Graydon UK

Level 3-Comprehensive Credit Rating Report: Supplied on 6 December 2004

Client Reference level 3 report

Company Identification Details

Subject Reported on A.Z.C.(UK) LIMITED Address CHURCH ROAD, MAIDSTONE, KENT, ME19 1AR. Telephone 01622 222222 Facsimile 01622 222223

Creditline Recommendations

Graydon Rating 2A GBP 20m-49m financial strength rating based on net worth plus net current assets/liabilities Monthly Credit Guide GBP 400,000 Risk Category LOW RISK

Official Company Data

Legal Form Private Limited Registration Number 98888888 Date of Incorporation 31/03/1984 Registered Office CHURCH RD, MAIDSTONE, KENT, ME20 6PG. History 5/04/1984 : Change of name from SHELFCO (5895) LIMITED. At heading address since 1989. Previously located at 22 HIGH STREET, MAIDSTONE, KENT ME19 1AR. Date of Last Annual Return to Registry 01/06/2004 Registered Objectives TO CARRY ON BUSINESS AS GENERAL MERCHANTS Accounts The last filed accounts at Companies House are those to 31/05/2003

Company Secretary

Secretary MR ROBERT SMITH    Address 4 HIGH STREET, DOVER, KENT, CT19 1ZZ.    Date of Birth 06/05/1962

Directors

Managing Director MR RAYMOND CORRIGAN    Address 215 PARADISE WAY, BASINGSTOKE, HANTS, RG20 1SD.    Date of Birth 24/11/1973   Director MR JONATHAN GALBRAITH    Address FLAT 1, 66 PARK AVENUE, LONDON, W1A 8DF.    Date of Birth 15/10/1968   Financial Director MR GRAHAM JOHNSON    Address 98 COOPERS WAY, LEEDS, W. YORKS, LS2 2QW.    Date of Birth 12/04/1980   Director MR STEPHEN COLLIER    Address 11 GAVEL ROAD, BASINGSTOKE, HANTS, RG19 1EE.    Date of Birth 19/08/1949   Senior Executive MR CHRISTOPHER BRYANT    Address 2 HORSECROFT ROAD, BURNT OAK EDGWARE, MIDDLESEX, HA8 6PL.    Date of Birth 01/01/1968

Share Capital

Shares ORDINARY ONE POUND EACH Issued Number 2,500,000 Nominal Number 3,000,000 Shares PREFERENCE FIFTY PENCE EACH Issued Number 524,000 Nominal Number 1,000,000 Principal Shareholder 3,023,999 A.Z.C.(HOLDINGS) LIMITED 1 MR ROBERT SMITH & A.Z.C.(HOLDINGS) LIMITED The above reflects the principle shareholder(s) by number of shares held, irrespective of share classification type. Holding Company A.Z.C.(HOLDINGS) LIMITED Ultimate Parent A.Z.C.INC., a company incorporated in USA

Public Record Information

Summary of CCJ's/Scottish Decrees

Period Last 72 Months Last 36 Months Last 18 Months Amount Summary 5,843 5,843 843 Count Summary 2 2 1 Unsettled Amount Summary 5,843 5,843 843

Details of the most recent CCJ's/Scottish Decrees

Date Amount Type Case No Settled Court 28/06/2003 843 Judgment 69528   MAIDSTONE 20/04/2002 5,000 Judgment 12345   MAIDSTONE

Payment Analysis

( No Payment Analysis Data is Available ) To contribute sales ledger information to Graydon. please contact the Specialist Product Division - mail@graydon.co.uk

Operations

In order to ensure the accuracy of this report, certain information has been verified with the subject.

Activities THE MANUFACTURE AND SALE OF BUILDING MATERIALS, PRIMARILY CEMENT, READY-MIXED CONCRETE AND BRICKS. Nace Code 2651 (1992) Premises Owned,Offices,Warehouse,Factory Staff Employed 489 Trading Divisions AZC AGGREGATES Trade Names THE BUILDING SPECIALISTS Product Names BRIX-FILLA Import Countries GERMANY Export Countries ALL OVER THE WORLD Bankers NATIONAL WESTMINSTER BANK PLC   Address P.O.BOX 4, 3 HIGH STREET, MAIDSTONE, KENT, ME14 1XU.   Sort Code 606008 Branches 15 FACTORIES THROUGHOUT THE UK INCLUDING LIVERPOOL, BRISTOL, MANCHESTER, LEEDS, BIRMINGHAM, Associated Companies A.Z.C.BUILDING LIMITED A.Z.C.ROOFING LIMITED A.Z.C.SURVEYING LIMITED Subsidiaries WAREHOUSE PACKAGING LIMITED

General Information

10/12/2003 The subject has won a 5 year contract worth GBP30 million for the supply of ready-mix concrete.    10/06/2004 The subject has recently opened two new factories in the north-east ofEngland (Newcastle-upon-Tyne and Sunderland)

Financial Data

Profit and Loss The following figures are shown in units of 1000 Number of Weeks 52 52 52 52 Accounts Date 31/05/2003 31/05/2002 31/05/2001 31/05/2000 Consolidated Yes Yes Yes Yes Currency GBP GBP GBP GBP SALES 21259 19764 18366 20255  UK sales 17848 16589 15896 17563  Export 3411 3175 2470 2692 Cost of goods sold 9123 8966 8036 10340 GROSS PROFIT 12136 10798 10330 9915 Wages and Salaries 8442 7736 7076 6289 Directors Emoluments 418 471 366 361 Auditors Fees 58 57 56 56 Trading Profit 3218 2534 2832 3209 Depreciation 994 879 901 1005 OPERATING PROFIT 2224 1655 1931 2204 Non Trading Income 118 172 236 282 Interest Payable 85 7 40 132 PRE TAX PROFIT 2257 1820 2127 2354 Taxation 1085 554 742 848 PROFIT AFTER TAX 1172 1266 1385 1506 Dividends Payable 733 994 994 994 RETAINED PROFITS 439 272 391 512   Balance Sheet The following figures are shown in units of 1000 Number of Weeks 52 52 52 52 Accounts Date 31/05/2003 31/05/2002 31/05/2001 31/05/2000 Consolidated Yes Yes Yes Yes Currency GBP GBP GBP GBP TOTAL FIXED ASSETS 8888 7521 6322 6390  Tangible Assets 8488 7476 6256 6390   Fixed Assets 8329 7317 6097 6218   Intermediate assets 159 159 159 172  Intangible Assets 400 45 66   TOTAL CURRENT ASSETS 14249 13265 14664 14819  Trade debtors 4232 4641 3742 4232  Stocks 6231 5949 6049 5004  Other Current Assets 3786 2675 4873 5583   Misc Current Assets 243 495 456 533   Cash 3543 2180 4417 5050 TOTAL ASSETS 23137 20786 20986 21209 TOTAL CURRENT LIABILITIES 5424 3698 3995 4317  Trade creditors 2985 1351 1310 945  Short Term Loans 189 151 26 1212   Bank Overdraft 85 60 20 895   Bank Loans 39 39 3 186   Other Finance 65 52 3 131  Other Liabilities 2250 2196 2659 2160 WORKING CAPITAL 8825 9567 10669 10502 TOTAL LONG TERM LIABS 286 355 536 247  Long Term Loans 226 255 398 52   Bank loans 199 199 228 38   Other Finance 27 56 170 14  Other Liabilities 60 100 138 195 NET ASSETS/(LIABILITIES) 17427 16733 16455 16645 SHARE CAPITAL + RESERVES 17427 16733 16455 16645  Share Cap + Sundry Res 6626 6626 6626 6626   Issued Share Capital 2762 2762 2762 2762   Sundry Reserves 3864 3864 3864 3864  Revaluation Reserves 1848 1593 1625 1657  Profit and Loss account 8953 8514 8204 8362 SHAREHOLDERS FUNDS 17427 16733 16455 16645 CAPITAL EMPLOYED 17713 17088 16991 16892   Financial Comparison The following figures are shown in units of 1000 Number of Weeks 52 52 52 52 Accounts Date 31/05/2003 31/05/2002 31/05/2001 31/05/2000 Consolidated Yes Yes Yes Yes Currency GBP GBP GBP GBP Net Cashflow from Oper.   1649 3344 3887 Increase in Cash   -2237 -633 -1122 Directors Remuneration 418 471 366 361 Auditors Remuneration 58 57 56 56 Liquid Assets 7775 6821 8159 9282 Net Working Capital 8825 9567 10669 10502 Long Term Debt(>12 Months) 226 255 398 52 Other Deferred Liabs 60 100 138 195 Tangible Net Worth(T.N.W) 17027 16688 16389 16645 Equity 17427 16733 16455 16645 Number of Years Trading 19 18 17 16 Number of Employees 489 446 412 451 Profit per Employee 4615.5 4080.7 5162.6 5219.5 Sales per Employee 43474.4 44313.9 44577.7 44911.3   Key Credit Ratios Accounts Date 31/05/2003 31/05/2002 31/05/2001 31/05/2000 Consolidated Yes Yes Yes Yes Current Ratio 2.6 3.6 3.7 3.4 Pre Tax Profit Margin % 10.6 9.2 11.6 11.6 Gross Profit % 57.1 54.6 56.2 49 Debtors Days (D.S.O) 73 86 74 76 Creditors Days (D.P.O) 51 25 26 17 Quick Ratio 1.5 2 2.2 2.3 W.I.P/Inventory Days 249.3 242.2 274.7 176.6 Return on Investment % 13.1 10.6 12.7 13.7 Return on Assets % 9.8 8.8 10.1 11.1 T.N.W/Total Assets % 73.6 80.3 78.1 78.5 Return on Capital % 12.7 10.7 12.5 13.9 Rtn on Shareholders Funds % 13 10.9 12.9 14.1 Working Capital/Sales % 41.5 48.4 58.1 51.8 Borrowing Ratio % 2.4 2.4 2.6 7.6 Equity Gearing % 305.2 412.9 363.2 364.7 Stock Turnover 3.4 3.3 3 4 Days Purchases Outstanding 119.4 55 59.5 33.4

Key Industry Sector Trends

Year 2003 2002 2001 2000 Sample Size 67 68 68 69 Pre-Tax Profit Margin 12.1 9.6 12.1 15.3 Current Ratio 1.4 1.8 1.6 1.7 Borrowing Ratio 67.9 241.2 51.1 5.9 Return on Capital 18.4 12.1 18.2 15.3 Creditors Days 34 29 30 31

Above figures relate to companies in 1992 Standard Industry Classification (Nace) sector : Manufacture of cement, lime and plaster

Financial Summary Auditors Qualification The Auditors have expressed a clean opinion (i.e. unqualified with no referrals) on the accounts for the period ended 31/05/2003. Turnover Turnover has increased from GBP 19,764,000 to GBP 21,259,000, a growth of 8 % in the period. Operating Profit Totalled GBP 2,224,000. In the year prior a Profit of GBP 1,655,000 was achieved. Pre Tax The subject's profit increased by 24 % in the year. Working Capital The company's working capital remains positive but reduced by 8 % in the period. Net Worth Net worth has increased by 4 % and now stands at GBP 17,427,000. Fixed Assets The subject's fixed assets increased during the year by GBP 1,367,000 to GBP 8,888,000 and are now 38 % of total assets compared with 36 % in the previous year. Long Term Liabilities The company's long term liabilities reduced during the period by 19 % and are now 2 % of net worth compared with 2 % in the previous period. Long Term Liabilities Long term liabilities are now 1 % of total liabilities compared with 2 % in the previous period.

 
*** End of Report on A.Z.C.(UK) LIMITED ***