Rand Frères

Presentation of the company

Created in 1896, Rand Group is active in the fashion jewelry and accessories sector. The group, managed by Michael Ziegler, has 577 employees worldwide and is based in Paris. Mr Ziegler succeeded his father in 2009, who was chairman of the group’s supervisory board since 1972.

The group’s main activity is:

• The creation, production and marketing of costume jewelry for major chains and for its own stores, mainly under the Lollipops, Reine Rosalie and BalaBoosté brands.
• The sale of jewelry products and fashion accessories (belts, bags, scarves, etc.) through specialized stores in France and abroad.

The group works with most fashion retailers and shopping malls in Europe and North America and distributes its products to more than 7 000 points of sale in 2018.

Project Description

The company wishes to borrow €1 450 000 over 36 months to finance the development its retail activities through new stores for the BalaBoosté and Lollipops Jewelry brands in France. This project will be realised by the end of the year.

As a reminder, the Lendix lending community supported the Rand Group in July 2017 with €1 600 000 to finance the recruitment of around 50 people globally as well as the purchase of store furnitures.

The amount offered on the platform is limited to €710 500, which is in line with the regulatory limits.

Analyst’s Opinion

The borrower is a holding company whose revenues are derived from services invoiced to its subsidiaries. The financial analysis was carried out on consolidated financial statements, which reflect the group’s performance.

With a turnover of €73 002 000 in 2017 and an experienced team, the group has a good track record combined with a strong operating margin.

After an exceptionnal year in 2015, profitability is back to historical levels in 2016 before declining in 2017 as the group invested significantly in North America to expand its operations. The increase of turnover over the period is driven by additionnal points of sales as well as new revenues generated in Canada. The forecast is based on the performance of 2017 and forecasted data for 2018.

The group has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,2 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,77 and a net debt / shareholder equity of 89%.

The analysis of the project leads to a credit rating of B and a 5,75% annual interest rate.

Strong points

• Good historical performance based on diversified client base of distributors and fashion stores.
• Good repayment ability with a forecasted FCCR of 1,2 reinforced by the support of banking pool.
• Experience of managing team and good reputation of the different brands among retailers.

Point of caution

• Profitability driven by volume sales and efficient inventory management

*The multiple of FCCR at 1,2 means that the company has a safety margin of 20% 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.