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Report Date : |
31.10.2013 |
IDENTIFICATION DETAILS
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Name : |
METAL-TECH LTD. |
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Formerly Known As : |
METALTEK METAL TECHNOLOGY LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
31.03.1983 |
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Legal Form : |
A Private Limited Company |
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Line of Business : |
Producers, recyclers, processors and marketers of metal and specialty
metal chemicals, focusing on converting low grade metals, mining tailings and
waste into higher value metal oxides and metal powder products for the
industry. |
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No. of Employees : |
123 |
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 : |
Slow but correct |
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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) |
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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 |
Source
: CIA
METAL-TECH LTD.
Telephone 972 8 657 23 33 /2
Fax 972 8 657 23 34
Email: general@metal-tech.co.il
P.O. Box 2412, BEER SHEVA (8412315)
Ramat Hovav Industrial Zone
RAMAT HOVAV 8551600 ISRAEL
A private limited company, incorporated as per file No. 51-111639-4 on the
31.03.1986.
Originally registered under the name DAGESH BUSINESS AND PROPERTIES LTD.,
which changed to METEK METAL TECHNOLOGY LTD. on the 21.9.1989, which changed to
METALTEK METAL TECHNOLOGY LTD. on the 3.3.2000. During 2000-2001 subject
switched its name twice again, switching between the latter two names, then
finally on the 24.7.2001 changed to the present one.
In May 2005 published a prospectus offering shares to the public on the
London AIM Stock Exchange, raising a sum of Ł10.5 million (based on company
value of Ł50 million), following which converted into a public limited company.
Following a tender offer published by HILLAH CONSULTANTS in September 2012
for the shares held by the public, on the 12.10.2012 shares were delisted from
trade on AIM and later subject re-converted into a private limited company.
Authorized share capital NIS 20,000,000.00, divided into -
100,000,000 ordinary shares of NIS 0.20 each, of which 38,476,328 shares
amounting to NIS 7,695,265.60 were issued.
1. ISCAR
LTD., 51%, fully owned by BERKSHIRE HATHAWAY INC. (via a foreign company), of the
U.S.A., a public limited company, whose shares are also traded on the New York
Stock Exchange, controlled by Warren Buffett,
2. Ariel
(Aik) Rosenberg, 49% (holding directly –some 18%, and via HILLAH CONSULTANTS
LTD. of Denmark – some 31%).
In 1994 Aik Rosenberg acquired most of subject's shares from PAZ OIL LTD.
In mid 2012 ISCAR
acquired 51% of subject for reported sum of Ł 12.8 million.
1. Ariel (Aik) Rosenberg, Chairman
and General Manager,
2. Jacob Harpaz, General Manager of
ISCAR,
3. Moshe Sharon.
Producers, recyclers, processors and marketers of metal and specialty metal
chemicals, focusing on converting low grade metals, mining tailings and waste
into higher value metal oxides and metal powder products for the industry.
Subject deals with Tungsten, Molybdenum and other specialty metals,
chemicals and metal powders which are used mainly in the stainless steel,
petrochemical and cutting tools industries.
95% of sales are for export.
Operating from an owned premises (offices, plant), on an area of 20,000 sq.
meters, in the Ramat Hovav Industrial Zone, south of Beer Sheva.
Having 123 employees.
Having some 11,000
employees in ISCAR Group, of which some 2,500 employees in Israel.
In May 2005, subject completed a Ł10.5 million capital raise (approximately
US$ 18.5 million) by issuing its shares for trading on the London Stock
Exchange.
Subject is an “Approved Enterprise” and as such entitled for State support
and tax relieves. The Israeli Investment Center (IIC) approved in 1999 a US$
4 million investment plan for the expansion of subject’s plant.
As part of
subject's expansion plans to increase its recycling and production capacity in
Israel, during the first half of 2012 the IIC approved the Company’s investment
program of US$7.6 million, and subject's Directors believe will provide a grant
of 20%, with the option of an additional 12%, of the investment costs. Subject
has commenced implementing investment, though its completion depends on further
funding (which we believe has been sorted out with the entrance of ISCAR).
There are 5 charges for unlimited amounts, as well as 1 charge for the sum
of US$ 25,000,000 and 1 charge for the sum of NIS 413,000 registered on the
company's assets, in favor of the State of Israel, The First International Bank
of Israel Ltd., Mizrahi Tefahot Bank Ltd., ISCAR LTD. and BEZEQ INTL. LTD.
Consolidated B/S shows
(last obtainable):
US$
(thousands)
31.12.2011 30.06.2012
ASSETS
Current assets
Cash and cash equivalents 354 990
Restricted cash 2,564 2,449
Trade receivables 5,604 5,213
Other accounts receivable 1,297 1,190
Inventories 23,401 22,092
33,220 31,934
Non-current assets
Trade receivables 620 321
Property and equipment, net 10,173 10,329
10,793 10,650
44,013 42,584
======= =======
LIABILITIES
Current liabilities 33,106 32,769
Lon-term liabilities 1,032 1,054
Equity 9,875 8,761
44,013 42,584
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REVENUES
Consolidated
Statement of income
Year
ended 31.12
US$
(thousands)
2009 2010 2011
Revenues 36,742 45,878 52,149
Gross profit
(loss) (9,919) 407 6,893
Operating loss (18,593) (7,288) (503)
Loss before income
on taxes (20,638) (9,292) (960)
Net income (loss)
(20,473) (26,752) 4,472
======= ======= =======
The
first 6 months of 2012 sales were US$ 20,397,000 (32% decrease compared to the
parallel period of 2011), making a gross profit of US$ 2,165,000, an operating loss
of US$ 890,000 and a net loss of US$ 1,114,000.
Later
sales figures unavailable.
Subject's accountant informed us that currently subject has no
subsidiaries.
It is possible that subject's former subsidiaries below became sister
companies, following the acquisition of 51% of subject's shares by ISCAR.
METEK METAL TECH SA, 100%, Switzerland,
ELECMETAL TECH JV LIMITADA, Chile, 50%,
METAL TECH CZ, 50%, Czech Republic, inactive,
JAR LTD. 100%, Russia, inactive,
METAL-TECH RECYCLING LTD., 100%, Israel, inactive.
ISCAR LTD., parent company, developers,
manufacturers, marketers and exporters of finished hard-metal cutting tools and
systems, tungsten and titanium carbide tips, indexable cutting tools, router
bits and coated carbide. ISCAR 2012 sales were reported to be circa US$ 4,000
million.
Having many subsidiaries, mainly worldwide,
in ISCAR METALWORKING COMPANIES Group, including TUNGALOY CORPORATION, 95%, of
Japan. Among ISCAR local subsidiaries:
MICRO TOOLS LTD., metal precision parts
manufacturing,
ZURIM TOOLS LTD.,
51%, manufacturers of precision cutting tools,
SHAFIR PRODUCTION
SYSTEMS LTD., 59%, manufacturers and marketers of custom-made automatic
computerized machinery and robots for the industry.
H.B.Y.N. LTD.
BERKSHIRE
HATHAWAY, established in 1956, has current market value is US$ 289 billion.
Mizrahi Tefahot Bank Ltd., Beer Sheva Business Center Branch (No. 426),
Beer Sheva, account No. 688808 (main account).
The First
International Bank of Israel Ltd., Main Haifa Branch (No.
006), Haifa, account No. 936995.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m accounts.
Nothing unfavorable learned (please refer also to NOTE below).
Subject's accountant
refused to update financial data (it is part of ISCAR's official strict
confidential policy).
Subject is ISO 9001;
2000 and ISO 14001 certified.
In September 2005, subject became the first foreign company to establish a
hydrometallurgy plant in Mongolia, as its joint venture with the ERDENET MINING
CORPORATION.
In July 2006 subject announced that METEK METAL, its subsidiary based in
Switzerland, is expanding production into the Czech Republic with the formation
of METAL-TECH CZ (80%) for producing Tungsten and Molybdenum from the recycling
of waste and spent catalysts sourced from the oil refineries industry.
The remaining 20% will be owned by the SPOLCHEMIE, a Czech chemical
company traded on the Czech Stock Exchange.
In August 2007, a Tashkent Court issued an order for liquidation
proceedings against (former) 50% Uzbek subsidiary
UZMETAL TECHNOLOGIES (UTL), which is following a dispute with subject's local
partners (Uzbek State-owned),
which began in July 2006 and caused the halt in the plant's operations and
reach bankruptcy and liquidation.
Subject claimed
that the Republic of Uzbekistan breached
their obligations for UTL and the parties went into arbitration, and
last report is from 2012 2nd
half which the case is still in arbitration.
In 2008 the Government of Mongolia nationalized subject's 70% Mongolian
subsidiary's (SHIM TECH LTD) plant. SHIM TECH LTD was declared
bankrupt in 2011. Subject had claims and was taking steps in that regard.
In 2009 subject experienced a 76% drop in
revenues resulting from the global
economic crisis, which halted the demand of Molybdenum and dramatically
dropped its prices. Subject went through streamlining and efficiency measures.
In October 2011 subject
signed a non-binding memorandum of understanding (MoU) with TECHNOPLUS
VENTURES, where the latter will invest and provide finance for subject in
volume of US$ 5 million, in consideration of 27.5%-35% of subject's shares. In
March 2012 subject informed TECHNOPLUS that the MoU is no longer valid.
TECHNOPLUS reported it is checking with its legal advisors its stand regarding
the cease of negotiations with subject.
New parent company ISCAR, established in
1954, is a world leading manufacturer in the cutting tools field.
In July 2006, BERKSHIRE HATHAWAY, the American
investment company controlled by investment guru Warren Buffett, completed the
acquisition of 80% of ISCAR Group from its owners, Stef Wertheimer and Eitan
Wertheimer, for US$ 4 billion in cash, according to a company value of US$ 5
billion. In mid 2013 BERKSHIRE HATHAWAY realized its option to acquire the
remaining 20% held by Wertheimer Family, for US$ 2.05 billion. This most recent
transaction by Buffet proves his full faith in ISCAR.
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 fell 11% in 2012 from 2011, reaching
US$2,396 million, after rising by 12.6% in 2011 (continuing the growth trend
from 2010 when it rose by 39% from 2009).
Export of
Machinery & Equipment also marked 10% increase in 2012 (in value of
US$3,317 million), after around 8% yearly rise in both 2011 and 2010.
According to the Central
Bureau of Statistics (CBS), import of metals raw materials to
the local industries in 2012 marked a decreasing trend, after a remarkable
recovery in the years 2010 and 2011 from 2009 (a year where the local industry
suffered from slow-down in economy). Import of raw materials divided in 2012 as
follows: Iron and Steel – fell by 11.5%, reaching US$ 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.
Notwithstanding the lack of updated
financial data from subject's officials (and notice below), being an ISCAR
subsidiary, considered good for trade engagements.
NOTES:
1.
According to the Registrar of Companies subject has
a "Warning Before Registration as a Law Violating Company" Status.
Registration as a "Law Violating Company" is done due certain
violation of the subject company for not meeting the Registrar of Companies
regulations promptly, such as not paying Registrar fees, and not submitting
annual reports on time. It should be noted that this is not necessarily
connected to the company's business activities and financial standing. Although
in many cases there is a connection to the bad financial condition of the
company, we believe it is not so
in subject's case (i.e. may be a technical/administrative procedure), though we
are unable to determine that.
Once the company is declared as a "Law Violating Company", it
may lead to severe penalties against it, including penalties (could be fines up
to NIS 250,000), not allowing the company to register new charges or to make
changes in the Registrar, and more.
2. Since
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.49 |
|
|
1 |
Rs.98.71 |
|
Euro |
1 |
Rs.84.49 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
-- |
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.