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MIRA
INFORM REPORT
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Report No. : |
490314 |
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Report Date : |
10.02.2018 |
IDENTIFICATION DETAILS
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Name : |
METAL-TECH LTD. |
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Formerly Known As : |
DAGESH BUSINESS AND PROPERTIES LTD |
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Registered Office : |
P.O. Box 2412, Beer Sheva (8412315)
Neot Hovav Eco Industrial Park Neot Hovav 8551600
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Country : |
Israel |
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Date of Incorporation : |
31.03.1986. |
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Legal Form : |
Private limited company |
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Line of Business : |
Subject is Engaged in producing ceramic powders, metals
and alloys in high purity level, such as: tungsten dust, tungsten carbide,
oxidized tungsten, cobalt, tantalum tungsten-copper alloys and more. The
produced powders are unique and are used for the manufacturing of scarp
metal, cutting tools, working tools, light bulbs, in addition security and
aeronautical products. In addition of strength tungsten has other
characteristics, high specific weigh and melting point, which are also used
for the electricity industry |
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No. of Employees : |
30 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company name and address
METAL-TECH LTD.
Telephone 972 8 650 03 00
Fax 972 8 657 23 34
Email: general@metal-tech.co.il
P.O. Box 2412, BEER SHEVA (8412315)
Neot Hovav Eco Industrial Park
NEOT HOVAV 8551600
ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file No. 51-111639-4 on the
31.03.1986.
Originally registered under the name DAGESH BUSINESS AND PROPERTIES LTD.,
which changed to METEK METAL TECHNOLOGY LTD. on the 21.9.1989, which changed to
METALTEK METAL TECHNOLOGY LTD. on the 3.3.2000. During 2000-2001 subject
switched its name twice again, switching between the latter two names, then
finally on the 24.07.2001 changed to the present one.
In May 2005 published a prospectus offering shares to the public on the
London AIM Stock Exchange, raising a sum of £10.5 million (based on company
value of £50 million), following which converted into a public limited company.
Following a tender offer published by HILLAH CONSULTANTS in September 2012
for the shares held by the public, on the 12.10.2012 shares were delisted from
trade on AIM and later subject re-converted into a private limited company.
(Please refer also to Note at bottom)
SHARE CAPITAL
Authorized share capital NIS 20,000,000.00, divided into -
100,000,000
ordinary shares of NIS 0.20 each,
of which 62,826,328 shares amounting to NIS 13,765.265.60 were issued.
SHAREHOLDERS
Subject is fully owned by Ran Mimon.
Mr. Mimon acquired subject from ISCAR LTD. in the end of 2016.
ISCAR LTD. fully owned subject, after acquiring 51% in mid-2012 for
reported sum of £ 12.8 million and in November 2013 reached full
ownership. According to the Registrar of Companies, on the
16.11.2016 ISCAR exited subject.
SOLE DIRECTOR
Ran Mimon, General Manager.
BUSINESS
Engaged in producing ceramic powders, metals and alloys in high purity
level, such as: tungsten dust, tungsten carbide, oxidized tungsten, cobalt,
tantalum tungsten-copper alloys and more. The produced powders are unique and
are used for the manufacturing of scarp metal, cutting tools, working tools,
light bulbs, in addition security and aeronautical products. In addition of
strength tungsten has other characteristics, high specific weigh and melting
point, which are also used for the electricity industry.
Also recyclers of wastes and sludge containing metals.
70% of sales are for export.
Among clientele: ISCAR, ASHOT ASHKELON INDUSTRIES
Operating from an owned premises (offices, plant), on an area of 20,000 sq.
meters, in Neot Hovav Eco Industrial Park, Neot Hovav (name changed from
Ramat Hovav), south of Beer Sheva.
Website: www.metal-tech.co.il
Having 30 employees (same as in 2017 first half).
MEANS
Stock valued at US$ 3,000,000 in the 4thQ 2017.
Subject is an “Approved Enterprise” and as such entitled for State support
and tax relieves. The Israeli Investment Center (IIC) approved couple of
investment plans for the expansion of subject's plant.
There are 8 charges for unlimited amounts, as well as 1 charge for the sum
of US$ 25,000,000 registered on the company's assets (all assets), in favor of
the State of Israel, Mizrahi Tefahot Bank Ltd., Bank Otsar Hahayal Ltd., ISCAR LTD. and BEZEQ INTL. LTD.
REVENUES
2016 sales claimed
to be US$ 6,000,000.
Ran Mimon informed
us that in 2016 subject was not working properly (see below).
2017 sales claimed
to be US$ 15,000,000, 70% were for export.
Projected 2018
sales are US$ 25,000,000, 60% for export.
Ran Mimon informs
us that subject has large orders for 2018 from local companies ISCAR and ASHOT ASHKELON, thus the decrease in export level.
BANKERS
Mizrahi Tefahot
Bank Ltd., Beer Sheva Business Center Branch (No. 426), Beer Sheva, account No.
487405.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m account.
CHARACTER AND
REPUTATION
Subject used to be part of the solid ISCAR Group, one of Israel's leading
industrial companies, with world reputation in the metals cutting
tools field. In the last years, the path of subject was not
clear, apparently also due to economic viability reasons. During the first half
of 2016, still under ISCAR, there were media reports on decrease in work, the
company going through streamlining, and ISCAR also observed the dismantling of
subject (see NOTE below), till eventually it was decided to sell subject to one
of subject's general managers in the past, Ran Mimon (please note that ISCAR
Group has been operating under confidentiality as part of its strict policy all
the years, so there have been no public confirmation to the above
developments).
Nothing unfavorable learned apart from the above,
also in the legal aspect, and no detrimental data since the 2nd
half of 2016.
Subject is ISO 9001;
2000 and ISO 14001 certified.
There were several developments in subject's nature of operations along the
last 2 decades, including the period in which subject went public, then
de-listed from trade, was part of ISCAR Group for several years, till to-date,
when it is under new private ownership. As such, most of the events (part of
which we reported in our previous reports, mainly related to overseas
operations) and the financial data we had of 5 -7 years ago, all appear to be
irrelevant to subject in its present form.
The
local Metal, Electricity and Infrastructure Industries manufacture 21% of
Israel's industrial prodction, according to data by the Metal, Electrical and
Infrastructure Industries Association, representing, large scale
export-oriented industries on one hand and family-owned plants which sell to
the local market.
2012
sales (local and export) by the said industries amounted to NIS 75 billion, of
which US$
9 billion were for export (20% of Israel's industrial export).
The Central Bureau of
Statistics (CBS)data on import of metals raw materials to the local industries: Import of Iron and Steel
in 2017 summed up to US$ 2,198 million, 13.7% increase from 2016 (US$ terms,
6.5% rise in NIS currency terns), after
1.6% decrease in 2016 from 2015 (-3% in NIS terms); Import of Precious Metals
in 2017 rose by 10.6%, summing up to US$ 178 million (up 3.7% in NIS terms),
after 6% rise in 2016 from the previous year; Import of Non-ferrous Metals
marked 14.3% rise in 2017 from 2016 to US$ 782.5 million (7.1% in NIS terms),
after 7% decrease in 2016 from 2015.
The
CBS data on investment in imported machinery and other equipment for the
manufacturing industry in 2016 (comparing to the previous year): investments in
the manufacture of basic metal totaled NIS 277.5 million, representing 28%
rise, after 9% decrease in 2015; investments in the manufacture of fabricated
metal products was NIS 949 million, 2.3% decrease, after increase by 4.8% in
2015.
According
to the CBS, export by the local Manufacturing of Fabricated Metal Products, Machinery
& Equipment and Domestic Appliances witnessed 1.6% decrease in 2017 from
2016 to US$ 5,851.5 million, after 8.4% increase in 2016 from 2015 and 9.1%
decrease in 2015 from 2014.
Export by local
Manufacturing of Basic Metals saw 14.8% increase in 2017 from 2016 to US$ 626.4
million, a change in trend after consecutive years of decrease in export since
2012. Export by the local non-metalic mineral products manufacturing in 2017
also recorded an increase of 4.7% to US$ 454.1 million, after steady trend in
the last several years.
SUMMARY
Good for trade engagements.
NOTE:
As we reported in
our last report, in the Registrar of Companies (based on the extract we pulled
from the Registrar on 08.03.17), there has been a notice of a change subject's
status of "Prior Voluntary Liquidation" on the 04.06.2015 (please
note that the actual "Legal Status" that appears in the extract has
been "Active" all along, only adding the notice above). Mr. Mimon
explained that he was not aware that such notice is still "open",
saying that in the past the former shareholder ISCAR LTD. submitted such
request, but never received decision to uphold such liquidation, and the
company continued to be active all along.
Furthermore, Mr.
Mimon said that as part of his acquisition of subject from ISCAR, ISCAR's
attorneys said they handle the matter, i.e. annul the Voluntary Liquidation
request, and Mimon's lawyer also assured it is being handled. Indeed, a deeper
check with the Registrar confirms that the request for annulment was submitted
on 17.11.16 and was treated and modified effective 01.01.17 (although
apparently the change has yet to be recorded in the extract, which caused the
confusion).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.37 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 78.89 |
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ILS |
1 |
INR 18.25 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VAR |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.