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Greenalia Logistics

presented by October Spain

€800,000

5.25%

24 months

B

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location

Location

A Coruña, Spain

activity

Activity

Agriculture

Presentation of the company

Created in 2000, Greenalia Logistics S.L. is active in the Logistics sector. The company, managed by Manuel García Pardo, has 30 employees and is based in La Coruña. The company is part of a group active in the Forestry industry. Over the past years, the group reorganized the activities to be more vertically integrated with the developmment of complementary business such as  Logistics, Biofuel production, Production of thermal energy exclusively from biofuels and Biomass & Wind power production.

The company’s main activities are:

  •  coverage for the group’s logistic needs.

The company works with a relatively diversified client base of big clients from the paper, wood and energy sectors.

Project Description

The company wishes to borrow 800.000 € over 24 months to finance the purchase option on the ship "Daroja" valued at 1,600,000€ which is currently rented for 3,100€/day. The balance will be financed with the cash position of the group. 

The amount offered on the platform is limited to 392.000€, which is in line with regulatory limits. This project will be realised next month.

Analyst’s Opinion

Our borrower is the operating company of the logistics business line with a 11% of the revenue and 52% of the profitability. Financials analysis has been done on the consolidated financials which mirrors the performance of the group. The scope of consolidation includes our borrower and 14 more companies.

With a turnover of 35 003 836 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Increase of turnover and profitability is related with the development of the new business lines over the past years. The forecast is based on 2018’s Business Plan with the development of the new business lines together with the savings from the acquisition of the ship.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1.18 and a good financial structure, with a forecast net debt / ebitda ratio of 1.31 and a net debt / shareholder equity of 37%.

Bonds have been considered as quasi equity due to their maturity post October loan. 

*The multiple of FCCR at 1.18 means that the company has a safety margin of 18% 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 (Informa, Asnef). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

The analysis of the project leads to a credit rating of B and a 5.25% annual interest rate.

Strong points:

  • Good historical performance based on diversified client base.
  • Correct repayment ability with a forecasted FCCR of 1,18 reinforced by the support of  banking pool.
  • Vertically integrated company.

Points of vigilence:

  • Potential new competitors in the market