MIRA INFORM REPORT

 

 

Report Date :

29.10.2014

 

IDENTIFICATION DETAILS

 

Name :

REUNERT LTD

 

 

Formerly known As :

REUNERT & LENZ LTD

 

 

Registered Office :

Lincoln Wood Office Park 6-10 Woodlands Drive Woodmead Sandton Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

29.12.1913

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is Designer & manufacturer of electronic time, point detonating and proximity fuses.

 

 

No. of Employees :

6200

 

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

 

FUCHS ELECTRONICS (PTY) LTD

 

 

PHYSICAL ADDRESS    

 

Combrink Street

ALRODE

Alberton

Gauteng

 

 

POSTAL ADDRESS        

 

P O Box 57

ALBERTON

1450

 

On investigation it was established that the subject is an agency agreement company and has an agency agreement with its holding company, REUTECH LTD, which in turn is a division of REUNERT LTD, which report should be consulted.

 


 

COMPANY NAME

 

REUNERT LTD

(Quoted on the JSE LTD)

 

 Formerly: REUNERT & LENZ LTD, the name     having been changed on 11 March 1983

 

 

TRADING DIVISIONS

 

CIRCUIT BREAKER INDUSTRIES LTD

NASHUA LIMITED

NASHUA ELECTRONICS (PTY) LTD

FUCHS ELECTRONICS (PTY) LTD T/A REUTECH FUCHS ELECTRONICS

 

The above companies have agency agreements with the subject.  The companies are dormant and their operations are divisions of the subject

 

 

PHYSICAL ADDRESS

 

Lincoln Wood Office Park

6-10 Woodlands Drive

Woodmead

SANDTON

Gauteng

 

 

POSTAL ADDRESS   

 

P O Box 784391

SANDTON

2146

 

 

TELEPHONE NUMBER:             +27 11 517 9000

 

FAX NUMBER:                          +27 11 804 5997

 


 

SHAREHOLDERS

 

13.09% P I C (PUBLIC INVESTMENT COMMISSIONER)

10.00% ALLAN GRAY INVESTMENTS COUNCIL

  7.00% OLD MUTUAL GROUP

 

Plus other investors on the stock exchange

 

The shareholding changed and was previously:

 

15.6%   P I C (PUBLIC INVESTMENT COMMISSIONER)

  9.2%   BARGANEL

  9.5%   NASHUA MOBILE (PTY) LTD

 

Plus other investors on the stock exchange

 

 

SHAREHOLDERS

 

continued

 

The shareholding changed and was previously:

 

17.5%   P I C

16.1%   BARGANEL

11.4%   PUBLIC INVESTMENT COMMISSIONER

  9.6%   NASHUA MOBILE (PTY) LTD

  9.4%   LIBERTY LIFE ASSOCIATION OF AFRICA

  7.9%   STANLIB ASSET MANAGER

     6%  OLD MUTUAL ASSET MANAGERS

 

Shareholding changed, having previously been 27,6% OLD MUTUAL ASSET MANAGERS, 19,6% PUBLIC INVESTMENT COMMISSIONER,13.6% INVESTEC ASSET MANAGEMENT and 13.6% POLARIS CAPITAL (PTY) LTD.

 

Shareholding changed, having previously been 12.3% OLD MUTUAL ASSET MANAGERS, 10.1% PUBLIC INVESTMENT COMMISSIONER and 9,4% BARGENEL (PTY) LTD

 

WHOLLY OWNED SUBSIDIARY COMPANIES:

 

CIRCUIT BREAKER INDUSTRIES LTD (100%)

HEINEMANN HOLDINGS LTD (100%)

CIRCUIT BREAKER INDUSTRIES GMBH (100%)

CIRCUIT BREAKER INDUSTRIES INC (USA) (100%)

AFRICAN CABLES LTD (100%)

AFCAB HOLDINGS (PTY) LTD (100%) (dormant)

ATC (PTY) LTD (74.9%)

REUTECH ENGINEERING SERVICES (PTY) LTD (100%)

NASHUA LTD (100%)

KOPANO COPIER COMPANY (PTY) LTD (74%)

ROYCE IMAGING INDUSTRIES (PTY) LTD (100%)

QUINCE CAPITAL (PTY) LTD (16%) (previously  RC & C FINANCE COMPANY (PTY) LTD)

NASHUA CONNECT (PTY) LTD

NASHUA MOBILE (PTY) LTD (100%)

PAN SOLUTIONS (100%) previously REUNERT CONSUMER AND COMMERCIAL HOLDINGS LTD

PANSOLUTIONS (PTY) LTD (100%) (dormant)

FUTRONIC (PTY) LTD (100%) (dormant)

RC & C (PAROW FACTORY) PROPERTIES (PTY) LTD  (100%)

SACO SYSTEMS LTD in the UK (100%) (dormant)

SACO SYSTEMS (PTY) LTD (100%) (dormant)

ACUO TECHNOLOGIES (PTY) LTD  (100%)

FUCHS ELECTRONICS (PTY) LTD (100%)

REUTECH (PTY) LTD (100%) (dormant)

REUTECH DEFENCE INDUSTRIES (PTY) LTD (100%)

REUTECH SOLUTIONS (PTY) LTD (70%)

REUTECH RADAR SYSTEMS (PTY) LTD (57%)

REUNERT FINANCE COMPANY LTD (100%) (dormant)

REUNERT MANAGEMENT SERVICES LTD (100%)

 

Plus other companies within the REUNERT group.

 

 

DIRECTORS

 

S D JAGOE (Non-Executive)                               ID No.   5106095102083

N D B ORLEYN                                                 ID No.   5601130746084

T S MUNDAY (Chairman)                                   ID No.   4909125087088

T J MOTSOHI                                                    ID No.   4711095572085

R VAN ROOYEN                                               ID No.   4901235054082

S G PRETORIUS                                               ID No.   4802155062081

N C KROG                                                        ID No.   6906060017086

A E DICKSON                                                   ID No.   7012145091086

S MARTIN                                                         ID No.   7203190106081

M A R TAYLOR                                                 ID No.   6306155018083

T ABDOOL-SAMAL                                            Newly Appointed

 

 

BANKERS

 

The main account is held at NEDBANK, Corporate Branch. Respondents at the company stated that the subject enjoys substantial overdraft facilities unsecured. Utilisation is stated to be nil as a credit balance of 9 figures is maintained at the bank. It was stated that the divisions are managed by a cash management scheme controlled by the subject.

 

The subject also banks with STANDARD CORPORATE AND MERCHANT BANK.

 

 

DATE REGISTERED

 

29 December 1913

Registration Certificate Number: 1913/004355/06

 

Established in 1888, the company was the creation of Theodore Reunert, an enterprising young engineer from Leeds, and Otto Lenz, an export salesman.  Their initial business was as the agency for John Fowler and Company of Leeds, suppliers of traction engines, plows and later locomotives.  Over the years they held many other agencies.

 

In the late 90’s the group, once again, entered a restructuring process streamlining its very diverse businesses into more focused operations.  Since the restructuring began in 1997, various non-core or unprofitable businesses were disposed of or closed.

 

 

VAT NUMBER

 

Each separate division has its own VAT Number Confirmed at SARS)

 

FUCHS ELECTRONICS Division VAT Number: 4710105349

CBI divisions                                          VAT Number: 4120117488

NASHUA LTD                                        VAT Number: 4890115779

 

TAX NUMBER:                                      9100101717

 

 

MAJOR OPERATION

 

Designer & manufacturer of electronic time, point detonating and proximity fuses.

 

The subject is listed on the JSE Ltd in the electronic and electrical engineering sector.  It manages a number of businesses focused on electronics and electrical engineering.  The subject is involved in the design & manufacture of electronic time.

 

The companies in the REUNERT group are focused specifically on electronics and electrical engineering.

MAJOR SUPPLIERS:

 

Each division is reported to have its own 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

 

Industry in general

 

AREA OF DISTRIBUTION AND SELLING:            South Africa

 

EXPORTS:                                                        Worldwide

 

TOTAL EMPLOYEES:                                        6200

 

 

OTHER PREMISES   

 

The subject’s group and subsidiary companies are situated countrywide.

 

 

OWNED OR LEASED

 

The head office premises are reported to be leased.  Some of the other premises are owned while others are leased.

 

 

FINANCIALS

 

For full financial information please see the attached group integrated financials as at 30 September 2013.

 

AUDITORS:                               DELOITTE & TOUCHE, Johannesburg

 

YEAR END:                              SEPTEMBER

 

INSURANCE BROKERS:           MARSH INSURANCE BROKERS

 


 

TRADE REFERENCES – OCTOBER 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±20 years     open acc        R   800 000-    30 days    30 days        Excellent

                                               R1 000 000

 

2.    10 years       open acc        declined          30 days    30 days        Very Good

 

3.    14 years       open acc        R1 000 000      30 days    30 days        Very Good

                                               Up to

 

 

TRADE REFERENCES – NOVEMBER 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years+     R1 200 000    R   500 000-    30 days    30 days        Good

                          c/l                 R1 200 000

 

2.    10 years+     R   100 000    R   100 000     30 days    30 days        Very Good

 

3.    10 years+     R3 000 000    R1 500 000-     30 days    30 days        Excellent

                          c/l                 R2 000 000

 

 

TRADE REFERENCES – JANUARY 2011

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Deals on a cash on delivery basis

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    15 years       R1 000 000    R   100 000     30 days    30 days        Very Good

 

2.    15 years       open              declined          30 days    30 days        Very Good

 

3.    unable to obtain a trade reference

 

 

TRADE REFERENCES – MAY 2014

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±10 years     R1 500 000    R   630 000     30 days    30 days        Excellent

                          Insured: CGIC 2.5%

 

2.    Awaiting fax trade reference

 

3.    25 years       Open             R   700 000     30 days    30 days        Very Good

 

4.    Do not give trade references

 

5.    Awaiting email trade reference

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Suppliers of steel              

                         

3.    Coils and harnessing         

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±20 years     Open acc       R1 000 000-     30 days    30 days        Excellent

                                               R2 000 000

 

2.    Awaiting fax trade reference

 

3.    Do not give trade references but excellent account.

 

4.    Do not give trade references

 

5.    Awaiting email trade reference

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Suppliers of steel                                    

 

 

COMMENTS

 

This is a very well established company quoted on the JSE LTD. The subject’s divisions are meeting its one obtainable local commitment timeously and in view of the standing of the subject,

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.25

UK Pound

1

Rs.98.93

Euro

1

Rs.77.92

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.