MIRA INFORM REPORT

Report No. :	317254
Report Date :	21.04.2015

IDENTIFICATION DETAILS

Name :	BOLTON FOOTWEAR (PTY) LTD
Registered Office :	Charles Street, Great Brak River, Western Cape
Country :	South Africa
Date of Incorporation :	14.10.1949
Com. Reg. No.:	1949/035036/07
Legal Form :	Private Company
Line of Business :	Manufactures Industrial And Civilian Footwear
No of Employees :	+1 500, having increased from ±1 200 reported in May 2009

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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.

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

BOLTON FOOTWEAR (PTY) LTD

Formerly SEARLES INDUSTRIALS LTD, the name having been changed on 22 July 1987;

Formerly SEARLES TIMBERS (PTY) LTD, the name having been changed on 6 September 1977;

Formerly FOREST HILL SAWMILLS (PTY) LTD, the name having been changed on 29 September 1969.

TRADING DIVISIONS

WATSON CIVILIAN DIVISION (SHOES) (incorporating the Ladies Footwear division in 2001)

BAGSHAW FOOTWEAR, (industrial footwear manufacturers)

Address

PHYSICAL ADDRESS

Head Office:

Charles Street

GREAT BRAK RIVER

Western Cape

POSTAL ADDRESS

P O Box 1

GREAT BRAK RIVER

6525

TELEPHONE NUMBER: +27 44 620 2111

FAX NUMBER: +27 44 620 2378

With reference of the physical address, 2 Paterson Road, North End, Port Elizabeth, is the physical address for the subject’s factory based in Port Elizabeth.

Please note that OUDTSHOORN FOOTWEAR was incorporated into the LADIES FOOTWEAR division, which was in turn incorporated into the WATSON CIVILIAN division in 2001.

It was stated that the assets and operations of the BAGSHAW GIBAUD division have been incorporated into a sister company, BBF SAFETY GROUP (PTY) LTD (Registration Certificate Number: 2014/095914/07) effective as of 1 April 2015.

The subject converted from a public company to a private company on 26 February 2001.

SHAREHOLDERS

100% CARGO CARRIERS HOLDINGS (PTY) LTD

(Registration Certificate Number: 1969/012377/07)

The Shareholding was previously 74,13% BOLTON INDUSTRIAL HOLDINGS LTD; 8,5% W J D I SCOTT; 3,1% BOLTON FOOTWEAR SHARE TRUST and 1,39% STANDARD BANK NOMINEES TVL (PTY) LTD, having been changed in December 2000.

SUBSIDIARY COMPANIES

BAGSHAW FOOTWEAR (PTY) LTD (dormant)

Registration Certificate Number: 1973/003683/07

FIBAFABS (PTY) LTD (property owning company)

Registration Certificate Number: 1969/008867/07

WATSON SHOES (PTY) LTD (dormant)

Registration Certificate Number: 1969/009829/07

BBF SAFETY GROUP (PTY) LTD

Registration Certificate Number: 2014/095914/07

Plus other companies in the group.

DIRECTORS

G D BOLTON ID No. 5511155016000

M J BOLTON ID No. 5709065046006

S G CHILVERS ID No. 3406055019000

H A FLEETWOOD ID No. 5811195013003

J P KRIEL ID No. 5807095153089

M J LOUW ID No. 5106105065007

BANKERS

FIRST NATIONAL BANK and ABSA CORPORATE BANK. It was stated that the divisions are managed by a cash management scheme controlled by the treasury department of the subject.

DATE REGISTERED

14^th October 1949

Registration Certificate Number: 1949/035036/07

BOLTON FOOTWEAR (PTY) LTD has been operating since 1860. The subject was previously an unquoted public company and converted to a private company in February 2001.

VAT NUMBER

4610104632 (It was stated that this VAT number is utilised by all divisions)

TAX NUMBER

9350001716

BBBEE STATUS

Level 8 contributor

MAJOR OPERATION

The subject manufactures industrial and civilian footwear.

MAJOR SUPPLIERS

The subject imports shoes and leather from Brazil and the Far East and also deals with local suppliers. An email was forwarded to the respondent requesting for further supplier information. To date there has been no response.

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

Shoe stores, chain stores etc plus Government Departments

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Occasionally to Europe

TOTAL EMPLOYEES

+1 500, having increased from ±1 200 reported in May 2009.

OTHER PREMISES

The subject has factory premises in Port Elizabeth and in Oudtshoorn. It was stated that the heading premises consist of administration offices and a factory.

OWNED OR LEASED

All the premises are reported to be owned by the company with an insured value in the region of R68 000 000, book value approximately R15 000 000. All the premises are reported to be free of bond.

FINANCIALS

Full financial information was not forthcoming from the respondent at the subject and outside authorities were unable to assist in this regard.

AUDITORS: MOORE STEVENS

YEAR END: FEBRUARY

INSURANCE BROKERS: ALEXANDER FORBES INSURANCE BROKERS

TRADE REFERENCES - SEPTEMBER 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc R 90 000 R 40 000 - 60 days 60 days Very Good

R 70 000

2. Old acc R425 000 R200 000 30 days 30 days Excellent

R300 000

3. Old acc R150 000 R 80 000 - 30 days 30 days Excellent

R100 000

TRADE REFERENCES – AUGUST 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. ±15 years R 425 000 R 150 000 30 days 30 days Very good

2.5%

2. 1986 R 100 000 R 60 000 60 days 60 days Good

3. 1993 R2 000 000 R1 500 000 30 days 30 days Very good

TRADE REFERENCES – MARCH 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 years R420 000 R100 000 - 30 days 30 days Excellent

R250 000 2.5% 2.5%

2. Old acc R 90 000 R 10 000± 60 days 60 days Good

3. Do not give trade references

4. Old acc C.O.D Very good

TRADE REFERENCES – DECEMBER 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 yrs R425 000 R200 000- 30 day 30 days Excellent

c/l R250 000 2.5% 2.5%

2. Do not give trade references

3. C.O.D account

TRADE REFERENCES-MAY 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years+ confidential R 150 000 30 days 30 days Excellent

2. No such client on record

3. 15 years R2 500 000 R1 000 000 - 7/25 7/25 days Excellent

c/l R4 600 000

4. Awaiting a fax trade reference

TRADE REFERENCES – APRIL 2015:

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. This is a COD account on request by the supplier’s preference. This is a good account.

3. 1993 Declined Declined 7 days 7 days Very Good

4. +10 years R400 000 R400 000 30 days 30 days Very Good

CURRENT TRADE REFERENCES – WATSON SHOES:

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1992 R600 000 R180 000- 30 days 30 days Very Good

R470 000 -2.5%

2. Old account N/A Declined C.O.D C.O.D Very Good

3. 1993 Declined Declined 7/27 days 7/27 days Very Good

4. +10 years R200 000 R50 000 60 days 30 days Excellent

NATURE OF GOODS OR SERVICES SUPPLIED

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

1. Nails, panel pins etc

2. Clearing agent

3. Transport services

5. Shoe laces

COMMENTS

This is a well-established division of a very well-established and well-connected company. The division is meeting its commitments timeously and highly considered by its suppliers. In view of the standing of the company, the WATSON SHOES division is considered equal to a maximum figure of €35 000 over 30 days. The lack of financial information should however be borne in mind.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.56
UK Pound	1	Rs. 93.56
Euro	1	Rs. 67.49

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	DPT

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%)

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