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Alkor Draka

presented by October France

€623,000

5.4%

18 months

B

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location

Location

Verderonne, France

activity

Activity

Industry

Presentation of the company

Created in 1993, Alkor Draka is active in the plastics processes sector. The company, managed by Rubens Homem De Correa Leite, has 149 employees and is based in Liancourt. The activity has been created in 1957 through The Solvay group which has spined off in 2006.

The company’s main activities are:

  • The conception and the manufacture of technical plastic films
  • The company controls the quasi totality of the outlets of the sector : decorative outdoor coatings (vehicles, shops), decorative indoor coatings (floors, ceilings), decorative specific coatings (entertainment stages), decorative leisure coatings (cinema screens), decorative leisure coatings (swimming pools), industrial waterproofing coatings (hydraulic works), specific industrial coatings (nuclear), specific medical coatings, packaging of non-food liquid products

The company works with companies in different sector such as Hexis, Colgate.

The company has two units of production which had been fully modernized in 2017/2018.

Alkor Draka is a very reactive and flexible company, that can make big or small quantities and answers very specific demands.

Alkor Draka has been convicted of unfair competition, the judgment is on the company’s website, the responsable for this judgment has left the company.

Project Description

Following the modernization plan, the company requests a loan of 623 000 € over 18 months to finance the growth of production and the hiring of employees. This project will be realised this quarter.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

The amount offered on the platform is limited to 305 270€, which is in line with the regulatory limits.

Like all projects presented to individual lenders on Lendix, it is co-financed with institutional investors, sophisticated investors, and Lendix management, subscribers to the Lendix Fund.

Analyst’s Opinion

With a turnover of 35 142 000 € in 2017 and an experienced team, the company has a good track record combined with an acceptable operating margin.

The increase of the revenue is linked to the development of the clients portfolio. The decrease of the profitability is linked to the investment in modernization of the production sites. In 2018, the revenue is forecasted, at minimum, like 2017. The forecasted has been done on 2019 taking into account of the growth of clients and profitability with the modernization investment.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,07 and a strong financial structure, with a forecast net debt / ebitda ratio of 3,6 and a net debt / shareholder equity of 70%, some loans have been considered as quasi equity as their repayment start after the maturity of "Lendix"s loan.

The analysis of the project leads to a credit rating of B and a 5,4% annual interest rate.

*The multiple of FCCR at 1,07 means that the company has a safety margin of 7% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (Scores & Decisions, Corporate Banking File). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

  • Good historical performance based on diversified client base.
  • Correct repayment ability with a forecasted FCCR of 1,07 reinforced by the support of banking pool.
  • The company is present in 9 sectors, in a niche market and capable of answer atypic demands

Point of caution:

  • High competitive market