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Report Date : |
23.04.2012 |
IDENTIFICATION DETAILS
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Name : |
NEXT SOURCING
LTD. |
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Formerly Known As : |
Next (Asia) Ltd |
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Registered Office : |
Room 1203-1205, 12/F. & 14/F., Cityplaza One, 1111 King’s Road, Taikoo Shing |
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Country : |
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Date of Incorporation : |
04.10.1983 |
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Com. Reg. No.: |
08641626 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Exporter of all kinds of fashion garments |
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No. of Employees : |
80 |
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 : |
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Hong Kong |
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 |
NEXT SOURCING
LTD.
Room 1203-1205,
12/F. & 14/F., Cityplaza One, 1111 King’s Road, Taikoo Shing, Hong
Kong.
PHONE: 2739 2173 (12 lines)
FAX: 2724 1697, 2907 1653,
2907 1939
E-MAIL: hrdept@nextsl.com.hk
Managing
Director: Mr. Luk Kam Tim, Jimmy
Incorporated on: 4th October, 1983.
Organization: Private Limited Company.
Capital: Nominal: HK$20,010,000.00
Issued: HK$20,010,000.00
Business Category: Garment Exporter.
Group Revenue: £3,453.7 million (Year ended 31-01-2011)
Employees: 80.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
NEXT SOURCING
LTD.
Registered
Head Office:-
Room 1203-1205,
12/F. & 14/F., Cityplaza One, 1111 King’s Road, Taikoo Shing, Hong
Kong.
Immediate
Holding Company:-
Next Brand Ltd.,
UK.
Intermediate
Holding Company:-
Next Group PLC,
UK.
Ultimate
Holding Company:-
Next PLC, UK.
Affiliated
Companies:-
Next Group of Companies
Cairns Ltd., Hong Kong.
Choice Discount Stores Ltd., UK.
Club 24 Ltd., UK. [Trading as Ventura]
Cotton Traders Holdings Ltd., UK.
Cotton Traders Ltd., UK.
First Retail Finance Ltd., UK.
Lipsy Ltd., UK.
Next (Asia) Ltd., Hong Kong.
Next Directory, UK. [A division of Next Retail Ltd.]
Next Distribution Ltd., UK.
Next Europe BV, the Netherlands.
Next Financial Services Ltd., UK.
Next Manufacturing (Pvt) Ltd., Sri Lanka.
Next Retail Ltd., UK.
Next Sourcing VM Ltd., Hong Kong.
Next Transport Ltd., UK.
etc.
08641626
0128942
Managing
Director: Mr. Luk Kam Tim, Jimmy
Nominal Share
Capital: HK$20,010,000.00 (Divided into 5,000,000 Ordinary shares and
15,010,000 Non-voting Deferred shares of HK$1.00 each)
Issued Share
Capital: HK$20,010,000.00
(As per registry dated 04-10-2011)
|
Name |
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No.
of shares |
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Non-voting
Deferred |
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Next Brand Ltd. Desford
Road, Enderby, Leicester, LE19 4AT, UK. |
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4,999,999 |
10,010,000 |
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Next Group PLC Desford
Road, Enderby, Leicester, LE19 4AT, UK. |
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1 |
- |
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Next Transport Ltd. Desford Road,
Enderby, Leicester, LE19 4AT, UK. |
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- |
5,000,000 |
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–––––––– |
––––––––– |
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Total: |
5,000,000 ======= |
15,010,000 ======== |
(As per registry dated 04-10-2011)
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Name (Nationality) |
Address |
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LUK
Kam Tim, Jimmy |
Flat C, 21/F., Block 1, Victoria Centre, 15 Watson Road, North Point,
Hong Kong. |
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WONG
Yiu Kwan |
Flat D, 38/F., Block 5, Scenic View, 63 Fung Shing Street, Kowloon,
Hong Kong. |
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David
KEENS |
Dingley House, 25 Harborough Road, Dingley, Market Harborough,
Leicestershire LE16 8PQ, UK. |
WONG Yiu Kwan (As per
registry dated 04-10-2011)
The
subject was incorporated on 4th October, 1983 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Silversheen Ltd., name changed to
Next (Hong Kong) Ltd. on 8th February, 1985; changed to Next (Asia) Ltd. on
25th March, 1998; and further to the present style on 8th October, 2004.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Exporter.
Lines: All kinds of fashion garments.
Employees: 80.
Commodities Imported: Hong Kong, China, other Asian countries, etc.
Markets: Europe (main), etc.
Group Revenue:-
£3,283.8 million (Year ended 31-01-2007)
£3,329.1 million (Year ended 31-01-2008)
£3,271.5 million (Year ended 30-01-2009)
£3,406.5 million (Year ended 29-01-2010)
£3,453.7 million (Year ended 31-01-2011)
£1,511.7 million (6 months ended 31-07-2010) – Unaudited & Restated
£1,565.5
million (6 months ended 31-07-2011) –
Unaudited
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C,
T/T, etc.
The Hong Kong
General Chamber of Commerce, Hong Kong.
[Membership No. HKN0038]
Nominal Share
Capital: HK$20,010,000.00 (Divided into 5,000,000 Ordinary shares and
15,010,000 Non-voting Deferred shares of HK$1.00 each)
Issued Share
Capital: HK$20,010,000.00
Group
Net Profit:-
£331.5 million (Year ended 31-01-2007)
£353.9 million (Year ended 31-01-2008)
£302.3 million (Year ended 30-01-2009)
£364.0 million (Year ended 29-01-2010)
£400.9 million (Year ended 31-01-2011)
£154.9 million (6 months ended 31-07-2010) – Unaudited
£208.6 million (6 months ended 31-07-2011) – Unaudited
Group Net Worth/(Deficit):-
£189.3 million (As at 31-01-2007)
(£95.2 million) (As at 31-01-2008) – Restated
£140.5 million (As at 30-01-2009) – Restated
£133.4 million (As at 29-01-2010) – Restated
£232.4 million (As at 31-01-2011)
£ 86.4 million (As at 31-07-2010) – Unaudited
£113.2 million (As at 31-07-2011) – Unaudited
Profit or Loss: Traded at a profitable angle.
Condition: Keeping in an active and satisfactory manner.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Next
Sourcing Ltd., formerly known as Next (Asia) Ltd., is a wholly-owned subsidiary
of Next Brand Ltd., a UK-based firm. The
subject’s ultimate holding company Next PLC [Next] is also a UK-based firm.
The
subject is engaged in garment designing and sourcing. Its lines of business are the same as its
holding companies, more or less.
Besides
Hong Kong, the subject has operations in mainland China, Romania, Sri Lanka,
India, Turkey and the United Kingdom. It
is engaged in the design, sourcing, buying, merchandising and quality control
of Next products.
Next
is a rather significant UK-based retail and mail order company with retail
stores in the United Kingdom, the United States, France, the Middle East and
South East Asia.
The
subject is trading in all kinds of garments and related products. Products have been exported to the United
Kingdom and the other European countries.
Commodities are imported from China or other Asian countries. Business has been active.
The
predecessor of Next, J. Hepworth & Son, was established in Leeds in the
United Kingdom in 1864. In 1986, J.
Hepworth & Son changed name to Next.
It acquired Grattan PLC (mail order company) in the same year.
Next
is a UK-based retailer offering stylish, good quality products in clothing,
footwear, accessories and home products.
Next distributes through three main channels: Next Retail, a chain of
more than 500 stores in the United Kingdom and Eire; the Next Directory, a
direct mail catalogue and transactional website with more than 2 million active
customers; and Next International, with more than 170 stores overseas.
Other
businesses in the Next Group include:-
·
Next Sourcing, which designs, sources and buys Next
branded products;
·
Lipsy, which designs and sells its own branded
younger women’s fashion products through wholesale, retail and internet
channels; and
·
Ventura, which provides customer services
management to clients wishing to outsource their customer contact
administration and fulfilment activities.
Next
has been a listed company in the United Kingdom. For the fiscal year ended January 2011, the
Next Group’s revenue amounted to ₤3,453.7 million, increased by 1.4% as
compared with FY 2010 which was ₤3,406.5 million. Profit after tax amounted to ₤400.9
million, increased by 10.1% as compared with ₤364.0 million of FY
2010. Overall business is good.
Next
Sourcing is the Group’s overseas sourcing business with operations in several
countries, the largest two being China (including Hong Kong) and
Sri Lanka.
In
a difficult year, Next has proven resilient.
Group revenue for the first half of 2011 was 3.6% higher than previous
year and profit before tax was up 8.5% on a continuing basis. The business remains strongly cash generative
and continued buyback of shares further enhanced growth in earnings per share,
which were 18.6% ahead of previous year.
Financial highlights from its continuing business are as follows: Revenue up 3.6% to £1,565 million and Profit
before tax up 8.5% to £228 million.
As
at year ended January 2011, Next Sourcing has had a difficult year. It faced increased competition from
independent suppliers who improved their game, and as a result sales to Next
were down 4.6% from £530 million to £506 million.
In
addition to lower sales, Next Sourcing faced intense pressure on its margins,
caught between stronger manufacturers, who themselves were experiencing cost
pressures, and a retailer determined to limit increases in prices to its
customers.
In
order to remain competitive, Next Sourcing lowered its commission from 8% to 6%
and took a step back in profit.
In
the year ahead, the Group expects Next Sourcing will still suffer from the
reduction in margin, which will not annualise until August. The Group expects a profit in the region of
£20 million for the year ahead.
Total
Next Sourcing sales of £229 million were up 3.9% on previous year. Profit of £10.1 million was as expected,
albeit 19% down on previous year. The
fall in profit was mainly as a result of the lower commission rates it now
charges.
The
supply chain environment continues to be challenging due to volatility in raw
material prices, labour costs and development of new suppliers. Next Sourcing has a sound base, good
geographic spread and the Group now expects its full year profit to be £23
million.
The
history of the subject in Hong Kong is over twenty-eight years.
On
the whole, in view of the subject’s background and parentage, consider it good
for normal business engagements.
Court case record:-
|
Action
Date |
Case
No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
Feb. 1995 |
H953 |
Sweetmart Garment Works Ltd. |
Next (Hong Kong) Ltd. [Now known as Next Sourcing
Ltd.] |
Amount due |
HK$480,490 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.51.99 |
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|
1 |
Rs.83.54 |
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Euro |
1 |
Rs.63.40 |
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 |
-- |
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.