MIRA INFORM REPORT
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Report No. : |
350527 |
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Report Date : |
30.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
EDCON LTD |
|
|
|
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Registered Office : |
Edgardale Press
Avenue Crown Mines Johannesburg 2092 |
|
|
|
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Country : |
South Africa |
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|
|
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Date of Incorporation : |
05.02.2007 |
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|
|
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Com. Reg. No.: |
2007/003525/06 |
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Legal Form : |
Public Company (Ltd) |
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Line of Business : |
The subject operates through its retail divisions;
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No. of Employee : |
20,000 |
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|
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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 : |
Slow but correct |
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|
|
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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) |
|
South Africa |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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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 |
General Comments
This is a well-established business
which forms part
of a large and well-connected Group of Companies.
In view of the standing of the subject, it is considered equal to its normal business engagements. The lack of a confirmed comprehensive trade survey
for the subject should, however, be borne
in mind.
COMPANY INFORMATION
OVERVIEW
|
History |
A dormant company was utilised and the name
changed to EDCON
(PTY) LTD to take over the assets and operations
formerly trading under the company, EDGARS CONSOLIDATED STORES LIMITED, (formerly EDGARS STORES LIMITED) the previous operating company in the group which originally
commenced operations in 1929
and which is
now the holding company of the
subject. The subject then converted to
a public limited company in 2013. |
|
|
Major Operations or Business Sectors |
The subject operates through its subsidiary which are involved in retailers of:
clothing, footwear,accessories, home
textile, stationery, books and magazines. |
|
|
Industry |
Consumer Goods Retail |
|
STATUTORY INFORMATION
|
Registered Name |
EDCON LTD |
|
|
Previous Names |
ELEPHANT RETAILCO (2007/05/09); MAIN STREET 547
(2007/04/24); |
|
|
Division |
DIVISIONS: EDGARS, EDGARS SHOE GALLERY, DISCOM , CNA, BOARDMANS,
PRATO, RED SQUARE, TEMPTATIONS and EDGARS ACTIVE. |
|
|
Registration Number |
2007/003525/06 |
|
|
Type of Company |
Public Company (Ltd) |
|
|
Registration Date |
05/02/2007 |
|
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Commercial Status |
In Business |
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CONTACT DETAILS
|
Contact
Number +27 11 495 6000 |
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|
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Email
Address |
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|
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Fax
Number |
+27
11 837 5019 |
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|
Website |
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|
|
Social
Media Presence |
|
|
|
Registered
Physical Address |
EDGARDALE 1
PRESS AVENUE CROWN MINES 2092 |
|
|
Trading
Physical Address |
Edgardale
Press Avenue Crown Mines Johannesburg 2092 |
|
|
Postal
Address |
P
O BOX 100 CROWN MINES 2025 |
|
TAX
INFORMATION
|
Income
Tax Number |
9388966153 |
|
VAT
Number |
4460236773 |
|
AUDITORS
INFORMATION |
|
|
Name |
DELOITTE |
|
|
Contact Person |
ANDRE DENNIS |
|
|
Contact Number |
+27 11 209 8659 |
|
INSURANCE BROKER INFORMATION
|
Insurance
Broker Name AON INSURANCE BROKERS |
|
|
|
|
|
Contact
Number +27 114956849 |
|
OWNERSHIP
STRUCTURE
SHAREHOLDING
INFORMATIO
|
Ultimate
Holding Company Name |
Ultimate
Holding Company Share (%) |
|
Edcon Holdings (Pty) Ltd (85% of which is held by Edcon (BC)
SARL in Luxemburg, the remaining 15% are held by 8 trusts, including a BEE
staff empowerment trust) |
100% |
|
Holding
Company Name |
Holding
Company Share (%) |
|
EDGARS CONSOLIDATED STORES LIMITED |
100% |
ASSOCIATED COMPANIES
|
Company Nam |
Relationship |
|
Edcon Kenya (Pty) Ltd |
Subsidiary (100%) - dormant |
|
National Security Corporation
(Pty) Ltd, SA |
Subsidiary (100%) |
|
Rosyco Retail (Pty) Ltd |
Partnership (50.1%) |
|
United Retail Ltd SA |
Sister Company - de-
registration |
|
Edgars Stores (Pty) Ltd,
Swaziland |
Subsidiary (100%) |
|
R22 Properties (Pty) Ltd, SA |
Subsidiary (100%) - dormant |
|
Edgars Stores Ltd, Namibia |
Subsidiary (100%) |
|
Cosyor Retail (Pty) Ltd |
Partnership (50.1%) |
|
Topics (Pty) Ltd |
Subsidiary (100%) - dormant |
|
Jet Supermarkets Zambia Ltd,
Zambia |
Subsidiary (100%) |
|
Edgars Stores Lt, Zimbabwe |
Subsidiary via Bellfield
(39.08% |
|
Rapid Dawn 132 (Pty) Ltd, SA |
Subsidiary (100%) - dormant |
|
Quinmatro Retail (Pty) Ltd |
Partnership (50.1%) -Dormant |
|
Jetcon Mart Ltd, Ghana |
Subsidiary (100%) |
|
Edcon Finco (Pty) Ltd, SA |
Subsidiary (100%) dormant |
|
Edgars Stores (Pty) Ltd,
Lesotho |
Subsidiary (100%) |
|
Jet Supermarkets Botswana (Pty)
Ltd, Botswana |
Subsidiary (100%) |
|
Securex Security Services (Pty)
Ltd |
Subsidiary (100%) |
|
Celrose (Pty) Ltd, SA |
Subsidiary (55%) |
|
Bellfield Ltd, UK |
Subsidiary (100%) - Investment
holding company |
|
Central News Agency (Pty) Ltd,
Swaziland |
Subsidiary (100%) - Dormant and in the process of de-
registration |
General
Comments
A number
of Asian registered companies which were
not named, however,
it was stated that certain of these had been registered to do the sourcing for the group companies. The respondent at the
company stated that there had been a Scheme of Arrangement, however,
PRINCIPAL INFORMATION PRINCIPAL DETAILS
|
Full Name |
ID No. |
Designation |
Status |
Date of Appoint-
ment |
Active Interests |
Prev. Interests |
Judg- ments |
Fraud Listing |
|
VIKISI,
CHARLES MZWANDILE |
7508145347089 |
|
Active |
01/10/2008 |
18 |
0 |
0 |
0 |
|
CLERCKX,
TOON |
EK108610 |
|
Active |
17/02/2014 |
7 |
0 |
0 |
0 |
|
BROOKERS,
BERNARD JOSEPH |
PE0377911 |
CEO |
Active |
30/08/2015 |
1 |
0 |
0 |
0 |
|
FERNDALE,
URIN |
6501035147082 |
COO |
Active |
14/05/2007 |
17 |
1 |
0 |
0 |
|
DANIELS,
ROANNE BLYTHE |
2606196900000 |
|
Active |
09/09/2015 |
1 |
0 |
0 |
0 |
|
BAGLEY,
ELIZABETH ANN |
5008060055082 |
|
Resigned |
14/05/2007 |
0 |
0 |
0 |
0 |
|
PETERS,
JACQUES THEODOR CARL |
6707205017001 |
|
Resigned |
05/02/2007 |
0 |
0 |
0 |
0 |
|
BOWER,
MARK RICHARD |
5503195093081 |
|
Resigned |
14/05/2007 |
0 |
0 |
0 |
0 |
|
JURGEN,
SHREIBER |
6202070000000 |
|
Resigned |
01/04/2011 |
2 |
1 |
0 |
0 |
|
ROSS,
STEPHEN MICHAEL |
5202220000000 |
|
Resigned |
14/05/2007 |
10 |
4 |
0 |
0 |
|
BINNIE,
STEPHEN ROBERT |
6706195631086 |
|
Resigned |
14/05/2007 |
0 |
0 |
0 |
0 |
|
ZIDE,
STEPHEN |
600314 |
|
Resigned |
17/04/2007 |
2 |
4 |
0 |
0 |
ACTIVE BUSINESS INTERESTS: CHARLES MZWANDILE VIKISI
|
Company Name |
Registration No. |
Business Status |
Principle Status |
Judgments |
|
BOOKWISE |
1968/014327/07 |
AR
Final deregistration |
Active |
0 |
|
C
N A PROPERTIES |
1940/014082/06 |
AR
Final deregistration |
Active |
0 |
|
CELROSE |
2006/033124/07 |
In
Business |
Active |
0 |
|
EDCON
ACQUISITION |
2007/000518/07 |
In
Business |
Active |
0 |
|
EDCON
FINCO |
2007/003444/07 |
In
Business |
Active |
0 |
|
EDCON
HOLDINGS |
2006/036903/06 |
In
Business |
Active |
0 |
|
EDCON
RETAIL ACADEMY |
2008/019063/07 |
Deregistration
Final |
Active |
0 |
ACTIVE BUSINESS INTERESTS:
TOON CLERCKX
|
Company Name |
Registration No. |
Business Status |
Principle Status |
Judgments |
|
CELROSE |
2006/033124/07 |
In
Business |
Active |
0 |
|
EDC
PROSPER FINANCIAL SERVICES |
2014/146910/07 |
In
Business |
Active |
0 |
|
EDCON
ACQUISITION |
2007/000518/07 |
In
Business |
Active |
0 |
|
EDCON
HOLDINGS |
2006/036903/06 |
In
Business |
Active |
0 |
|
NEWSHELF
1303 |
2015/166641/07 |
In
Business |
Active |
0 |
|
NEWSHELF
1304 |
2015/166657/07 |
In
Business |
Active |
0 |
ACTIVE BUSINESS INTERESTS: URIN FERNDALE
|
Company Name |
Registration No. |
Business Status |
Principle Status |
Judgments |
|
BOOKWISE |
1968/014327/07 |
AR
Final deregistration |
Active |
0 |
|
C
N A PROPERTIES |
1940/014082/06 |
AR
Final deregistration |
Active |
0 |
|
EDC
PROSPER FINANCIAL SERVICES |
2014/146910/07 |
In
Business |
Active |
0 |
|
EDCON
HOLDINGS |
2006/036903/06 |
In
Business |
Active |
0 |
|
EDCON
RETAIL ACADEMY |
2008/019063/07 |
Deregistration
Final |
Active |
0 |
|
PEOPLES
STORES (BOPHUTHATSWANA) |
1980/070133/07 |
Deregistration
Final |
Active |
0 |
|
R
22 PROPERTIES |
1990/005720/07 |
In
Business |
Active |
0 |
|
SUPER
MART |
1991/000472/07 |
Voluntary
Liquidation |
Active |
0 |
|
TOPICS |
1955/000568/07 |
In
Business |
Active |
0 |
|
UNIT
11 CASA DIVA BUCCLEUCH |
1998/063013/23 |
In
Business |
Active |
0 |
|
UNIT
3 CASA DIVA BUCCLEUCH |
1998/060955/23 |
In
Business |
Active |
0 |
ACTIVE BUSINESS INTERESTS: URIN FERNDALE
|
Company Name |
Registration No. |
Business Status |
Principle Status |
Judgments |
|
UNIT
4 CASA DIVA BUCCLEUCH |
1998/031102/23 |
In
Business |
Active |
0 |
|
UNIT
5 CASA DIVA BUCCLEUCH |
1998/060940/23 |
In
Business |
Active |
0 |
|
UNIT
9 CASA DIVA BUCCLEUCH |
2002/019758/23 |
In
Business |
Active |
0 |
|
UNITED
RETAIL |
1946/020392/06 |
Deregistration
Final |
Active |
0 |
|
W
M CUTHBERT AND CO |
1925/008279/06 |
Deregistration
Final |
Active |
0 |
PREVIOUS BUSINESS INTERESTS: URIN FERNDALE 
|
Company Name |
Registration No. |
Business Status |
Principle Status |
Judgments |
|
1946/022751/06 |
In
Business |
Resigned |
1 |
BANK ACCOUNT VERIFICATION
|
Verified |
Yes |
|
|
Bank Name |
FIRST NATIONAL BANK |
|
|
Account Holder |
EDCON LTD |
|
|
Account Number |
50451135360 |
|
Operations
Major Operations
|
Major Business Activities |
The subject operates
through its retail divisions; EDGARS: Is the
leading retailer of clothing, footwear, textiles, cosmetics, accessories and
cellular products in Southern Africa, with a wide assortment for everyone
including local and international brands, as well as Edgars private label
brands. RED SQUARE: Is a
speciality store with the widest range of national and international beauty,
fragrance, cosmetics and skincare brands. BOARDMANS: Aims to
provide the most complete home - living solution in the shopping mall, focusing
on bedroom, bathroom, kitchen and home décor ranges for the discerning buyer. EDGARS ACTIVE: Is a
speciality store based on youthful lifestyle and brand conscious customers
offering a selection of active and lifestyle clothing, footwear, accessories
and cellular products across a wide range of aspirational, but affordable
international brands. MONO-BRANDED STORES:
Edcon brings iconic international brands through exclusive licences to the
South African customer. These brands are found in Mono-branded stores and/or
select Edgars stores around the country. JET: Is a discount
CFTA format selling fashion as well as cellular products to the entire
family. JETMART: Is a
discount general merchandise format anchored in the Jet range, but expanded to
include home, DIY, appliances and beauty products. LEGIT: Is an edgy
fashion store format selling clothing, footwear and accessories for the
trendy aspirational young woman. CNA: Is the leading retailer of reading, writing, listening, learning and communication consumables to middle and upper income families in Southern Africa. CNA is also expanding its range of everyday hi-tech electronics and mobile products. |
|
Foreign Trade Activities |
The subject exports to neighboring countries, e g Botswana, Lesotho, Kenya, Namibia, Ghana, Swaziland, Zambia and Mozambique. Information about the annual value was declined. |
|
Major Suppliers |
Information was declined. |
|
Major Customers |
General public. |
|
Major Brands |
Not disclosed. |
Branch
Information
Area of Distribution
South Africa
as the core market but also: Botswana, Lesotho, Kenya, Namibia, Ghana, Swaziland, Zambia, Zimbabwe
EMPLOYEES
|
Salaried Employees |
0 |
|
Waged Employees |
0 |
|
Total Permanent Employees |
20,000 |
|
Casual Employees |
0 |
|
Contracted Employees |
0 |
General
Comments
Edcon
has approx. 1 300 branches accross SA (CNA - 195 stores, JET - 347 stores, JET MART
- 123 stores, LEGIT - 186 stores, EDGARS - 186 stores, RED SQUARE - 39
stores,
BOARDMANS - 34 stores, EDGARS ACTIVE - 137 stores)
FINANCING
TERMS
|
Sales
Terms |
Cash, |
|
|
Overdraft |
The
subject has substantial facilities available at the Firstrand National Bank. |
|
|
Debtors
Ceded |
Although
the subject has store credit cards, the subject's book was sold to ABSA Bank
in 2012 and they carry all the debt for the subject. |
|
|
Year
End |
March |
|
FINANCIAL FIGURES
Currency Zar
Actual numbers, 000’ or mio Actual Numbers
Comment
For financial information on the group please
see attached Audited
Consolidated and Company Annual Financial Statements on the ultimate
holding company for the period ended 28 March 2015 on page 44 and 45.
The consolidated figures reflect a negative
current ratio, a negative equity
and the group has operated
at a loss for the past few years.
Nevertheless, the size of the overall group
enables it in principle to bear substantial losses
and a negative consumer climate without having
to default.
TRADE REFERENCES
TRADE REFERENCE
ANALYTICS
GENERAL COMMENTS
Comment Not
disclosed
ADMIN DETAILS
INTERVIEWER
|
Researcher |
Inoxico |
|
|
Contact
Tel No. |
+27
10 001 0540 |
|
|
Email |
|
LEGEND
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.75 |
|
|
1 |
Rs.100.68 |
|
Euro |
1 |
Rs.70.88 |
|
ZAR |
1 |
Rs.4.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
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|
Report Prepared
by : |
TRU |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.