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Report Date : |
14.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
GOLF AND CO. GROUP
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 : |
Chain of retail store |
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No. of Employees : |
1,865 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. Its major imports include crude oil, grains, raw
materials, and military equipment. Cut diamonds, high-technology equipment, and
pharmaceuticals are among the leading exports. Israel usually posts sizable
trade deficits, which are covered by tourism and other service exports, as well
as significant foreign investment inflows. 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. The economy has recovered better than most advanced,
comparably sized economies. 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.
Natural gasfields discovered off Israel's coast during the past two years have
brightened Israel''s energy security outlook. The Leviathan field was one of
the world''s largest offshore natural gas finds this past decade, and
production from the Tama field is expected to meet all of Israel''s natural gas
demand beginning mid-2013. In mid-2011, public protests arose around income
inequality and rising housing and commodity prices. 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
|
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)
According to reports from the end of 2012,
total revenues of the local fashion market are NIS 11 billion per annum. 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.62.27 |
|
|
1 |
Rs.103.46 |
|
Euro |
1 |
Rs.84.87 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.