MIRA INFORM REPORT

 

 

Report No. :

323023

Report Date :

27.05.2015

 

IDENTIFICATION DETAILS

 

Name :

WACO AFRICA (PTY) LTD

 

 

Formerly Known As :

  • WACO SOUTH AFRICA (PTY) LTD
  • SA OPCO (PTY) LTD
  • BUSINESS VENTURE 1624 (PTY) LTD

 

 

Registered Office :

Building 2 Harrowdene Office Park Western Service Road Woodmead Sandton Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

04.01.2012

 

 

Com. Reg. No.:

2012/000665/07

 

 

Legal Form :

Private company

 

 

Line of Business :

Subject is engaged in erection and hire and dismantling of scaffolding and providing of industrial maintenance surfaces e.g. painting thermal installations. 

 

 

No. of Employee :

Approximately 3 800

 

 

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 :

Unknown

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 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. The global financial crisis reduced commodity prices and world demand, and GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly, with 2014 growth less than 2%. 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, has built two new power stations and installed 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 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 those plants come on line. 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. 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

 

WACO AFRICA (PTY) LTD

 

Formerly:  WACO SOUTH AFRICA (PTY) LTD the name having been changed on 20 July 2012

Formerly: SA OPCO (PTY) LTD, the name having been changed on 30 May 2012

Formerly: BUSINESS VENTURE 1624 (PTY) LTD, the name having been changed on 10 May 2012

 

 

TRADING DIVISIONS

 

FORM-SCAFF

SGB-CAPE

SANITECH

ABACUS MODULAR

SKY JACKS

 

Foreign Branches

 

SGB-CAPE ZAMBIA

SGB-CAPE NAMIBIA

FORM-SCAFF NAMIBIA

FORM-SCAFF SWAZILAND

FORM-SCAFF ZAMBIA

SGB-CAPE GHANA

 

 

REGISTERED ADDRESS

 

Building 2

Harrowdene Office Park

Western Service Road

WOODMEAD

Sandton

Gauteng

 

 

PHYSICAL ADDRESS

 

Head Office:

 

181 Barbara Road

ELANDSFONTEIN

Gauteng

 

POSTAL ADDRESS

 

P O Box 669

ISANDO

1600

 

TELEPHONE NUMBER:            +27 11 461 1400

 

FAX NUMBER:                          +27 11 461 1450

 

WEBSITE ADDRESS:               www.wacoafrica.com

 

EMAIL ADDRESS:                    markt@wacoint.co.za

 

 

SHAREHOLDERS

 

74.9%                           WACO SA SECURITY (PTY) LTD

 

(Registration Certificate Number: 2012/012663/07) which in turn is 100% owned by WACO INTERNATIONAL HOLDINGS (PTY) LTD (Registration Certificate Number: 2012/002104/07)

 

25.1%                           BOPA MORUO

 

The shareholding had changed and was previously:

 

74.9%                           WACO SA SECURITY (PTY) LTD

 

(Registration Certificate Number: 2012/012663/07) which in turn is 100% owned by WACO INTERNATIONAL HOLDINGS (PTY) LTD (Registration Certificate Number: 2012/002104/07)

 

25.1%                           KAGISO STRATEGIC INVESTMENTS (PTY) LTD (BEE PARTNER) (Registration Certificate Number: 2002/032033/07)

 

 

ASSOCIATE COMPANIES

 

100%    WACO SA SECURITY (PTY) LTD

74.9%   WACO AFRICA (PTY) LTD (owned by WACO SECURITY (PTY) LTD

(Registration Certificate Number: 2012/000665/07) with the divisions of:

 

FORM-SCAFF (Registered in Ghana)

SGB-CAPE

SANITECH

 

ABACUS MODULAR

WACO MOZAMBIQUE LIMITADA (Registered in Mozambique)

WACO TANZANIA (PTY) LTD (Registered in Tanzania)

 

WACO AFRICA EQUIPMENT RENTAL LTD (dormant)

(Registration Certificate Number: 1938/011914/06)

EDGLEN LTD (dormant)

(Registration Certificate Number: 1969/004829/06)

GLEN ANIL DEVELOPMENT CORPORATION LIMITED (PTY) LTD (dormant)

(Registration Certificate Number: 1954/002774/06)

GLEN ANIL INVESTMENTS (PTY) LTD (dormant)

(Registration Certificate Number: 1949/034907/07)

FORM-SCAFF (PTY) LTD (Registered in South Africa), which has a foreign branch FORM-SCAFF MAURITIUS

FORM-SCAFF SWAZILAND (PTY) LTD (Registered in Swaziland) (dormant)

 

Foreign Branches of WACO AFRICA (PTY) LTD:

 

SGB-CAPE ZAMBIA

SGB-CAPE NAMIBIA

FORM-SCAFF NAMIBIA

FORM-SCAFF SWAZILAND

FORM-SCAFF ZAMIBIA

 

Australasian Operations:

 

100%    WACO SA SECURITY (PTY) LTD (A subsidiary of WACO INTERNATIONAL HOLDINGS (PTY) LTD

100%    KWIKFORM ACQUISITION HOLDINGS (PTY) LTD

(Registration Certificate Number: ACN 157779961)

100%    WACO KWIKFORM AUSTRALIA (Registered in Australia)

(Registration Certificate Number: ABN 48002835369)

100%    WACO KWIKFORM LEASING (PTY) LTD (Registered in Australia)

(Registration Certificate Number: ABN 98073932135) (dormant)

100%    APL KWIKFORM (PTY) LTD (Registered in Australia)

(Registration Certificate Number: ABN 65010795785) with 2 branches :

                       

APL NEW ZEALAND

 

UNITED SCAFFOLDING NEW ZEALAND)

 

ASSOCIATE COMPANIES: continued

 

UK Operations:

 

PIPES UK (HOLDINGS) (PTY) LTD (Registered in England)

WACO UK HOLDINGS LIMITED (Registered in England)

WACO MOLULAR BUILDINGS UK LTD (Registered in England)

WACO UK LIMITED (Registered in England)

FORM-SCAFF CHILE S.A. (Registered in Chile)

WACO MODULAR UK LTD (Registered in England)

INTERLINK SUPPORT SERVICES LTD (Registered in England) (dormant)

INTERLINK BUILDING SYSTEMS (Registered in England) (dormant)

 

Please see the organograms attached.

 

 

DIRECTORS

 

M G ELS                       (CEO)                                       ID No.   6802215108088

S J M GOODBURN       (Chairman)                                ID No.   6307095021088

P D NGCOBO                                                               ID No.   6512245560089

S P BURNETT                                                               ID No.   6206010749080

G M SLABBERT            (Alternate to M G ELS)              ID No.   6507295160087

B TLHABANELO                                                            ID No.   7702285362087

M R TOWLER                                                                ID No.   6002075146084

N D KHOELE                                                                ID No.   7207025328083

           

 

BANKERS

 

STANDARD BANK, Sandton Branch.  Main Account Number: 023244569.  Branch Code: 019205.  It was stated that there are approximately 20 – 30 bank accounts held at the STANDARD BANK for the different divisions and group companies.  It was stated that the subject enjoys overdraft facilities, however, the extent was not stated.  The security held for the overdraft facilities is pledge of assets.  The utilisation of the overdraft is to the full.  The group is managed by a cash management scheme controlled by M TOWLER, the Company Secretary, at the holding company.

 

 

DATE REGISTERED

 

4 January 2012

Registration Certificate Number:2012/000665/07

 

WACO AFRICA (PTY) LTD was established in March 2012, utilising a shelf entity styled BUSINESS VENTURE INVESTMENTS NO 124 (PTY) LTD for registration purposes and incorporated the assets and operations of WACO AFRICA 2005 (PTY) LTD, (Registration Certificate Number: 2005/038286/07), into the concern. In May 2002 the name changed to WACO SA (PTY) LTD and in July 2012 to the current name.

 

WACO AFRICA 2005 (PTY) LTD is now dormant.

 

 

VAT NUMBER

 

4320260534      

 

 

TAX NUMBER

 

9257083197

 

 

BBBEE STATUS

 

Level 2 contributor

 

 

MAJOR OPERATION

 

SGB-CAPE does erection and hire and dismantling of scaffolding and providing of industrial maintenance surfaces e.g. painting thermal installations.  SANITECH sanitation supplying toilets as well as the maintenance thereof.

 

ABACUS MODULAR supplies rooms and buildings, as well as the manufacturing distribution being selling and renting, as well as the installation of these rooms and buildings.

 

FORM-SCAFF rents out scaffolding.

 

 

MAJOR SUPPLIERS

 

It was stated that the subject imports steel from Asia, which is in turn manufactured in South Africa.  It was stated that each division has 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

 

Construction industry, construction companies and industry in general.  The largest contract that the subject has at present is the ESKOM MODUPE POWER STATION which is approximately 70 – 80 % of their turnover.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Southern Africa doing the service and hiring of equipment etc.

 

 

TOTAL EMPLOYEES

           

Approximately 3 800, as well as approximately between 2 500 to 4 000 labour brokers.

 

 

OTHER PREMISES

 

The divisions of FORM-SCAFF have approximately 50 branches, SGB-CAPE has 30 branches.  SANITECH has 25 branches and ABACUS MODULAR has 8 branches, as well as the foreign branches, which numbers are included in the operating divisions. 

 

 

OWNED OR LEASED

 

The head office premises are reported to be leased while 80% of the branch premises are reported to be leased and 20% of the branch premises are owned by WACO AFRICA (PTY) LTD and valued in the region of R20 000 000 to R25 000 000 and mortgaged in favour of STANDARD BANK. 

 

 

FINANCIALs

 

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

 

 

AUDITORS

 

KPMG Johannesburg

 

 

FINANCIAL YEAR END

 

JUNE

 

 

INSURANCE BROKERS

 

AON INSURANCE BROKERS

 

 

CURRENT TRADE REFERENCES

 

Not available as each division has its own suppliers

 

 

COMMENTS

 

This is a recently established company which took over the assets and operations of a well-established company. In the absence of a comprehensive payment pattern and key financial information, we find we are unable to comment on a maximum figure.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.84

UK Pound

1

Rs.98.38

Euro

1

Rs.69.64

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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.