Rama

Presentation of the company

Created in 2018, RAMA is active in the restaurant sector. The company, managed by Gilles Malafosse, has 43 employees and is based in Ramatuelle. Following on from the LouLou restaurant located at the Musée des arts décoratifs in Paris, Gilles Malafosse, Jean-Philippe Cartier and Laurent de Gourcuff will very soon open Le Loulou at La Plage in Ramatuelle. The partners responded to a call for tenders from the municipality of Ramatuelle, which they won, thus obtaining a concession to operate a beach restaurant in the Tamari sector.

The company’s main activities will be

• Catering
• Rental of tanning areas
• Sale of accessories

Mr. Gilles Malafosse, has 20 years’ global professional experience in the sector. A man of the field and passionate about food, Gilles Malafosse operates four restaurants in Paris.

Mr. Jean-Philippe Cartier, founder and president of the luxury hotel group H8 collection, which currently manages 8 hotels highlighting the French exception.

In 2008, Mr. Laurent de Gourcuff founded the Paris Society group (formerly Noctis), a key player in hospitality in France, with a portfolio of some thirty exceptional venues in the high-end events and catering sector.

Project Description

The company is requesting a loan of €720,000 for 60 months to finance the construction work on the restaurant le loulou on the beach. Work has begun and is expected to be completed, and the inauguration is scheduled for 30/06/2019. This project will be completed next month.

The amount offered on the platform is limited to 352800€ which is in compliance with regulatory limits.

Analyst’s Opinion

The financial analysis was performed on the financial statements of the borrower’s direct competitors in order to compare them with the company’s business plan.

The new restaurant is ideally located on Ramatuelle beach and will be managed by an experienced team that, through the many restaurants, hotels and clubs, has demonstrated its ability to launch and manage successful restaurants. It will have 900 m2 of restaurant space for 223 seats and 841m2 of beach space. The restaurant will be open 300 days a year and will close in November and January of each year. The average ticket will be between 50 and 100 euros.

The forecast is based on the management business plan with an estimated turnover of around €6 million

The borrower has a good repayment capacity with a projected Fixed Charge Cover Ratio (*) of 1.39 and a solid financial structure, with a projected net debt/EBITDA ratio of 1.6 and a net debt/equity ratio of 166%, taking into account the contributions of shareholders.

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

*The multiple of FCCR at 1.06 means that the company has a 6% margin of safety in relation to its ability to repay its credit maturities.

The expert opinion is given for information purposes on the basis of the information provided by the project leader and information from our databases (external data file). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strengths :

• The recognized expertise of the partners
• Good repayment capacity with a expected CCRF of 1.39.
• Location of the future restaurant and concession obtained for a period of 12 years

Warnings:

• Seasonality of the activities
• Creation risk