presented by October Spain
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Created in 1978, SOCIEDAD ANONIMA REVERTE PRODUCTOS MINERALES is active in the mineral sector. The Group, managed by José Reverté Vidal, has 296 employees and is based in Castellet i la Gornal.
The company’s main activity is:
The company works with a diversified client base of more than 1200 clients.
The Group has two production plants in Spain and another one in Mexico. The strategy is to boost the Almeria plant by investing in machinery and technology in order to modify the product mix focusing in higher margin products.
The company wishes to borrow 2.100.000 € over 72 months to finance the first phase of the investment plan in the Albox production plant. This project will be realised this semester.
The amount offered on the platform is limited to €1 000 000, which is in line with regulatory limits.
The borrower is the main operating company representing 80% of the group’s turnover and profitability. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.
With a turnover of 59 900 906 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.
Over the past years, the increase of profitability is related to a change in the product mix with higher margin. Reduction in 2017 is related with one off expenses associated to the reconditioning of the quarries. The forecast is based on the performance in 2017.
The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1.08 and a good financial structure, with a forecast net debt / ebitda ratio of 4.32 and a net debt / shareholder equity of 101%.
The analysis of the project leads to a credit rating of B and a 6.99% annual interest rate.
*The multiple of CRFC at 1,08 means that the company has a safety margin of 8% 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.
Areas of vigilence: