MIRA INFORM REPORT

 

 

Report Date :

11.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ROLL PROFILE LTD.

 

 

Formerly Known As :

BAMASAF ETAMAR (ROLL-FORMING) 1995 LTD

 

 

Registered Office :

P.O. Box 659, 6 Zur Street, Eastern Industrial Zone, Karmiel 2161601

 

 

Country :

Israel

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

22.06.1995

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers and marketers of aluminum shutters and shutters cases

 

 

No. of Employees :

There are 278 employees serving KLIL INDUSTRIES Group in Israel, of which 26 employees in the shutters segment (subject's segment)

 

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 :

Good

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


Company name & address

 

ROLL PROFILE LTD.

Telephone  972 4 990 02 00

Fax           972 4 990 02 55

P.O. Box 659

6 Zur Street

Eastern Industrial Zone

KARMIEL  2161601         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-216685-1 on the 22.06.1995.

 

Originally registered under the name of BAMASAF ETAMAR (ROLL-FORMING) 1995 LTD., which changed to the present one on the 26.08.1996.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 27,100.00, divided into -

                   27,100 ordinary shares of NIS 1.00 each,

of which 302 shares amounting to NIS 302.00 were issued.

 

 

SHAREHOLDERS

 

1.       KLIL INDUSTRIES LTD., 82.78%, a public limited company whose shares are traded on the Tel Aviv Stock Exchange, controlled (57.2%) by Zur (Zuri) Daboosh (via owned companies),

2.       Etamar Ochayun, 17.22%.

 

 

DIRECTORS

 

1.    Arie (Richy) Richtman, General Manager of KLIL INDUSTRIES,

2.    Etamar Ochayun, General Manager of subject.

 

 

BUSINESS

 

Developers, manufacturers and marketers of aluminum shutters and shutters cases.

 

Operating from a plant, on an area of 1,737 sq. meters, which subject leases from parent KLIL INDUSTRIES, part of KLIL’s owned premises (offices, storage facilities and plants) on an area of 105,000 sq. meters, in 6 Zur Street, Eastern Industrial Zone, Karmiel.

 

There are 278 employees serving KLIL INDUSTRIES Group in Israel, of which 26 employees in the shutters segment (subject's segment).

 

 

MEANS

 

Financial data is included in the consolidated B/S of parent company, KLIL INDUSTRIES LTD., which shows:

 

                                                                                                NIS (thousands)

ASSETS                                                                       31.12.2011               31.03.2012

Current assets:

     Cash and cash equivalents                                                   15,333                  9,382

     Investment in marketable securities                                       49,595                63,914

     Customers                                                                          62,962                66,159

     Other debtors                                                                        2,549                  1,943

     Stock                                                                                 49,734                55,091

                                                                                             180,173               196,489

Non-current assets

     Fixed assets (net)                                                               51,609                51,829

     Other non-current assets                                                       2,249                  2,126

                                                                                              53,858                53,955

                                                                                             234,031               250,444

                                                                                          =======            =======

 

LIABILITIES

Current liabilities                                                                      58,708                68,897

Non-current liabilities                                                                  2,273                  1,977

Equity                                                                                   173,050               179,570

                                                                                             234,031               250,444

                                                                                          =======            =======

 

 

Parent company KLIL INDUSTRIES current market value US$ 66.7 million.

 

In March 2012 KLIL Board approved a loan of NIS 1.8 million to subject.

 

Assets attributed to the Shutter Segment (practically to subject) in KLIL financial statements as of 31.12.2011: NIS 11,052,000 (NIS 9,762,000 as of 31.12.2010).

 

There is 1 charge for an unlimited amount registered on the company's assets (financial assets), in favor of Union Bank of Israel Ltd. (charge placed February 1999).

 

 

SALES

 

·         Subject’s 2007 sales were NIS 17,000,000, making a profit before taxes on income of NIS 600,000 and a net profit of NIS 161,000.

Subject’s 2008 sales were NIS 18,000,000.

Subject ended 2008 with a net profit of NIS 894,000.

Shutters and shutters cases sales as reported by parent company KLIL INDUSTRIES (practically attributed to subject):

2009 sales were NIS 17,313,000, making an operating profit of 1,646,000. Subject ended 2009 with a net profit of NIS 1,118,000.

2010 sales were NIS 18,674,000, making an operating profit of 1,679,000. Subject ended 2010 with a net profit of NIS 1,146,000.

2011 sales were NIS 20,928,000, making an operating profit of 1,883,000. Subject ended 2011 with a net profit of NIS 1,299,000.

Sales for the first 3 months of 2012 were NIS 5,424,000, making an operating profit of 758,000.

 

 

                                                                                      KLIL INDUSTRIES LTD.

                                                                             Consolidated Statement of Income

                                                                                                NIS (thousands)

                                                                                             Year ended 31.12

                                                                                    2009              2010              2011

Sales                                                                          277,731          316,634          336,815

 

Gross profit                                                                   78,904           92,585           94,489

 

Operating income                                                          39,717           44,006           49,726

 

Profit before taxes on income                                         35,973           46,069           45,410

 

Net income                                                                   28,297           35,590           34,485

                                                                               =======       =======       =======

 

 

KLIL INDUSTRIES consolidated first 3 months of 2012 sales were NIS 88,880,000 (similar to the parallel period of 2011), making a gross profit of NIS 25,686,000, an operating profit of NIS 13,276,000, making a net profit of

NIS 10,033,000.

 

 

OTHER COMPANIES

 

KLIL INDUSTRIES LTD., parent company, manufacturers, importers, marketers and exporters of aluminum profiles, shutters, curtain walls, door and window frames, as well as allied hardware products. Also developers, manufacturers, importers and marketers of allied accessories for aluminum profile systems.

Other subsidiaries:

 

KLIL U.K. LIMITED, 100%, marketing subject's products in the UK.

BANKERS

 

Union Bank of Israel Ltd., Haifa Main Branch (No. 081), Haifa.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is among the leading companies in their field.

 

Parent company KLIL INDUSTRIES is the one of the leading and veteran (founded in the 1950s, incorporated 1962) companies in the aluminum field in Israel. KLIL's estimated market share in 2011 is of one third – one quarter of the products manufactured in Israel from aluminum profiles. KLIL’s products are well-known in their quality.

 

KLIL is publicly traded since 1981.

 

Subject meets the ISO 9002 standard of quality.

 

According to estimations in the Aluminum branch, total of annual manufacturing in the aluminum for construction and industry in Israel in 2011 summed at 40,000 – 45,000 tons, in money value of NIS 1 billion (similar to 2010).

In Israel and Palestinian Authority teritorries there are known to be 6 aluminum profile manufacturers. In addition, there is increasing import from China, Jordan and other countries.

 

Zuri Daboosh was one of the founders of EMBLAZE, publicly traded on the London Stock Exchange. In year 2000 he materialized 12% from his 25% shares in EMBLAZE in consideration of US$ 45 million.

 

In March 2007 parent KLIL signed a 3 years agreement with American ALCOA, the world's largest aluminum company, for an exclusive license to manufacture and market ALCOA's products (ALCOA – KAWNEER) in Israel, in return for royalties.

 

In October 2007, it was reported that KLIL’s aluminum window systems will be installed in 60 villas in a fancy neighborhood in Bucarest, Romania. The aluminum worls said to be in volume of NIS 5 million.

 

According to the Chairman of the Metal and Electricity sectors at the According to data by of the Metal, Electrical and Infrastructure Industries Association, representing the local Metal and Electricity Industries, which includes large scale export-oriented industries on one hand and family-owned plants which sell to the local market: 2010 sales (local and export) by the said industries amounted to NIS 70 billion, comprising 25% of Israel's industrial output. Results are similar to 2008 scales, after some 20% drop in 2009 due to the significant slow-down in the local economy, affected by the global financial and economic crisis. Sales for export reached US$ 10 billion in 2010.

Some 90,000 employees serve the said industries (26% of Israel's industrial workforce).

 

According to the Central Bureau of Statistics (CBS), import of metals raw materials to the local industries in 2010 and 2011 showed an increasing trend, after a contraction in 2009 in view of the local and global slow-down in economy. Import of raw materials divided as follows: Iron and Steel - rise by 33.6% in 2010 (after 38% decrease in 2009 from 2008) and by 36.3% in 2011, reaching US$ 2,457 million; Precious Metals - up 22.5% in 2010 (after 35.3% decrease in 2009) and by 2% in 2011 reaching US$ 146.7 million; Non-ferrous Metals - 40.7% rise in 2010 (after 44.3% decrease in 2009 from 2008) and by 20% in 2011, reaching US$ 986.2 million.

 

Despite the current general weakness in local markets (negatively affected by the global economy), 2011 ended with significantly improved economic indicators compared to 2010 in terms of gross domestic investment in machinery and other equipment for the manufacturing industry (excl. ships & aircrafts). Central Bureau of Statistics data reveals that investments -both from import and domestic production- of machinery & equipment rose by over 35% from 2010 (in 2010 it rose by some 10% from 2009, after it fell by 19% from 2008). Total gross domestic investment in machinery & equipment from import alone, rose in 2011 by 52% from 2010 (12% rise in 2010 after falling in 2009 by almost 23%).

 

Consumption expenditure by households in 2011 on Housing and on Housing Equipment grew by 2.8% and by 20%, respectively, in annual calculation (grew by 2.5% and 7.5%, respectively, in 2010 from 2009).

 

In general, indicators in 2011 of the building sector –similar to the trend of the local economy- were positive, continuing the improvement from 2010 after the slow-down in 2009. Investment in the local building branch rose by 5.9% in 2010 and by 9.2% in 2011. Investment in construction for dwelling rose by 13.4% in 2011(divided into rise of 13.1% by private building and 17.8% by public building), after rising of 12.7% in 2010 and 8.3% in 2009. Investment in construction not for dwelling and other construction works (e.g. roads, offices, industrial, institutional) grew by 4.4% in 2011(after 11% rise in 2010).

 

Volume of building starts for dwelling in 2011 marked 9% increase from 2010, reaching 43,385 new apartments (after 7% rise from 2009), although in the last quarter of 2011 there was a decrease comparing to 2010, after 4 consecutive quarters of growth. The rise in building starts was thanks to the Government marketing efforts, however the upwards trend cooled down in 2011 2nd half, which generally characterized the stagnation and even retreat in the local real estate market, with a significant decrease the number of real estate transactions (number of dwellings transactions fell 17% in 2011 from 2010, after rising over the last years).

 

Housing prices over the last years kept rising due to the shortage in supply of new apartments, much due to structural fault in the allocation of plots in State hands. In view of avoiding a real estate bubble and allowing cheaper housing prices, the Israeli Government initiated recent reforms designed to drive prices down in one hand, and increase supply on the other. Indeed, since mid 2011 there has been drop in prices in many areas. However there has been uncertainty in the market: buyers have been waiting prices to fall further while contractors await prices to pick-up again. Demand fell due to the negative economic climate, and on the supply side the banks have been shutting down credits to contractors.

 

The slow-down in apartments and houses sales has its negative effects on suppliers to the housing and construction branches. On the other hand, the homes renovation branch has been in a growing trend over the last periods.

Nevertheless, there are also some positive indicators; the Contractors' Association report in February 2012 on modest growth in deals and prices in recent months.

 

 

SUMMARY

 

Good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.81

UK Pound

1

Rs.86.53

Euro

1

Rs.68.58

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.