MIRA INFORM REPORT

Report Date :

10.04.2014

IDENTIFICATION DETAILS

Name :	LONDON BRODR AS
Registered Office :	Haraldrudveien 20, Oslo 0581
Country :	Norway
Financials (as on) :	2012
Date of Incorporation :	19.02.1995
Com. Reg. No.:	913982894
Legal Form :	Limited Company
Line of Business :	Engaged in dismantling of wrecks
No. of Employees	33

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
Norway	A1	A1

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

Norway ECONOMIC OVERVIEW

The Norwegian economy is a prosperous mixed economy, with a vibrant private sector, a large state sector, and an extensive social safety net. The government controls key areas, such as the vital petroleum sector, through extensive regulation and large-scale state-majority-owned enterprises. The country is richly endowed with natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on the petroleum sector, which accounts for the largest portion of export revenue and about 30% of government revenue. Norway is the world's third-largest natural gas exporter; and seventh largest oil exporter, making one of its largest offshore oil finds in 2011. Norway opted to stay out of the EU during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizably to the EU budget. In anticipation of eventual declines in oil and gas production, Norway saves state revenue from the petroleum sector in the world's largest sovereign wealth fund, valued at over $830 billion in January 2014 and uses the fund's return to help finance public expenses. After solid GDP growth in 2004-07, the economy slowed in 2008, and contracted in 2009, before returning to positive growth in 2010-13. Nevertheless, the government budget remains in surplus.

Source : CIA

Company summary

Company name	LONDON BRODR AS	Company number	913982894
Address	Haraldrudveien 20
City	OSLO 0581	Legal form	Limited company
Telephone Number	00 47 22649464	Fax Number	00 47
Registration date	19/02/1995	Status	Active
Previous Name	-	Share capital	400,000
Name change date	-	Currency	NOK
Number of employees	33

Postal Address

No data exist

Ultimate Holding Company

Company Name	Company Number
BRODRENE LONDON AS	913982894

Key Financials

Year to Date	Sales Revenue	Profit Before Tax	Total Equity
2012	29,536,000	-536,000	4,040,000
2011	18,741,000	-276,000	4,427,000
2010	10,478,000	-1,000,000	4,626,000
2009	7,956,000	346,000	5,348,000
2008	9,767,000	-666,000	5,100,000

Industry

Main Industry Code & Description	Dismantling of wrecks
Secondary Industry Code & Description	-
Other Industry Code & Description	-

Shareholders

Shareholder Name	Number of Shares	Percentage Share
JACK EDDY LONDON	250	62.5
ANETTE LONDON	150	37.5

Current Directors

Name	Address	Function
London, Jack Eddy	Bernhard Herres Vei 7 OSLO 0376	General manager/CEO
London, Jack Eddy	Bernhard Herres Vei 7 OSLO 0376	Chairman of the board
London, Liv Sofie	Bernhard Herres Vei 7 OSLO 0376	Deputy board member/substitute

Other Company Officials

No data exist

Profit & Loss Account

Financial Year	2012		2011		2010		2009		2008
Currency	NOK		NOK		NOK		NOK		NOK
Consolidated Accounts	No		No		No		No		No
Complete Accounts	Yes		Yes		Yes		Yes		Yes
Sales Revenue	29,536,000	57.6 %	18,741,000	78.9 %	10,478,000	31.7 %	7,956,000	-18.5 %	9,767,000
Other operating income	9,014,000	-1.4 %	9,145,000	1.2 %	9,033,000	6.2 %	8,509,000	2.3 %	8,315,000
Total Operating Income	38,550,000	38.2 %	27,886,000	42.9 %	19,511,000	18.5 %	16,465,000	-8.9 %	18,082,000
Total Operating Expenses	37,800,000	40.0 %	27,009,000	38.8 %	19,459,000	30.2 %	14,950,000	-14.8 %	17,556,000
Operating Profit	750,000	-14.5 %	877,000	1,586.5 %	52,000	-96.6 %	1,515,000	188.6 %	525,000
Wages & Salaries	16,433,000	47.8 %	11,117,000	24.7 %	8,913,000	32.4 %	6,731,000	-1.9 %	6,864,000
Depreciation	2,069,000	9.0 %	1,899,000	2.4 %	1,855,000	-2.7 %	1,906,000	9.9 %	1,735,000
Financial Income	30,000	57.9 %	19,000	26.7 %	15,000	-25.0 %	20,000	-63.6 %	55,000
Financial Expenses	1,316,000	12.2 %	1,173,000	9.9 %	1,067,000	-10.3 %	1,189,000	-4.6 %	1,246,000
Profit Before Tax	-536,000	-94.2 %	-276,000	72.4 %	-1,000,000	-389.0 %	346,000	152.0 %	-666,000
Tax	150,000	94.8 %	77,000	-72.3 %	278,000	383.7 %	-98,000	-155.4 %	177,000
Profit After Tax	-386,000	-94.0 %	-199,000	72.4 %	-722,000	-391.1 %	248,000	150.7 %	-489,000
Extraordinary Result	0	-	0	-	0	-	0	-	0
Dividends	-	-	-	-	-	-	-	-	-
Net Result after Dividends	-386,000	-94.0 %	-199,000	72.4 %	-722,000	-391.1 %	248,000	150.7 %	-489,000

Balance Sheet

Financial Year	2012		2011		2010		2009		2008
Currency	NOK		NOK		NOK		NOK		NOK
Consolidated Accounts	No		No		No		No		No
Complete Accounts	Yes		Yes		Yes		Yes		Yes
Land & Buildings	18,441,000	-1.0 %	18,626,000	-5.1 %	19,617,000	-6.4 %	20,966,000	-6.1 %	22,318,000
Plant & Machinery	50,000	-44.4 %	90,000	-	0	-	0	-	0
Other Tangible Assets	830,000	-29.7 %	1,180,000	-18.0 %	1,439,000	-20.1 %	1,802,000	3.1 %	1,747,000
Total Tangible Assets	19,321,000	-2.9 %	19,896,000	-5.5 %	21,056,000	-7.5 %	22,768,000	-5.4 %	24,065,000
Intangible Assets	0	-	0	-	0	-	0	-	0
Other Fixed Assets	4,830,000	-0.7 %	4,863,000	6.3 %	4,576,000	-13.7 %	5,302,000	21.1 %	4,379,000
TOTAL FIXED ASSETS	24,151,000	-2.5 %	24,759,000	-3.4 %	25,632,000	-8.7 %	28,070,000	-1.3 %	28,444,000
Inventories	3,299,000	64.8 %	2,002,000	195.3 %	678,000	126.0 %	300,000	-48.3 %	580,000
Trade Receivables	1,089,000	32.5 %	822,000	10.5 %	744,000	-38.5 %	1,210,000	1,290.8 %	87,000
Other Receivables	268,000	-36.9 %	425,000	197.2 %	143,000	-32.2 %	211,000	-64.5 %	594,000
Cash & Bank Deposits	2,815,000	-15.4 %	3,328,000	-7.9 %	3,613,000	41.5 %	2,553,000	16.4 %	2,193,000
Other Current Assets	-1,000	-200.0 %	1,000	0.0 %	1,000	-	0	-100.0 %	21,000
TOTAL CURRENT ASSETS	7,470,000	13.6 %	6,578,000	27.0 %	5,179,000	21.2 %	4,274,000	23.0 %	3,475,000
TOTAL ASSETS	31,621,000	0.9 %	31,338,000	1.7 %	30,811,000	-4.7 %	32,344,000	1.3 %	31,919,000
Trade Creditors	2,852,000	45.1 %	1,965,000	22.0 %	1,610,000	149.2 %	646,000	27.9 %	505,000
Short Term Liabilities to Financial Institutions	0	-	0	-	0	-	0	-	0
Short Term Liabilities to Group	0	-	0	-	0	-	0	-	0
Other Short Term Loans	0	-	0	-	0	-	0	-	0
Miscellaneous Current Liabilities	3,613,000	25.1 %	2,888,000	117.8 %	1,326,000	-43.0 %	2,327,000	37.0 %	1,698,000
TOTAL CURRENT LIABILITIES	6,465,000	33.2 %	4,853,000	65.3 %	2,936,000	-1.2 %	2,973,000	35.0 %	2,203,000
Long Term Liabilities to Financial Institutions	15,900,000	0.0 %	15,900,000	0.0 %	15,900,000	0.0 %	15,900,000	0.0 %	15,900,000
Other Long Term Loans	0	-	0	-	0	-	0	-	0
Long Term Pension Commitments	0	-	0	-	0	-	0	-	0
Other Long Term Liabilities	5,217,000	-15.3 %	6,159,000	-16.2 %	7,349,000	-9.5 %	8,124,000	-6.8 %	8,716,000
TOTAL LONG TERM LIABILITIES	21,117,000	-4.3 %	22,059,000	-5.1 %	23,249,000	-3.2 %	24,024,000	-2.4 %	24,616,000
TOTAL LIABILITIES	27,581,000	2.5 %	26,911,000	2.8 %	26,185,000	-3.0 %	26,997,000	0.7 %	26,819,000
Share Capital	400,000	0.0 %	400,000	0.0 %	400,000	0.0 %	400,000	0.0 %	400,000
Share Premium Reserve	3,640,000	-9.6 %	4,027,000	-4.7 %	4,226,000	-10.1 %	4,700,000	0.0 %	4,700,000
Revaluation Fund	0	-	0	-	0	-	0	-	0
Total Retained Earnings	0	-	0	-	0	-100.0 %	248,000	-	0
Other Reserves	0	-	0	-	0	-	0	-	0
TOTAL EQUITY	4,040,000	-8.7 %	4,427,000	-4.3 %	4,626,000	-13.5 %	5,348,000	4.9 %	5,100,000

Other Financials

Financial Year	2012		2011		2010		2009		2008
Total Exports	-	-	-	-	-	-	-	-	-
Working Capital	1,005,000	-41.7 %	1,725,000	-23.1 %	2,243,000	72.4 %	1,301,000	2.3 %	1,272,000
Net Worth	4,040,000	-8.7 %	4,427,000	-4.3 %	4,626,000	-13.5 %	5,348,000	4.9 %	5,100,000
Capital Employed	25,157,000	-5.0 %	26,486,000	-5.0 %	27,875,000	-5.1 %	29,372,000	-1.2 %	29,716,000

Ratios

Financial Year	2012	2011	2010	2009	2008
Pre-Tax Profit Margin	-1.81	-1.47	-9.54	4.35	-6.82
Return on Capital Employed	-2.13	-1.04	-3.59	1.18	-2.24
Return on Total Assets Employed	-1.70	-0.88	-3.25	1.07	-2.09
Return on Net Assets Employed	-13.27	-6.23	-21.62	6.47	-13.06
Sales/Net Working Capital	29.39	10.86	4.67	6.12	7.68
Stock Turnover Ratio	11.17	10.68	6.47	3.77	5.94
Debtor Days	13.46	16.01	25.92	55.51	3.25
Creditor Days	35.24	38.27	56.08	29.64	18.87
Current Ratio	1.16	1.36	1.76	1.44	1.58
Liquidity Ratio/Acid Test	0.65	0.94	1.53	1.34	1.31
Current Debt Ratio	1.60	1.10	0.63	0.56	0.43
Solvency Ratio	12.78	14.13	15.01	16.53	15.98
Equity in Percentage	15.08	16.72	17.63	19.78	18.52
Total Debt Ratio	6.83	6.08	5.66	5.05	5.26

Event History

Date	Description
14/01/2014	CHANGE OF BUSINESS ADDRESS
03/09/2013	Rating Change
02/09/2013	Rating Change
02/08/2013	Rating Change
31/07/2013	APPROVED END OF YEAR REPORT AND ACCOUNTS
17/09/2012	Rating Change
31/08/2012	Rating Change
27/08/2012	Limit Change
27/08/2012	Rating Change
23/08/2012	APPROVED END OF YEAR REPORT AND ACCOUNTS
13/08/2012	Limit Change
13/08/2012	Rating Change
23/11/2011	Limit Change
23/11/2011	Rating Change
03/09/2011	APPROVED END OF YEAR REPORT AND ACCOUNTS

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.07
UK Pound	1	Rs.100.56
Euro	1	Rs.82.79

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	MNL

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%)

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