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Rivi Magnetics

presented by October Italy

€100,000

5.4%

48 months

B+

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location

Location

Sassuolo, Italy

activity

Activity

Industry

Presentation of the company

Created in 2001, Rivi Magnetics S.r.l. is active in the machines sector. The company, managed by Davide Rivi, has 35 employees and is based in Sassuolo (Italy).

The company’s main activity is the manufacturing of magnetic anchoring systems.

The company works with customers active in several industries such as rubber moulding industry, machine tooling sector, metal stamping field for sheet metal processing and plastic moulding industry.

Project Description

The company requests a loan of 100 000 € over 48 months to finance the production of new control units adequately updated to meet the demands of Industry 4.0 thanks to their ability to be connected, routed and integrated into production processes. This project will be realized this semester.

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.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 49 000 €, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 4 997 255 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

Change in turnover is due to new partnership started at the end of 2016. The reduction in profitability was due to higher costs of R&D and lower value added products sold. The forecast is based on the performance of 2017 taking into account 2018 interim financials

The borrower has a solid repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,57 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,23 and a net debt / shareholder equity of 194%.

The analysis of the project leads to a credit rating of B+ and a 5,4% annual interest rate.

*The multiple of FCCR at 1,57 means that the company has a safety margin of 57% 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 (Mode Finance, CRIF, Cerved). 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;
  • Solid repayment ability with a forecasted FCCR of 1.57;
  • Products with a wealth of application.

Points of Vigilance:

  • Small player in a niche market.

*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 (ModeFinance, Crif, Cerved). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.