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MIRA INFORM REPORT
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Report No. : |
483990 |
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Report Date : |
10.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SPREA MISR FOR CHEMICALS AND PLASTICS |
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Registered Office : |
Misr Ismalia Desert Road, Km 62, Block A/1, Industrial Area A1, Third
Industrial Zone, El Sharkia, PO Box: 480, 10th of Ramadan City |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
01.07.1989 |
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Com. Reg. No.: |
63011 |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Subject is engaged in the import, manufacture and distribution of chemical
products for plastic production, urea powder, melamine, formaldehyde and
related products |
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No. of Employees : |
650 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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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Egypt |
C1 |
C1 |
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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 |
EGYPT - ECONOMIC OVERVIEW
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK.
Cairo from 2004 to 2008 pursued business climate reforms to attract foreign investment and facilitate growth. Poor living conditions and limited job opportunities for the average Egyptian contribute to public discontent, a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up unemployment, which remains above 10%.
Weak growth and limited foreign exchange earnings have made
public finances unsustainable, leaving authorities dependent on expensive
borrowing for deficit finance and on Gulf allies to help cover the import bill.
In 2015-16, higher levels of foreign investment contributed to a slight rebound
in GDP growth after a particularly depressed post-revolution period. In 2016,
Cairo enacted a value-added tax, implemented fuel and electricity subsidy cuts,
and floated its currency, which led to a sharp depreciation of the pound and
corresponding inflation. In November 2016, the IMF approved a $12 billion,
three-year loan for Egypt and disbursed the first $2.75 billion tranche.
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Source
: CIA |
SUMMARY
Company Name : SPREA MISR FOR CHEMICALS AND PLASTICS
Country of Origin : Egypt
Legal Form : Egyptian Joint Stock Company
Registration Date : 1st July 1989
Commercial Registration Number : 63011
Authorised Capital : £E 500,000,000
Issued Capital : £E 332,000,000
Paid up Capital : £E 332,000,000
Total Workforce : 650
Activities : Manufacturers of chemical products for plastic production
Financial Condition : Good
Payments : Regular
Operating Trend : Steady
COMPANY
NAME
SPREA MISR FOR CHEMICALS AND PLASTICS
ADDRESS
Registered & Physical
Address
Street : Misr Ismalia
Desert Road, Km 62, Block A/1
Area : Industrial
Area A1, Third Industrial Zone, El Sharkia
PO Box : 480
Town : 10th of
Ramadan City
Country : Egypt
Telephone : (20-554) 410100
/ 410097
Facsimile : (20-554)
410098
Mobile :
20-122 4810112
Email :
hr@spreamisr.com / sales@spreamisr.com
Premises
Subject operates from a large suite of offices, a warehouse and a
factory that are owned and located in the Industrial Area of 10th of Ramadan
City.
Branch Offices
Subject has 17 factories located in 10th of Ramadan
City.
KEY
PRINCIPALS
Name Position
·
Hesham Moustafa Abd El Hamid Fahmy Chairman
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Maged Hanna Finance
Manager
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Amr Shalbi Purchasing
Manager
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Moustafa Abd El Moemen Human
Resources Manager
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Abd El Aziz Abd El Mohin Production
Manager
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Hitham Medhat Import
Manager
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Smar Adly Export
Manager
LEGAL
FORM & OWNERS
Date of
Establishment : 1st
July 1989
Legal Form : Egyptian Joint
Stock Company
Commercial Reg.
No. : 63011
Authorised Capital : £E 500,000,000
Issued Capital : £E 332,000,000
Paid up Capital : £E 332,000,000
Name of Shareholder (s)
·
International For Financial Investment
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Egyptian Kuwait Holding
Notes to the legal Form
A Joint Stock Company (SAE) can be both a public or private company the
capital of which is divided into shares of equal value; the liability of the
shareholder is confined to the value of the shares to which he subscribes, and
he is not liable for the debts of the company except within the limit of those
shares. A JSC may be 100% owned by foreign investors and there should be at
least three shareholders. The minimum capital of JSC companies is EGP 250,000
or EGP 500,000 if it is a public company.
OPERATIONS
Activities: Engaged in the import, manufacture and distribution of chemical
products for plastic production, urea powder, melamine, formaldehyde and
related products.
Subject is ISO 14001:2004, 9001:2008 and OHSAS 18001:2007 accredited.
Import Countries: Europe and the Far East
Production Capacity: 100,000 tons per annum
Export Countries: Europe, Far East, Middle East and Africa
Brand Names: SPREA MISR
Operating Trend: Steady
Subject has a workforce of approximately 650 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: Egyptian Pounds (EGP)
Year Sales
Year Ending 31/12/14: EGP
684,000,000
Year Ending 31/12/15: EGP
700,000,000
Year Ending 31/12/16: EGP
711,000,000
Year Ending 31/12/17: EGP
720,000,000
Local sources consider subject’s financial condition to be Good.
Note:
According to Egyptian Commercial Law, only Joint Stock Companies SAE
(Listed on the Stock Market) are required to publish their financial information. Financial
information on other legal forms can only be obtained from the companies /
businesses directly
BANKERS
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Qatar National Bank Alahli
El Sharkia
10th of
Ramadan City
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Commercial International Bank (CIB)
City Centre, Plot No. 8
10th of Ramadan City
Tel: (20-15) 367294
Fax: (20-15) 367915
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories, media
& web searches
- Local Registry office
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
Local sources report that the subject’s operating history is clear with
payment obligations met in a generally timely manner. The financial position is
satisfactory and the company is deemed a fair trade risk.
COUNTRY
OUTLOOK
Economic growth doubled (to 4.2 %) in FY15,
after four years of slow growth. Yet challenges remain, and were aggravated by
the recent foreign exchange crunch. Growth in FY15 (July 2014/June 2015) was
attributed to the restoration of stability and improved confidence, resilient
private consumption, and the government’s public investments that started to
crowd in private investments. The first quarter of FY16 witnessed subdued
growth (of 3 %, from 5.6 % a year earlier), mainly due to foreign exchange
shortages that stifled production. The inadequacy of foreign exchange along
with an overvalued Pound hampered Egypt’s competitiveness; lowering the volume
of exports by 26 % in Q1-FY16. Unemployment inched downwards (to 12.8 % in the
H1-FY15 versus 13.3 % a year earlier), albeit partially reflecting dropouts
from the labour force. The labour force participation rate dropped to 46 % of
the adult population (those above 15 years old) versus 50 % at end-2010.
Headline inflation eased slowly in early-2016, reaching 9 % in
February 2016, from an average of 11 % in the previous three months. The
Central Bank of Egypt (CBE) has recently started tightening monetary policy to
curb inflation, especially in light of the recent exchange rate depreciation.
The CBE allowed the official exchange rate to
weaken in mid-March as pressures on external accounts intensified. Net
international reserves (NIR) dropped in FY16, due to large debt repayments, the
unfavourable external environment, the recent crash of the Russian airplane
over Sinai, as well as the CBE’s ongoing injection of foreign exchange to meet import
needs and to clear forex backlogs. Thus, NIR declined to just below $16.5
billion in October 2015, and has stabilized at this level through end-February
2016. The CBE left the official exchange rate to weaken by 14.3 % on March 14,
2016, after the parallel market premium had surged to 18 % above the official
rate. The CBE held a later auction at a slightly stronger exchange rate, but
still signalled a move towards more flexibility.
The fiscal stance improved in FY15 due to key
consolidation measures, but the reform momentum has faded in FY16. The budget
deficit reached 11.5 % of GDP in FY15 (compared to 12.2 % of GDP in FY14, and
13 % of GDP in FY13), thanks to the partial streamlining of energy subsidies,
revenue-enhancement measures, and the drop in international oil prices. This
was achieved whilst the government raised allocations to health, education, and
infrastructure, in line with the constitutional mandate. Yet, the reform pace
has slowed down in FY16, as the energy subsidy reform program was only
partially implemented, and the ratification of the VAT and the mining laws have
been delayed.
The outlook is for GDP growth to slow down to
3.3 % in FY16, before rebounding thereafter. A combination of unfavourable domestic and
external factors is undermining growth in FY16. Important sectors have been
underperforming, notably, the extractives which continue to suffer from
liquidity issues (accumulated arrears were recorded at $3 billion in end-2015);
and tourism, affected by the Russian plane crash last October. Externally, the
sluggish recovery of the Euro zone is expected to weigh on Egypt’s growth,
while the lower oil prices and slowdown in Gulf countries might negatively
impact Egyptians’ remittances; hence private consumption. The deficit is expected
to decline to 11.3 % of GDP in FY16, and decline further in the medium term,
with continued fiscal consolidation effort. Egypt’s external accounts are
likely to worsen in FY16 before recovering afterwards, provided that monetary
authorities continue to ease restrictions on foreign exchange and re-align the
exchange rate.
Key Economic Indicators 2014 2015 2016* 2017*
Real GDP Growth (%) 2.2 4.2 3.3 4.2
Inflation Rate (%) 10.1 10.9 9.8 9.5
Fiscal Balance (% of GDP) -12.2 -11.5 -11.3 -9.8
Current Account Balance (% of GDP) -0.9 -3.7 -4.6 -4.6
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.47 |
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1 |
INR 86.15 |
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Euro |
1 |
INR 75.92 |
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EGP |
1 |
INR 3.60 |
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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VIV |
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Report Prepared
by : |
SYL |
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.