Wednesday, 09 January 2013
VIRGIN STORES
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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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
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Company name
Listed Status
Active
MORE Credit limit
1,700,000 e
plans 3 types of reports:
Turnover (th e) Rating s-peek
TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
31/12/2009
31/12/2008
341,689
354,612
373,000
CCC
CCC
B
19.00%
19.00%
6.00%
100%
100%
100%
Leverage ratio
4.18
8.53
6.15
Total asset/Total liabilities
1.24
1.12
1.16
Current Ratio
1.05
0.96
1.13
Quick Ratio
0.61
0.55
0.67
Probability of default
Plus
Basic
31/12/2010
Confidence Level
TM
Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
-0.20
-3.07
-0.39
Return on equity ROE (%)
-6.25
-47.45
36.76
1.96
1.89
1.82
Interest paid weight
-6.59
-0.34
-2.29
EBITDA/Sales
-0.01
0.00
0.02
EBIT interest coverage ratio
-3.61
-3.42
0.20
EBITDA interest coverage ratio
-0.94
0.23
4.10
Asset turnover
Interest Coverage ratios
Analysis and trend of financial strength modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
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
Current Ratio
1.05
2.07
1.21
0.98
0.69
Quick Ratio
0.61
1.37
0.69
0.45
0.28
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
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
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
-
11,419
28,960
14,271
5,240
CCC
A
BB
B
CC
Liquidity ratios
Profitability and economic equilibrium ratios
Interest Coverage ratios
Cash Conversion Cycle (days)
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 47 with financial data of year 2010.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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
5,781
5,955
5,992
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
20,882
21,989
22,677
Shareholders funds
32,627
18,885
27,846
Capital
22,700
42,336
42,336
9,927
-23,451
-14,490
136,437
161,021
171,128
Non current liabilities
20,199
26,714
39,485
Long term debt
17,430
25,318
12,500
2,768
1,396
26,985
116,239
134,308
131,643
Other fixed assets Current assets
Cash & cash equivalent
Other shareholders funds Total liabilities
Other non-current liabilities Current liabilities
1,438
14,133
387
Creditors
81,499
83,617
96,410
Other current liabilities
33,302
36,557
34,846
169,064
179,906
198,973
31/12/2010
31/12/2009
31/12/2008
Loans
Total shareh. funds & liab. NET DEBT (th e) 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 Working capital Net Current Assets
31/12/2009
31/12/2008
-11,592
-8,544
-5,625
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
-13
-9
-6
Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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
-3
-6
-
10,914
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
43,173
42,435
41,987
-2,036
432
7,239 6,883
Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
Costs of employees EBITDA Depreciation
5,806
6,793
-7,842
-6,361
356
5,337
-1,025
-2,893
Financial revenue
9,240
2,209
1,666
Financial expenses
3,903
3,234
4,560
2,175
1,858
1,766
-2,505
-7,386
-2,537
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
-2,046
-8,973
10,225
-8
-12
-10
-2,038
-8,961
10,235
EBIT Financial P/L
Interest paid P/L before tax Extr. and other P/L
P/L before tax + Extr. and other P/L Taxation P/L for period
31/12/2010 Cash flow
31/12/2008
3,768
-2,168
17,118
49,109
42,113
60,860
31/12/2010
31/12/2009
31/12/2008
Added value
Number of employees
1,326
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2009
1,326
1,486
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
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.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
GRANT THORNTON
Auditor
-
STE BARBIER FRINAULT ET AUTRES INSTITUT DE GESTION ET D’EXPER NATIXIS - AG SIEGE SOCIA
Auditor Auditor Banker
-
Board name
date of birth
nationality
function
Mrs. Christine Mondollot Mrs. Laure Hauseux
30/08/1954 -
-
Chairman of the executive board Member of the executive board
Sharehoders (the first twenty shareholders ordered by Direct %) Rating:
VSSA HOLDING Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
FR
Operating Revenue (MIL $)
Rating:
BUTLER CAPITAL PARTNERS Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
-
FR 99.00 -
-
B
Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
0.42 0.19 0 2012/02
6.33 13.7 14 2012/12
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Subsidiaries (the first twenty subsidiaries ordered by Direct %) VIRGINMEGA Country ISO code NACE Rev. 2, Core code Direct % Total %
FR 100.00 100.00
NACE Rev. 2, Core code Direct % Total %
NACE Rev. 2, Core code Direct % Total %
NACE Rev. 2, Core code Direct % Total %
-
Operating Revenue (MIL $)
99.00 -
Total Assets (MIL $) Number of Employees Information date
FR 99.00 -
Rating:
-
Operating Revenue (MIL $)
3.22 1.02 48 2012/02
Rating: FR
A
Operating Revenue (MIL $)
34.00 -
Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
3.2 1.33 2012/02
Total Assets (MIL $) Number of Employees Information date
DISTICKET Country ISO code
3.34 6 2012/02
Rating: FR
VIRGIN CAFE Country ISO code
6.32
Total Assets (MIL $) Number of Employees Information date
VIP 400 Country ISO code
Rating: Operating Revenue (MIL $)
0 6.37 2012/02
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
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.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A 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.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
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
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
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 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.
Profitability and economic ratios
Interest coverage ratio
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
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 =
P Available Information P 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.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
VIRGIN STORES
Wednesday, 09 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
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
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741