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Report Date : |
07.05.2013 |
IDENTIFICATION DETAILS
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Name : |
SCOPE METALS GROUP LTD. |
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Formerly Known as: |
1.
SCOPE TRADING & FOOD MARKETING LTD 2.
SCOPE METALS TRADING AND TECHNICAL SERVICES LTD |
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Registered Office : |
P.O. Box 3 3 Hamerkava Street Re'em Industrial Zone BNEI AYISH 6086000 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
27.04.1980 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
A global distribution and industrial metal supply center, handling a
wide range of metals & engineering plastic products under one roof.
Subject & Group operate as trades, importers, exporters and marketers in
the alloys “white metal” area, including Steel & Stainless Steel, Aluminum,
Copper, Bronze, Brass, Titanium, Lead and Zinc. |
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No. of Employees : |
314 employees |
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 : |
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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
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 |
israel - ECONOMIC OVERVIEW
Israel has a
technologically advanced market economy. It depends on imports of crude oil,
grains, raw materials, and military equipment. Cut diamonds, high-technology
equipment, and agricultural products (fruits and vegetables) are 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. 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. 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.
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Source : CIA |
SCOPE METALS GROUP LTD.
Telephone 972 8 863 10 00
Fax 972 8 863 10 20
P.O. Box 3
3 Hamerkava Street
Re'em Industrial Zone
BNEI AYISH 6086000 ISRAEL
Originally incorporated as a private limited
company, registered as per file No. 51-084980-5 on the 27.04.1980.
Originally registered under the name SCOPE
TRADING & FOOD MARKETING LTD., which changed to SCOPE METALS TRADING AND
TECHNICAL SERVICES LTD. on the 05.04.1981, which changed to the present name on
the 19.08.2007.
Converted into a public limited liability
company, registered as per file No. 52-003742-5 on the 30.04.1992 and in
parallel published a prospectus, offering shares to the public, raising a sum
of US$ 2.5 million.
Authorized share capital NIS 30,000,000.00, divided into: -
30,000,000 ordinary
shares of NIS 1.00 each,
of which 10,893,871 shares amounting to NIS 10,893,871.00 were issued.
1. Shmuel Shiloh (via fully
owned company), 36%,
2. FIMSCO HOLDINGS LTD.,
30.4%, of FIMI Fund, controlled by Ishay Davidi,
3. CLAL INSURANCE
ENTERPRISES HOLDINGS LTD., 10.3%, an institutional investor,
4. MIGDAL INSURANCE, 6.9%,
an institutional investor,
5. DS APEX, 5%, an
institutional investor,
6. Shares are also traded
on the Tel Aviv Stock Exchange.
In February 2006, FIMI Investment Fund signed a deal to acquire
2,935,000 shares in subject, for a sum of NIS 157 million. The deal was
finalized in April 2006.
Shmuel Shiloh, Chairman,
Ishay Davidi, CEO of FIMI,
Matityahu (Mati) Dov,
Amiram Boehm,
Shalom Singer,
Ms. Orna Lichtenstein,
Uzi Nethanel,
Dan Sion.
Gil Haver.
A global distribution and industrial metal supply center, handling a wide
range of metals & engineering plastic products under one roof. Subject
& Group operate as trades, importers, exporters and marketers in the alloys
“white metal” area, including Steel & Stainless Steel, Aluminum, Copper,
Bronze, Brass, Titanium, Lead and Zinc.
Products include pipes, bolts & nuts, fittings, welding equipment,
nets and cables, fasteners, plates, etc., for the various industries and
construction. Having an inventory of over 80,000 different items.
Subject provides also stock storage facilities, cutting and sawing
services ("one-stop-shop" model).
Also operate in the real estate field (very low volume).
Subject has over 4,500 clients in Israel and some 40 customers abroad
(of subject),. The Group as a whole has over 8,000 active clients abroad. 45%
of Groups sales are export.
Exports are to India, Cyprus, Romania, Bulgaria, Moldova, Russia,
Greece, Kenya, Egypt, Turkey and the Ukraine. Group operates via subsidiaries
abroad (USA, Czech Republic, Poland, Romania and China).
Among clientele are: ISRAEL AEROSPACE INDUSTRIES, SIEMENS CONCENTRATED
SOLAR POWER, RAFAEL ADVANCED DEFENSE SYSTEMS, INCOMAC, GOLD BAR, M.G.T.
ISRAEL TASIYOT- MIFALEI TRIFMAN, ENERGETICA GENERAL ENGINEERING & HEAT
SYSTEMS, BERMAD, A.Z. INDUSTRIES, SHATAL ENGINEERING, SELA
ELECTRONICS SYSTEMS, ALUM ESHET (OMAN), VERED EROSIA, HATECHOF ISI YOGEV, A.B.M
PLASTIC INDUSTRIES, ELCON MAMAB CONTROL INSTRUMENTS, INCO ENGIENERING SERVICES,
AHARON YOSEF & SONS PACKAGING INDUSTRIES, K & K PLASTIC ENGINEERING,
MODOTEC, etc.
95% of purchase is import.
Among local suppliers: BETH EL ZIKHRON YAAQOV
INDUSTRIES, KIDRON TRADING & AGENCIES, etc.
Sole local agents of:
COLOMBUS STAINLESS (PTY) LTD., ALMAC STAINLESS TUBE (PTY) LTD.,
ANDREW MENTIS (PTY) LTD., all of South Africa,
ROLDAN S.A., of Spain,
STAR STAINLESS SCREW CO., of the U.S.A.,
REDAELLI TECNA SPA, of Italy.
Operating from premises, a site which includes owned area of 50,366 sq.
meters and leased area of 27,500 sq. meters (of which 43,000 sq. meters are
built), in 3 Hamerkava Street, Re'em Industrial Zone, Bnei Ayish, and from
branches in the USA, China, Romania, Poland and the Czech Republic.
Having some 598 employees serving the whole SCOPE Group, of which 314
employees in subject itself.
Current market value US$ 96.7 million.
In April 2005, subject raised NIS 40 million by issuing shares to
institutional investors.
In March 2007, subject completed a raise of NIS 150 million by issuing
bonds to institutional investors.
Subject intended to offer some 26% of its shares and raise US $100
million through the New York Stock Exchange, and already submitted draft
prospectus to the American SEC, however it decided to back-off the issuance the
public offering due to unfavorable market condition.
There are no charges registered on the company's assets.
Consolidated B/S shows:
NIS (thousands)
31.12.2011 31.12.2012
ASSETS
Current assets
Cash & cash
equivalents 151,520 167,005
Negotiable securities 7,225 7,455
Customers 281,375 319,281
Other debtors 13,749 14,195
Stock 530,512 526,141
984,381 1,034,077
Non-current assets
Fixed assets (net) 293,329 283,111
Goodwill &
intangible assets 18,355 17,276
Other non-current
assets 16,906 10,769
328,590 311,156
1,312,971 1,345,233
======== ========
LIABILITIES
Current liabilities
Short-term credit from
banks & others 171,498 191,229
Other current
liabilities 176,612 158,090
348,110 349,319
Non-current liabilities
Credit from banks &
others 299,728 347,075
Debentures 99,597 67,351
Deferred taxes 35,933 37,110
435,258 478,536
Equity 529,603
517,378
1,312,971 1,345,233
======== ========
REVENUES
Consolidated
Statements of Income
NIS
(thousands)
Year
ended December 31st
2010 2011 2012
Revenues 972,531 1,049,285 1,158,382
Gross profit 249,903 265,567 262,924
Operating income 61,036 63,473 60,199
Profits before taxes on income 28,325 24,146 31,063
Net income 17,206 1,121 20,724
======== ======== ========
ADIT INDUSTRY BUILDINGS LTD., 100%, real estate holdings,
ILERLI TIN PROCESSING LTD., 100%,
EL-ZON HOLDINGS LTD., 100%, non-active,
GILINOX S.R.L., 100%, Romania,
PRIMAPOL METAL SPOT S.R.O., 100%, Czech Republic, owns ALINOX POLSKA
Sp.z.o.o., of Poland and ALINOX UKRAINE of Ukraine.
DALIAN BEST METALS CO. LTD. (D.B.M.), 100%, China,
SCOPE METALS USA INC. (formerly SHINTU), 100%, USA, fully owns 2 U.S.
subsidiaries: MATERIALS TECHNOLOGY SOLUTIONS LLC. (M.T.S.) and HADCO METAL
TRADING LLC., which owns HADCO METAL KOREA LLC.
BANKERS
Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
Bank Hapoalim Ltd., Business Central Branch (No. 600), Tel Aviv.
Israel Discount Bank Ltd., Main Branch (No. 010), Tel Aviv.
Mizrahi Tefahot Bank Ltd., Main Business Center Branch (No. 461), Tel
Aviv.
The First International Bank of Israel Ltd., Tel Aviv Main Branch (No.
046), Tel Aviv.
Also working with: Mercantile Discount Bank Ltd., Beit Maiya Branch (No.
656), Tel Aviv, account No. 56782.
A check with the Central Banks' data base did not reveal negative
information regarding subject’s a/m account.
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 considered a local leading company in the "white
metals" sector.
Subject is ISO 9002 certified.
Founded in 1997, FIMI Fund, which invested in subject, is one of the
leading local investment funds with equity of circa US$ 1.25 billion. It is
Israel's first dedicated mezzanine and buy-out fund, managed by its founder
Ishay Davidi. It carried out so far over 50 major transactions valued at more
than US$ 800 million. Presently, the Fund has major holdings in 25 companies,
with some 15,000 employees and overall annual sales of US$ 2.6 billion. FIMI
investors list includes institutional and private investors from the United
States and Israel. The entrance of FIMI was designed to assist the Group in
promoting its sales in the international markets, where FIMI has significant
capabilities.
In 2002, subject acquired all the activities (including goodwill, stock,
machinery and equipment) of 2 sister companies FEINGOLD STEEL INDUSTRIES LTD.
and FEINGOLD STEELS (1960) LTD., for a sum of US$ 3.6 million. FEINGOLD was a
veteran and well-known Group in the steel field.
In 2004 subject acquired all stock of GLOBAL METALS, a local metal
company which went into receivership, as well as acquiring 51% of an American
metal trading company M.T.S., for a sum of US$ 500,000.
In October 2004, subject established a new subsidiary in the Czech
Republic, which in March 2005 acquired the activities of a metal trading Czech
company, for a sum of € 895,000.
In February 2006, subject completed a deal acquiring an American metal
trading firm through HADCO, a subsidiary established for this purpose in the
USA, for a sum of US$ 11 million.
In June 2006, subject acquired a 10,000 sq. meters plot in Romania, for
a sum of € 1 million and invested in warehouses an additional € 1.7 million.
In December 2006 subject reported it signed an agreement to purchase
aluminum products in volume of US$ 40-44 million from a European plant, in the
framework of subject's international expansion plans.
A significant local customer, ISRAEL AEROSPACE
INDUSTRIES, informed that as of 2008, subject will no longer be their sole
supplier for aerospace products (in the metal field).
In February 2009 HADCO acquired the activities of a distribution center
for a total sum of US$ 315,000. During Q4 2010 subject made a re organization
in
In December 2009 it was reported that subject
will install a solar system by GINERGIA on the roofs of its plant for NIS 1
million, and will further install a larger system for some NIS 20 million.
The global economic crisis took its toll from subject during 2008/9: The
decrease in the global activity caused a decrease in demands for metals and
metal’s prices fell drastically. As a result, subject wrote-off total of NIS
42.6 million for inventory value in its financial statements in 2008. Subject
took streamlining measures, which included a cut-back in its workforce in
Israel and abroad, salary cuts and stock decreasing. The measures, coupled with
the recovery in global and local markets lead to an improvement in subject’s
performance – as may be seen in the 2010, 2011 and 2012 results.
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).
Export of products of Basic Metals by the local industry rose in 2011 by
12.6% from 2010, reaching US$2,678.7 million, continuing the growth trend in
2010 when it rose by 39.2% from 2009. Export of Machinery & Equipment also
marked 8.3% increase in 2011 (in value of US$2,975.5 million), after 8% rise in
2010.
According to the Central Bureau of Statistics (CBS),
import of metals raw materials to the local industries in
2012 marked a decreasing trend, after a remarkable recovery in the years 2010
and 2011 from 2009 (a year where the local industry suffered from slow-down in
economy). Import of raw materials divided in 2012 as follows: Iron and Steel –
fell by 11.5%, reaching US$ 2,177 million (after rising by over 30% per year in
2010 and in 2011); Precious Metals – down 13% (after rising by 2% in 2011 and
22.5% in 2010) and reaching US$ 146 million; Non-ferrous Metals – fell by 13%
(after increase by 20% in 2011 and by 41% in 2010), reaching US$ 803 million.
Central Bureau of Statistics data reveals that investments by the local
manufacturing industries -both from import and domestic production- in
machinery & equipment (M&E) in 2012 fell by 1%, which comes after 41%
rise in 2011. The investments originating from import, which comprised 70% of
overall investment in M&E, fell 3.8% (after 69% rise in 2011), while
investment originating from local production – rose by 6.2% in 2012 (fell b5 3%
in 2011).
Gross Domestic Capital Formation (investment) in machinery &
other equipment in 2012 reached (in current
prices) NIS 47,540 million, of which NIS 33,336 million was from imports and
NIS 14,204 miilion from domestic production.
According to the Central Bureau of
Statistics, investments by the local industrial branch in imported
machinery and other equipment in 2012 witnessed almost 20% (in current prices)
decrease from 2011, after climbing by 108% in 2011 from 2010. The fall in 2012
in investment could be explained by the continuing unfavorable business
environment, which is also negatively affected by the slow-down in overseas
markets.
Good for trade engagements.
Note: Since the beginning of February 2013 Israel Post has started using a
new area code method of 7 digits (the old method of 5 digits is no longer
valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.95 |
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1 |
Rs.84.03 |
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Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
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Report Prepared
by : |
SDA |
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 |
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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.