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Manufactura Moderna de Metales

presented by October Spain

€1,500,000

6%

48 months

B

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location

Location

Barcelone, Spain

activity

Activity

Industry

Presentation of the company

Created in 1978, Manufactura Moderna de Metales SA is active in the automotive industry sector. The company, managed by Miguel Priu Baixeras, has 145 employees and is based in Molins de Rei, Barcelona.

The company’s main activity is:

  • Design, development and manufacturing of systems that integrate tubes for the business group specialized in the design.
  • Development and manufacture of systems that integrate tubes for the automotive industry.

The company works with headquarters in Barcelona and 4 production plants located in Romania, Russia, China and Mexico.

Project Description

The company requests a loan of 1.500.000 € over 48 months to finance part of the production line for the new factory located in Mexico. This project will be realised in the next few months.

The amount offered on the platform is limited to 735.000 €, which is in line with the regulatory limits.

Analyst’s Opinion

The company went into voluntary Chapter 11 in 2008 as a consequence of the global economic downturn and the strong effects over the automotive industry. 10 years latter the company is fully recovered, officially out of Chapter 11, and with expansions plans that now can be financed with total normality by banks and financial entities. Our borrower is the main operating company of the group with 89% of the sales and 55% 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 5 more companies.

With a turnover of 58 548 060 € in 2017 and an experienced team, the group has a good track record combined with a strong operating margin.

Increasing sales related with the increasing supplying to some big automotive brands.

The forecast is based on the performance in 2018, where the company reported a 61 845 580 € turnover and a pre-tax profit of 2 441 700€ The group has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,19 and a strong financial structure, with a forecast net debt / ebitda ratio of 4,01 and a net debt / shareholder equity of 104%.

The analysis of the project leads to a credit rating of B and a 6,9% annual interest rate.

*The multiple of FCCR at 1,19 means that the company has a safety margin of 19% 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 1,19 
  • Longstanding track record in the market

Points of caution:

  • Unexpected cyclical downturn