MIRA INFORM REPORT

Report Date :

26.09.2012

IDENTIFICATION DETAILS

Name :	THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED

Formerly Known As :	MM&S (5148) LIMITED

Registered Office :	Waverley Mills Langholm Dumfriesshire DG13 0EB

Country :	United Kingdom

Financials (as on) :	26.02.2011

Date of Incorporation :	22.08.2006

Com. Reg. No.:	SC307281

Legal Form :	Private limited with Share Capital

Line of Business :	Holding Companies

No. of Employees :	4341

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
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 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

United Kingdom

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED KINGDOM - ECONOMIC OVERVIEW

The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. After emerging from recession in 1992, Britain's economy enjoyed the longest period of expansion on record during which time growth outpaced most of Western Europe. In 2008, however, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Sharply declining home prices, high consumer debt, and the global economic slowdown compounded Britain's economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets; these include nationalizing parts of the banking system, temporarily cutting taxes, suspending public sector borrowing rules, and moving forward public spending on capital projects. Facing burgeoning public deficits and debt levels, in 2010 the CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated a five-year austerity program, which aims to lower London's budget deficit from over 10% of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George OSBORNE announced additional austerity measures through 2017 because of slower-than-expected economic growth and the impact of the euro-zone debt crisis. The CAMERON government raised the value added tax from 17.5% to 20% in 2011. It has pledged to reduce the corporation tax rate to 23% by 2015. The Bank of England (BoE) implemented an asset purchase program of up to £325 billion (approximately $525 billion) as of February 2011. During times of economic crisis, the BoE coordinates interest rate moves with the European Central Bank, but Britain remains outside the European Economic and Monetary Union (EMU).

Source : CIA

Company name and address

Top of Form

THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED

Company Name	THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED	Company Number	SC307281

Registered Address	WAVERLEY MILLS	Trading Address	Waverley Mills Langholm Dumfriesshire DG13 0EB
	LANGHOLM
	DUMFRIESSHIRE
	DG13 0EB

Website Address	http://www.hector-russell.com
Telephone Number	01387380611	Fax Number
TPS	No	FPS	No
Incorporation Date	22/08/2006	Company Status	Active - Accounts Filed
Previous Name	MM&S (5148) LIMITED	Type	Private limited with Share Capital
Date of Change	07/11/2006	Filing Date of Accounts	29/11/2011
		Share Capital	£53,593
SIC03	7415	Currency	GBP
SIC03 Description	HOLDING COMPANIES
SIC07	70100
SIC07 Description	ACTIVITIES OF HEAD OFFICES
Principal Activity	A group engaged in the retail of ladies and gents wear and gifts and home textile products.

Commentary

No exact match CCJs are recorded against the company.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_up.gif$
Sales in the latest trading period increased 1.4% on the previous trading period.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_up.gif$
Net Worth increased by 230.5% during the latest trading period.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_up.gif$
A 5.1% growth in Total Assets occurred during the latest trading period.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_up.gif$
Pre-tax profits decreased by 25.1% compared to the previous trading period.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_down.gif$
The company saw an increase in their Cash Balance of 86.9% during the latest trading period.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_up.gif$
The audit report contains no adverse comments.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_up.gif$
The company has undergone recent changes in its directorships.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_nochange.gif$
The company is part of a group.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_nochange.gif$
The company has changed its year end on multiple occasions.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_nochange.gif$
The company was established over 6 years ago.	$Z:\THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED_files\arrow_nochange.gif$

Key Financials

Year to Date	Turnover	Pre Tax Profit	Shareholder Funds	Employees
26/02/2011	£195,815,000	£12,494,000	£92,997,000	4341
27/02/2010	£193,085,000	£16,678,000	£85,859,000	4156
28/02/2009	£169,973,000	£11,110,000	£77,692,000	3690

Payment Information Summary

Days Beyond Terms

Trend Indicator

2	10
Company DBT	UK Average DBT

Steady

Improving Worsening

CCJ

Total Number of Exact CCJs -	0	Total Value of Exact CCJs -
Total Number of Possible CCJs -	0	Total Value of Possible CCJs -
Total Number of Satisfied CCJs -	0	Total Value of Satisfied CCJs -
Total Number of Writs -	-

Exact CCJ Details

There are no exact CCJ details

Possible CCJ Details

There are no possible CCJ details

Writ Details

There are no writ details

Mortgage Summary

Outstanding	2
Satisfied	1

Total Current Directors	5
Total Current Secretaries	1
Total Previous Directors / Company Secretaries	5

Current Directors

Name	John Anthony Herring	Date of Birth	23/11/1957
Officers Title	Mr	Nationality	British
Present Appointments	15	Function	Director
Appointment Date	31/10/2006
Address	Borough Farm, , Godalming, GU8 5JY

Name	Kristian Brian Lee	Date of Birth	13/05/1974
Officers Title	Mr	Nationality	British
Present Appointments	63	Function	Director
Appointment Date	04/01/2012
Address	The Edinburgh Woollen Mill Ltd, Waverley Mills, Langholm, DG13 0EB

Name	Philip Edward Day	Date of Birth	25/10/1965
Officers Title	Mr	Nationality	British
Present Appointments	28	Function	Director
Appointment Date	12/10/2006
Address	Hayton Hall, Edmund Castle Estate, Corby Hill, Carlisle, CA4 8QD

Name	David Oliver Houston	Date of Birth	29/04/1953
Officers Title	Mr	Nationality	British
Present Appointments	69	Function	Director
Appointment Date	01/03/2012
Address	Ewm Waverley Mills, , Langholm, DG13 0EB

Name	Carmel Leigh	Date of Birth	14/10/1962
Officers Title	Mrs	Nationality	British
Present Appointments	6	Function	Director
Appointment Date	11/06/2009
Address	Cavendish Mount, Stanwix, Carlisle, CA3 9ND

Current Company Secretary

Name	June Carruthers	Date of Birth	21/06/1964
Officers Title	Ms	Nationality	British
Present Appointments	134	Function	Company Secretary
Appointment Date	26/10/2006
Address	Burnside House Maxwell Place, , Langholm, DG13 0DY

Top 20 Shareholders

Name	Individual Share Value
IFG MANAGEMENT	50,000 CUMULATIVE REDEEMABLE PREFERENCE GBP 1.00
PHILIP DAY	3,440 ORDINARY GBP 1.00
EWM (EBT) TRUSTEES LTD	153 ORDINARY GBP 1.00

Financials

Profit & Loss

Date Of Accounts	26/02/11	(%)	27/02/10	(%)	28/02/09	(%)	01/03/08	(%)	24/02/07
Weeks	52	(%)	52	(%)	52	(%)	53	(%)	27
Currency	GBP	(%)	GBP	(%)	GBP	(%)	GBP	(%)	GBP
Consolidated A/cs	Y	(%)	Y	(%)	Y	(%)	Y	(%)	Y
Turnover	£195,815,000	1.4%	£193,085,000	13.6%	£169,973,000	11.9%	£151,894,000	196.9%	£51,165,000
Export	-	-	-	-	-	-	-	-	-
Cost of Sales	£165,711,000	4.5%	£158,574,000	12.2%	£141,293,000	12.5%	£125,558,000	198.7%	£42,033,000
Gross Profit	£30,104,000	-12.8%	£34,511,000	20.3%	£28,680,000	8.9%	£26,336,000	188.4%	£9,132,000
Wages & Salaries	£47,312,000	8.8%	£43,499,000	19.7%	£36,338,000	-2.5%	£37,279,000	209.2%	£12,056,000
Directors Emoluments	£5,665,000	78.7%	£3,170,000	39.3%	£2,275,000	-9.6%	£2,516,000	273.8%	£673,000
Operating Profit	£13,730,000	-24%	£18,055,000	35.2%	£13,357,000	14.7%	£11,642,000	166.9%	£4,362,000
Depreciation	£2,708,000	4.3%	£2,597,000	-7.2%	£2,797,000	3%	£2,716,000	203.8%	£894,000
Audit Fees	£8,000	-33.3%	£12,000	33.3%	£9,000	-	£9,000	-66.7%	£27,000
Interest Payments	£2,811,000	6.1%	£2,650,000	-27%	£3,629,000	2.2%	£3,552,000	340.7%	£806,000
Pre Tax Profit	£12,494,000	-25.1%	£16,678,000	50.1%	£11,110,000	54.8%	£7,175,000	95.9%	£3,663,000
Taxation	-£5,626,000	16.9%	-£6,768,000	-43.7%	-£4,711,000	-15.4%	-£4,083,000	-163.4%	-£1,550,000
Profit After Tax	£6,868,000	-30.7%	£9,910,000	54.9%	£6,399,000	107%	£3,092,000	46.3%	£2,113,000
Dividends Payable	-	-	-	-	-	-	-	-	-
Retained Profit	£6,868,000	-30.7%	£9,910,000	54.9%	£6,399,000	107%	£3,092,000	46.3%	£2,113,000

Balance Sheet

Date Of Accounts	26/02/11	(%)	27/02/10	(%)	28/02/09	(%)	01/03/08	(%)	24/02/07
Tangible Assets	£19,522,000	0%	£19,514,000	7.8%	£18,094,000	0.4%	£18,016,000	2.2%	£17,623,000
Intangible Assets	£85,812,000	-6.1%	£91,365,000	-5.7%	£96,881,000	-5.2%	£102,183,000	-4.4%	£106,864,000
Total Fixed Assets	£105,334,000	-5%	£110,879,000	-3.6%	£114,975,000	-4.3%	£120,199,000	-3.4%	£124,487,000
Stock	£28,759,000	12%	£25,667,000	18.1%	£21,740,000	11.5%	£19,506,000	-7.9%	£21,188,000
Trade Debtors	£762,000	-5.5%	£806,000	66.2%	£485,000	32.2%	£367,000	-36.3%	£576,000
Cash	£20,436,000	86.9%	£10,933,000	120.5%	£4,958,000	177.3%	£1,788,000	-9%	£1,964,000
Other Debtors	£4,260,000	20.9%	£3,524,000	-19.4%	£4,373,000	-32.6%	£6,490,000	33.3%	£4,870,000
Miscellaneous Current Assets	0	-	0	-	0	-	0	-	0
Total Current Assets	£54,217,000	32.5%	£40,930,000	29.7%	£31,556,000	12.1%	£28,151,000	-1.6%	£28,598,000
Trade Creditors	£11,592,000	45.8%	£7,950,000	-17.8%	£9,666,000	80.5%	£5,355,000	32.3%	£4,047,000
Bank Loans & Overdrafts	0	-	0	-	0	-100%	£7,207,000	33.9%	£5,384,000
Other Short Term Finance	£30,546,000	453.8%	£5,516,000	515.6%	£896,000	-12.8%	£1,027,000	47.1%	£698,000
Miscellaneous Current Liabilities	£20,566,000	13.1%	£18,190,000	-5.2%	£19,194,000	11.4%	£17,237,000	-3.7%	£17,901,000
Total Current Liabilities	£62,704,000	98.1%	£31,656,000	6.4%	£29,756,000	-3.5%	£30,826,000	10%	£28,030,000
Bank Loans & Overdrafts and LTL	£3,850,000	-88.8%	£34,294,000	-12.3%	£39,083,000	18.1%	£33,083,000	-20.6%	£41,678,000
Other Long Term Finance	£1,119,000	-96.4%	£30,837,000	-14.8%	£36,183,000	60.3%	£22,572,000	-31.5%	£32,946,000
Total Long Term Liabilities	£3,850,000	-88.8%	£34,294,000	-12.3%	£39,083,000	51%	£25,876,000	-28.7%	£36,294,000

Capital & Reserves

Date Of Accounts	26/02/11	(%)	27/02/10	(%)	28/02/09	(%)	01/03/08	(%)	24/02/07
Called Up Share Capital	£4,000	-	£4,000	-	£4,000	-42.9%	£7,000	-	£7,000
P & L Account Reserve	£27,304,000	35.4%	£20,166,000	68.1%	£11,999,000	101.3%	£5,962,000	97.6%	£3,017,000
Revaluation Reserve	-	-	-	-	-	-	-	-	-
Sundry Reserves	£65,689,000	-	£65,689,000	-	£65,689,000	-23.3%	£85,679,000	-0.1%	£85,737,000
Shareholder Funds	£92,997,000	8.3%	£85,859,000	10.5%	£77,692,000	-15.2%	£91,648,000	3.3%	£88,761,000

Other Financial Items

Date Of Accounts	26/02/11	(%)	27/02/10	(%)	28/02/09	(%)	01/03/08	(%)	24/02/07
Net Worth	£7,185,000	230.5%	-£5,506,000	71.3%	-£19,189,000	-82.1%	-£10,535,000	41.8%	-£18,103,000
Working Capital	-£8,487,000	-191.5%	£9,274,000	415.2%	£1,800,000	167.3%	-£2,675,000	-571%	£568,000
Total Assets	£159,551,000	5.1%	£151,809,000	3.6%	£146,531,000	-1.2%	£148,350,000	-3.1%	£153,085,000
Total Liabilities	£66,554,000	0.9%	£65,950,000	-4.2%	£68,839,000	21.4%	£56,702,000	-11.8%	£64,324,000
Net Assets	£92,997,000	8.3%	£85,859,000	10.5%	£77,692,000	-15.2%	£91,648,000	3.3%	£88,761,000

Cash Flow

Date Of Accounts	26/02/11	(%)	27/02/10	(%)	28/02/09	(%)	01/03/08	(%)	24/02/07
Net Cashflow from Operations	£23,681,000	38.2%	£17,135,000	-34.4%	£26,103,000	41.9%	£18,396,000	81.9%	£10,116,000
Net Cashflow before Financing	£14,349,000	111.7%	£6,777,000	-59.4%	£16,682,000	76.4%	£9,455,000	191.9%	-£10,286,000
Net Cashflow from Financing	-£4,846,000	-504.2%	-£802,000	87.3%	-£6,305,000	45%	-£11,454,000	-266.8%	£6,866,000
Increase in Cash	£9,503,000	59%	£5,975,000	-42.4%	£10,377,000	619.1%	-£1,999,000	41.5%	-£3,420,000

Miscellaneous

Date Of Accounts	26/02/11	(%)	27/02/10	(%)	28/02/09	(%)	01/03/08	(%)	24/02/07
Contingent Liability	YES	-	YES	-	YES	-	YES	-	YES
Capital Employed	£96,847,000	-19.4%	£120,153,000	2.9%	£116,775,000	-0.6%	£117,524,000	-6%	£125,055,000
Number of Employees	4341	4.5%	4156	12.6%	3690	3.2%	3574	0.3%	3564
Auditors	KPMG LLP
Auditor Comments	The audit report contains no adverse comments
Bankers	BARCLAYS BANK PLC
Bank Branch Code	20-48-46

Ratios

Date Of Accounts	26/02/11	27/02/10	28/02/09	01/03/08	24/02/07
Pre-tax profit margin %	6.38	8.64	6.54	4.72	7.16
Current ratio	0.86	1.29	1.06	0.91	1.02
Sales/Net Working Capital	-23.07	20.82	94.43	-56.78	90.08
Gearing %	4.10	39.90	50.30	36.10	47
Equity in %	126.10	142	156.50	198.50	192
Creditor Days	21.54	14.98	20.69	13.07	14.95
Debtor Days	1.41	1.51	1.03	0.89	2.13
Liquidity/Acid Test	0.40	0.48	0.32	0.28	0.26
Return On Capital Employed %	12.90	13.88	9.51	6.10	2.93
Return On Total Assets Employed %	7.83	10.98	7.58	4.83	2.39
Current Debt Ratio	0.67	0.36	0.38	0.33	0.31
Total Debt Ratio	0.71	0.76	0.88	0.61	0.72
Stock Turnover Ratio %	14.68	13.29	12.79	12.84	41.41
Return on Net Assets Employed %	13.43	19.42	14.30	7.82	4.13

Status History

No Status History found

*Event History

Date	Description
07/09/2012	Annual Returns
22/03/2012	New Board Member Mr D.O. Houston appointed
13/03/2012	New Board Member Mr D.O. Houston appointed
23/02/2012	Mr D.O. Houston has left the board
24/01/2012	New Board Member Mr K.B. Lee appointed
06/12/2011	New Accounts Filed
01/09/2011	Annual Returns
24/06/2011	Annual Returns
11/06/2011	Annual Returns
27/11/2010	New Accounts Filed
27/11/2010	New Accounts Filed
17/09/2010	Annual Returns
23/08/2010	New Board Member Mr J.A. Herring appointed
07/07/2010	Mr A. Whitaker has left the board
05/01/2010	New Accounts Filed

Previous Company Names

Date	Previous Name
07/11/2006	MM&S (5148) LIMITED

Statistics

Group	61 companies
Linkages	0 companies
Countries	In 0 countries

Summary

Holding Company	THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED
Ownership Status	Ultimately Owned
Ultimate Holding Company	THE EDINBURGH WOOLLEN MILL (GROUP) LIMITED

Bottom of Form

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.53
UK Pound	1	Rs.86.82
Euro	1	Rs.69.03

INFORMATION DETAILS

Report Prepared by :

PRL

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.