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Report No. : |
331421 |
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Report Date : |
17.07.2015 |
IDENTIFICATION DETAILS
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Name : |
TUTTNAUER LTD. |
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Formerly Known As : |
NEEV TUTTNAUER & SON LTD |
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Registered Office : |
Har Tuv B, Hesegim Industrial Park, Mateh
Yehuda Regional Council |
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Country : |
Israel |
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Financials (as on) : |
30.09.2009 |
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Year of Establishment : |
1925 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Designers,
manufacturers, importers, marketers and exporters of hospital and laboratory
equipment, scientific equipment for hospitals and laboratories, specializing
in autoclaves for the fields of sterilization, and infection control. |
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No. of Employees : |
400 Employees. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
|
Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC
OVERVIEW
Israel has a technologically advanced market economy. Cut
diamonds, high-technology equipment, and pharmaceuticals are among the leading
exports. Its major imports include crude oil, grains, raw materials, and
military equipment. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year,
led by exports. The global financial crisis of 2008-09 spurred a brief recession
in Israel, but the country entered the crisis with solid fundamentals,
following years of prudent fiscal policy and a resilient banking sector.
Israel's economy also has weathered the Arab Spring because strong trade ties
outside the Middle East have insulated the economy from spillover effects.
Slowing demand domestically and internationally and reduced investment due to
uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP
growth to about 2% during 2014. Natural gas fields discovered off Israel's
coast since 2009 have brightened Israel's energy security outlook. The Tamar
and Leviathan fields were some of the world's largest offshore natural gas
finds this past decade. The massive Leviathan field is expected to come online
no sooner than 2017, but production from Tamar provided a one percentage point
boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. Israel's income inequality and poverty rates are among the highest of
OECD countries and there is a broad perception among the public that a small
number of "tycoons" have a cartel-like grip over the major parts of
the economy. The government formed committees and has started splitting up the
oligopolies to address some of the grievances but has maintained that it will
not engage in deficit spending to satisfy populist demands. Over the long term,
Israel faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
|
Source
: CIA |
TUTTNAUER LTD.
Telephone 972 2 990 46 11; 990
46 00
Fax 972 2 990 47 00
Email: info@tuttnauer.com
Physical
Address
Har Tuv B, Hesegim Industrial Park
MATEH YEHUDA
REGIONAL COUNCIL ISRAEL
Mailing Address
P.O. Box 170
BEIT SHEMSH
9910101 ISRAEL
Originally established as a non-registered
business in 1950 by Late Zeev Tuttnauer, grandfather of Ran Tuttnauer,
continuing activities he founded in
Converted into a private limited company,
under the style ZEEV TUTTNAUER & SON LTD., incorporated as per file No.
51-022893-5 on the 29.01.1960.
In November 1993 published a prospectus
offering shares to the public, raising a sum of NIS 45 million, according to a
company value of US$ 60 million.
In parallel, converted into a public limited
company and registered as such as per file No. 52-004002-3 on the 06.10.1993.
On 31.12.2009, following a successful tender
offer to the public, subject's shares were de-listed from trade, and subject re-converted
to a private limited company (keeping the same latter registration number).
Authorized share
capital NIS 10,000,000.00, divided into -
10,000,000
ordinary shares of NIS 1.00 each, of which 7,331,703 shares amounting to NIS
7,331,703.00 were issued.
Subject is fully
owned by Tuttnauer family (directly, via a held company Y.R.H.T. (1995) LTD.
and via a trust company), headed by Mrs. Hava Tuttnauer and Ran Tuttnauer.
1.
Ran Tuttnauer son of Mrs. Hava and Yehoshua
Tuttnauer, General Manager, born 1961,
2.
Mrs. Hava Tuttnauer, wife of the Late Yehoshua
Tuttnauer (son of Zeev Tuttnauer).
Designers,
manufacturers, importers, marketers and exporters of hospital and laboratory
equipment, scientific equipment for hospitals and laboratories, specializing in
autoclaves for the fields of sterilization, and infection control.
In the autoclave
niche, subject produces “table autoclaves” for clinics, dentists and such, as
well as “industrial autoclaves” for large research institutes, hospitals, food
factories and pharmaceutical industries.
Also importers and
marketers of medical equipment and computer peripherals.
Local agents of
NETZCH-BELIMED.
Subject products
are exported all over the world through subsidiaries in Europe and the U.S.A.
and through local agents in the Far East, Australia and South America.
According to our, export volume comprises some 90% of sales, mostly U.S.A.
Among clients are
hospitals and medical institutions, including universities, e.g. Chicago
University, Cornell University, etc.
Among local
suppliers: MASHAF TECHNICAL SUPPLIES, INTERNATIONAL PROCESS CONTROLS CO., etc.
Operating from
owned premises, offices and plant, on an area of 30,000 sq. meters (on which
built area of 13,000 sq. meters), in the Har Tuv B'1, Hesegim Industrial Park,
in the Regional Council Mateh Yehuda (near Beit Shemesh). Also operating from
branches in the USA (owned premises on an area of 4,000 sq. meters) and Europe
- Netherlands (rented premises on an area of 300 sq. meters).
Having some 400
employees.
Consolidated B/S
shows (last published and last obtainable):
NIS
(thousands)
31.12.2008 30.09.2009
ASSETS
Current assets:
Cash and
cash equivalents 30,290 43,578
Customers 45,730 36,181
Other debtors 6,920 5,798
Stock _74,017 _65,393
156,957 150,950
Non-current
assets:
Prepaid expenses and deferred taxes 8,650 9,512
Fixed assets (net) _67,721 _66,306
_76,371 _75,818
233,328 226,768
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LIABILITIES
Current liabilities
57,703 50,027
Long term
liabilities 27,394 25,437
Equity 148,321 151,304
233,328 226,768
======= =======
Stock was valued
at US$ 25,000,000 in the end of 2011.
Later and other
financial data not forthcoming.
Prior the purchase
offer, subject was valued at NIS 171 million, and the offer for share purchase
was at circa 50% premium.
Subject is an
“Approved Enterprise” and as such enjoys tax benefits and State incentives.
In January 2000
the Israeli Investment Center (IIC) approved a US$ 690,000 investment plan for
the expanding subject’s plant (then it was in Jerusalem).
In June 2002 IIC
approved subject’s plan to expand its plant in Beit Shemesh, for a sum of US$
2.5 million.
There are 9
charges for unlimited amounts registered on the company's assets (financial
assets, fixed assets and equipment), in favor of Bank Leumi Le'Israel Ltd. and
The First International Bank of Israel Ltd. (last charge placed June 2014).
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2006 2007 2008
Sales 209,905 233,219 213,008
Gross profit 87,189 80,704 72,263
Operating income 21,044 19,096 11,810
Profit before tax on income 18,797 17,930 8,309
Net income 18,235 17,979 7,609
====== ====== ======
According to subject's last published financial statements:
Consolidated first 3 quarters of 2009 sales NIS 149,688,000 (a
3.8% decrease compared to the parallel period in 2008), making a gross profit
of
NIS 52,401,000, an operating income of NIS 10,253,000 and a net profit of
NIS 7,986,000.
Subject's CFO updated us on subject's (solo) sales data since
then (in US$):
2009 (whole year) sales were around US$ 57,000,000, 90% of which were
for export.
2010 sales were US$
55,000,000, 90% of which were for export.
2011 sales were
US$ 60,000,000, 90% of which were for export.
2012 sales not
forthcoming.
2013 sales
reported to be circa NIS 250,000,000.
2014 sales
reported to be circa NIS 250,000,000.
Y.R.H.T. (1995)
LTD., 100%,
TUTTNAUER EUROPE
B.V., 100%, Netherlands, marketing company,
TUTTNAUER U.S.A
CO. LTD., 100%, USA, marketing company,
EYTAN ENGINEERING & SERVICES (OF THE
TUTTNAUER GROUP) LTD., 90%, importers and marketers of medical, laboratory and
Uninterruptible Power Supply (UPS) equipment.
Also owned by the
Tuttnauer Family CT TECHNOLOGIES LTD., 50%, developers of control systems for
subject’s products.
Y.R.H.T. (1995)
LTD.
The First
International Bank of Israel Ltd., Kiryat Moshe Branch (No. 114), Jerusalem,
account No. 187100.
Bank Leumi
Le’Israel Ltd., Main Branch (No. 901), Jerusalem, account No. 356000/11.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
Nothing
unfavorable learned.
Despite our
efforts, we were unable to speak with subject's head accountant, who told us he
is very busy.
Subject is
certified for ISO 9001:2000, CE, TUV, ASME,
Subject is a very
veteran business, among the leading in its field, and claims to be one of the
leading 3 companies in the world in the field of infection control, and having
80% market share in Israel in the autoclave field (2011).
Ran Tuttnauer
served during 2009-2010 as the Chairman of the Labor Committee of the
Manufactures Association of Israel.
In March 2002,
subject acquired a sterilization technology from MICROLASER TECHNOLOGY, for a
sum of US$ 100,000.
In 2001, subject
leased (for ages) from the State a plot of 28,000 sq. meters in Beit Shemesh
Industrial Zone for its new premises and plant.
In January 2005,
subject signed a deal to sell its premises in Jerusalem, for a sum of US$ 2.9
million.
During March-May
2005, subject completed the move to its new 13,000 plant in Beit Shemesh, with
total investments of NIS 68 million (including acquired land).
In August 2004,
subject established a new subsidiary in Brazil, with an investment of US$
200,000.
In October 2006,
it was reported that subject will export sterilization devices to medical
institutions in the USA, after winning several tenders in value of US$ 8-10
million.
Israel is
considered one of the leading countries in the world in terms of investment in
the Life Science and Biotechnology industry.
There are some 260
biotechnology companies operating in Israel as of 2015, 220 of which are
Israeli, the rest are subsidiaries of foreign companies. The volume of
investments in R&D in the biotechnology field is around US$ 400 million per
annum, placing Israel 5th in the world in terms of investment in
commercial R&D in biotechnology in respect of the GDP.
As of 2014, there are some 1,100 companies in
the Life Science sector in Israel, of which 70% are in the medical devices
fields, according to the Israel Export Institution estimation.
Export of medical
devices rose by 11% in 2014 from 2013, and summed up to US$ 2 billion.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
Note: Since February
2013 Israel Post has started using a new area code method of 7 digits (the old
method of 5 digits is no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.50 |
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|
1 |
Rs.99.17 |
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Euro |
1 |
Rs.69.39 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.