MIRA INFORM REPORT

 

 

Report No. :

334255

Report Date :

13.08.2015

 

IDENTIFICATION DETAILS

 

Name :

WOOLWORTHS (PTY) LTD

 

 

Formerly Known As :

STANLEN BUILDINGS (JOHANNESBURG) (PTY) LTD

 

 

Registered Office :

Woolworths House, 93 Longmarket Street, Cape Town, Western Cape 8001

 

 

Country :

South Africa

 

 

Date of Incorporation :

02.03.1956

 

 

Com. Reg. No.:

1956/000518/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

The subject is one of the largest and leading South African retailers offering a range of primarily private label products under its own brand name and also offering quality selected range of clothing, homeware and general merchandise

 

 

No. of Employee :

28 368

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 Africa’s largest and among the top 20 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints that resulted from technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling black outs were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved.

South Africa's economic policy has focused on controlling inflation; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

 

Source : CIA

 

COMPANY NAME

 

WOOLWORTHS (PTY) LTD

 

Formerly: WOOLWORTHS HOLDINGS (PTY) LTD,

the name having changed on 6 July 1993

Formerly: TRUPROP ELOFF STREET (PTY) LTD,

the name having changed on 22 February 1988

Formerly: STANLEN BUILDINGS (JOHANNESBURG) (PTY) LTD,

the name having changed on 2 March 1956

 

 

TRADING NAME

 

WOOLWORTHS

 

 

PHYSICAL ADDRESS

 

Woolworths House

93 Longmarket Street

CAPE TOWN

Western Cape

8001

 

 

POSTAL ADDRESS

 

P O Box 680

CAPE TOWN

8000

 

 

TELEPHONE NUMBER

 

+27 21 407 9111

 

 

FAX NUMBER

 

+27 21 407 3995

WEBSITE ADDRESS

 

www.woolworths.co.za

 

 

SHAREHOLDERS

 

100%    WOOLWORTHS HOLDINGS LIMITED (Quoted on the JSE LTD)

(Registration Certificate Number: 1929/001986/06)

 

 

ASSOCIATE COMPANIES

 

E-COM INVESTMENTS 16 (PTY) LTD (Investment Holding)

WOOLWORTHS DEVELOPMENT (PTY) LTD (Property Development)

 

WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 50% less 1 share (Joint Venture) WOOLWORTHS HOLDINGS LTD and 50% plus 1 share BARCLAYS AFRICA GROUP LTD.

 

 

SUBSIDIARY COMPANIES

 

UNIVERSAL PRODUCT NETWORKS (PTY) LTD (LOGISTICS)

(Registration Certificate Number: 1999/024569/07)

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)

COUNTRY ROAD LTD (quoted on the Australian Stock Exchange) (Retailing) having leading brands:  Country Road, Trenery, Witchery and Mimco

DAVID JONES of Australia

 

Plus other companies in the WOOLWORTHS GROUP

 

 

DIRECTORS

 

MS Z RYLANDS (Exe Dir & MD Food)               ID No:   6411100181083

M F ISAACS (Group FD)                                    ID No:   6811155256088

I MOIR (Australian) (Group CEO)                        Ppt No: E3078698

S D NGUMENI (Exe Dir & COO)                         ID No:   6807315513087

P ALLAWAY                                                     ID No:   n/a

 

 

BANKERS

 

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.

 

 

DATE REGISTERED

 

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.

 

VAT NUMBER:              4550102216

 

TAX NUMBER:              9487806714

 

BEE STATUS:              Level 3 contributor

 

 

MAJOR OPERATION

 

The subject is one of the largest and leading South African retailers offering a range of primarily private label products under its own brand name and also offering quality selected range of clothing, homeware and general merchandise in South Africa.  The subject has a wide range of perishable, long life and non-food products.  Brands carried are WOOLWORTHS, STUDIO W, RE and JT ONE.

 

 

MAJOR SUPPLIERS

 

The subject imports most of its supplies and also purchases from companies within South Africa.  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

 

General public and the retail industry

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

The subject has franchises as well as outlets in countries in Africa and one in the Middle East

 

 

TOTAL EMPLOYEES

 

28 368

 

 

OTHER PREMISES   

 

The subject is reported to have 633 full line stores with Clothing and Food, stand-alone food and clothing stores as well as Large Food super markets and Engen Forecourts in South Africa, Africa and the Middle East with distribution centres in Cape Town, Durban and Johannesburg.

 

 

OWNED OR LEASED

 

The heading premises are reported to be leased, while some of the branch premises are leased and some are owned.

 

 

AUTHORISED SHARE CAPITAL

 

100 ordinary shares of R2 each

 

 

ISSUED SHARE CAPITAL

 

100

 

 

FINANCIALS

 

Please see attached Group figures for Woolworths Holdings Limited.

 

 

AUDITORS

 

ERNST AND YOUNG Cape Town

 

 

YEAR END

 

JUNE

 

 

INSURANCE BROKERS

 

UNISON RISK MANAGEMENT ALLIANCE INSURANCE BROKERS

 

 

Trade references

 

TRADE REFERENCES – NOVEMBER 2006 :

 

      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

 

TRADE REFERENCES – APRIL 2007:

 

      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

 

TRADE REFERENCES – FEBRUARY 2008:

 

      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

 

TRADE REFERENCES – MAY 2008:

 

      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

 

TRADE REFERENCES – FEBRUARY 2009:

 

      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

 

TRADE REFERENCES – JULY 2009:

 

      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

 

TRADE REFERENCES – SEPTEMBER 2009:

 

      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

 

TRADE REFERENCES – JANUARY 2010:

 

      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)

 

TRADE REFERENCES – SEPTEMBER 2010:

 

      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

 

TRADE REFERENCES – FEBRUARY 2011:

 

      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

 

TRADE REFERENCES­ – MARCH 2011:

 

      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

 

TRADE REFERENCES – JULY 2011:

 

      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

 

TRADE REFERENCES – NOVEMBER 2011:

 

      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

 

 

TRADE REFERENCES – JULY 2012:

 

      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 trade references

 

3.    20 Years    R20 000 000      Not available     As arranged              Excellent

 

TRADE REFERENCES – MAY 2013:

 

      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 acc            Declined       7 days    7 days           Very Good

 

TRADE REFERENCES – APRIL 2014:

 

       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

 

TRADE REFERENCES – JUNE 2014

 

       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

 

TRADE REFERENCES JANUARY 2015:

 

       ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

       OPENED      CREDIT         CREDIT                             PATTERN

 

1.    10 years       R65 000 000   ±R20 000 000  45 days       45 days       Excellent

                          c/l

 

2.    +10 years     Unlimited         R20 000 000  45 days       45 days       Excellent

 

3.    +10 years     Declined          Declined       7 days         7 days         Excellent

 

 

CURRENT TRADE REFERENCES

 

       ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

       OPENED      CREDIT         CREDIT                             PATTERN

 

1.    10 years       R80 000 000   ±R70 000 000  45 days       45 days       Excellent

                         

2.    +10 years     Unlimited         R20 000 000  45 days       45 days       Excellent

 

3.    Many years   Declined          Declined       7 days         7 days         Excellent

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Dairy Products

 

2.    Non-perishable goods

 

3.    Dairy Products                 

 

 

COMMENTS

 

This is a very well-established countrywide operation forming part of a large group of companies meeting its commitments timeously.  The subject is highly regarded by its suppliers and is considered equal to its normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.83

UK Pound

1

Rs.101.00

Euro

1

Rs.71.82

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.