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Report Date : |
11.04.2014 |
IDENTIFICATION DETAILS
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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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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: Fashion: men’s, women’s and children wearing apparel,
footwear home textile products, home toiletries and spa, household products |
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No. of Employees |
1,865 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. 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. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. 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. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition
|
Source
: CIA |
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.
Company began actual
business operations in its current form in 1987, chainging
its name to GOLF FASHION CHAIN STORES LTD. on the 22.01.1987. On the 24.02.1995
name was changed to GOLF KITAN FASHION STORES LTD., 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%, (bonds are traded on the Tel
Aviv Stock Exchange), fully owned by AL DIVERSIFIED PARENT S.A R.L (part of ACCESS INDUSTRIES
Group), controlled by Leonard (Len) Blavatnik,
2. Institutional investors (pension and
trustee funds): HAREL INSURANCE (7.2%), PHOENIX INSURANCE (5.1%) and EXCELLENCE
(2%),
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), 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. In November 2013, following a successful tender offer AL DIVERSIFIED PARENT reached full ownership of CLAL INDUSTRIES.
1. Aharon Meidan, Chairman,
2. Daniel Shinar,
3. Ms. Sigalia Heifetz,
4. Basil Gamsu,
5. Ms. Ruth Ralbag,
6. Ms. Iris Beck Codner,
7. Johanan
Locker,
8. Avi Fischer.
Mrs. Ilana Kaufman.
On the 01.02.2014 Mrs.
Ilana Kaufman informed that she is stepping down from
her General Manager post; she will be replaced by Eli Mizroch
in the coming months.
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 291 retail stores chain as follows (as of 30.09.2013):
Apparel Fashion: 193
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: 63
retail stores, chain brand "Golf & Co." as well as 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% 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 1,865 employees
(had 1,800 employees as of 31.12.2012).
Current market value
US$ 136.8 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).
B/S shows:
NIS
(thousands)
31.12.2012 30.09.2013
ASSETS
Current assets
Cash and cash equivalents 43,581 18,028
Negotiable securities 76,650 96,695
Current tax receivables 10,865 29,732
Customers 91,985 83,941
Other receivables 3,640 5,335
Stock 133,648 141,836
360,369 375,567
Non-current assets
Fixed assets, net 47,351 45,263
Goodwill 6,000 6,000
Other non-current assets
16,848 16,727
70,199 67,990
430,568 443,557
======= =======
LIABILITIES
Current liabilities 117,378 133,492
Non-current
liabilities - provisions 1,683 2,401
Equity 311,507 307,664
430,568 443,557
======= =======
REVENUES
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 9
months of 2013 sales NIS 503,593,000 (slightly lower than the parallel period
of 2012), making a gross profit of NIS 303,299,000, an operating income of NIS
44,711,000, and a net income of NIS 34,803,000.
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. 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 branches, under the name 'Kitan',
for its manufactured and imported goods.
ACCESS INDUSTRIES, an international industrial group, with long-term strategic holdings in Europe, North & South America, in industries such as oil, coal, aluminum, petrochemicals and plastics, telecommunications, media (WARNER MUSIC), and real estate. Among other local holdings: 33% of RGE Group operating in the media field, holding Sport's Channel, Children's Channel and Channel 8.
The First
International Bank of Israel Ltd., Tel Aviv Main Branch (No. 046), Tel Aviv.
Mizrahi Tefahot
Bank Ltd., Tel Aviv Business Center
Branch (No. 461), Tel Aviv.
Nothing unfavorable
learned.
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. In November 2013, following a
successful tender offer for the shares held by the public, AL DIVERSIFIED
PARENT reached full ownership of CLAL INDUSTRIES, paying NIS 1.25 billion for
the 50.1% of shares (CLAL's bonds are still traded on
TASE).
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$10.1 billion.
Some 90% of subject's
revenues are from products designed by subject's designers.
During 2007, subject
opened several new shops of its new sub retail chain "Max Moretti" for quality shoes and bags, as well as
further fashion stores, all located in shopping malls. In addition, it opened
around 10 new home textile and kids apparel shops. In March 2008 it was
reported that subject opened 10 new "Max Moretti"
shops, with investment of US$ 500,000.
In 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
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.
In December 2013 it
was reported that subject is performing streamlining in the "Blue
Bird" chain, closing down stores (intending to close 6 branches), as well as
decrease the shop size, as part of bringing "Blue Bird" to
profitability.
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)
Reportedly, total revenues of the local fashion market in 2013
reached NIS 12 billion per annum. In 2012 sales reached NIS 11 billion. 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 2013 rose by mere 0.9% from 2012 (in NIS terms, rose by 7.9% in $ terms), summing up to NIS 6,854 million. This is after 2012 marked 13.3% rise (5.1% in $ currency terms). That data shows on the continuing growing trend over the last 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 CBS, import of fabrics and yarns in 2012 fell by 6.5% from 2011, and the negative continued in 2013, with 1.8% decrease from 2012, summing up to US$ 651 million (though fall in local NIS terms was deeper – by 8.1%). This trend comes after couple of years which saw a rise in import – by 17% in 2010 and 2.1% in 2011 comparing to the previous year, parallel to the general recovery in the local economy.
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 over the last periods 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, including in the ladies fashion and 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.
Moreover, senior figures in the local fashion and apparel branch, as well as from the shopping malls sector, commented in November 2013 that few more chains are on the verge of collapse.
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 2010. Expenditure on clothing, footwear and personal effects rose by 7.2% (after 2.4% rise in 2011). Expenditure on private consumption continued to grow in 2013: it rose by 5.6% in 3rdQ 2013, after a 6.2% increase in the 2ndQ 2013.
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 2013 marked a 2.2% increase continuing the rise of
1.9% in 2012 and 9.8% in 2011. Most of the rise was in durable goods (4.1%),
which comprising some 40% of the import volume, while import in durable goods
rose by mere 0.9% from 2012. Main rise derived from import of Household
Utensils in 2013 which rose by 2.5% from 2012, summing up to NIS 2,546 million
(in NIS terms, 9.5% in $ terms), after 1.7% in 2012.
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.
Note: 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.21 |
|
|
1 |
Rs.101.05 |
|
Euro |
1 |
Rs.83.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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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 |
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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 |
|
|
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 |
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.