Prodware SA

Presentation of the company

Prodware SA is the holding company of the group Prodware set up in 1989 and active in the IT solutions sector. Managed by Philippe Bouaziz, Stéphane Conrard and Alain Conrard ,the group has 1425 employees and is based in Paris.

The company’s main activities are:

• the publishing and the integration of IT solutions by sectors and activities
• the web hosting and consulting on IT
• the maintenance of deployed solutions

The company works with 19 000 companies such as Findus, H&M, AIG, Suez, De Beers

The group is the leader on the Microsoft Dynamics, Sage and Autodesk solutions and able to support their clients in France and globally. Prodware is certified by Oseo as innovative company.

The group has active branches in 15 countries and a ntework of partners which enable to cover deployments in over 75 countries.

In France, the group has 18 branches and is listed on the NYSE/ EURONEXT markets since 2007.

Project Description

The company wishes to borrow 3 600 000 € over 60 months to finance the purchase of servers, storage spaces and develop its activity in the USA. This project will be realised this quarter.

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. The amount of the project published on the platform and open to retail investors is within the €1M limit set by regulations requirements.

Analyst’s Opinion

The borrower is the main operating company representing 58% of the group’s turnover and 64% of the profitability. The financial analysis was carried-out on the consolidated financial statements, which reflects the group’s performance.

With a turnover of 167 693 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The increase of the profitability is due to the spin-off of unprofitable activities and the development of the SAAS and Cloud. The forecast is based on the performance of 2018, with the integration of the Nerea acquisition, leader of IT solutions in Belgium, and the development of the activity.

The borrower has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,69 and a strong financial structure, with a forecast net debt / ebitda ratio of 0,3 and a net debt / shareholder equity of 4%. The 50Mio € bonds have been considered as quasi-equity.

The analysis of the project leads to a credit rating of A and a 3,6% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Excellent repayment ability with a forecasted FCCR of 1,69.
• Leader on the Microsoft Dynamics, Sage and Autodesk solutions, able to support their client in France and globally.

Points of vigilence:

• High level of annual investment to maintain their leader position

*The multiple of FCCR at 1,69 means that the company has a safety margin of 69% 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.