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Sicam Srl

presented by October Italy

€750,000

4.6%

36 months

B+

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location

Location

Correggio, Italy

activity

Activity

Industry

Presentation of the company

Created in 1991, Sicam S.r.l. is active in the automotive sector. The company, managed by Boris Levin, has 139 employees and is based in Correggio.

The company’s main activities are:

  • Manufacturing of machines for the recharge of air conditioning systems
  • Manufacturing of tyre changing and balancing machines 
  • Manufacturing of brake testers 

The company works with well known international clients.

The company was part of the Bosch group until 2018 when it was bought by the current shareholders.

Project Description

The company requests a loan of 750 000 € over 36 months to finance the development of new products to further expand the company’s offering and to improve the already existing ones. 

The company is also looking at an acquisition of a small company that will allow the increase of the product offer. 

In the next few months it could be possible that October will be involved in this acquistion financing deal. This project will be realised in the next few months.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 367 500€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 39 174 333 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

Turnover decreased from 2016 to 2017 due to a contraction of the market, however the profitability of the company increased thanks to the investments made the previous year. The forecast is based on 2017 performace and 2018 draft financial statements. In 2018 turnover and profitability of the company had a slight decrease due to the costs related to the acquisition.

The borrower has an excellent repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 3. 81 and a good financial structure, with a forecast net debt / ebitda ratio of 4. 22 and a net debt / shareholder equity of 77%.

The analysis of the project leads to a credit rating of B+ and a 4. 6% annual interest rate.

*The multiple of FCCR at 3,81 means that the company has a safety margin of 281% 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 (External data provider). 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.
  • Excellent repayment ability with a forecasted FCCR of 3. 81.
  • Historical company with an established reputation

Points of caution:

  • Business tied to the cyclicality of the automotive sector