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CPS

presented by October France

€1,050,000

5.9%

42 months

B

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location

Location

Oyonnax, France

activity

Activity

Business services

Presentation of the company

Created in 2004, CPS is a group specialized in quality control in the automotive industry. The group, headed by Stephane Perrot, employs 350 people and is based in Oyonnax (France).

The group’s activities are:

  • Quality control (historical activity with 85% of turnover)
  • Engineering: Implementation of a resident quality engineer at automotive sites
  • Training: Training of equipment manufacturers in ISO standards.

The company works with 35 major customers, including Valeo, Faurecia, Bosh, Delphi, PSA, Dacia, Adien, etc. CPS also controls its own customers’ suppliers on site, bringing the group’s total base to more than 3,000 customers.

The activity is based on European framework contracts and factory contracts which have a duration of 1 to 5 years, renewable by calls for tender.

Since 2011, the group has been present since 2011 in Morocco, Turkey and Romania at the request of its main customers. The French entity remains the most important with 80% of the turnover of the group.which achieves 25Mio € of turnover,

CPS experienced significant difficulties in 2008 following the financial crisis and the automotive crisis. In 2010, the company went into receivership with a 10-year continuation plan. The continuation plan was settled early, in 2017 instead of 2020, thanks to a controlled restructuring and development plan.

Project Description

Within the framework of its activity, the company wishes to borrow 1 050 000 € over 42 months to finance its development and in particular its installation in Poland, Hungary and Belgium at the request of its customers.

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

Analyst’s Opinion

The borrower is the French entity, the historical and main structure of the group with 80% of the turnover and profitability.

With a turnover of 27 241 668 € in 2017 and an experienced team, the company has a good performance record in terms of activity combined with a solid operating profitability.

In 2015, the company completed a 21-month accounting period to settle its accounts with these subsidiaries. The increase in turnover is linked to the growth in volumes in the automotive sector and the crossaince of the customer base.

In 2017, the decline in profitability is linked to an increase in the wage bill.

The forecast has been prepared on the basis of 2017 performance.

The borrower has a solid repayment capacity with a fixed charge cover ratio* (FCCR) of 1.33 and a strong financial structure with a net debt to EBITDA ratio of 1.6 and net debt to equity ratio of 267.0%.

The analysis of the project and the borrower leads to a B rating with a strong financial solidity and a rate of 5.90% per year.

Highlights :

  • Good performance track record on a diversified and quality client base with multi-year contracts
  • Good repayment capacity with a CCRF of 1.33
  • Technological advantage and good reactivity of the company compared to the competition

Vigilance Points :

  • Dependence on the automotive sector
  • Very competitive market 

*The multiple of CRFC at 1.33 means that the company has a safety margin of 33% 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.