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DUE EMME IMPIANTI S.R.L.

presented by October Italy

€50,000

6.5%

20 months

C

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location

Location

Rovellasca, Italy

activity

Activity

Business services

Presentation of the company

Created in 1994, Due Emme Impianti S.r.l. is active in the industrial electrical installation sector. The company, managed by Daniele Grassi, has 2 employees and is based in Rovellasca.

The company’s main activities are installations and automation of electrical industries.

The company works with mainly industrial companies

Project Description

The company requests a loan of 50 000 € over 20 months to finance the purchase of raw materials needed for an order of a historical client. This project will be realized in the next few months.

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.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 24 500 €, which is in line with the regulatory limits.

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

Analyst’s Opinion

With a turnover of 308 055 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The reduction of turnover in 2016 and 2017 is related to the reduced involvement of the owner in the company, undertaking other entrepreneurial projects. From 2018 onwards, the owner has renewed his commitment to the company and the level of revenues has returned to the historical standard. Thanks to the flexibility of cost base, fluctuation of turnover had a small impact on profitability. The forecast is based on historical performance and 2018 results

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 1,98 and a net debt / shareholder equity of 287%.

Level of equity have been adjusted by credit to shareholder.

The analysis of the project leads to a credit rating of C and a 6,5% 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 (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;
  • Correct repayment ability with a forecasted FCCR of 1,07;
  • Historical company founded more than 20 years ago

Points of Caution:

  • Small company with few projects per year.