MIRA INFORM REPORT

 

 

Report Date :

12.12.2012

 

IDENTIFICATION DETAILS

 

Name :

TW METALS LTD

 

 

Registered Office :

27 Seaward Drive, PO Box 213 Kingston

 

 

Country :

Jamaica

 

 

Date of Incorporation :

1987

 

 

Reg. No.:

57197

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Importer/wholesaler and distributor of steel.

 

 

No. of Employees :

40

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Jamaica

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAMAICA - ECONOMIC OVERVIEW

 

The Jamaican economy is heavily dependent on services, which now account for nearly 65% of GDP. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. Remittances account for nearly 15% of GDP and exports of bauxite and alumina make up about 10%. The bauxite/alumina sector was most affected by the global downturn while the tourism industry was resilient, experiencing an increase of 4% in tourist arrivals. Tourism revenues account for roughly 10% of GDP, and both arrivals and revenues grew in 2010, up 4% and 6% respectively. Jamaica's economy faces many challenges to growth: high crime and corruption, large-scale unemployment and underemployment, and a debt-to-GDP ratio of more than 120%. Jamaica's onerous public debt burden is the result of government bailouts to ailing sectors of the economy, most notably to the financial sector in the mid-to-late 1990s. In early 2010, the Jamaican government created the Jamaica Debt Exchange in order to retire high-priced domestic bonds and significantly reduce annual debt servicing. The Government of Jamaica signed a $1.27 billion, 27-month Standby Agreement with the International Monetary Fund for balance of payment support in February 2010. Other multilaterals have also provided millions of dollars in loans and grants. Despite the improvement, debt servicing costs still hinder the government's ability to spend on infrastructure and social programs, particularly as job losses rise in a shrinking economy. The SIMPSON-MILLER administration faces the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments, while simultaneously attacking a serious crime problem that is hampering economic growth. High unemployment exacerbates the crime problem, including gang violence that is fueled by the drug trade.

 

Source : CIA


 

 

GEOPOLITICS - JAMAICA

POLITICAL DATA

ECONOMIC DATA

Form of Government: Commonwealth Realm - Parliamentary system


Economic Risk: High

Currency: JMD

Branch Situation:Stable

 

 

IDENTIFICATION

Ordered as:

TW METALS LTD


Address in the order:

27 Seaward Drive Kingstone 11, Jamaica West Indies

 Jamaica

 

 

Legal Name:

TW METALS LIMITED (Tank Weld Metals (Steel Stockiest))

Trade Name:

UPDATE

Legal Address

27 Seaward Drive, PO Box 213 Kingston 11 Jamaica

Operative Address

27 Seaward Drive, PO Box 213 Kingston 11 Jamaica

Telephone:

(876) 923-4717 / 8800 / 0895

Registration Number :

57197

Fax:

(876) 923-0317

Legal Form:

Limited Liability Company

Email:

bbicknell@cwjamaica.com / mrosen@cwjamaica.com

Registered in:

Jamaica

Website:

www.tankweld.com

Date Created:

1987

Manager:

Bruce Bicknell - Managing Director

Date Incorporated:

1987

Staff:

40

Stock:

N.A.

 

 

Value:

N.A.

Activity:

Importer/wholesaler and distributor of steel.

 

BANKS

Name of the Bank

REPUBLIC BANK

 

 

BUSINESS

 

HISTORY

 

Tank-Weld Metals began operations as steel stockiest in 1987.

PRINCIPAL ACTIVITY

 

The subject company operates the largest steel warehouse in Jamaica.

Products/Services description:

 

They distributes reinforcing steel bars, mild steel products, alum-zinc and galvanized sheets, aluminum products, stainless steel products, galvanized plates, tubes and angles, structural steel beams, columns and channels, primer paints, nails, fabric mesh, steel shafting, artistic forgings, chain-link fencing and accessories, expanded metal, tool steel and doors.

 

Manufactures chain-link fencing, wire rods and industrial roofing profiles both alum-zinc and galvanized material.

Sales are:

 

Wholesale

Brands:

 

Butch

Clients:

 

Agro-merchants, building contractors, fabricators and various other industries throughout Jamaica.

Suppliers:

 

Vulcan Materials

Everglades Steel Corporation

Chemplast (Caribbean) Ltd

 

Operations area:

 

National, Local

The company imports from USA mainly.

The company does not export

The subject employs 40 employee(s)

Comments on staff:

 

The staff number has not been confirmed by the company.

PAYMENTS

 

made on a 50 days basis - monitored over the last 12 months

LOCATION

Headquarters

 

The company is headquartered at:

 

27 Seaward Drive, PO Box 213, Kingston 11, Jamaica

The property is:

 

Owned

Branches:

 

The company has a branch located at:

 

Catherine Hall,

Montego Bay

Tel: 940-1290-5

Fax: 940-1296

 




Shareholders - Manager - Related Companies

Listed at the stock exchange:

 

NO

Shareholders Parent Company(ies):

 

TW METALS LIMITED is a subsidiary company of Tank-Weld Group. Registered and incorporated in Jamaica on April 20, 1970 with share capital of $10,000 into 10,000 shares of $1 each. Registration #7829.

 

The Tank-Weld Group has invested USD$50 Million for the purchase and development of the Rio Bueno Port in Trelawny. This includes the modification of the previous needle pier into a wharf, the construction of warehouses and some 10 acres of adjoining lands. Altogether including the Port, the land holding is 40 acres.

Management:

 

Bruce Bicknell, Managing Director

Michael Rosen, Sales Manager

Related Companies:

 

The following is a list of sister companies:

 

Tank-Weld Special Projects (Civil Contractors):

691 Spanish Town Road. Kingston 11

Tel: (876) 934-1919

Fax: (876) 934-1380

Contact: Mike OConnell

Email: moconnell@cwjamaica.com

Web: www.tankweldsp.com

 

Tank-Weld Steel Fabricators:

597 Spanish Town Road. Kingston 11

Tel: (876) 934-2369, 934-6949 / 934-2732, 933-1819

Fax: (876) 765-9989

Contact: Louis Aiken

Email:laiken@tankweldfab.com

 

Tank-Weld Equipment Rental

27 Seaward Drive. Kingston 11

Tel: (876) 765-3177 / 934-0627

Fax: (876) 934-1902

Contact: John Ralston

Email:jralston@cwjamaica.com

 

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

We have contacted Mr. Michael Rosen who refused to provide us any financial data on grounds of confidentiality.

However our financial sources could provide us with the following data :

 

Those figures are estimates provided by confidential banking and financial institutions working with the company.

Currency

DATE

 

USD

2010

 

Turnover

12,100,000

 

Operating Income

765,000

 

Net Income

587,000

 

Net worth

3,600,000

 

Bank liabilities

0

 

The cash flow is

Normal

 

 

Currency

DATE

USD

2009

Turnover

11,800,000

Operating Income

564,000

Net Income

621,000

Net worth

3,000,000

Bank liabilities

120,000

The cash flow is

normal



Currency

DATE

USD

2008

Turnover

12,500,000

Operating Income

834,000

Net Income

675,000

Net worth

2,500,000

Bank liabilities

250,000

The cash flow is

normal

 

 

Comments on the financial data: Recent Financial Figures were not disclosed.


Legal Filings

 The sources consulted record no detrimental legal or labor court information.

 

 

 Rating

Local credit bureau gave a Correct credit rate.

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 

 

 Final Opinion

 

TW METALS LIMITED has 31 years of experience as importer/wholesaler and distributor of steel in Jamaica, this company currently operates with 40 employees in all the locations.

 

TW METALS, is a subsidiary company of Tank-Weld Group, the parent company has invested USD$50 Million for the purchase and development of the Rio Bueno Port in Trelawny, considered as the most substantial investments made by a local company.

 

After our research we did not find negative data or legal against the company and based on the information collected plus the good commercial references that we found about the parent company we believe that the credit line requested for USD 100,000 may be considered.

 

 

SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

 

Profitability

CORRECT

Public

NO

 

Indebtedness

NIL

Payments

REGULAR

 

Cash

NORMAL

 

 

 

 




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.32

UK Pound

1

Rs.87.36

Euro

1

Rs.70.36

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.