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Bricofer Italia

presented by October Italy

€1,000,000

5.2%

21 months

B

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location

Location

Roma, Italy

activity

Activity

Commerce

Presentation of the company

Created in 2003, Bricofer Italia S.p.A. is active in the “do it yourself” sector. The company, managed by Massimo Pulcinelli, has 625 employees and is based in Roma.

Massimo Pulcinelli, managing director, has overall 20 years of professional experience in the sector.

The company’s main activity is the managing of “do it yourself” point of sales.

The company works with 124 point of sales spread all over Italy of which 74 managed directly and 50 through affiliates. Company owns three brand: Bricofer, Ottimax and Self.

Project Description

The company requests a loan of 1 000 000 € over 21 months with 3 months of deferred repayment to finance a new opening branded Ottimax in Catania. This project will be realized by the end of the year.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 490 000 €, which is in line with the regulatory limits.

Analyst’s Opinion

The borrower is the main operating company representing about 60% of the group’s turnover and 70% of the profitability. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.

With a turnover of 210 504 539 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

In 2018 Bricofer is projecting about 350 milion € revenues with stable profitability. The increase of turnover and profitability is driven by the new openings and the acquisition of smaller competitors. The forecast is based on the performance of the comoany in 2017 and 2018 taking into consideration the company business plan which forecasts a further growth in revenues and stable profitability.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,35 and a strong financial structure, with a forecast net debt / ebitda ratio of 2,67 and a net debt / shareholder equity of 92%.

The analysis of the project leads to a credit rating of B and a 5,2% annual interest rate.

*The multiple of FCCR at 1,35 means that the company has a safety margin of 35% 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 (External data provider). 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;
  • Good repayment ability with a forecasted FCCR of 1,35;
  • National market leader in the Do It Yourself business.

Point of caution:

  • Acquisition of competitors mainly performed with new debt.