MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

BRICOSTORE ROMANIA SA

 

 

Registered Office :

060251 Bucharest, sector 6 – Calea Giulesti no. 1-3, Centrul Com. Bricostore (Shopping Center Bricostore)

 

 

Country :

Romania

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

December, 2001

 

 

Legal Form :

Joint stock company, entire foreign capital

 

 

Line of Business :

Retail sale of new goods in specialized stores

Products of wood, metallic fittings, dye stuff, electrical equipment, interior design, plants and garden furniture, the newest technology and building materials.

 

 

No. of Employees :

1,525

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Romania

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

ROMANIA - ECONOMIC OVERVIEW

 

Romania, which joined the EU on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession due to strong demand in EU export markets. Domestic consumption and investment fueled strong GDP growth, but led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and to address Romania's widespread poverty. Corruption and red tape continue to permeate the business environment. As a result of the global financial crisis, Romania signed on to a $26 billion emergency assistance package from the IMF, the EU, and other international lenders. GDP contracted from 2009 to 2011. In March 2011, Romania and the IMF/EU/World Bank signed a 24-month precautionary stand-by agreement, worth $6.6 billion, to promote fiscal discipline, encourage progress on structural reforms, and strengthen financial sector stability. In September 2013, the Romanian authorities and the IMF/EU agreed to a follow-on stand-by agreement, worth $5.4 billion, to continue with reforms, although Bucharest announced that it does not intend to draw funds under the agreement. Economic growth accelerated in 2013, driven by strong industrial exports and an excellent agricultural harvest; in December 2013 inflation dropped to a historical low annual rate of 1.6%; and the current account deficit was reduced substantially. Yet, progress on structural reforms is uneven and the economy still is vulnerable to shocks.

 

Source : CIA

Company name and address

 

NAME OF THE COMPANY   

 

BRICOSTORE ROMANIA SA

Address      

 

060251 Bucharest, sector 6 – Calea Giulesti no. 1-3, Centrul Com. Bricostore (Shopping Center Bricostore)

Phone no.

 

0040-21-4044411

Fax no.  

0040-21-4044410

 

Web-site

www.bricostore.ro

E-mail address

centrala@bricostore.ro

client@bricostore.ro

 

 

HISTORIC/OFFICIAL DATA

 

Date of foundation

December, 2001

Present legal form

Joint stock company, entire foreign capital

Registered with the Trade Registry 

J40/9990/2001

VAT no. 

14328360

Registered capital    

23,529,070.20 RON

Shareholders

 

Legal person – unique owner

1. KINGFISHER GROUP LTD – British legal person

Address: UK / W2 6PX London – Sheldon Square No. 3

Participation

99%

 

2. SHELDON HOLDINGS LIMITED – British legal person

Address: UK / W2 6PX London – Sheldon Square No. 3

Participation

0.00000004%

 

 

Obligation to publish

According to the Romanian Financial Legislation, subject company is obliged to lodge with the Ministry of  Public Finance its half-yearly accounts

 

 

EMPLOYEES

                       

 

- total

2007

2008

2009

2010

2011

2012

1,141

1,503

1,692

1,533

1,546

1,525

 

BUSINESS ACTIVITY 

 

- Retail sale of new goods in specialized stores, according to the national Trade Registry updated files (NACE: 4778)

The French group Bricostore is specialized in retail trade with: products, services and ideas for repairs, buildings, fitting out of houses and gardens. All of these are developed under the motto: “all for house and garden”

The “Bricostore” idea is “ do it yourself”

-“Bricostore” puts at the clients disposal a wide range of products of wood, metallic fittings, dye stuff, electrical equipment, interior design, plants and garden furniture, the newest technology and building materials. Around 40,000 items are commercialized trough “Bricostore” chain.

- there is a “drive-in “ service for buildings materials

- there is also special delivery that Bricostore provides to its clients

 

According to the company’s web-site

Bricostore Romania has joined the group Kingfisher (www.kingfisher.com) on June 1, 2013  following the acquisition of the Bricostore 15 stores of the Bresson French group
Kingfisher is the first European distributor of home decorating products and number three worldwide. The Group has over 1,000 stores in nine countries, has more than 80 000 people employed and welcomes nearly 6 million customers each week.
The Group holds leading market brands such as B & Q in the UK and China , Castorama in France, Poland and Russia; Screwfix in the UK and Brico Depot in France & Spain.
The “Brico Depot” is the one that Kingfisher has decided to develop on the housing Romanian market that offers tremendous growth potential.
Currently, the Bricostore network has 15 stores: 4 in Bucharest & Ilfov county and 11 in the country, in the cities of Brasov, Ploiesti, Constanta, Pitesti, Arad, Braila, Focsani, Suceava, Oradea, Calarasi and Turnu Severin.
Kingfisher has ambitious plans in Romania aiming to increase the number of units at "about 50 long-term deposits".
The transformation of the warehouse stores will begin in the first quarter of 2014.

 

Work-shops, as officially registered with the National Trade Registry 

1. Ilfov county / Chiajna – Autostrada Bucuresti-Pitesti Km 11-12

2. Bucharest, sector 2 – Soseaua Vergului No. 18

3. Bucharest, sector 6 – Calea Giulesti No. 1-3

4. Brasov county / Brasov – Calea Bucuresti No. 109

5. Prahova county / Blejoi commune

6. Bucharest, sector 1 – Soseua Bucuresti Ploiesti No. 44B, Centrul Comercial Bricostore Baneasa (Shopping center)

7. Ilfov county / Otopeni – Horea Closca si Crisan Street No. 61-63 (warehouse )

8. Constanta county / Constanta – Tomis Blvd. No. 401, DN2A

9. Arges county / Bradu commune – Geamana village, DN65B

10. Arad county / Arad – Calea Aurel Vlaicu No. 299/6, Complex Comercial Armonia Aras
11. Mehedinti county / Drobeta-Turnu Severin – Alunis Blvd. No. 43
12. Braila county/ Varsatura – 4A Principala Street
13. Suceava county / Suceava – Calea Unirii No. 22, Complex Comercial Iulius Mall Suceava, Cartier Burdujeni
14. Vrancea county / Focsani – Calea Moldovei No. 32
15. Bihor county / Oradea – Calea Aradului No. 62
16. Calarasi county / Calarasi – Prelungirea Slobozia Street No. 17A

 

Main competitors: BauMax, Obi, Mr. Bricolage, Hornbach, Praktiker, Dedeman networks.


OTHER PARTICIPATION

 

1. Company’s participation

 

1. BRICO COMMUNICATION SRL – J40/11237/2005, VAT 17723843

 

2. BRICO SUPPLY SRL – J40/3383/2010, VAT 26724155

 

2. Shareholders other participation

 

KINGFISHER GROUP LTD

BRICO DEVELOPMENT SA – J40/15810/2008,

                                                     VAT 24475368

BRICO FONCIER SA – J40/13824/2011, VAT 29365536

BRICO IMOBILIARE CALARASI SA – J40/15805/2008,

                                                                    VAT 24475350

SOROD SA – J40/1505/1999, VAT 11465354

 

 

 

REAL ESTATE (RON)     

 

 

- lands & buildings       

 

2007

2008

2009

2010

2011

2012

 

120,080,961

 

130,427,355

 

128,753,330

 

128,925,278

 

35,916,353

 

33,760,183

 

 

BANKS

    

Romanian Bank for Development – Groupe Societe Generale

 

 

MANAGEMENT

 

as officially registered with the National Trade Registry

 

 

President of the Board

Mr. Alain Souillard – French citizen, born on 20.09.1955

Appointed on: 31.05.2013; Expiration date of mandate: 31.05.2017

 

 

Member of the Board

Mrs. Isabelle Marie Palmyre Cieutat – French citizen, born on 11.09.1971

Appointed on: 31.05.2013; Expiration date of mandate: 31.05.2017

 

Member of the Board

Mr. Patrick Rapot – French citizen, born on 5.04.1963

Appointed on 31.05.2013; Expiration date of mandate: 31.05.2017

 

General Manager

Mr. Patrick Rapot – appointed on 4.11.2013; expiration date of mandate: 4.11.2017

 

 

 

CURRENCY

 

Exchange rate of EURO            1 EURO = 3.6102 RON on 31.12.2007    

1 EURO = 3.9852 RON on 31.12.2008

1 EURO = 4.2282 RON on 31.12.2009    

1 EURO = 4.2848 RON on 31.12.2010

1 EURO = 4.3197 RON on 31.12.2011

1 EURO = 4.4287 RON on 31.12.2012

 

 

FINANCIAL DATA: RON

 

BALANCE SHEET

31.12.2010

31.12.2011

31.12.2012

INTANGIBLES - TOTAL

17,887,965

17,112,844

16,399,250

TANGIBLES - TOTAL

167,416,482

70,688,799

61,930,966

FINANCIALS - TOTAL

68,773,077

58,885,629

80,243,610

FIXED ASSETS - TOTAL

254,077,524

146,687,272

158,573,826

STOCKS - TOTAL

158,849,263

162,306,389

171,393,158

CLAIMS - TOTAL

18,333,039

32,204,748

30,965,422

CURRENT ASSETS

284,919,625

257,331,081

225,609,226

PREPAID EXPENSES

2,776,607

3,156,481

3,776,740

DEBTS WITHIN 1 YEAR

131,250,033

102,131,645

109,218,007

DEBTS OVER 1 YEAR

141,960,056

85,056,246

73,212,801

PROVISIONS

363,575

308,587

328,815

ADVANCED INCOMES

0

0

0

REGISTERED CAPITAL

96,176

115,411

115,411

RESERVES from reassessment of the fixed assets

11,317,637

3,410,260

3,270,916

RESERVES

130,754,478

115,211,038

115,350,382

PROFITS CARRIED FORWARD

108,779,446

103,847,663

100,941,646

NET RESULT - PROFIT

17,252,355

0

0

NET RESULT - LOSS

0

2,906,016

14,478,186

NET WORTH

268,200,092

219,678,356

205,200,169

 

 

 

 

PROFIT & LOSS ACCOUNT

31.12.2010

31.12.2011

31.12.2012

Turnover

624,293,192

611,763,639

640,986,310

Own production & services

42,817,968

49,025,828

54,722,057

Sales

581,475,224

562,737,811

586,264,253

INCOMES FROM ORDINARY OPERATING ACTIVITY

626,098,415

617,012,886

643,000,730

Raw materials

4,604,469

5,530,378

4,857,051

Costs of goods sold

430,279,687

429,019,697

455,193,451

Wages

53,936,207

54,518,966

54,880,647

Depreciations & provisions

13,254,377

12,733,554

10,019,059

Other operating costs

96,126,408

104,843,484

122,138,152

COSTS OF ORDINARY OPERATING ACTIVITY

601,466,414

615,450,927

654,677,016

ORDINARY OPERATING RESULT - PROFIT

24,632,001

1,561,959

0

ORDINARY OPERATING RESULT - LOSS

0

0

11,676,286

FINANCIAL INCOMES

21,763,326

24,315,621

13,824,644

FINANCIAL COSTS

24,282,288

27,570,089

16,626,544

FINANCIAL RESULT - PROFIT

0

0

0

FINANCIAL RESULT - LOSS

2,518,962

3,254,468

2,801,900

CURRENT RESULT - PROFIT

22,113,039

0

0

CURRENT RESULT - LOSS

0

1,692,509

14,478,186

Extraordinary incomes

0

0

0

Extraordinary costs

0

0

0

EXTRAORDINARY RESULT - PROFIT

0

0

0

EXTRAORDINARY RESULT - LOSS

0

0

0

TOTAL INCOMES

647,861,741

641,328,507

656,825,374

TOTAL COSTS

625,748,702

643,021,016

671,303,560

PRETAX RESULT - PROFIT

22,113,039

0

0

PRETAX RESULT - LOSS

0

1,692,509

14,478,186

TAX ON PROFIT

4,860,684

1,213,507

0

NET RESULT - PROFIT

17,252,355

0

0

NET RESULT - LOSS

0

2,906,016

14,478,186

 

N.B.: any difference occurred between former reports and the present one regarding some positions of the “Balance Sheet” or P/L Account for previous periods does not belong to us.

The financial data from this report are the ones officially declared by the subject with the Ministry of Public Finance data basis for 31.12.2012. As consequence, the responsibility for their accuracy belongs exclusively to the company.

 

 

OUR OPINION

           

based upon financial figures reported in the latest balance-sheet – 31.12.2012

- all figures are reported in RON  if  otherwise not specified.

 

 

Size

 

large, considering the number of employees

Position & trend

Well-known brand, one of the most popular “do it yourself “ chain in Romania.

The figures at hand prove a huge volume of activity developed, specific to this line of business, but with negative returns in the past two years.

Besides, these appear in an obvious decline since 2008; in 2012 the losses are coming quite from the operating activity.

In terms of B/S accounts, both liquidity and solvability are looking good.

The payments behavior is fair enough – just limited delays are reported.

Overall, we still appreciate the business relationships are feasible and the credit facilities are suitable.

The business trend should be followed.

 

 

 

31.12.2007

31.12.2008

31.12.2009

31.12.2010

31.12.2011

31.12.2012

Turnover

 

 

 

 

 

 

RON

672,022,099

897,593,927

754,478,694

624,293,192

611,763,639

640,986,310

EURO

186,145,393

225,231,840

178,439,689

145,699,494

141,621,788

144,734,642

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

RON

81,670,000

117,139,057

40,239,446

22,113,039

-1,692,509

-14,478,186

EURO

22,622,015

29,393,520

9,516,921

5,160,810

-391,812

-3,269,173

 

 

 

 

 

 

 

Net profit

 

 

 

 

 

 

RON

  66,648,726

97,963,219

32,540,411

17,252,355

-2,906,016

-14,478,186

EURO

18,461,228

24,581,757

7,696,043

4,026,408

-672,736

-3,269,173

 

 

31.12.2012

 

CREDITS & LOANS (ACTIVE BALANCE)

           

86,947,086

Bank credits & other financial loans, on short term (within 1year)

13,761,104

Bank credits & other financial loans, on medium term (over 1 year)

73,185,982

 

 

 

BALANCE CLAIMS-DEBTS

 

Negative

Total claims

 

30,965,422

clients & trade debtors

29,514,715

 

Total debts

183,420,808

- Short term

109,218,007

suppliers 

84,076,629

 

trade creditors

987,537

 

bank credits & other financial loans

13,761,104

 

other debts, including fiscal debts & dues to the Social Insurance

10,392,737

 

- Medium term

73,212,801

bank credits & other financial loans

73,185,982

 

other debts, including fiscal debts & dues to the Social Insurance

26,819

 

 

 

PAYMENTS BEHAVIOR

 with delays

 

Total overdue of            0.18% of turnover (1.03% of total short term debt)

1,123,915

To suppliers, 1.34% delayed

1,123,915

over 30 days

 

329,687

 

over 90 days

 

394,274

 

over 1 year

 

399,954

 

 

 

 

PAYMENTS INCIDENTS, as

officially recorded with the Payment Incident Bureau

 

No incidents recorded in the period 2.06.2013 – 2.06.2014

 

 

FINANCIAL STRENGTH

 

72,615 tsd EURO

RISK CATEGORY         

 

Above normal

BUSINESS RELATIONS

 

Permissible

 

2007

2008

2009

2010

2011

2012

 

 

Fluctuating, generally good

Liquidity analysis

- current ratio  

2.04

1.77

1.85

2.17

2.52

2.07

- quick ratio    

1.36

0.92

0.43

0.96

0.93

0.50

 

 

 

 

 

 

 

Solvability analysis

Very good

- the borrowing ratio (total debts/net worth) 

1.13

0.97

0.71

1.02

0.85

0.89

 

 

Profitability analysis (%)

Severely depreciated; consecutive losses for the last two periods

- return on capital

38.40

38.76

12.37

6.43

loss

loss

- return on assets

17.68

19.72

7.20

3.18

loss

loss

- gross profit margin

12.15

13.05

5.33

3.54

loss

loss

 

 

Activity analysis

Quick settlements; slowdown of the stocks’ rotation

- debtor’s days 

10

14

9

11

19

18

- creditor’s days

41

50

38

54

45

48

Stocks turnover, times/year

10

7

5

4

4

1

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.34

UK Pound

1

Rs.99.18

Euro

1

Rs.80.76

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NNA

 

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%)

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.