MIRA INFORM REPORT

 

 

Report No. :

304344

Report Date :

24.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SML EUROPE LIMITED

 

 

Formerly Known As :

SML LABELS & PACKAGING LIMITED

 

 

Registered Office :

Unit 1, Arkwright Road, Corby, Northamptonshire, Nn17 5ae

 

 

Country :

United Kingdom

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

15.10.1998

 

 

Com. Reg. No.:

03650355

 

 

Legal Form :

Private Limited With Share Capital

 

 

Line of Business :

·         engaged in global apparel branding and packaging group of companies serving an international clientele consisting of top fashion brands and some of the largest retailers in the world

·         Engaged in Manufacturing other wearing apparel

·         Engaged in Manufacturing other wearing apparel and accessories

·         A group engaged in the supplies of woven labels, trims and other accessories to the garment industry.

·         Subject product ranges includes Woven and Printed Fabric Labels, RFID and EAS labels, Heat Transfers, Printed Paper Products, Variable Data Tags And Labels, Packaging & Specialty Trims

 

 

No of Employees :

199 (31.12.2013)

 


 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

United Kingdom

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

United Kingdom ECONOMIC OVERVIEW

 

The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced public ownership. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, are key drivers of British GDP growth. Manufacturing, meanwhile, has declined in importance but still accounts for about 10% of economic output. After emerging from recession in 1992, Britain's economy enjoyed the longest period of expansion on record during which time growth outpaced most of Western Europe. In 2008, however, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Falling home prices, high consumer debt, and the global economic slowdown compounded Britain's economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets; these included nationalizing parts of the banking system, temporarily cutting taxes, suspending public sector borrowing rules, and moving forward public spending on capital projects. Facing burgeoning public deficits and debt levels, in 2010 the CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated a five-year austerity program, which aimed to lower London's budget deficit from about 11% of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George OSBORNE announced additional austerity measures through 2017 largely due to the euro-zone debt crisis. The CAMERON government raised the value added tax from 17.5% to 20% in 2011. It has pledged to reduce the corporation tax rate to 21% by 2014. The Bank of England (BoE) implemented an asset purchase program of Ł375 billion (approximately $605 billion) as of December 2013. During times of economic crisis, the BoE coordinates interest rate moves with the European Central Bank, but Britain remains outside the European Economic and Monetary Union (EMU). In 2012, weak consumer spending and subdued business investment weighed on the economy, however, in 2013 GDP grew 1.4%, accelerating unexpectedly in the second half of the year because of greater consumer spending and a recovering housing market. The budget deficit is falling but remains high at nearly 7% and public debt has continued to increase.

 

 

Source : CIA


Note:

The Subject Company Name has been changed from SML LABELS & PACKAGING LIMITED to SML EUROPE LIMITED on the 29 December 2004.

 

Company identification

 

SML EUROPE LIMITED

Telephone

+44 015 3640 8408

 

UNIT 1

Fax

+44 015 3640 8381

ARKWRIGHT ROAD

Website

www.sml.com  

CORBY

NORTHAMPTONSHIRE

NN17 5AE

United Kingdom

Company Number:        03650355

 

Foundation:           15/10/1998

Status:

 

VAT No:

Active - Accounts Filed

 

N/A

 

 

 

Comments    

 

This company’s return on total assets employed ratio indicates a highly efficient use of assets. The company has more cash than short term bank borrowings.

 

This company’s ratio of total liabilities to total assets indicates that assets are funded through debt rather than equity.

 

This company has been treated as a Large company in respect of the rating/limit generated. This company has made late payments on a medium percentage of invoices. This company trades in an industry with a moderate level of corporate failures.           

 

 

Basic information

 

Legal form

Private limited with Share Capital

 

 

Foundation

15/10/1998

 

 

Company No.

03650355


Previous Names

Date of Change Previous Name

29/12/2004                    SML LABELS & PACKAGING LIMITED

05/11/1999                    SML MANUFACTURING LIMITED

 

Shareholders

Name

Currency

Number of shares

Share type

Nominal value

SML GROUP LTD

GBP

500,000

ORDINARY

1

Total Share Capital                                                                                              GBP 500,000

 

Management

 

Directors

Name

Address:

Date of birth

Nationality

Appointment date

Mr Chin Sing Mak

Block J, 2/f Fu Cheung Centre, 5 - 7 Wong Chuk Yeung Street, Fotan, Shatin, Hong Kong

03/11/1955

Chinese

15/10/1998

Mr King Wah Ho

Block A, 3/f, Fu Cheung Centre, 5-7 Wong Chuk Yeung Street, Fotan, Shatin, Hong Kong

26/03/1959

Chinese

27/10/1999

 

Company Secretary

Name

Address:

Appointment date

Mr Chin Sing Mak

Block J, 2/f, Fu Cheung Centre, 5 - 7 Wong Chuk Yeung Street, Fotan, Shatin, Hong Kong

13/10/2000

 

Other Known Addresses

Unit 1, Arkwright Road, Willowbrook North Industrial Estate, Corby, Northamptonshire NN17 5AE

 

Company relationships

Name                                                   Status                          Country           

Ultimate Parent            

SML GROUP HOLDINGS LTD                      Other                            KY       

 

 

Business activities

 

Main activity

Principal Activity

A group engaged in the supplies of woven labels, trims and other accessories to the garment industry.

SIC03

Manufacture other wearing apparel

SIC07

Manufacture of other wearing apparel and accessories n.e.c.

 

 

Product Details

·         Woven and Printed Fabric Labels,

·         RFID and EAS labels,

·         Heat Transfers,

·         Printed Paper Products,

·         Variable Data Tags and Labels,

·         Packaging & Specialty Trims

 

 

Economic data

 

Turnover and Employees

Date of Accounts

Turnover

Employees

31/12/2011

GBP 25,281,000

165

31/12/2012

GBP 24,097,000

159

31/12/2013

GBP 27,336,000

199

 

Banks

Bank Name

Bank Branch Sort Code

HSBC BANK PLC

40-32-04

 

Auditor

Auditor name

PRICEWATERHOUSECOOPERS LLP

 

Events

 

Company history

 

Date                                  action

15/10/2010

New Accounts Filed

15/10/2010

New Accounts Filed

27/11/2010

Annual Returns

22/09/2011

New Accounts Filed

19/11/2011

Annual Returns

01/12/2011

New Board Member Mr K.W. Ho appointed

31/07/2012

New Accounts Filed

31/07/2012

New Accounts Filed

14/11/2012

Annual Returns

29/10/2013

Annual Returns

02/11/2013

New Accounts Filed

02/11/2013

New Accounts Filed

07/07/2014

New Accounts Filed

07/07/2014

New Accounts Filed

07/11/2014

Annual Returns

 


 

Mortgages

Charge created

04/07/2000

 

Charge registered

05/07/2000

 

Status

OUTSTANDING

Entitled person

HSBC ASSET FINANCE (UK) LIMITED AND HSBC EQUIPMENT FINANCE (UK) LIM- ITED

 

Secured amount

ALL MONIES DUE OR TO BECOME DUE FROM THE COMPANY TO THE CHARGEE ON ANY ACCOUNT WHATSOEVER

Mortgage detail

ALL THE CHATTELS PLANT MACHINERY BEING MUSONIC ULTRASONIC LABEL CUTTING MACHINES/NO. 1/265

 

County Court Judgments (CCJs)                                                                                                                

There are no County Court Judgments listed against this company

 

 

Accounts

 

Profit & Loss

 

31/12/2013

52

GBP

Group: Yes

31/12/2012

52

GBP

Group: Yes

31/12/2011

52

GBP

Group: Yes

31/12/2010

52

GBP

Group: Yes

Turnover

27,336,000

24,097,000

25,281,000

27,844,000

Cost of Sales

13,349,000

11,183,000

11,963,000

14,680,000

Gross Profit

13,987,000

12,914,000

13,318,000

13,164,000

Wages And Salaries

6,924,000

5,997,000

6,069,000

6,503,000

Operating Profit

3,436,000

3,362,000

3,141,000

2,495,000

Depreciation

509,000

694,000

694,000

709,000

Audit Fees

131,000

122,000

174,000

126,000

Interests Payments

2,000

0

1,000

11,000

Pre Tax Profit

2,687,000

3,309,000

3,614,000

2,738,000

Profit After Tax

1,441,000

2,872,000

3,477,000

2,224,000

Retained Profit

1,441,000

3,712,000

3,522,000

2,224,000

 

Balance Sheet

 

31/12/2013

52

GBP

Group: Yes

31/12/2012

52

GBP

Group: Yes

31/12/2011

52

GBP

Group: Yes

31/12/2010

52

GBP

Group: Yes

Tangible Assets

3,316,000

1,991,000

3,262,000

3,353,000

Intangible Assets

1,460,000

1,512,000

916,000

1,285,000

Total Fixed Assets

4,776,000

3,503,000

4,178,000

4,638,000

Stock

1,507,000

1,083,000

1,538,000

1,484,000

Trade Debtors

3,049,000

2,225,000

3,173,000

3,301,000

Cash

2,364,000

1,903,000

3,220,000

2,871,000

Other Debtors

22,185,000

20,261,000

14,854,000

12,257,000

Miscellaneous Current Assets

0

0

0

0

Total Current Assets

29,105,000

25,472,000

22,785,000

19,913,000

Trade Creditors

1,947,000

1,314,000

1,482,000

1,644,000

Bank Loans and Overdraft

0

0

0

118,000

Other Short Term Finance

41,301,000

38,889,000

40,667,000

40,747,000

Miscellaneous Current Liabilities

2,962,000

2,630,000

2,552,000

3,348,000

Total Current Liabilities

46,210,000

42,833,000

44,701,000

45,857,000

Bank Loans and Overdrafts LTL

553,000

422,000

183,000

223,000

Other Long Term Finance

0

0

0

0

Total Long Term Liabilities

553,000

422,000

183,000

105,000

Capital & Reserves

 

31/12/2013

52

GBP

Group: Yes

31/12/2012

52

GBP

Group: Yes

31/12/2011

52

GBP

Group: Yes

31/12/2010

52

GBP

Group: Yes

Called Up Share Capital

500,000

500,000

500,000

500,000

Sundry Reserves

371,000

414,000

485,000

517,000

 

Other Financial Items

 

31/12/2013

52

GBP

Group: Yes

31/12/2012

52

GBP

Group: Yes

31/12/2011

52

GBP

Group: Yes

31/12/2010

52

GBP

Group: Yes

Net Worth

-14,342,000

-15,792,000

-18,837,000

-22,696,000

Working Capital

-17,105,000

-17,361,000

-21,916,000

-25,944,000

Total Assets

33,881,000

28,975,000

26,963,000

24,551,000

Total Liabilities

46,763,000

43,255,000

44,884,000

45,962,000

Net Assets

-12,882,000

-14,280,000

-17,921,000

-21,411,000

 

Cash Flow

 

31/12/2013

52

GBP

Group: Yes

31/12/2012

52

GBP

Group: Yes

31/12/2011

52

GBP

Group: Yes

31/12/2010

52

GBP

Group: Yes

Net Cash Flow from Operations

2,428,000

775,000

704,000

-2,086,000

Net Cash Flow before Financing

462,000

-1,280,000

506,000

-2,577,000

Net Cash Flow from Financing

-2,000

0

-7,000

2,540,000

Increase in Cash

461,000

-1,317,000

349,000

0

 

Miscellaneous

 

31/12/2013

52

GBP

Group: Yes

31/12/2012

52

GBP

Group: Yes

31/12/2011

52

GBP

Group: Yes

31/12/2010

52

GBP

Group: Yes

Capital Employed

-12,329,000

-13,858,000

-17,738,000

-21,306,000

 

Financial Ratios

Name                                                                          31/12/2013     31/12/2012     31/12/2011     31/12/2010           

 

Pre Tax Profit Margin

9.83 %

13.73 %

14.30 %

9.83 %

Current Ration

0.63

0.59

0.51

0.43

Sales or Net Working Capital

-1.60

-1.39

-1.15

-1.07

Gearing

-4.29 %

-2.96 %

-1.02 %

-1.04 %

Equity

-39.73 %

-52.00 %

-68.80 %

-92.03 %

Creditor Days

25.92

19.84

21.33

21.49

Debtor Days

40.59

33.60

45.68

43.15

Liquidity or Acid test

0.59

0.56

0.47

0.40

Return on Capital Employed

-21.79 %

-23.87 %

-20.37 %

-12.85 %

Return on Total Assets Employed

7.93 %

11.42 %

13.40 %

11.15 %

Current Debt Ratio

-3.58 %

-2.99 %

-2.49 %

-2.14 %

Total Debt Ratio

-3.63 %

-3.02 %

-2.50 %

-2.14 %

Stock Turnover Ratio

5.51 %

4.49 %

6.08 %

5.32 %

Return on Net Assets Employed

-20.85 %

-23.17 %

-20.16 %

-12.78 %

 

 

Remarks

The financial statement  reports  turnover has increased but with reduced net profits. The balance sheet a weak financial position with a continuing and reducing deficit in the P & L Account Reserve and in shareholder’s funds. Based on this information the company appears to be trading in an insolvent position. Remains to be seen how the company trades in the financial year ended December 2014

 

Net Profit Year Ended 31/12/2013 – 1,441,000GBP

Net Profit Year Ended 31/12/2012 – 3,712,000GBP

 

Activity: engaged in global apparel branding and packaging group of companies serving an international clientele consisting of top fashion brands and some of the largest retailers in the world

 

Trading Address Confirmed: Unit 1,  Arkwright Road, Corby, Northamptonshire, NN17 5AE

 

Branches: worldwide

 

Employees: 199

 

Bank: HSBC Bank PLC

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

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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