MIRA INFORM REPORT

 

 

Report Date :

19.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SALEM TUBE INTERNATIONAL LTD.

 

 

Registered Office :

Low Prudhoe Industrial Estate Prudhoe, NE42 6PX

 

 

Country :

United Kingdom

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

20.01.1993

 

 

Com. Reg. No.:

02781763

 

 

Legal Form :

Private Parent

 

 

Line of Business :

Manufacture and supply of heat exchanger and pressure tubes.

 

 

No. of Employees :

28

 

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 :

Satisfactory

Payment Behaviour :

Slow but correct

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)

United Kingdom

A1

A1

 

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 second largest economy in Europe after Germany. 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 aimed 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 21% by 2014. The Bank of England (BoE) implemented an asset purchase program of up to £375 billion (approximately $605 billion) as of December 2012. 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). In 2012, weak consumer spending and subdued business investment weighed on the economy. GDP fell 0.1%, and the budget deficit remained stubbornly high at 7.7% of GDP. Public debt continued to increase

Source : CIA

Company name and addressTop of Form

 

Salem Tube International Ltd.

 

 

 

Regents Drive

Low Prudhoe Industrial Estate

 

Prudhoe, NE42 6PX

United Kingdom

 

 

 

Tel:

01661839240

Fax:

01661839248

 

Employees:

28

Company Type:

Private Parent

Corporate Family:

2 Companies

 

 

Quoted Status:

Non-quoted Company

Incorporation Date:

20-Jan-1993

Auditor:

Manor Close Ltd.

 

 

Fiscal Year End:

30-Sep-2012

Reporting Currency:

British Pound Sterling

Annual Sales:

18.4  1

Net Income:

1.3

Total Assets:

16.3

 

 

Business Description   

 

 

Salem Tube International Ltd. provides services for the manufacture and supply of heat exchanger and pressure tubes. The company manufactures various other products that include finned tubes, tube end projectors and U-tubes. It supplies a range of heart exchanger tubes in carbon, nickel alloys, copper, titanium, and low alloy and stainless steels. In addition, the company operates various U-bending and low-fining facilities to provide heat treatment and hydro testing services. It supplies various customised pressure-tested and stress-relieved U-tubes to its clients.

          

 

 Key Executives  

   

 

Name

Title

Paul Callaghan

Sales Director

Peter John Coles

Secretary

Howard Ions

Director

 

  

 

Financial Summary

    

 

FYE: 30-Sep-2012

USD (mil)

Key Figures

 

Current Assets

10.42

Fixed Assets

5.91

Total Liabilities

6.33

Net Worth

5.30

 

Key Ratios

 

Current Ratio

1.65

Acid Test

0.98

Debt Gearing

51.55

 

 

 

Registered No.(UK)  02781763

1 - Profit & Loss Item Exchange Rate: USD 1 = GBP 0.6347627 


2 - Balance Sheet Item Exchange Rate: USD 1 = GBP 0.616433

 

 

Corporate Overview

 

Location
Regents Drive
Low Prudhoe Industrial Estate
Prudhoe, NE42 6PX
Northumberland County 
United Kingdom

 

Tel:

01661839240

Fax:

01661839248

 

www.salemtube.net

Sales GBP(mil):

11.7

Assets GBP(mil):

10.1

Employees:

28

Fiscal Year End:

30-Sep-2012

 

Industry:

Miscellaneous Fabricated Products

Registered Address:
114-116 High Street
Gosforth
Newcastle Upon Tyne, NE3 1HB
United Kingdom

 

Incorporation Date:

20-Jan-1993

Company Type:

Private Parent

Quoted Status:

Not Quoted

Registered No.(UK):

02781763

 

Director:

Howard Ions

 

Industry Codes

 

ANZSIC 2006 Codes:

2599

-

Other Manufacturing Not Elsewhere Classified

 

ISIC Rev 4 Codes:

3290

-

Other manufacturing n.e.c.

 

NACE Rev 2 Codes:

3299

-

Other manufacturing n.e.c.

 

NAICS 2012 Codes:

33999

-

All Other Miscellaneous Manufacturing

 

US SIC 1987:

3999

-

Manufacturing Industries, Not Elsewhere Classified

 

UK SIC 2007:

3299

-

Other manufacturing n.e.c.

Description: E:\web\images\arrows\externalright.gif

Business Description

Salem Tube International Ltd. provides services for the manufacture and supply of heat exchanger and pressure tubes. The company manufactures various other products that include finned tubes, tube end projectors and U-tubes. It supplies a range of heart exchanger tubes in carbon, nickel alloys, copper, titanium, and low alloy and stainless steels. In addition, the company operates various U-bending and low-fining facilities to provide heat treatment and hydro testing services. It supplies various customised pressure-tested and stress-relieved U-tubes to its clients.

 

More Business Descriptions

Salem Tube International Ltd. provides services for the manufacture and supply of heat exchanger and pressure tubes. The company manufactures various other products that include finned tubes, tube end projectors and U-tubes. It supplies a range of heart exchanger tubes in carbon, nickel alloys, copper, titanium, and low alloy and stainless steels. In addition, the company operates various U-bending and low-finishing facilities to provide heat treatment and hydro testing services. It supplies various customised pressure-tested and stress-relieved U-tubes to its clients. (Updated by OneSource Information Services)

 

Steel works, blast furnaces

 

Tube Benders

 

 

 

 

 

 

Financial Data

Financials in:

GBP(mil)

 

Revenue:

11.7

Net Income:

0.8

Assets:

10.1

Current Assets:

6.4

 

Fixed Assets:

3.6

 

Long Term Debt:

2.1

 

Total Liabilities:

6.0

 

Issued Capital:

0.0

 

Working Capital:

2.5

 

Net Worth:

3.3

 

 

 

Date of Financial Data:

30-Sep-2012

 

1 Year Growth

35.6%

NA

NA

 

 

Key Corporate Relationships

 

Auditor:

Manor Close Ltd.

Bank:

Barclays Bank PLC

 

Auditor:

Manor Close Ltd.

 

Auditor History

Manor Close Ltd.

30-Sep-2012

Manor Close Ltd.

30-Sep-2011

Manor Close Ltd.

30-Sep-2010

Manor Close Ltd.

30-Sep-2009

Manor Close Ltd.

30-Sep-2008

 

 

 

GBP(mil)

Audit Fees:

0.0

Non Audit Fees:

0.0

Audit Fiscal Year:

09-30-2012

 

 

 

Description: E:\web\images\arrows\externalright.gif 

 

 

Corporate Family

 

 

 

 

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

Salem Tube International Ltd.

Parent

Prudhoe

United Kingdom

Miscellaneous Manufacturing

18.4

28

Salem Tube Bending Ltd.

Subsidiary

Newcastle Upon Tyne

United Kingdom

Metal Products Manufacturing

 

 

 

 

 

Executive director

 

 

 

 

Board of Directors

 

Name

Title

Function

 

Howard Ions

 

Director

Director/Board Member

 

Age: 57

 

 

Executives

 

Name

Title

Function

 

Peter John Coles

 

Secretary

Company Secretary

 

Age: 60

 

Paul Callaghan

 

Sales Director

Sales Executive

 

 

 

Directors and Shareholders Report

 

Main Office Address:
Regents Drive
Low Prudhoe Industrial Estate
Prudhoe
United Kingdom NE42 6PX

Tel: 01661839240
Fax: 01661839248
URL:http://www.salemtube.net

Annual Return Date: 20 Jan 2013

 

Individual Directors

Name

Status

DOB

Filed Address

Appointment Date

Resignation Date

Summary of Directorships

 

Howard 
Ions

Current

13 Sep 1956

Forge Cottage, Newton Hall, 
Stocksfield, Northumberland NE43 7TW

04 Feb 1993

NA

Current:2
Previous:2
Disqualifications:0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Directors

There are no corporate directors for this company.

 

 

Individual Secretaries

Name

Status

DOB

Filed Address

Appointment Date

Resignation Date

Summary of Directorships

 

Peter John 
Coles

Current

14 Jul 1953

55 Amberley Gardens, 
Newcastle Upon Tyne, Tyne And Wear NE7 7JR

13 Apr 1993

NA

Current:2
Previous:0
Disqualifications:0

 

Howard 
Ions

Previous

13 Sep 1956

Forge Cottage, Newton Hall, 
Stocksfield, Northumberland NE43 7TW

NA

13 Apr 1993

Current:2
Previous:2
Disqualifications:0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Secretaries

There are no corporate secretaries for this company.

 

 

Individual Shareholders

Name

Share Details 
(As Reported)

Share Type

# of Shares

Share Price (GBP)

Share Value (GBP)

% of Total Shares

Howard D Ions

2 Ordinary GBP 1.00

Ordinary

2

1.00

2.00

100.00

 

 

 

 

 

 

 

 

Corporate Shareholders

There are no corporate shareholders for this company.

 

 

Annual profit and loss  

Financials in: USD (mil)

 

 

 

 

 

 

30-Sep-2012

30-Sep-2011

30-Sep-2010

30-Sep-2009

30-Sep-2008

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

Filed Currency

GBP

GBP

GBP

GBP

GBP

Exchange Rate (Period Average)

0.634763

0.622972

0.64255

0.647882

0.507879

Consolidated

Yes

Yes

Yes

No

No

 

 

 

 

 

 

Turnover (UK)

18.4

13.8

13.7

-

-

Turnover (Exports)

0.0

0.0

0.0

-

-

Total Turnover

18.4

13.8

13.7

-

2.9

Cost of Sales

14.8

11.2

10.9

-

-

Total Expenses

-

-

-

-

2.9

Gross Profit

3.6

2.6

2.8

-

-

Depreciation

0.2

0.2

0.2

0.2

0.1

Other Expenses

1.9

2.0

1.4

-

-

Operating Profit

1.7

-

-

-

0.1

Other Income

0.0

0.0

0.1

-

0.2

Interest Paid

0.0

0.8

0.4

-

0.1

Exceptional Income

0.0

0.4

0.0

-

0.0

Discontinued Operations

0.0

0.0

0.0

-

0.0

Profit Before Taxes

1.7

0.2

1.0

-

0.2

Tax Payable / Credit

0.2

0.2

0.2

-

0.0

Extraordinary Items/Debits

0.0

0.0

0.0

-

0.0

Dividends

0.1

0.1

0.3

-

0.1

Profit After Taxes

1.3

-0.2

0.4

-

0.0

Minority Interests (Profit & Loss)

-0.2

-0.1

-0.2

-

0.0

Audit Fees

0.0

0.0

0.0

-

0.0

Non Audit Fees

0.0

0.0

0.0

-

-

Number of Employees

28

25

4

-

2

Wages

1.3

1.0

0.8

-

1.2

Social Security Costs

0.1

0.1

0.1

-

0.0

Pensions

0.1

-

-

-

0.9

Other Pension Costs

0.1

0.3

0.0

-

0.9

Employees Remuneration

1.5

1.4

0.9

-

2.2

Directors Emoluments

-

-

-

-

1.2

Other Costs

0.0

-

-

-

0.0

Directors Remuneration

0.1

0.4

0.0

-

2.1

Highest Paid Director

0.1

0.4

0.0

-

2.1

 

 

 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

30-Sep-2012

30-Sep-2011

30-Sep-2010

30-Sep-2009

30-Sep-2008

Filed Currency

GBP

GBP

GBP

GBP

GBP

Exchange Rate

0.616433

0.641931

0.634598

0.625254

0.561026

Consolidated

Yes

Yes

Yes

No

No

 

 

 

 

 

 

Land & Buildings

4.8

4.7

5.6

-

1.1

Fixtures & Fittings

0.1

0.0

0.0

-

0.0

Plant & Vehicles

1.0

1.1

1.2

-

0.1

Total Tangible Fixed Assets

5.9

5.8

6.8

6.7

1.2

Intangible Assets

0.0

0.0

0.0

0.0

0.0

Investments

0.0

0.0

0.0

0.1

0.1

Total Fixed Assets

5.9

5.8

6.8

6.8

1.3

Stocks

4.2

1.8

2.2

-

1.9

Work in Progress

0.0

0.1

0.0

-

0.0

Total Stocks Work In Progress

4.2

1.8

2.2

1.2

1.9

Trade Debtors

3.9

3.7

5.6

-

2.1

Inter-Company Debtors

-

0.0

0.0

-

0.0

Director Loans

0.3

0.0

0.0

-

0.3

Other Debtors

1.4

0.3

0.9

-

0.2

Total Debtors

5.6

4.0

6.5

2.1

2.6

Cash and Equivalents

0.6

0.7

0.3

0.1

0.2

Other Current Assets

0.0

0.0

0.0

0.0

0.0

Total Current Assets

10.4

6.5

9.1

3.4

4.7

Total Assets

16.3

12.3

15.9

10.2

6.0

Trade Creditors

4.6

2.2

3.8

-

1.0

Bank Overdraft

0.0

0.3

0.0

1.8

0.0

Inter-Company Creditors

0.0

0.0

0.0

-

1.3

Director Loans (Current Liability)

0.0

0.1

0.7

-

0.0

Hire Purchase (Current Liability)

-

0.0

0.0

-

0.0

Finance Lease (Current Liability)

-

0.0

0.0

-

0.0

Total Finance Lease/Hire Purchase (Current Liability)

-

0.0

0.0

-

0.0

Total Short Term Loans

0.2

0.2

0.2

-

0.0

Accruals/Deferred Income (Current Liability)

0.8

0.5

0.3

-

1.1

Social Security/VAT

0.1

0.0

0.0

-

0.1

Corporation Tax

0.4

0.2

0.2

-

0.0

Dividends (Current Liability)

-

0.0

0.0

-

0.0

Other Current Liabilities

0.2

0.9

2.4

5.4

0.0

Total Current Liabilities

6.3

4.4

7.7

7.3

3.6

Group Loans (Long Term Liability)

-

0.0

0.0

0.0

0.0

Director Loans (Long Term Liability)

-

0.0

0.0

0.0

0.0

Hire Purchase (Long Term Liability)

-

0.0

0.0

0.0

0.0

Leasing (Long Term Liability)

-

0.0

0.0

0.0

0.0

Total Hire Purchase Loans (Long Term Liability)

-

0.0

0.0

0.0

0.0

Other Long Term Loans

2.7

2.7

2.9

0.0

0.0

Accruals/Deferred Income (Long Term Liability)

-

0.0

0.0

0.0

0.0

Other Long Term Liabilities

0.7

0.1

0.2

0.0

0.1

Total Long Term Liabilities

3.5

2.9

3.1

0.0

0.1

Deferred Taxation

0.2

0.3

0.2

-

0.0

Other Provisions

0.0

0.0

0.0

0.2

0.0

Total Provisions

0.2

0.3

0.2

0.2

0.0

Issued Capital

0.0

0.0

0.0

0.0

0.0

Share Premium Accounts

0.0

0.0

0.0

0.0

0.0

Revaluation Reserve

0.0

0.0

0.0

0.0

0.0

Retained Earnings

5.3

3.8

4.1

2.7

2.3

Other Reserves

0.0

0.0

0.0

0.0

0.0

Minority Interests (Balance Sheet)

-1.1

-0.9

-0.9

0.0

0.0

Total Shareholders Funds

5.3

3.8

4.1

2.7

2.3

Net Worth

5.3

3.8

4.1

2.7

2.3

 

 

 

Annual Cash Flows

Financials in: USD (mil)

 

 

 

30-Sep-2012

30-Sep-2011

30-Sep-2010

30-Sep-2009

30-Sep-2008

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

Filed Currency

GBP

GBP

GBP

GBP

GBP

Exchange Rate (Period Average)

0.634763

0.622972

0.64255

0.647882

0.507879

Consolidated

Yes

Yes

Yes

No

No

 

 

 

 

 

 

Net Cash Flow From Operating Activities

0.0

0.6

0.2

-

1.4

Net Cash Flow from ROI and Servicing of Finance

-0.1

-0.1

-0.1

-

0.1

Taxation

-0.1

-0.1

-0.4

-

-0.3

Capital Expenditures

-0.1

1.1

-0.2

-

-0.1

Acquisitions and Disposals

0.0

0.0

0.0

-

0.0

Paid Up Equity

-0.1

-0.1

-0.1

-

-0.1

Management of Liquid Resources

0.0

0.0

0.0

-

0.0

Net Cash Flow From Financing

0.6

-1.1

2.6

-

-0.6

Increase in Cash

0.2

0.2

2.0

-

0.4

 

 

 

Annual Ratios

Financials in: USD (mil)

 

 

 

30-Sep-2012

30-Sep-2011

30-Sep-2010

30-Sep-2009

30-Sep-2008

Period Length

52 Weeks

52 Weeks

52 Weeks

52 Weeks

52 Weeks

Filed Currency

GBP

GBP

GBP

GBP

GBP

Exchange Rate

0.616433

0.641931

0.634598

0.625254

0.561026

Consolidated

Yes

Yes

Yes

No

No

 

 

 

 

 

 

Current Ratio

1.65

1.47

1.18

0.47

1.30

Liquidity Ratio

0.98

1.06

0.90

0.31

0.78

Stock Turnover

4.52

7.39

6.32

-

1.42

Credit Period (Days)

75.36

100.81

147.53

-

292.53

Working Capital by Sales

21.57%

15.49%

10.20%

-

41.07%

Trade Credit by Debtors

1.18

0.59

0.68

-

0.48

Return on Capital

18.01%

2.84%

12.62%

-

5.78%

Return on Assets

11.02%

1.82%

6.53%

-

2.33%

Profit Margin

9.50%

1.67%

7.49%

-

5.29%

Return on Shareholders Funds

33.98%

5.83%

25.37%

-

6.00%

Borrowing Ratio

56.31%

87.79%

92.79%

67.18%

57.16%

Equity Gearing

32.45%

31.24%

25.75%

26.66%

38.78%

Debt Gearing

51.55%

71.41%

70.75%

-

0.06%

Interest Coverage

-

0.29

2.43

-

2.04

Sales by Tangible Assets

3.22

2.31

2.04

-

2.17

Average Remuneration per Employee

0.1

0.1

0.2

-

1.0

Profit per Employee

0.1

0.0

0.3

-

0.1

Sales per Employee

0.7

0.5

3.5

-

1.3

Capital Employed per Employee

0.4

0.3

2.1

-

1.2

Tangible Assets per Employee

0.2

0.2

1.7

-

0.6

Total Assets per Employee

0.6

0.5

4.0

-

3.0

Employee Remuneration by Sales

8.26%

10.06%

6.65%

-

74.99%

Creditor Days (Cost of Sales Based)

111.17

72.87

125.22

-

139.18

Creditor Days (Sales Based)

89.29

59.19

100.02

-

139.18

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.14

UK Pound

1

Rs.100.48

Euro

1

Rs.84.37

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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

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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%)

 

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.