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L.V. CAFFE

presented by October France

€312,000

5%

60 months

B+

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location

Location

Lège-Cap-Ferret, France

activity

Activity

Restaurants and catering services

Presentation of the company

Created in 2015, L.V. Caffe is the operating company of the disco "Le Sun". The company, managed by Guillaume Vollet and Grégory de Lépinay, employs 12 people and is based in Lege Cap Ferret. 2 years ago, the new sign "Le Sun" was created, succeeding the "Centaure" existing for 30 years. L.V. Caffé belongs to the same shareholders as Sail Fish and Sail Fish Cafe

The company takes over: the success codes of the group’s establishments: setting, environment, furniture, service, reception, musical programming, while respecting the family spirit of Cap Ferret.

The company works with the inhabitants of the region and the highly developed tourism on the Arcachon basin.

The establishment is open every weekend from Easter to the end of October, and every day from early July to the end of August. The SUN offers a varied cocktail menu.

Project Description

The company has been operating the leased establishment since March 2016, and the owner has sold his business, valued at €450,000. The company wishes to borrow 312 000 € over 60 months, to finance the purchase of the business, the balance being financed by personal contribution.

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

With a turnover of €588,000 in 2017 and an experienced team, the company has a good performance record in terms of activity combined with double-digit operating profitability.

Although the first financial year is 22 months, the level of turnover is representative of annual activity because the resumption of operations took place in March 2016. In 2017, growth continued and profitability improved.

The forecast has been prepared on the basis of 2017 performance taking into account the rental savings from leasing management.

The borrower has a solid repayment capacity with a Fixed Charge Cover Ratio* (FCCR) forecast at 1.66 and a strong financial structure with a forecast net debt/EBITDA ratio of 1.6 and net debt/equity of 139.0% taking into account the personal contribution of the buyers.

The analysis of the project and the borrower leads to a B+ rating with a strong financial solidity and a rate of 5.00% per year.

Highlights :

  • Good performance history and an establishment that has existed for 30 years
  • Managers with excellent experience: Mr De Lépinay is the creator and manager of the emblematic Cap Ferret Le Sail Fish restaurant.
  • Good repayment capacity with a CCRF of 1.66

Vigilance Points :

  • Only 2 years of operation
  • Strong competition in tourist areas

The multiple of CRFC at 1.66 means that the company has a safety margin of 66% 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.