Virgin Stores: modeFinance Credit report
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Transcript of Virgin Stores: modeFinance Credit report
If you want to know more, ASKMORE TM
modeFinance’s credit report.
Almost every day millions of peoplearound the world are wondering the realcreditworthiness of the companies withwhich they are in business. Every daythese questions remain unanswered.modeFinance
TM
now aims to answer thesequestions in a simple, complete andimmediate way.
ASKMORETM
is the modeFinanceTM
product which gives the chance toevaluate the credit risk for every companyfrom all around the world.
ASKMORETM plans 3 types of reports:
s-peek Basic Plus
ASKMORETM
Basic:This report includes modeFinance TM
’ sMORE Credit Ratings and MORE CreditLimit to help you in the decision making.It covers all essential information includingfinancial statements of the last three yearsand descriptive information including tradedescription and sector analysis.This report type is ideally suited fordecisions on transactions with each levelof credit risk.
modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]
askMORETM is a registered mark of modeFinanceTM
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAAnot
available
non return extremlypathological
pathological highdanger
weak sufficient adequate good very
strongextremely
strong
Company name VIRGIN STORES
Identification number FR344260286
Country France
ZIP code and city 75008 - PARIS
Address 52 AVENUE DES CHAMPS ELYSEES
+33 1 49535027
www.virginmegastore.fr
Not available
Legal form Limited company management
Account Unconsolidated
Incorporation date 1988/02/24
NACE 2 Sector 4763 - Retail sale of music and video recordings in specialised stores
Listed
Status Active
MORE Credit limit 1,700,000 e
31/12/2010 31/12/2009 31/12/2008
Turnover (th e) 341,689 354,612 373,000
Rating CCC CCC B
Probability of default 19.00% 19.00% 6.00%
Confidence Level 100% 100% 100%
Solvency ratios
Leverage ratio 4.18 8.53 6.15
Total asset/Total liabilities 1.24 1.12 1.16
Liquidity ratios
Current Ratio 1.05 0.96 1.13
Quick Ratio 0.61 0.55 0.67
Profitability and economic equili-
brium ratios
Return on investement ROI (%) -0.20 -3.07 -0.39
Return on equity ROE (%) -6.25 -47.45 36.76
Asset turnover 1.96 1.89 1.82
Interest paid weight -6.59 -0.34 -2.29
EBITDA/Sales -0.01 0.00 0.02
Interest Coverage ratios
EBIT interest coverage ratio -3.61 -3.42 0.20
EBITDA interest coverage ratio -0.94 0.23 4.10
Analysis and trend of financial
strength
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis
Company Healthy Balanced Vulnerable Risky
Solvency ratios
Leverage ratio 4.18 0.66 2.44 6.48 -3.07
Total asset/Total liabilities 1.24 2.53 1.41 1.11 0.91
Liquidity ratios
Current Ratio 1.05 2.07 1.21 0.98 0.69
Quick Ratio 0.61 1.37 0.69 0.45 0.28
Profitability and economic equilibrium ratios
Return on investement ROI (%) -0.20 17.97 7.44 2.05 -10.48
Return on equity ROE (%) -6.25 21.67 15.47 0.75 -84.02
Asset turnover 1.96 2.74 2.70 2.19 2.80
Interest paid weight -6.59 0.01 0.11 0.26 -0.11
EBITDA/Sales -0.01 0.07 0.04 0.02 -0.02
Interest Coverage ratios
EBIT interest coverage ratio -3.61 159.80 8.08 1.15 -7.25
EBITDA interest coverage ratio -0.94 147.10 13.42 3.05 -3.71
Cash Conversion Cycle (days)
Days Sales Of Inventory (DIO) 54 22 26 34 30
Days Sales Outstanding (DSO) 20 4 7 8 4
Days Payable Outstanding (DPO) 87 18 26 34 40
Cash Conversion Cycle (DIO + DSO - DPO) -13 18 13 12 -2
Numer of analyzed companies - 11,419 28,960 14,271 5,240
(Average) Rating CCC A BB B CC
The sector has been chosen according to:
international companies in the sector NACE 2 47 with financial data of year 2010.
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis - Graphs
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Balance Sheet
BALANCE SHEET (th e) 31/12/2010 31/12/2009 31/12/2008
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate EUR - EUR 1 1 1
Number of months 12 12 12
Total assets 169,064 179,907 198,973
Fixed assets 46,925 50,718 50,458
Intangible fixed assets 23,633 24,126 23,712
Tangible fixed assets 17,512 20,637 20,754
Other fixed assets 5,781 5,955 5,992
Current assets 122,139 129,189 148,515
Stocks 51,001 54,733 60,686
Debtors 18,906 20,340 30,099
Other current assets 52,232 54,115 57,730
Cash & cash equivalent 20,882 21,989 22,677
Shareholders funds 32,627 18,885 27,846
Capital 22,700 42,336 42,336
Other shareholders funds 9,927 -23,451 -14,490
Total liabilities 136,437 161,021 171,128
Non current liabilities 20,199 26,714 39,485
Long term debt 17,430 25,318 12,500
Other non-current liabilities 2,768 1,396 26,985
Current liabilities 116,239 134,308 131,643
Loans 1,438 14,133 387
Creditors 81,499 83,617 96,410
Other current liabilities 33,302 36,557 34,846
Total shareh. funds & liab. 169,064 179,906 198,973
NET DEBT (th e) 31/12/2010 31/12/2009 31/12/2008
Short term debts 1,438 14,133 387
Long term debt 17,430 25,318 12,500
Cash & cash equivalent 20,882 21,989 22,677
Net debt -2,013 17,461 -9,791
31/12/2010 31/12/2009 31/12/2008
Working capital -11,592 -8,544 -5,625
Net Current Assets 5,900 -5,119 16,873
31/12/2010 31/12/2009 31/12/2008
Days Sales Of Inventory (DIO) 54 56 59
Days Sales Outstanding (DSO) 20 21 29
Days Payable Outstanding (DPO) 87 86 94
Cash Conversion Cycle (DIO + DSO - DPO) -13 -9 -6
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Income Statement
INCOME STATEMENT (th e) 31/12/2010 31/12/2009 31/12/2008
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate EUR - EUR 1 1 1
Number of months 12 12 12
Sales 330,775 340,698 361,708
Revenues growth (%) -3 -6 -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
own construction capitalized10,914 13,914 11,292
Operating revenue / turnover 341,689 354,612 373,000
Total costs 343,725 354,180 365,761
Costs growth (%) -3 -3 -
Service costs 73,236 73,631 71,847
Material costs 227,316 238,114 251,928
Costs of employees 43,173 42,435 41,987
EBITDA -2,036 432 7,239
Depreciation 5,806 6,793 6,883
EBIT -7,842 -6,361 356
Financial P/L 5,337 -1,025 -2,893
Financial revenue 9,240 2,209 1,666
Financial expenses 3,903 3,234 4,560
Interest paid 2,175 1,858 1,766
P/L before tax -2,505 -7,386 -2,537
Extr. and other P/L 459 -1,587 12,762
Extr. and other revenue 5,754 1,035 35,373
Extr. and other expenses 5,294 2,622 22,610
P/L before tax + Extr. and other P/L -2,046 -8,973 10,225
Taxation -8 -12 -10
P/L for period -2,038 -8,961 10,235
31/12/2010 31/12/2009 31/12/2008
Cash flow 3,768 -2,168 17,118
Added value 49,109 42,113 60,860
31/12/2010 31/12/2009 31/12/2008
Number of employees 1,326 1,326 1,486
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Evolutions and trends
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Qualitative information
Full overview It is a private limited company primarily engaged in the retail trade of records, books, video and other related
products. Since Sir Richard Branson opened Virgin’s first record store in 1971, focus has been on delivering market
leading products and quality customer service to shoppers across the globe, making Virgin one of the world’s
successful entertainment retailers. The company has a registered office located in Paris, France. It also offers
computer hardware, clothing and even musical instruments - easily - transportable, high - value goods which are
also popular theft - prone lines. The company has one of the biggest collections of music, film and games available
on the high street. Products sold here are not just Virgin branded items. Its stores have a wide selection of CD’s,
games, books, DVD’s, vinyl LPs, mp3 players, magazines, accessories and additional products, such as calenders
and board games. Virgin Mobile products can also be found in separately run Virgin Mobile Concessions within
most Virgin Megastores. Some stores also house cafes/coffee shops run by external companies.
History Opened by Sir Richard Branson.
Primary business line Engaged in the retail trade of records, books, video and other related products.
Secondary business line Offers computer hardware, clothing and even musical instruments - easily - transportable, high - value goods which
are also popular theft - prone lines.
Main activity Retail.
Secondary activity Not available.
Main products and services CD’s, games, books, DVD’s, vinyl LPs, mp3 players, magazines, accessories and additional products, such as
calenders and board games.
Size estimate Not available.
Strategy, organization and policy Not available.
Strategic alliances Not available.
Membership of a network Not available.
Main brand names Virgin.
Main domestic country France.
Main foreign countries or regions Not available.
Main production sites Not available.
Main distribution sites Not available.
Main sales representation sites Not available.
Main customers Not available.
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Auditor/Advisor/Bank
name type address
GRANT THORNTON Auditor -
STE BARBIER FRINAULT ET AUTRES Auditor -
INSTITUT DE GESTION ET D’EXPER Auditor -
NATIXIS - AG SIEGE SOCIA Banker -
Board
name date of birth nationality function
Mrs. Christine Mondollot 30/08/1954 - Chairman of the executive board
Mrs. Laure Hauseux - - Member of the executive board
Sharehoders (the first twenty shareholders ordered by Direct %)
VSSA HOLDING Rating: -
Country ISO code FR Operating Revenue (MIL $) 0.42
NACE Rev. 2, Core code - Total Assets (MIL $) 0.19
Direct % 99.00 Number of Employees 0
Total % - Information date 2012/02
Address : Not available
BUTLER CAPITAL PARTNERS Rating: B
Country ISO code FR Operating Revenue (MIL $) 6.33
NACE Rev. 2, Core code - Total Assets (MIL $) 13.7
Direct % - Number of Employees 14
Total % - Information date 2012/12
Address : Not available
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Subsidiaries (the first twenty subsidiaries ordered by Direct %)
VIRGINMEGA Rating: -
Country ISO code FR Operating Revenue (MIL $) 6.32
NACE Rev. 2, Core code - Total Assets (MIL $) 3.34
Direct % 100.00 Number of Employees 6
Total % 100.00 Information date 2012/02
VIP 400 Rating: -
Country ISO code FR Operating Revenue (MIL $) 3.2
NACE Rev. 2, Core code - Total Assets (MIL $) 1.33
Direct % 99.00 Number of Employees -
Total % - Information date 2012/02
VIRGIN CAFE Rating: -
Country ISO code FR Operating Revenue (MIL $) 3.22
NACE Rev. 2, Core code - Total Assets (MIL $) 1.02
Direct % 99.00 Number of Employees 48
Total % - Information date 2012/02
DISTICKET Rating: A
Country ISO code FR Operating Revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 6.37
Direct % 34.00 Number of Employees -
Total % - Information date 2012/02
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
ASKMORE rating guide
General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of
an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk
factors.
The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial
companies by using data included in financial statements.
The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy
model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the
model are obtained by applying newly developed numerical methodologies, drawing together financial theory,
data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective
algorithm that produces a classification of each company, by taking into account any attributes (such as sector and
country) characterizing a firm.
The model gives the opportunity to assign a rating to a company even without considering a complete data analysis
and allows to process quality information. It induces a better understanding of a company’s strength and weakness
thanks to sophisticated data mining tools and taking into account the analyst knowledge.
The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the
rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium
between the different aspects, better will be the final rating.
This is done studying, evaluating and aggregating the most important sections of the financial and economic
behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Rating scale
Rating class Rating macro class Assessment
AAA
Healthy
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
economic and financial flow and fund equilibrium.
AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial
equilibrium. Difference from AAA is slight.
AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in
circumstances and economic conditions than companies in higher rated categories.
BBB
Balanced
Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
commitments could be affected by serious unfavourable events.
BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing
uncertainties or exposure to adverse business, financial, or economic conditions.
B
Vulnerable
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial
fundamentals. Adverse market events and an inadequate management could affect with high probability the
company’s solvency.
CC
Risky
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
company’s strong disequilibrium could increase.
CThe company shows considerable pathological situations. The company’s capacity to meet its financial
commitments is very low.
D The company has not any longer the capacity to meet its financial commitments.
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Fundamental Credit Rating Ratios
Analysis area Ratio Assessment
Solvency ratios
Leverage ratioThis measures the level of total liabilities of the company in comparison
with equity.
Assets to debtThis indicates company’s solvency. The company shows a level of deficit
when the value of this ratio is under one unit.
Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.
whether a company covers the fixed assets with long term capital.
Liquidity ratios
Current ratioThis measures whether a company has sufficient short-term assets to cover
its short-term liabilities.
Quick ratioThis compares current liabilities only to those assets that can be readily
turned into cash.
Profitability and economic ratios
Return on Investement(ROI)This measures the profitability of company investments without regard to
the way the investment is financed.
Return on Equity(ROE) This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level
assumed from the ratio depends on the sector in which the company
operates.
Profit margin This indicates the profitability of sales.
Interest coverage ratio Interest Paid coverage
This indicate the ability of the company to cover interest expenses through
the economic margins (Gross profit and EBIT) and through the cash flow
from operating activities.
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
MORE Credit Limit, Probability of default and Confidence Level
MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial
relationship with the analyzed company with an outlook of one year.
modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size;
• Years in Business;
• Average number of suppliers;
• Liquidity of the company and the comparison with its sector;
• The funds dedicated to be paid to suppliers;
• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual
public data. This value should be reviewed by paying attention to the Confidence Level value and by using other
information such as other business information, news... etc; and private information such as the relationship with
client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence
Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of
confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go
into default.
As the probability of default is strongly affected by the economic climate that the company is operating in,
companies in the same MORE class will not necessarily have the same probability of default.
The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
∑Available Information∑
Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in
availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the
MORE rating is able to take into account for each company.
For companies with fully populated records a confidence level of 100% would be applied: companies where no
financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
VIRGIN STORESWednesday, 09 January 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Notes and disclaimer
NOTES modeFinance has based the present analysis on the company available financial statements, coming from one or
more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s
database etc.
DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot
be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will
be based on information gathered in good faith from both primary and secondary sources, whose accuracy we
are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.
Contacts
Company modeFinance
Products MORE rating
Where AREA Science Park
34149 Trieste, via Padriciano 99 - ITALY
Info [email protected]
web www.modefinance.com
Phone +39 040 3755337