MIRA INFORM REPORT

 

 

Report Date :

13.10.2014

 

IDENTIFICATION DETAILS

 

Name :

STALCOR (PTY) LTD

 

 

Formerly Known As :

KMG STEEL SERVICE CENTRES (PTY) LTD

 

 

Registered Office :

Cnr Linton Jones and Brammer Street, Industrial East, Germiston Gauteng, Private Bag X303, Isando 1600

 

 

Country :

South Africa

 

 

Date of Incorporation :

10.10.2006

 

 

Com. Reg. No.:

2006/031549/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Distributing of Steel, Aluminium, Stainless Steel and Carbon Steel.

 

 

No. of Employees :

160

 

 

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

 

STALCOR (PTY) LTD

                                                

Formerly: KMG STEEL SERVICE CENTRES (PTY) LTD the name having been changed in December 2011.

Formerly:  KULUNGILE METALS GROUP (PTY) LTD the name having been changed on 10 June 2010.

Formerly: KMG HOLDINGS (PTY) LTD the name having been changed on 01 August 2007.

Formerly: NEWSHELF 847 (PTY) LTD the name having been changed on 07 June 2007.

 

 

PHYSICAL ADDRESS

 

Cnr Linton Jones and Brammer Street

Industries East

GERMISTON

Gauteng

 

 

POSTAL ADDRESS

Private Bag X303

ISANDO

1600

 

 

TELEPHONE NUMBER

 

+27 11 871 6900

 

 

FAX NUMBER

 

+27 11 873 9455

 

It was stated by the respondent that the subject moved from Block E, Bayer Campus, 27 Wrench Road, Isando in July 2011 and the subject no longer utilises the Postal Address P O Box 75167, GARDENVIEW, 2047

 

The previous division: BALDWINS STEEL was purchased by ROBOR (PTY) LTD

 

 

SHAREHOLDERS

 

100%    BLACKSTAR INVESTORS SE (Registered in Malta)

 

Shareholding changed and was previously:

 

50%      + 1 Share BLACKSTAR GROUP SE (Registered in Malta)

50%      SUNQUEST TRUST (made up of STALCOR management)

 

The respondent stated that the shareholding changed in July 2011 and was previously:

 

99%      BLACKSTAR INVESTORS (PTY) LTD

01%      D BROCK

 

The Shareholding was previously 75% BLACKSTAR INVESTMENTS (PTY) LTD, 10 % EXECUTIVE MANAGEMENT and 15% EMPLOYEES SHARE TRUST.

 

The respondent stated that THE BLACKSTAR GROUP SE has an AIM listed classification on the London Stock Exchange and is also listed on the JSE LTD.

 

 

ASSOCIATE COMPANIES

 

GLOBAL ROOFING SOLUTIONS (PTY) LTD t/a H H ROBERTSON and BROWNBUILD

HELM ENGINEERING (PTY) LTD

 

DIRECTORS:

 

(MS) J D COPPIN                                                                                                                                              ID No.                                                             5808200031087

C W DU PLESSIS                                                                                                                                             ID No.                                                             7610155197089

M C LOUW (ne)                                                                                                                                                             ID No.                                                        5211235059084

G L ODGERS (ne)                                                                                                                                             ID No.                                                             5311125065082

R P MIOT (M/D)                                                                                                                                                             ID No.                                                        6501275136084

A D BONAMOUR                                                                                                                                              ID No.                                                             7107045161086

W MARSHALL-SMITH                                                                                                                                        ID No.                                                             7803055109086

C J RANSOME (Chairman)                                

                                                                   ID No.                                             6212035138085

 

 

BANKERS

 

FNB, The Rose Branch. Account Number: 62334323087 (Deposit Account). It was stated that the subject does not require overdraft facilities as credit balances are normally maintained at the bank.

 

The subject no longer banks with ABSA BANK, Eloff Street Branch. Account number: 4055232785.

 

 

DATE REGISTERED

 

10 October 2006

Registration Certificate Number 2006/031549/07

 

It was stated by the respondent that the assets and operations of KULUNGILE METALS (PTY) LTD (Reg. No. 2001/013173/07) were incorporated into the new KULUNGILE METALS GROUP (PTY) LTD.  The former KULUNGILE METALS (PTY) LTD then changed its name to KMG HOLDINGS (PTY) LTD (Reg. No. 2001/013173/07).

 

STALCOR was previously a division of DORBYL MARINE (PTY) LTD and on

1 February 2002 there was a management buyout of the STALCOR division and the operations were divisionalised under KULUNGILE METALS (PTY) LTD.  At the same time, BALDWINS STEEL, a division of DORBYL LTD, was also divisionalised into KULUNGILE METALS (PTY) LTD.  On 13 May 2003 the stock, assets and operations as well as the customer base of ABKIN’S STEEL SERVICES (PTY) LTD were divisionalised into KULUNGILE METALS (PTY) LTD.

 

Respondents at the subject stated that the legal entity of ABKINS STEEL SERVICES (PTY) LTD and ABKINS STEEL CORPORATION (PTY) LTD are dormant and that they are still owned by the previous shareholders, SPEEDROLL INDUSTRIAL (PTY) LTD. 

 

 

VAT NUMBER

 

4620236770

 

 

TAX NUMBER

 

9172612161

 

 

BEE STATUS

 

Level 8 contributor

 

 

MAJOR OPERATION

 

Distributing of steel, aluminium, stainless steel and carbon steel.

 

 

MAJOR SUPPLIERS

 

The subject imports approximately 10% of its supplies

 

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

 

The engineering sector, construction, petrochemical industry, mining industry, manufacturing industry and the steel industry in general

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Occasionally to neighbouring countries

 

 

TOTAL EMPLOYEES

 

±160 (having increased from 140 reported in February 2013) 

 

As at September 2011 there was a reduction of 220 staff from 587 and prior to    this a further reduction of staff took place from an original compliment of 1 000 in December 2009

 

 

OTHER PREMISES

 

The subject has a depot in Pinetown and a small branch in Durban with a branch in Cape Town.

 

 

OWNED OR LEASED

 

The premises in Durban and Cape Town are reported to be leased while the property in Germiston is owned by BLACKSTAR.

 

 

AUTHORISED SHARE CAPITAL 

 

2 610 000 ordinary shares of R0, 01 cent each.

 

 

ISSUED SHARE CAPITAL

 

2 040 600 ordinary shares of R0,01 cent each.

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 13 March 2014:

 

STOCK                                                                                                     R  95 000 000

DEBTORS                                                                                                 R  80 000 000

CREDITORS                                                                                              R  55 000 000

TURNOVER per annum                                                                             ±R700 000 000

 

The respondent stated that the BALDWIN STEEL DIVISION was sold in May 2011 resulting in the decrease in turnover per annum from R886 000 000 stated in our report of September 2012 to the current turnover per annum figure.

 

 

AUDITORS

 

BDO

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS

 

MARSH INSURANCE BROKERS

 

 

TRADE REFERENCES – SEPTEMBER 2006

 

      ACCOUNT    HIGHEST      AVERAGE     TERMS       PAYMENT  EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    3 Years        open acc       R    30 000     30 days       30 days       Good

 

2.    5 Years        R   300 000    R   150 000-   30 days       30 days       Good

                                               R   200 000

 

3.    Old acc        R1 000 000    R1 000 000    30 days       30 days       Good

 

 

TRADE REFERENCES – MAY 2007

 

      ACCOUNT    HIGHEST      AVERAGE     TERMS       PAYMENT  EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    30 Years       declined        declined        30 days       30 days       Excellent

 

2.    14 Years       R72 000 000   R23 000 000   30 days       30 days       Excellent

                                                                   2.5%           2.5%

 

3.    20 Years       declined        R10 000 000-  30 days       30 days       Excellent

                                               R15 000 000   2.5%           2.5%

 

TRADE REFERENCES – OCTOBER 2007

 

      ACCOUNT    HIGHEST      AVERAGE     TERMS       PAYMENT  EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    Old acc        declined        declined        30 days       30 days       Very good

 

2.    20 Years       declined        R20 000 000-  30 days       30 days       Excellent

                                               R23 000 000

 

3.    Old acc        R500 000       R     250 000  30 days       30 days       Very good

 

TRADE REFERENCES – FEBRUARY 2008

 

      ACCOUNT    HIGHEST      AVERAGE     TERMS       PAYMENT  EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    Old acc        declined        R20 000 000   30 days       30 days       Very good

 

2.    Old acc        declined        declined        30 days       30 days       Very good

 

3.    10 Years       open acc       R     200 000  30 days       30 days       Very good

 

 

TRADE REFERENCES – SEPTEMBER 2008

 

      ACCOUNT    HIGHEST      AVERAGE     TERMS       PAYMENT  EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    10 Years       declined        large amount  30 days       30 days       Very good

 

2.    Do not give trade references

 

3.    Old acc        declined        declined        30 days       30 days       Good

 

4.    20 Years       declined        R30 000 000   30 days       30 days       Excellent

                                               R35 000 000

 

TRADE REFERENCES – JANUARY 2009

 

      ACCOUNT    HIGHEST      AVERAGE     TERMS       PAYMENT  EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    Old Acc        R684 000       R684 000       30 days       30 days       Good

 

2.    Old Acc        R580 000       R280 000 -     30 days       30 days       Very Good

                          c/l                 R300 000       (last purchase Oct 2008)

 

3.     Do not give trade references.

 

4.     Closed for Christmas until 12th January 2009.

 

 

TRADE REFERENCES – DECEMBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        R3 000 000    undisclosed    15/30        15/30            Excellent

                                                                     days         days

(Have 8/9 different accounts. All have different credit limits and terms. Highest is
R3 000 000)

 

2.    20-30 years   undisclosed   ±R6 000 000    30 days    30 days        Very Good

 

3.    Old acc        undisclosed                         30 days    30 days        Very Good

 

 

TRADE REFERENCES – JUNE 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old              undisclosed   R  5 000 000-   30 days    30+ days      Average

                                               R10 000 000

 

2.    Do not give trade reference

 

3.     Do not give trade reference

 

4.     Old              undisclosed   R10 000 000+  30 days    30 days        Very Good

 

 

TRADE REFERENCES – SEPTEMBER 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade reference

 

2.    Do not give trade reference

 

3.     Do not give trade reference

 

4.     Old acc        declined        figures            30 days    30 days        Very good

 

 

TRADE REFERENCES – SEPTEMBER 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    +10 Years     Declined        Declined         30 days       30 days       Very good

 

2.    16 Years       R75 000 000   R17 000 000    30 days       30 days       Excellent

 

3.    Do not give trade references.  Insured with Credit Guarantee.

 

4.    +1995           Declined        Declined         30 days       30 days       Very good

                                      Insured CGIC                       2½% disc

 

TRADE REFERENCES – FEBRUARY 2013

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    17 years       R76 000 000   R17 000 000    30 days       30 days       Excellent

                          CGIC                                                      Less 2.5%

 

2.    Do not give trade references

 

3.    Do not give trade references

 

 

TRADE REFERENCES – MARCH 2014

 

       ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

       OPENED      CREDIT         CREDIT                             PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    Do not give trade references

 

4.    Do not give trade references

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    Do not give trade references

 

4.    Do not give trade references

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

(These descriptions relate respectively by number to the above current trade transactions):

 

1.    All suppliers are major steel and stainless steel companies.         

 

                         

COMMENTS

 

This is an established company that took over the assets and operations of an established business. In view of the standing of the subject, it is considered equal to its normal business engagements, however, the lack of an established payment pattern should be borne in mind.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

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.