL (also controls among others, HADERA
PAPER, FUNDTECH, NESHER CEMENT, TAAVURA, NETVISISON, CLAL BIOTECH. INDS.), DISCOUNT INVESTMET CO., KOOR and ELRON, I.D.B has
investments in a broad spectrum of sectors in Israel and abroad, including
trade and commerce, finance and insurance, real estate, telecommunications and
media, hi-tech and other industries.
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 Europe.
In December 2010 subject completed the acquisition of “Blue Bird” Chain of
sports fashion from MARVIDEX SURFING PROD
In November 2011 it was reported that subject made its first overseas step,
with the opening of its first Max Moretti store in Prague.
The
local textile and fashion market is valued at NIS 7.5 billion per annum, NIS 6
billion of which is attributed to the fashion branch.
According to surveys, around 50% and more is women's
fashion. Moreover, 40% of fashion stores in Israel belong to fashion chains,
the rest being private shops.
Import of Clothing and Footwear in 2011 first 8 months kept rising from
2010: import rose by over 18%, after rising 13.4% in 2010 from 2009, summing up
to US$ 1,437 million (in 2009 the local market experienced a slow-down). Most
import comes from China. Main other countries of origin for textile goods are
France, Italy, Hong Kong and Turkey, Spain and the U.S.A.
According to Central Bureau
of Statistics, import of fabrics and yarns rose in 2010 by 16.6% and reached US$
684.5 million, reflecting the recovery in general in the local economy in 2010
(import fell in 2009 by 17.2% from 2008). The
trend continued according to the first 8 months of 2011 data: import rose 6.5%
comparing to 2010. Chinese production
comprises the largest portion of imported textile goods followed by France,
Italy, Hong Kong and Turkey. The increase in imports emanates from the exposure
to foreign markets policy by the State.
The local fashion
market was suffering from slow-down during 2009, and the trend continued into
2010, although in a less extent. According to a
local retail research company, retail fashion chains witnessed in
According
to the Central Bureau of Statistics (CBS), the current expenditure for private
consumption in 2010 for clothing, footwear and personal items fell by 5.1% from
2009, continuing the decreasing trend in 2009, though in an higher magnitude
(in 2009 it fell marginally (0.7%) from 2008, after rising 4.1% from 2007).
This happened in contrast to the general trend in the local market in 2010,
where expenditure level for private consumption actually increased.
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).
From CBS data,
import of Household Utensils in 2010 rose by 15.8% from 2009 summing up to US$
549.3 million, comparing to US$ 474.2 million in 2009 and similar to 2008
level. The growth trend continued in the first 8 months of
2011 –close to 8% rise (compared with 2010), totaling US$ 406.3 million.
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).
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended 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.49.08 |
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UK Pound |
1 |
Rs.78.65 |
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Euro |
1 |
Rs.67.79 |
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.