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BEGHELLI S.P.A.

presented by October Italy

€2,000,000

5.8%

24 months

B

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location

Location

Valsamoggia, Italy

activity

Activity

Industry

Presentation of the company

Created in 1989, Beghelli S.p.A. is active in the lighting sector. The company, managed by Gian Pietro Beghelli, has 254 employees and is based in Valsamoggia.

Mr. Gian Pietro Beghelli, managing director, has overall more than 35 years of professional experience in the sector.

The company’s main activity is the production of emergency lighting, energy saving lighting and electronic systems for domestic and industrial safety.

The company works with Italian and foreign distributors, large scale retailers, e-commerce companies and direct sales to large companies. Domestic market accounts for about 50% of group sales.

Project Description

The company requests a loan of 2 000 000 € over 24 months with 3 months of deferred repayment to finance production costs to perform two big order totaling 8 million of revenues in the next two years. This project will be realized by the end of the year.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 12 months and the possibility of early repayment at 1% for the remainder of the loan term, even in the event of refinancing by other financial institutions.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 980 000 €, which is in line with the regulatory limits.

Analyst’s Opinion

The borrower is the main operating company representing 50% of the group’s turnover and 30% of the gross operating margin. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.

With a turnover of 167 768 000 € in 2018 and an experienced team, the company has a good track record combined with a strong operating margin.

Reduction is sales and profitability is due to delay in the launch of new products and extraordinary investments in the promotion and development. Net loss comes from the write-down of tax benefit. The forecast is based on the historical performance and business plan at 2019.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,06 and a strong financial structure, with a forecast net debt / ebitda ratio of 3,52 and a net debt / shareholder equity of 60%.

The analysis of the project leads to a credit rating of B and a 5,8% annual interest rate.

Strong points:

  • Good historical performance based on diversified client base.
  • Correct repayment ability with a forecasted FCCR of 1,06 reinforced by the support of banking pool.
  • Market leader in the emergency lighting market.

Points of caution:

  • High competition in the industrial and consumer lighting.