MIRA INFORM REPORT

 

 

Report Date :

12.09.2014

 

IDENTIFICATION DETAILS

 

Name :

REX TRUEFORM CLOTHING COMPANY LTD

 

 

Registered Office :

The Rex Building 263 Victoria Road Salt River Cape Town Western Cape

 

 

Country :

South Africa

 

 

Financial Data As on :

30.06.2014

 

 

Date of Incorporation :

21.06.1937

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is an investment holding company with interests in the retail of men’s and women’s clothing

 

 

No. of Employees :

800

 

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


Company name and address

 

REX TRUEFORM CLOTHING COMPANY LTD

(quoted on the JSE LTD since 1945)

           

           

BRAND NAMES  

 

QUEENSPARK

QUEENSPARK PLUS COLLECTION

AURA

CATH-NIC

J CREW

 

 

PHYSICAL ADDRESS    

 

The Rex Building

263 Victoria Road

SALT RIVER

Cape Town

Western Cape

 

 

POSTAL ADDRESS   

 

P O Box 1856

CAPE TOWN

8000

 

 

TELEPHONE NUMBER:            +27 21 460 9400

 

FAX NUMBER:              +27 21 460 9595 / 75

 

 

SHAREHOLDERS

 

As per annual financial statements at 30 June 2012:

 

51.9%   AFRICAN AND OVERSEAS ENTERPRISES LTD

17.5%   CEEJAY TRUST

14.9%   BRIMSTONE INVESTMENT CORPORATION LTD

  7.3%   TRANSVAAL CLOTHING INDUSTRIES 1979 (PTY) LTD

 

The remainder of the shares are held by individuals on the JSE LTD

 

 

SHAREHOLDERS

 

continued

 

The shareholding changed and was previously:

 

            72.6%   AFRICAN AND OVERSEAS ENTERPRISES LTD

   8.8%  CEEJAY TRUST

   8.3%  BRIMSTONE INVESTMENT CORPORATION LTD

 

 51.9%  AFRICAN AND OVERSEAS ENTERPRISES LTD

 17.5%  CEEJAY TRUST

 14.8%  BRIMSTONE INVESTMENT CORPORATION LTD

 

The shareholding changed and was previously:

 

72.6%   AFRICAN AND OVERSEAS ENTERPRISES LTD

   8.3%  BRIMSTONE INVESTMENT CORPORATION LTD

 

 

ASSOCIATED COMPANIES

 

The directors are also involved in:

 

AFRICAN AND OVERSEAS ENTERPRISES LTD

(Registration certificate number: 1947/027461/06)

THE ZEALOT TRUST

THE STEWART AND PAT SHUB FAMILY TRUST

 

 

SUBSIDIARY COMPANIES

 

QUEENSPARK (PTY) LTD (100%) which is reported to own 51 retail shops and 3 franchise operations throughout South Africa trading as QUEENSPARK and is considered as the main operating company of the group.

QUEENSPARK DISTRIBUTION CENTRE (PTY) LTD (100%) (property owning and distribution activities)

ANGLO AMERICAN EXPORT AND IMPORT COMPANY LTD - dormant

 


 

DIRECTORS

 

MRS C E A RADOWSKY (CEO)                         ID No.   6705190195006

MRS P E SHUB                                                ID No.   4409085472081

P M NAYLOR                                                    ID No.   4510145088088

M L KRAWITZ (Ne CH)                                       ID No.   3906025031084

D S JOHNSON (FD)                                          ID No.   6803255192081

R V ORLIN (Ind ne)                                            ID No.   4111125050089

M SEGAL                                                         Newly appointed

 

 

BANKERS

 

STANDARD BANK, Victoria Road Branch.  It was stated that the subject enjoys overdraft facilities, unsecured.  Utilisation of the overdraft is stated to be nil as large credit balances are normally maintained at the bank.

 

 

DATE REGISTERED

 

21 June 1937

Registration Certificate Number: 1937/009839/06.

 

The subject commenced as a new business in 1937

 

 

VAT NUMBER: 4610103758

 

TAX NUMBER:              9325143718

 

BEE STATUS:              Non-compliant

 

 

MAJOR OPERATION

 

The subject is an investment holding company with interests in the retail of men’s and women’s clothing carrying the brand names QUEENSPARK, J CREW, CATH-NIC, AURA and PLUS COLLECTION.

 

It was stated by the Financial Manager, who stated that the subject does not manufacture the brands REX TRUEFORM, WALL STREET, JOHAN STEPHEN, REDFORD, GIORGIO and EMELIO FESTONI, however, the subject still owns the rights on the names.  The subject also has interests in property holdings.


 

MAJOR SUPPLIERS

 

Each division has its various different suppliers.

 

Previously, we have divulged the names of the major suppliers in our reports.  We have discontinued this practice to protect our valuable sources of trade information.  This has become necessary because we now give a description of the goods or services to which the trade references relate.  This gives our client the ability to assess whether  the purchases are vital to the subject’s operation and whether we have only been given their essential suppliers that must be paid promptly for the subject to maintain its operation.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORs

 

Retail – major customers are retail customers who purchase through the subjects chain of shopping centres

Franchise – the subject is stated to sell merchandises to their franchisee network in South Africa

Rental – the subject is reported to rent some of their buildings out to third party tenants

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Exports goods to franchise operations in Namibia, Botswana and Kenya

 

 

TOTAL EMPLOYEES

 

1 000 in group, having increased from 800 reported in November 2013

 

 

OTHER PREMISES

 

It was stated by the respondent that the subject has a corporate head office, warehouse and 56 retail stores throughout South Africa.


 

OWNED OR LEASED

 

The group owns a property portfolio that is used for the purpose of investment or its own operations including Corporate Head Office and warehouse. Retail stores operated by Queenspark (PTY) LTD are leased.

 

 

AUTHORISED SHARE CAPITAL

 

40 000 000 “N” ordinary shares of R0.25 cents each; 3 250 000 ordinary shares of R0,50 cents each and 140 000 6% cumulative preference shares of R2 each.

 

 

ISSUED SHARE CAPITAL

 

17 736 349 “N” ordinary shares, 2 905 805 ordinary shares and 140 000 preference shares.

 

 

FINANCIALS

 

Please see attached condensed consolidated preliminary financial statement results for the year ended 30 June 2014

 

AUDITORS:      KPMG INC Cape Town                             +27 21 408 7000

 

YEAR END:      JUNE

 

INSURANCE BROKERS:          

 

MARSH INSURANCE BROKERS (previously ALEXANDER FORBES)

 

 

TRADE REFERENCES – JANUARY 2006

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                                             PATTERN

 

1.    2002             R3 500 000    R   200 000 -   30 days    30 days        Excellent

                                               R2 200 000

 

2.    30 years       R7 800 000    R2 000 000      60 days    60 days        Excellent

                                               c/l

 

3.    10 years       R2 000 000    R1 000 000        7 days      7 days        Excellent

                                               c/l

 

TRADE REFERENCES – MARCH 2007

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT          PATTERN

 

1.    40 years       R4 200 000    R1 800 000 -    60 days    60 days        Good

                          c/l                 R2 000 000

 

2.    2001             R3 000 000    R1 000 000      30 days    30 days        Very Good

                                               c/l

 

3.    10 years       R2 000 000    R1 000 000      7 days      7 days          Very Good

                                               c/l

 

 

TRADE REFERENCES – APRIL 2008

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT          PATTERN

 

1.    Old acc        R2 000 000    R   200 000       7 days      7 days        Good

 

2.    Old acc        R6 000 000    R4 000 000      60 days    60 days        Very Good

 

3.    2001             R3 000 000    R1 000 000 -    30 days    30 days        Good

                                               R1 500 000

 

 

TRADE REFERENCES – JULY 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R2 000 000    R   200 000-    7 days      7 days          Very Good

                                               R2 000 000

 

2.a  5+ years       R2 000 000    R1 400 000      60 days    30 days        Excellent

                          c/l

 

2.b  5+ years       R7 980 000    R2 300 000      60 days    30 days        Excellent

                          c/l

 

3.    Awaiting for a fax trade reference

 

TRADE REFERENCES – FEBRUARY 2013

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±15 years     R6 500 000    R3 000 000-     7 days      7 days          Excellent

                          c/l                 R6 000 000      Ins. Lombard Insurance

 

2.    5 years         Confidential   Confidential    30 days    30 days        Very Good

                         

 

2.    4 years         open             R200 000-       30 days    30 days        Excellent

                                               R700 000

 

 

TRADE REFERENCES – NOVEMBER 2013

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1999             R6 000 000    R1 500 000      14 days    14 days        Very Good

 

2.    +3 years       R5 000 000    Declined         30 days    30 days        Very Good

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +5 years       R15 000 000   R2 000 000-     30 days    30 days        Very Good

                          Insured:         R6 000 000

                          CGIC             (Jan – June: Winter months only)

 

2.    ±7 years       Open             R  400 000      30 days    15/30 days   Excellent

 

3.    New account.  No payments as yet.

     

     

COMMENTS

 

This is a well-established company quoted on the JSE LTD.  The subject is not a general credit seeker locally, however, is meeting its local commitments timeously and one commitment within terms. 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.19

UK Pound

1

Rs.98.65

Euro

1

Rs.78.63

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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

 

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.