Editialis

Presentation of the company

Created in 1978, Editialis is active in the publishing and event organization sector. The company, managed by Lenglart Hervé, has 50 employees and is based in Boulogne billancourt. The company is part of the group called Netmedia Group. It was founded in 2017 by Pascal Chevalier with the acquisition from Truffle Capital of 51% of the shares of Netmedia Europe, 100% of Editialis and Digital Business News in the first semester 2018. Behind these acquisitions, strategy is to reorganize the business with cost base improvement and maximise the digitalization and event expertise of the group. The group has 150 employees and is based in Boulogne Billancourt.

The company’s main activities are:

• Professional newspaper publisher with 9 BtoB media brands and 7 digital platforms.

• Organization of community events, with more than 40 events per year.

Project Description

The company has a 1M€ investment program focused on the company’s digitalization through immaterial investments, outsourcing and recruitment. The financing of this program will be made in two tranches of 500k€. The company wants to borrow 519k€ over 36 months with 3 months of deferred payments to finance the company’s digitalization. This project will be realised in the next few months.

The amount offered on the platform is limited to 254310€, which is in line with the regulatory limits.

Analyst’s Opinion

Our borrower is one of the group’s operating companies from Netmedia Group. Our analysis is based on the company’s financial statements that represent 75% of the group’s turnover in 2018.

With a turnover of 8 766 000 € in 2018 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The turnover decrease and the profitabilty increase is linked to the company’s reorganisation with a cost reduction approach. The forecast is based on the performance of last year

The borrower has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,21 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,6 and a net debt / shareholder equity of 211% taking into account the full 1M€ investment program.

The analysis of the project leads to a credit rating of B and a 5,60% annual interest rate.

*The multiple of FCCR at 1,21 means that the company has a safety margin of 21% 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.
• Excellent repayment ability with a forecasted FCCR of 1,21.
• Effective turn to digital of the company

Points of caution:

• Group in process of recovery