Arvoo Imaging Products B.V

Presentation of the company

Created in 1997, Arvoo Imaging Products B. V. is active in the engineering for electronics and embedded systems sector. The company, managed by René Voorwinden, has 18 employees and is based in Harmelen. The company develops the software and hardware related to mobility flows based on number plate recognition. The company provides scan apparature and camera’s which measure the number of cars on a road, control parked cars. These products are also used for access systems for parking facilities.

Mr. René Voorwinden, managing director, has overall 25 years of professional experience in the sector.

The company’s main activity is:

• Development, production and supply of software and hardware for digital imaging and video processing systemsThe company works with B2B clients.

Innovation is key for the company and one of the drivers of Arvoo’s success. It helps the company to stay ahead of competition.

In the last years the company succesfully extended business to more European countries. In the near future, the company expects demand from European clients to increase. In addition, the company sees an upcoming demand from clients active in the American market.

Project Description

The company requests a loan of 150. 000 € over 36 months to finance the purchase of raw materials, which will be processed into finished products. The company received a large order from an international player, which required Arvoo to have a sufficient level of finished products in inventory. This loan is part of a project, if certain requirements are met by Arvoo, a second loan of 100. 000 € will follow. 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 73500€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 3 054 000 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

The analysis and forecasted FCCR has been based on the actual preliminary 2018 results. 2018 has seen a decrease in revenue as a result of investments in the development of software.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,04 and a strong financial structure, with a forecast net debt / ebitda ratio of 2,62 and a net debt / shareholder equity of 150%.

The analysis of the project leads to a credit rating of B and a 6,1% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.

• Excellent repayment ability with a forecasted FCCR of 1,04.

• The company is one of the marketleaders in the Netherlands.

Points of caution:

• Scarcity of qualified manpower with a technical background.