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Report Date : |
09.08.2013 |
IDENTIFICATION DETAILS
|
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 (6124101) 57 Pinhas Rosen Street Hadar Yossef Tel Aviv
6951279 |
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Country : |
Israel |
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|
|
Financials (as on) : |
31.03.2013 |
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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 men’s, women’s and children wearing apparel, footwear |
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No. of Employees : |
1,800 |
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 |
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Status : |
Satisfactory |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. The global financial crisis of 2008-09 spurred a brief recession in
Israel, but the country entered the crisis with solid fundamentals - following
years of prudent fiscal policy and a resilient banking sector. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel''s energy security
outlook. The Leviathan field was one of the world''s largest offshore natural
gas finds this past decade, and production from the Tama field is expected to
meet all of Israel''s natural gas demand beginning mid-2013. In mid-2011,
public protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
Source
: CIA
GOLF & CO LTD.
Correct Name: GOLF AND
CO. GROUP LTD.
(Trading as: "GOLF & CO")
Telephone 972 3 645 15 15
Fax 972 3 647 61 04; 645 74 06
P.O.
Box 24138 (6124101)
57
Pinhas Rosen Street
Hadar
Yossef
TEL AVIV 6951279
ISRAEL
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).
Authorized share capital NIS 470,000.00, divided into -
47,000,000 ordinary
shares of NIS 0.01 each,
of which 40,299,990 shares amounting to NIS 402,999.90 were issued.
1. CLAL INDUSTRIES LTD., 62%, a public limited company traded on the Tel
Aviv Stock Exchange (TASE) controlled (49.9%) by AL EUROPEAN HOLDINGS S.A R.L
(part of the ACCESS INDUSTRIES Group), controlled by Len Blavatnik,
2. Institutional investors (pension and trustee funds): HAREL
INSURANCE (7.2%), PHOENIX (5.3%) and EXCELLENCE (2.5%),
3. Shares are also traded on the Tel Aviv Stock Exchange (TASE).
In July 2012, I.D.B.
HOLDING CORP. LTD. (part of I.D.B.
Group, controlled by Nochi Dankner
(mainly), which held 60.5% of CLAL INDUSTRIES (hereafter CI), completed the
sale of 49.9% of CI to Leonard (Len) Blavatnik, for NIS 1.27
billion (see more in CHARACTER). In March 2013 I.D.B. sold its remaining
holdings (some 11%) in Cl.
1. Avi Fischer, Chairman,
2. Daniel Shinar,
3. Ms. Sigalia Heifetz,
4. Basil Gamsu,
5. Ms. Ruth Ralbag,
6. Ms. Iris Beck Codner,
7. Johanan Locker.
Mrs. Ilana Kaufman.
Importers, marketers and retailers of:
1. Fashion:
men’s, women’s and children wearing apparel, footwear – 50.5% of sales in 2012
(56% in 2011).
2. “Home
Fashion”: home textile products, home toiletries and spa, household products – 49.5%
of sales (44% in 2011).
Subject is managing and operating 283 retail stores chain as follows:
Apparel Fashion: 190 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: 58 retail stores, chain brand "Golf & Co." as
well as a retail Kids Fashion chain brand "Golf Kids and Baby", with
35 stores + additional 50 points of sale in Golf & Co stores.
Subject has an active client club with over 283,000 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.
LA PERLA, of Italy
Having 656 suppliers, 78% of which are foreign (63.1% of purchase from
China).
Among local suppliers: KITAN INDUSTRIES, OFFIS TEXTILE, JACQUES COBE,
TRIUMPH, ENDER TEX, SVAV OR, YANIT LINGERIE, etc.
Operating from:
* 57 Pinhas Rosen Street, Tel Aviv, rented (from affiliated company)
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 1,400
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 1,800 employees (had 1,759 employees as of 31.12.2011), including
part-timers.
B/S shows:
NIS
(thousands)
31.12.2012 31.03.2013
ASSETS
Current assets
Cash and cash equivalents 43,581 52,956
Negotiable securities 76,650 85,187
Customers 91,985 100,762
Other receivables 3,640 5,151
Other assets 10,865 14,728
Stock 133,648 129,232
360,369 388,016
Non-current assets
Fixed assets, net 47,351 46,688
Goodwill 6,000 6,000
Other non-current assets 16,848 16,969
70,199 69,657
430,568 457,673
======= =======
LIABILITIES
Current
liabilities 117,378 130,415
Non-current liabilities 1,683 1,919
Equity 311,507 325,339
430,568 457,673
======= =======
Current market value US$ 138.4 million.
In December 2006 subject completed a private placement,
issuing shares and options to institutional bodies, raising NIS 38 million.
There is 1 charges for an unlimited amount registered on the company's
assets (products), in favor of YANIT LINGERIE (charge placed June 2013).
Statement
of Income
NIS
(thousands)
Year
ended 31.12
2010 2011 2012
Revenues 657,153 694,260 693,425
Gross profit 397,005 416,631 409,222
Operating income 99,490 81,126 62,023
Profit before taxes on income 105,144 84,372 64,834
Net income 77,923 65,422 48,028
======= ======= =======
Consolidated first 3 months of 2013 sales NIS
175,091,000 (13.3% increase compared to the parallel period of 2012), making a
gross profit of NIS 104,325,000, an
operating income of NIS 19,832,000, and a net income of
NIS 13,335,000.
CLAL INDUSTRIES LTD., a holdings and investment company, with many
holdings in various fields in the local industry and trade: textile, cement,
hi-tech and electronics, bio-technology, communications, real estate and other
industries. Current market value US$ 681.3 million.
Other CLAL’s holding in the textile field:
KITAN TEXTILE
INDUSTRIES LTD., 100%, importers, manufacturers (in the Far East), marketers
and exporters of home textile products, e.g. bed linen, towels, bath robes,
etc. Also importers and marketers of household products, operating retail
chain of 27 stores, under the name 'Kitan', for its manufactured and imported
goods.
ACCESS INDUSTRIES, an international industrial group, with long-term
strategic holdings in Europe, North and South America, in industries such as
oil, coal, aluminum, petrochemicals and plastics, telecommunications, media,
and real estate.
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.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject is among the leading fashion chain stores in Israel.
Len Blavatnik is a Russian-American tycoon, who via ACCESS INDUSTRIES
has many holdings in various industries (as well as via other companies).
According to Forbes' The World's Billionaire's List of 2011, Blavatnik was
listed in 80th place with an estimated fortune of US$10.1 billion.
CLAL INDUSTRIES is a veteran concern, with
holdings in other local industries, leading in their fields, including cement
(NESHER), bio-technology and healthcare (CLAL BIOTECHNOLOGIES), transportation
& logistics (TAAVURA, MAMAN), beverages, shipbuilding, textile &
fashion, energy and hi-tech.
Subject and CLAL INDUSTRIES were until 2012 part
of the local
large IDB Group. IDB has been facing
liquidity problems due to high leverage carried from past years, and in view of
the current slow-down in economy it became heavily indebted, obliged in going through corporate structural
changes. In July 2012, IDB completed the sale of 49.9% of its holdings in CLAL INDUSTRIES
LTD to Len Blavatnik's ACCESS INDUSTRIES
for NIS 1.27 billion. IDB sold its remaining shares in March 2013.
Some 90% of subject's revenues are from products designed by subject's
designers.
During 2007, subject opened several new shops of its new sub retail chain
"Max Moretti" for quality shoes and bags, as well as further fashion
stores, all located in shopping malls. In addition, it opened around 10 new
home textile and kids apparel shops. In March 2008 it was reported that subject
opened 10 new "Max Moretti" shops, with investment of US$ 500,000.
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).
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.
As part of cost saving, subject shifted the store opening from malls to
locations on main streets, as well as opening shops in the periphery (where
rent fees are significantly lower)
According to reports from the end of 2012,
total revenues of the local fashion market are NIS 11 billion per annum. 40% of
sales are in the large fashion chains, 34% in other smaller chains, and the
rest in private shops.
According
to the fashion market survey, which monitors sales by the local fashion chains,
2012 marked almost a freeze in revenues, with mere 0.7% increase from 2011. The
data reveals that in 2012 41 fashion chains (out of 72 chains with total of
over 1,600 shops) noted decrease in sales of aparel and footwear.
Based on 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.
According to the Central Bureau of Statistics (CBS), import of Clothing
and Footwear in 2012 rose by 5.1% (in $ terms, marked 13.3% in NIS currency
terms), summing up to US$ 1,759 million. That data shows on the continuing
growing trend from the last couple of years – by 19% and by 13.4% in 2011 and
2010, respectively, in comparison to the previous year. 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 (CBS), import of fabrics and yarns in 2012 fell by
6.5% from 2011, reaching US$ 663 million. This comes after couple of years
which saw a rise in import – by 17% in 2010 and
by 2.1% in 2011 comparing to the previous year, parallel to the recovery
in general in the local economy after the slowdown in economy in 2009.
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 has been significantly influenced by the entrance of new international
fashion players to the already highly competitive local market (GAP, H&M in
2009/2010, Forever 21 in 2011).
Sources in the local fashion branch noted that in the last period the branch
re-entered
slow-down and stagnation, resulting in drop in revenues. There have been also
few collapses of veteran and big players in some niches, such as children's
apparel. The is explained by several
factors, including the present slow-down in local economy, and the fierce
competition where the entrance of the strong international chains are dragging
prices down but do not bring to expansion of the fashion market.
From the CBS National Accounts for 2012, it turns
that expenditure by local households on private consumption grew by 2.7% from
2011, after rising by 3.8% in 2011. Expenditure on
clothing, footwear and personal effects rose by 7.2% (after 2.4% rise in
2011).
Per-capita expenditure increased by 0.9% (1.9%
rise in 2011).
Per capita expenditure for private consumption on non-durable goods
rose in 2012 by 1.4% per-capita (1.3% rise in 2011). This rise reflects
increases by 1.3% in expenditure on food,
beverage and tobacco and 4.5% expenditure
on clothing, footwear and personal effects.
According
to CBS,
import of consumer goods in 2012 marked a 1.9% increase continuing the rise of
9.8% in 2011. Most of the rise was in durable goods (by 9.6%), which comprising
some 40% of the import volume, while import in durable goods decrease by 7.3%
from 2011.
Import of
Household Utensils in 2012 rose merely by 2% from 2011, summing up to NIS 2,484
million (although in $ terms import fell by 6%). In 2011 import rose by around
3% from 2010.
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).
Good for trade
engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
|
1 |
Rs.94.77 |
|
Euro |
1 |
Rs.81.54 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.