|
Report Date : |
03.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
PEPKOR RETAIL (PTY) LTD |
|
|
|
|
Formerly Known As : |
SMART-HOLD LTD |
|
|
|
|
Registered Office : |
36 Stellenberg Road, Parow Industria,
Cape Town, Western Cape |
|
|
|
|
Country : |
South Africa |
|
|
|
|
Date of Incorporation : |
28.08.1986 |
|
|
|
|
Legal Form : |
Private Company |
|
|
|
|
Line of Business : |
Subject is a cash chain selling family fashions and basics in
clothing, footwear and textiles to middle to lower-income consumers. |
|
|
|
|
No of Employees : |
±28 000 in
the group |
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 : |
No Complaints |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
South Africa |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
SOUTH AFRICA - ECONOMIC
OVERVIEW
South Africa is a
middle-income, emerging market with an abundant supply of natural resources;
well-developed financial, legal, communications, energy, and transport sectors
and a stock exchange that is the 16th largest in the world. Even though the
country's modern infrastructure supports a relatively efficient distribution of
goods to major urban centers throughout the region, unstable electricity
supplies retard growth. The global financial crisis reduced commodity prices
and world demand. GDP fell nearly 2% in 2009 but has recovered since then,
albeit slowly with 2014 growth projected at about 2%. Unemployment, poverty,
and inequality - among the highest in the world - remain a challenge. Official
unemployment is at nearly 25% of the work force, and runs significantly higher
among black youth. Eskom, the state-run power company, has built two new power
stations and installed new power demand management programs to improve power
grid reliability. Construction delays at two additional plants, however, mean
South Africa is operating on a razor thin margin; economists judge that growth
cannot exceed 3% until those plants come on line. South Africa's economic
policy has focused on controlling inflation, however, the country has had
significant budget deficits that restrict its ability to deal with pressing
economic problems. The current government faces growing pressure from special
interest groups to use state-owned enterprises to deliver basic services to
low-income areas and to increase job growth.
|
Source
: CIA |
ACKERMANS LTD
Production Street
KUILS RIVER
Western Cape
021 900 1000
On investigation it was
established that ACKERMANS LTD is a holding company which holds trademarks as
well as foreign subsidiary companies of ACKERMANS LTD in Lesotho, Namibia,
Botswana and Swaziland. With effect from 1 March 2004, the assets, operations
and business of ACKERMANS LTD were transferred as a division into PEPKOR RETAIL
LIMITED (Registration Certificate Number: 1986/003435/06).
Please see the
report on PEPKOR RETAIL LTD.
PEPKOR RETAIL (PTY) LTD
Formerly: SMART-HOLD LTD, the name having been changed on 10 February
2004.
Formerly: TRADEGRO ADMIN LTD, the name having been changed on 19
December 1986.
Formerly: TRADEGRO MANAGEMENT SERVICES LTD, the name having been changed
on 28 August 1986.
The subject converted from a public company to a private company in
February 2013.
ACKERMANS (incorporating the operations of HANG TEN)
PEP STORES
PEPCLO MANUFACTURING
PEPKOR FIN (Corporate services)
SHOE CITY
36 Stellenberg Road
PAROW INDUSTRIA
Cape Town
Western Cape
P O Box 6100
PAROW EAST
7501
+27 21 929 4800
+27 21 933 5075
It was stated by the respondent that the address Production Street,
Kuils
River, Cape Town and the telephone number +27219001000 are those of the
ACKERMANS division:
It was stated by a respondent that the address Rednor Street, Parow
Industria, Western Cape, South Africa. P O Box 6376, Parow East, 7501 and the telephone number +27 21 937 2300 are
those of the PEP division:
PEPCO – is a retailer of clothing and houseware, operating as a chain
store in small to medium sized towns across Poland and is also a trading
division of PEPKOR.
100% PEPKOR LTD (Registration
Certificate Number: 1965/007765/06),
which in turn is owned
100% by PEPKOR HOLDINGS LTD
(Registration
Certificate Number: 2003/020009/06).
It was stated that PEPKOR, which delisted from the JSE Securities
Exchange (now JSE LTD) South Africa in February 2004 in an offer that valued
the group at R2 660 000 000, had sold 7.5% of its shares to a black consortium
for R208 000 000 in cash. The company
has sold the stake to MEDU CAPITAL and J & J PRIVATE EQUITY FUND.
MEDU CAPITAL was founded by Nhlanganiso
MkwanazI and Ernest January.
Its other investments include Ampaglas,
Capital Outsourcing Group,
VitalAire and Zest.
J & J PRIVATE EQUITY FUND was founded by former cabinet minister Jay Naidoo and Jayendra Naidoo and hold stakes in information technology,
financial services and industrial companies.
PEPKOR (AUSTRALIA) (PTY) LTD
PEPKOR CLOTHING INDUSTRIES LTD
(Registration Certificate Number:
1965/005478/06)
PEPKOR MANUFACTURING LTD
(Registration Certificate Number:
1969/009505/06)
ACKERMANS LTD
(Registration Certificate Number:
1992/002170/06)
DUNNS STORES (PTY) LTD
(Registration Certificate Number:
1998/007991/07)
BEST AND LESS LTD in Australia
SHOE CITI HOLDINGS (PTY) LTD. The assets and operations of the company
have been incorporated as a division into DUNNS STORES (PTY) LTD with two
divisions DUNNS AND SHOE CITI
Plus other companies within the PEPKOR group.
In October 2000 PEPKOR restructured its operations extensively. It unbundled
its holdings in the South African food retailer SHOPRITE and in the UK retail
group BROWN & JACKSON PLC to its shareholders. In the case with BROWN &
JACKSON, the shares were housed in a new company TRADEHOLD, now listed on the
JSE Securities Exchange South Africa and the shares of TRADEHOLD unbundled to
PEPKOR shareholders on a pro rata basis.
At the same time that the PEPKOR pyramid structure was collapsed and its
ultimate holding company, PEPGRO, delisted from the JSE Securities Exchange
South Africa this left PEPKOR with the discount clothing retailers PEP,
ACKERMANS and BEST & LESS, having previously disposed of STUTTAFORDS and
CASHBUILD.
The respondent requested that an email be forwarded to lazell@pepkor.co.za
requesting updated director details, this was duly sent and should further
information be forthcoming the same will be compiled and forwarded to our
client. The following directors were obtained from CIPC:
L S BRAND ID
No. 6009155054088
S N N CARDINAAL ID
No. 6712225176001
C A CRONJE ID
No. 6001185065002
DIRECTORS: Continued
R R SCHOLTZ ID
No. 7010035097083
L LAMBRECHTS ID
No. 7506155092082
J H DU TOIT ID
No. 6102055097008
P J ERASMUS ID
No. 6510025150089
J L HAMMAN ID
No. 7011295010083
R G HANEKOM ID
No. 6911055023081
C J KLEM ID
No. 7209265146084
(MS) M S LAURENCE ID
No. 7007140243088
L M LOURENS ID
No. 6603155037083
MS E A MORKEL ID
No. 6807110158088
J F PIENAAR ID
No. 5608175119002
W J JACOBS ID
No: 6611015013087
W J MOLLER ID
No: 7006295006084
J E COETZEE ID
No: 7610105020084
R S C CRAEYE ID
No: 6212055205087
S K VOGES ID
No: 7311055095081
MS S SPREETH ID
No: 7409040049088
J S VAN ROOYEN ID
No. 6512135225082
J D WASSERFALL ID
No. 6709285006086
N TOM ID
No. 7212010777088
MS M L HAMMAN ID
No. 7108110056086
R S VAN ROOYEN ID
No. 6512135225082
T L JAGER ID
No. 6908220592081
It was stated that the PEP and PEPKOR FIN divisions bank with FIRST
NATIONAL BANK, Corporate Branch, Cape Town. The PEPCLO division banks with ABSA
BANK, Corporate Cape Town Branch. The
ACKERMANS division banks with FIRST NATIONAL BANK, ABSA and NEDBANK.
It was stated that the divisions are managed by a cash management scheme
controlled by the PEPKOR FIN division of the subject.
28 August 1986
Registration Certificate Number: 1986/003435/07
Each division has its own VAT number
4390210419 (PEP CLOTHING)
9370415029
PEP and ACKERMANS are a cash chain selling family fashions and basics in
clothing, footwear and textiles to middle to lower-income consumers. ACKERMANS owns the largest babywear brand
marketed in Southern Africa, under the brand name ABC Baby Company. The
former brand store HANGTEN operation has been incorporated into ACKERMANS.
JOHN CRAIG: Retailer of world
leading brands for – Pringle; Polo; Carducci; Crockett and Jones
SHOE CITY: Retailer of adult and
children’s footwear and accessories.
DUNNS: Speciality retailer of
adult clothing; footwear and accessories.
PEPCLO is a manufacturer of clothing. PEPKOR FINANCE deals with
administration and finance for the company.
Each division has its own major suppliers. It was deemed by respondents
as not necessary for trade references to be submitted by respondents in view of
the standing of the subject.
Pep and Ackermans
deal with the general public. Pepclo
deals with Ackermans and Pep
South Africa
It was stated that the Pep
division exports to neighbouring countries e.g. Malawi, Zambia and Mozambique.
±28 000 in the group
The Pep and Ackermans divisions have a total of ±2
800 stores throughout South Africa. There are group companies situated in
Botswana, Lesotho, Swaziland, Namibia, Zambia, Mozambique and Malawi. Pepclo has a factory at the heading
address.
The heading premises are owned by
a group property company and most of the branches are retail outlets that are
leased
R4 000 divided into 4 000 ordinary shares of R1 each
R1
Full financial information was not forthcoming from respondents at the
subject and outside authorities were unable to assist in this respect.
PEPKOR is stated to be a dominant player in the South African cash
clothing discount market with an annual turnover well in excess of R10 000 000 000
PRICEWATERHOUSECOOPERS +27
21 529 2000
JUNE
AON INSURANCE BROKERS
NOT APPLICABLE
This is a well-established and well-connected company. The subject is considered equal to its normal
business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.93 |
|
|
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SMN |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.