Credit Analysts Report

Credit Analysts Report

 

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  • Full company details

  • Accounts extracts

  • Ratio analysis

  • Common size analysis

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  • Full profiles of each Director

  • Parent company and group companies

  • Supplier credit limits

  • Payment records, updated daily.

  • Secured creditors

  • Going concern and liquidation valuation

  • Written credit risk analysis

  • Triple credit risk score analysis

  • Credit rating

  • Trade credit limit

  • Credit risk score and description.

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Credit Analysts Report on - ASSAM AND RIPON FOOD IMPORTERS LIMITED
 
SUMMARY
 
Registered Number: 093117141 Sales: 364,218,000
Date Incorporated: 22 June 2002 Pre-Tax Profit/Loss: (10,662,000)
Date Latest Accounts: 31 July 2014 Working Capital: (31,746,000)
Employees: 4,795 Net Assets: 22,973,000
 
BUSINESS INFORMATION
 
Legal Form: Private Limited
Previous Names: ASSAM AND RIPON FOODS LIMITED
Registered Number: 093117141
Annual Return: 15 October 2014
Registered Office: ASSAM AND RIPON HOUSE, SILVERWAY BUSINESS PARK, SUN WAY , OXFORDSHIRE OX30 4EJ Map
Trading Address: 40 WELL STREET, OXFORDSHIRE, OX31 4DG Map
Telephone Number: 0870 77004242
Auditors: PRICEWATERHOUSECOOPERS LLP
SIC Code and Operations: 7484 (1992) OTHER BUSINESS ACTIVITIES
  FOOD MANUFACTURING, PROCESSING AND DISTRIBUTION.
 
GROUP STRUCTURE
 
Parent Company: ASSAM AND RIPON INVESTMENTS LIMITED (093117142)
Ultimate Parent: ASSAM AND RIPON INVESTMENTS LIMITED (093117142)
Full Group Structure: Expand Group structureClick here to expand data (no charge)Click to see full Group Structure
 
PRINCIPAL SHAREHOLDERS
 
ASSAM AND RIPON INVESTMENTS LIMITED (093117142)
2,398,058,019 ORD 1p
 
DIRECTORS
 
Director MARK C SNOW
Date of Birth 11 March 1964
Date Appointed 16 August 2011
Address ASSAM AND RIPON HOUSE SILVERWAY BUSINESS PARK SUN WAY OXFORDSHIRE OX30 4EJ
Nationality SOUTH AFRICAN
   
   
 
Secretary MARTIN SCOTT
Date Appointed 01 November 2011
Address ASSAM AND RIPON HOUSE SILVERWAY BUSINESS PARK SUN WAY OXFORDSHIRE OX30 4EJ
Nationality BRITISH
   
   
 
 
PUBLIC RECORD INFORMATION
 
County Court Judgments
Period of Months:   Last 12m 13-24m 25-36m 37-48m 49-60m 61-72m  
Total Number of CCJs:   2 1 0 0 0 0  
 
Total Value of CCJs:   2,339 2,056 0 0 0 0  
 
County Court Judgments Trend
CCJ Graph
 
Date Court Amount Status Plaintiff Ref
February 2014 SHEFFIELD 1,117 Judgment 3TV91014
July 2013 NORTHAMPTON 1,222 Satisfied Judgment 1FE75741
February 2013 SHEFFIELD 2,056 Satisfied Judgment 1PJ04608
 
Legal Notices / Filing History
 
Date of Filing Details  
9 February 2012 Dismissal Of Winding Up Petition
 
SUPPLIER CREDIT LIMITS
 
Date Sector Notified Amount Terms
Apr-2014 Wholesale Credit Limit 1,500 45 days
Jan-2014 Manufacture Credit Limit 1,000 30 days from invoice
Oct-2013 Manufacture Credit Limit 5,000 30 days from end of month
Sep-2013 Wholesale Credit Limit 10,000 30 days
Jul-2013 Manufacture Credit Limit 10,000 30 days
Jun-2012 Wholesale Credit Limit 7,500 30 days
Jun-2012 Wholesale Credit Limit 100 90 days from end of month
Jun-2012 Business Services Credit Limit Revised 10,000 30 days
May-2011 Business Services Credit Limit 100 90 days from end of month
May-2011 Wholesale Credit Limit 5,000 90 days from invoice
Apr-2011 Manufacture Credit Limit 1,000 30 days
Mar-2011 Wholesale Credit Limit 1,000 30 days
Mar-2011 IT and Internet Credit Limit 500,000+ 30 days from invoice
Mar-2011 Business Services Credit Limit 3,000 30 days from invoice
Feb-2011 Hotel Credit Limit 1,000 30 days
Feb-2011 Manufacture Credit Limit 1,000 30 days from end of month
Dec-2010 Transport and Haulage Credit Limit 1,000 30 days from end of month
Nov-2010 Property and Real Estate Credit Limit 100 COD/ProForma
Sep-2010 Retail Credit Limit 1,000 COD/ProForma
Aug-2009 Manufacture Credit Limit 2,000 30 days from invoice

Payment performance data is third party data taken on good faith and presented without comment or review.
 
PAYMENT RECORDS
 
Payment records from its suppliers' company ledgers show how a company is paying its suppliers.
 
 
   
 
 
Payment Analysis  
Total Invoices Paid Before
30 days due
Paid After
30 days due
Owing Before
30 days due
Owing after
30 days due
120 30 9 21 60
   
 
PROFIT AND LOSS
 
Date of Accounts 31/07/14 01/08/13 02/08/12    
Number of Weeks (Cons.)52 (Cons.)52 (Cons.)52    
Denomination 000 000 000    
 
Turnover 364,218 400,042 345,200    
(Sales excluding VAT)
Cost of Sales 357,589 372,142 319,335    
(Raw materials, production costs etc.)
           
Gross Profit 6,629 27,900 25,865    
(margin on production)
 
Operating Costs 14,299 13,702 (1,316)    
(Overheads, staff etc.)
Interest Payable 2,992 3,174 3,089    
(Bank and loan interest paid)
           
Pre-Tax Profit/(Loss) (10,662) 11,024 24,092    
(Gross profit less operating costs etc.)
 
Taxation and Dividends 4,371 3,738 2,182    
           
Retained Profit/(Loss) (15,033) 7,286 21,910    
(Profit or loss after tax and dividends)
 
BALANCE SHEET
 
Date of Accounts 31/07/14 01/08/13 02/08/12    
Number of Weeks (Cons.)52 (Cons.)52 (Cons.)52    
Denomination 000 000 000    
 
Tangible Assets 48,729 58,162 65,204    
(Buildings, plant, vehicles etc.)
Intangible Assets 19,076 19,076 19,076    
(Patents, goodwill etc.)
Other Fixed Assets 0 172 411    
           
Total Fixed Assets 67,805 77,410 84,691    
(Buildings, plant, vehicles etc.)
Stocks & Work in Progress 43,202 37,653 36,217    
(Raw materials and order-book etc.)
Debtors 18,917 17,882 19,418    
(Cash due for work already done)
Cash 19,673 7,225 9,056    
(Cash already at bank and in hand)
Other Current Assets 886 0 250    
           
Total Current Assets 82,678 62,760 64,941    
(Stocks, debtors, cash etc.)
 
Current Liabilities 114,424 90,605 109,513    
(Money owed within 1 year)
           
Working Capital (31,746) (27,845) (44,572)    
(Current assets less current liabilities)
Total Long-Term Liabilities 13,086 11,326 9,166    
(Loans and debts due after 1 year)
           
Net Assets 22,973 38,239 30,953    
           
(All assets less all debt)
 
Comprised of:
 
Share Capital and Reserves 26,924 27,157 27,249    
(Money invested in the company etc.)
Retained Earnings (3,951) 11,082 3,704    
(Undistributed profits to date)
Revaluation Reserve 0 0 0    
(Adjustment to perceived asset values)
           
Shareholders Funds 22,973 38,239 30,953    
           
(Net assets)
 
NOTES TO THE FINANCIAL STATEMENTS
 
The latest accounts are consolidated accounts.
 
Date of Accounts 31/07/14 01/08/13 02/08/12    
Number of Weeks (Cons.)52 (Cons.)52 (Cons.)52    
Denomination 000 000 000    
 
TURNOVER
Turnover is stated net of VAT and comprises:
UK sales 346,218 400,042 345,200    
Export turnover 0 0 0    
 
PROFIT
Profits are stated after charging:
Amortisation of Intangible Assets 0 0 484,000    
Depreciation 8,340 9,487 11,415    
Directors Remuneration 2,684 2,752 2,801    
Other expenses 13,850 11,803 12,598    
Other income 546 401 13,914    
Interest payable 2,992 3,174 3,089    
Exceptional Items (995) (2,300) 0    
Discontinued operations 0 0 -    
Tax 1,428 3,646 113    
Extraordinary items (2,943) (92) 0    
 
DIVIDENDS
Paid during the year 0 0 2,069    
 
INTANGIBLE FIXED ASSETS
Intangible Fixed Assets 19,076 19,076 19,076    
Amortisation of Intangible Assets 0 0 484,000    
 
TANGIBLE FIXED ASSETS
Tangible Fixed Assets 48,729 58,162 65,204    
Depreciation 8,340 9,487 11,415    
 
CURRENT ASSETS
Stocks 43,202 37,653 36,217    
Work in Progress 0 0 0    
Group Loans 0 0 0    
Trade debtors 18,017 17,082 19,018    
Other debtors 900 800 400    
Total Debtors 18,917 17,882 19,418    
Cash at bank 19,673 7,225 9,056    
Other current assets 886 0 250    
Total Current Assets 82,678 62,760 64,941    
 
DEFERRED TAXATION
Deferred Taxation 1,289 0 0    
 
CREDITORS DUE WITHIN 1 YEAR
Trade Creditors 31,793 24,879 26,349    
Overdraft 0 0 0    
Group Loans 0 0 0    
Directors Loans 0 0 0    
Hire Purchase 0 0 0    
Leasing 0 0 0    
Short term loans 53,527 41,566 56,581    
Corporation Tax due 0 456 1,301    
Accruals and deferred income 10,558 11,746 14,561    
Social Security and VAT 3,710 3,980 3,705    
Other current liabilities 14,836 7,978 7,016    
Total Current Liabilities 114,424 90,605 109,513    
 
CREDITORS
Amounts falling due after more than one year:
Group Loans 0 0 0    
Directors Loans 0 0 0    
Hire Purchase 0 0 0    
Leasing 0 0 0    
Long term loans 0 0 0    
Accruals and deferred income liabilities 9,025 9,417 7,868    
Other long term liabilities 0 0 0    
Long term liabilities - - -    
 
PROVISIONS
Other provisions for liabilities and charges:
Other provisions 2,772 1,909 1,298    
Total provisions 4,061 1,909 1,298    
 
CAPITAL AND RESERVES
Issued Share Capital 20,693 20,693 20,693    
Share Premium Account 5,873 5,873 5,873    
Revaluation Reserve 0 0 0    
Retained earnings (3,951) 11,082 3,704    
Other reserves 358 591 683    
Total shareholders funds 22,973 38,239 30,953    
Minority Interests 0 0 0    
 
Total employee renumeration: 78,187 79,684 83,239    
Total directors remuneration: 2,684 2,752 2,801    
Highest paid director: 1,053,000 1,050,000 1,049,000    
 
COMMON SIZE ANALYSIS
 
Date of Accounts 31/07/14 01/08/13 02/08/12    
Turnover 100.0 100.0 100.0    
Cost of Sales 98.2 93.0 92.5    
Gross Profit 1.8 7.0 7.5    
Operating Costs 3.9 3.4 (0.4)    
Interest Payable 0.8 0.8 0.9    
Pre-Tax Profit/(Loss) (2.9) 2.8 7.0    
Taxation and Dividends 1.2 0.9 0.6    
Retained Profit/(Loss) (4.1) 1.8 6.3    
 
Total Assets 100.0 100.0 100.0    
Tangible Assets 32.4 41.5 43.6    
Intangible Assets 12.7 13.6 12.7    
Other Fixed Assets - 0.1 0.3    
Total Fixed Assets 45.1 55.2 56.6    
Stocks & Work in Progress 28.7 26.9 24.2    
Debtors 12.6 12.8 13.0    
Cash 13.1 5.2 6.1    
Other Current Assets 0.6 - 0.2    
Total Current Assets 54.9 44.8 43.4    
Current Liabilities 76.0 64.6 73.2    
Working Capital (21.1) (19.9) (29.8)    
Total Long-Term Liabilities 8.7 8.1 6.1    
Net Assets 15.3 27.3 20.7    
Retained Earnings (2.6) 7.9 2.5    
Revaluation Reserve - - -    
Shareholders Funds 15.3 27.3 20.7    
 
 
KEY RATIOS
 
  Industry          
Date of Accounts Median 31/07/14 01/08/13 02/08/12    
 
Current Ratio 1.1 0.7 0.7 0.6    
 
Acid Test 1.0 0.3 0.3 0.3    
 
Stock Turnover 18.2 8.4 10.6 9.5    
 
Credit Period 19 - - -    
 
Working Capital/Sales 6.1 (8.7) (7.0) (12.9)    
 
Trade Creditors/Debtors 0.3 - - -    
 
Return on Capital 19.5 (29.6) 22.2 60.1    
 
Return on Assets 5.4 (7.1) 7.9 16.1    
 
Pre-Tax margin 9.0 (2.9) 2.8 7.0    
 
Return on Shareholders Funds 27.7 (46.4) 28.8 77.8    
 
Borrowing Ratio 0 1373.5 216.9 476.4    
 
Equity Gearing 43.8 15.3 27.3 20.7    
 
Debt Gearing 0.0 - - -    
 
Interest Cover 2 (3.6) 3.5 7.8    
 
Sales/Tangible Assets 25 7.5 6.9 5.3    
 
Remuneration/Sales 21 21.5 19.9 24.1    
 
Employee Remuneration 33,296 16,306 15,494 9,656    
 
Profit/Employee 3,183 (2,224) 2,143 2,795    
 
Turnover/Employee 117,292 75,958 77,784 40,046    
 
Capital Employed/Employee 33,775 7,520 9,637 4,654    
 
Tangible Assets/Employee 2,769 10,162 11,309 7,564    
 
Total Assets/Employee 84,069 31,383 27,255 17,359    
 
SECURED CREDITORS
 
Number of Mortgages 3
Satisfied Mortgages 1
Unsatisfied Mortgages 2
Most Recent Mortgage 27 March 2009
Most Recent Satisfaction 24 April 2010
 
Charge Type A SECURITY AGREEMENT
Amount Secured ALL MONIES DUE OR TO BECOME DUE FROM EACH OBLIGOR TO ANY EXPANDED SECURED PARTY ON ANY ACCOUNT WHATSOEVER UNDER THE TERMS OF THE AFOREMENTIONED INSTRUMENT CREATING OR EVIDENCING THE CHARGE
Property Details ALL THE SHARES OWNED AND FIRST FLOATING CHARGE AGAINST ALL ASSETS NOT AT ANY TIME OTHERWISE EFFECTIVELY MORTGAGE CHARGED OR ASSIGNED UNDER THE DEED SEE image FOR FULL DETAILS
Lender Details BARCLAYS BANK LIMITED (THE SECURITY TRUSTEE)
 
Charge Type SECURITY OVER SHARES
Amount Secured ALL MONIES DUE OR TO BECOME DUE FROM THE COMPANY TO THE CHARGEE UNDER THE TERMS OF THE AFOREMENTIONED INSTRUMENT CREATING OR EVIDENCING THE CHARGE
Property Details ALL SHARES OWNED AND RELATED RIGHTS SEE THE MORTGAGE CHARGE DOCUMENT FOR FULL DETAILS
Lender Details BARCLAYS BANK LIMITED
 
Charge Type A SECURITY AGREEMENT
Amount Secured ALL MONIES DUE OR TO BECOME DUE FROM THE COMPANY TO ANY FINANCE PARTY ON ANY ACCOUNT WHATSOEVER UNDER THE TERMS OF THE AFOREMENTIONED INSTRUMENT CREATING OR EVIDENCING THE CHARGE
Property Details FIXED CHARGE ALL OF ITS RIGHTS IN RESPECT OF ANY AMOUNT STANDING TO THE CREDIT OF THE PROCEEDS ACCOUNT SEE THE MORTGAGE CHARGE DOCUMENT FOR FULL DETAILS
Lender Details ING BANK N.V. AS AGENT AND TRUSTEE FOR THE FINANCE PARTIES (THE FACILITY AGENT)
 
COMPANY VALUATION ANALYSIS
 
 
Going Concern Valuation
 
The going concern valuations value the company on the basis that it continues to trade without the threat of liquidation for the foreseeable future. These valuations are primarily profit and cashflow based.
 
Valuations   Valuation Measures
Estimated High Value 31,000,000   Retained Profit (15,033,000)
Estimated Mid Value 27,000,000   EBIT (7,670,000)
Estimated Low Value 23,000,000   EBITDA 670,000
 
Liquidation Valuation
 
The liquidaton valuation values the company as if it were to cease trading and assets were subject to rapid disposal to cover liabilities. This valuation is primarily asset based.
 
Valuations   Valuation Measures
Estimated High Value 13,000,000   Total Assets 150,483,000
Estimated Mid Value 4,600,000   Net Assets 22,973,000
Estimated Low Value 0   Tangible Equity 3,897,000
 
The above valuations are based on our own algorithms and take no account of many factors that can influence actual valuations realized and should not therefore be assumed to be accurate.
 
CREDIT STATUS CHECKLIST
 
Business Growth: Cross Inconsistent trend with previous growth but recent decline.
EBITDA: Cross EBITDA has been falling.
Dividends: Cross No dividends were declared in either of the last two periods.
Retained Profits: Cross Trend indicates declining retained profits.
Debt Interest: Cross Interest cover is limited suggesting little scope for falling profits or increased interest rates.
Cash Flow: Cross The level of working capital is weaker than average for the sector and cash-flow may be a concern.
CCJs: Cross CCJs are recorded suggesting credit control may require additional attention.
Age of Company: Tick Reasonably established with sufficient trading history to provide some confidence.
Solvency: Neutral The company is solvent although the amount of total liabilities is large in proportion to the asset base.
Secured Creditors: Neutral There are mortgages or charges on certain assets of the company.
Ownership: Cross Continued credit worthiness may depend upon the financial status of the holding company or group performance.
 
CREDIT RISK RATINGS
 
Credit risk analysis is not an exact science and each credit agency has its own models and score cards. The Credit Analysts Report presents our own risk assessment and a second opinion. Combined with clients' own analysis and further enquiry this provides extra cover for key credit assessments.
 
FIRST REPORT CREDIT RISK RATING
 

In this section we present the risk assessment of the First Report credit risk model developed over 20 years of corporate risk assessment.
 

First Report Analysis:


The overall credit worthiness presented here is based on the financial results of the company up to 31 July 2011.

The latest turnover is 364.2m compared to the previous periods of 400.0m and 345.2m. The total change in sales over three years is 5.5%. The average trend over three years is 3.5%. The change in turnover for the latest period was -9.0% which indicates that the pace of growth has slowed.

EBITDA measures earnings before interest and taxation, and depreciation and amortization. The latest accounts show pre-tax losses of -10.7m and 3.0m interest paid. EBITDA for the most recent period was 670,000 as against 23.7m and 38.6m for prior years. The company has an average 21.0m EBITDA over three years, so the latest EBITDA is lower. Income drawn by directors during the latest period was 2.7m.

Retained profits after all costs and dividends provides a further key indicator of cash generating potential. Recent retained profits have not been consistent. For the most recent period no profits were retained. For the previous period 7.4m retained profits are shown. When the latest loss and the previous retained profit are taken together, the average level of retained profits is -3.8m.

The subject's current ratio stands at 0.7 in a sector where around 1.1 is the average. The liquidity of the company is therefore weaker than average. A more stringent test of liquidity is the acid test and the company manages only 0.3 against a typical industry score of 1.0. Known liabilities due within one year exceed all current assets available to service short term obligations. The resulting deficit in working capital is larger than we would like to see when assessing credit risk. The interest cover position is weak, with insufficient profits to comfortably cover existing interest payments. Any further decline in profitability or increased interest rates could strain the ability to service debt interest. There are secured creditors with mortages or charges over certain assets of the business and this may be significant if the secured debts are interest bearing.

As at the latest accounts the company has net assets of 23.0m. Once intangible assets are subtracted from net assets the company's net worth is 3.9m.

This appraisal is based on the financial performance and the overall balance sheet status. However the balance sheet is still quite large. We note that two county court judgments have been recorded within the last 12 months. The company has a parent company and as such the future of the subject may be dependant upon the financial status of the parent company or group. It is therefore advisable to get a report on the parent and if applicable any ultimate parent company before making any credit decisions. On the basis of this analysis we would suggest checking the credit worthiness of the parent company with a view to seeking guarantees from the parent company before extending credit.
 
First Report Risk Score: (0-10): 0
 
First Report Risk Guide:
10   Very Strong
9   Strong
8   Very Good
7   Good
6   Above Average
5   Average
4   Below Average
3   Poor
2   Weak
1   Very Weak
0 Arrow Critical
 
Risk Score Trend

 
RISK RATING
 
This is the credit risk assessment used by Creditsafe, one of the top UK credit reference agencies.
Risk Score (1-100): 18
   
Risk Band Description: MAXIMUM RISK
   
Risk Assessment:
A maximum risk company; all credit transactions should be supported by appropriate guarantees.
Credit Rating: 0
   
 
ALTMAN Z SCORE CREDIT RISK RATING
 
There have been many bankruptcy predictors developed, however none has been so thoroughly tested and broadly accepted as the Altman Z-Score.
Z Score: -1.62
Risk Band: 4
Risk Band Description: High Probability Failure
Z Score Bands:
1 Low Risk 3.00 and above
2 Caution 2.63 - 2.99
3 Risk of Failure within 2 years 1.24 - 2.62
4 High Probability Failure Below 1.24
 
 

Report Created On 19 Oct 2019 Copyright 2019 First Report Ltd

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