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Report Date : |
07.06.2014 |
IDENTIFICATION DETAILS
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Name : |
WOOLWORTHS (PTY)
LTD |
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Formerly Known as : |
WOOLWORTHS HOLDINGS (PTY) LTD |
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Registered Office : |
Woolworths House, 93 Longmarket Street, Cape Town, Western Cape 8001 |
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Country : |
South Africa |
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Date of Incorporation : |
02.03.1956 |
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Com. Reg. No.: |
1956/000518/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Subject is a respected chain of over 400 retail stores,
including franchise stores, and offers a selected range of quality clothing,
food, homeware, beauty and financial services (in partnership with Absa Bank)
under its own brand name in South Africa, Africa and the Middle East. |
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No of Employees : |
23 538 (group) |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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South Africa |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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.
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Source : CIA |
Note:-
(The information contained in this report, other than statutory data and comment by outside authorities, has been voluntarily supplied by Officials of the subject):
On investigation numerous messages were left for the respondent to return the investigator’s call which proved unsuccessful. Nevertheless an email has been forwarded to the respondent to update the report. To date no response has been forthcoming. Nevertheless, please see historical information dated February 2014)
WOOLWORTHS (PTY) LTD
· Formerly: WOOLWORTHS HOLDINGS (PTY) LTD, the name having been changed on 6 July 1993
· Formerly: TRUPROP ELOFF STREET (PTY) LTD, the name having been changed on 22 February 1988
· Formerly: STANLEN BUILDINGS (JOHANNESBURG) (PTY) LTD, the name having been changed on 2 March 1956
WOOLWORTHS
Woolworths House
93 Longmarket Street
Cape Town
Western Cape
8001
P O Box 680
Cape Town
8000
TELEPHONE NUMBER: +27 21 407 9111
FAX NUMBER: +27 21 407 2151
Please note that the respondent at the company updated the information which is now included in this report.
It was stated by a respondent at the company that the subject’s distribution warehouse is situated at 48 Montague Drive, Montague Gardens Cape Town.
100% WOOLWORTHS HOLDINGS LIMITED (Quoted on the JSE LTD)
(Registration Certificate Number: 1929/001986/06)
·
COUNTRY ROAD LTD (quoted on the Australian Stock
Exchange) (Retailing)
· E-COM INVESTMENTS 16 (PTY) LTD (Investment Holding)
· WOOLWORTHS DEVELOPMENT (PTY) LTD (Property Development)
UNIVERSAL PRODUCT NETWORKS (PTY) LTD (LOGISTICS)
(Registration Certificate Number: 1999/024569/07)
(Registration Certificate Number: 2000/000225/07)
VIRTUAL MARKET PLACE (PTY) LTD (Retailing)
WOOLWORTHS INTERNATIONAL SA (PTY) LTD (Dormant)
WOOLWORTHS (NAMIBIA) (PTY) LTD (Dormant)
WOOLWORTHS HOLDINGS (MAURITIUS) LTD (Holding)
WOOLWORTHS (LESOTHO) (PTY) LTD (Retailing)
WOOLWORTHS FINANCIAL SERVICES (PTY) LTD
Plus other companies in the WOOLWORTHS GROUP
MS Z RYLANDS ID No. 6411100181083
M R ISAACS ID No 6811155256088
I MOIR (CEO) D.O.B. 1958/12/10
STANDARD BANK OF SOUTH AFRICA LIMITED (Cape Town is the main account of the subject), while the Woolworths’ branches deal with STANDARD BANK throughout South Africa.
It was stated that the branches are managed by a cash management scheme controlled by the subject. Further banking information was declined.
2 March 1956
Registration Certificate Number: 1956/000518/07
On investigation it was established that the subject changed its name and entity in October 1997 from WOOLWORTHS’ HOLDINGS (PTY) LTD. A dormant company was utilised and WOOLWORTHS HOLDINGS LTD commenced in 1997.
4550102216
9487806714
Level 3 contributor
Subject is a respected chain of over 400 retail stores, including
franchise stores, and offers a selected range of quality clothing, food,
homeware, beauty and financial services (in partnership with Absa Bank) under
its own brand name in South Africa, Africa and the Middle East.
The subject imports most of its supplies and deals locally with:
· PARMALAT SA
· TIGER BRANDS
· THE DAIRY CONNECTION
General public and the retail industry
South Africa
The subject has franchise outlets in Africa and the Middle East
23 538 in the group
The subject is reported to have ±450 retail stores in South Africa, Africa and the Middle East with distribution centres in Cape Town, Durban and Johannesburg.
The heading premises are reported to be leased, while some of the branch premises are leased and some are owned.
100 ordinary shares of R2 each
100
Please see attached Consolidated Group figures for 30 June 2013 for Woolworths Holdings Limited attached.
UNKNOWN
JUNE
UNISON RISK MANAGEMENT ALLIANCE INSURANCE BROKERS
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1994 R 15 000 R
10 000 30 days 30 days Very
Good
2. Old acc R10 000 000 R10 000
000
7 days 7 days Excellent
3. +5 years do not disclose figures 30 days 30
days Very Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 1994 R 15 000 R
10 000 30 days 30 days Good
2. 20 years R8 000 000 R10 000 000 30 days 30 days Very
Good
3. Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10 years declined declined 30 days 30 days Very Good
2. Old acc open R10 000
000 30 days 30 days Very Good
3. Old acc R30 000 000 declined 30 days 30 days Very good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc declined declined 30 days 30 days Very Good
2. Old acc R30 000 000 declined 30 days 30 days Very Good
c/l
3. Old acc open R15 000
000 30 days 30 days Excellent
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Awaiting trade references – needed to obtain
permission from Woolworths
2. +20 years Unlimited Many millions 30 days 30 days Very Good
3. Awaiting trade references – needed to obtain
permission from Woolworths
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 18 years R40
000 ±R20 000 30 days 30
days Very Good
c/l
2. 20 years ±R20
000 000 ±R10 000 000- 45 days 45
days Very Good
R18 000 000 (by
arrangement)
3. ±30 years declined ±R25 000 000- 45 days 45 days Excellent
R30 000 000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +15 years declined R
30 000 30 days 30 days Very
Good
2. Old acc declined R14 000 000 45 days 45 days Very Good
3. 40 years declined R40 000 000 45 days 45 days Excellent
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 15 years R 300 000 30 days 30 days Excellent
2. 40 years declined R40 000 000 45 days 45
days Excellent
3. Old acc declined figures 45
days 45 days Excellent
(in the millions)
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +5 years R 1 000 000 ±R 400 000 45 days 45
days+ Problematic
c/l
2. ±30 years R40 000 000 R20 000 000 45 days 45 days Excellent
3. Old acc R10 000 000 R
9 000 000 45 days 45 days Very
Good
4.
Unable to obtain trade references
5.
Awaiting trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old
acc R60 000 R45 000 30
days 30 days Good
c/l each branch own account
2. Do not give trade references, however subject
blue chip client
3. Unable to obtain a trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 7 years R25 000 R200 000 30 days 30 days Excellent
2. 3 years+ R45 000 R
39 000 30 days 30 days Very
Good
3. Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc unlimited R20 000 000- 45 days 45
days Excellent
R35 000 000 less 2½%
2. Old acc R50 000 000 R30 000 000- 45 days 45 days Excellent
R40 000 000
3. Old acc R 500 000 R 260 000 30 days 30 days Excellent
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +5 years R120 000 R
50 000 30 days 30 days Excellent
2. +10 years open R10 000 000- 45 days 45
days Very Good
R15 000 000
3. +20 years open R
2 000 000 30 days 30 days Excellent
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. ±5 years R 60 000 R 30 000 30 days 30
days Very Good
2. Do
not give
3. 20
Years R20 000 000 Not available As arranged Excellent
ACCOUNT HIGHEST
AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1.
Awaiting fax reply
2. ±1997 J/O R
3 000 000 R
200 000 45 days 45 days Very Good
T/R
R10 000 000 R3 000 000
1.5% disc
T/M
R 5 000 000 R 100 000
3. ±10
years Open Declined 7 days 7
days Very Good
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. ±10 years R55 000 000 ±R20 000 000 45 days 45 days Very Good
2. +7 years R10 000 000
R 295 000 45 days 45
days Good
3. 10 years Open
acc
R 5 000 000 7 days 7
days Very Good
COMMENTS
This is an established company meeting its commitments timeously. The subject is highly regarded by its suppliers and is considered equal to its normal business engagements.
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10 years R55 000 000 ±R20 000 000 45 days 45 days Excellent
2. Old Unlimited
R20 000 000 45 days 45 days Excellent
3. Old Declined
Declined 7 days 7 days Excellent
COMMENTS
This is an established company meeting its commitments timeously. The subject is highly regarded by its suppliers and is considered equal to a maximum credit figure of US$3 000 000 over 30 days.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.20 |
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UK Pound |
1 |
Rs.99.52 |
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Euro |
1 |
Rs.80.83 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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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 |
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<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.