Sirio #02

Presentation of the company

Created in 1993, Sirio S.p.A. is active in the management of commercial catering stores in hospitals, motorways and airports sector. The company, managed by Stefania Atzori, has 618 employees and is based in Ravenna.

The company’s main activity is to manage point of sales:

• in hospital with brand "Siriobar";
• in motorways services areas with brand "Siriogrill";
• in airports with brand "La Ghiotta";
• fast food with brand "Burger King".

The company works with 76 stores, mainly located in the north center of Italy, through multi-year concessions with an average duration of about 10 years.

Project Description

"The company wishes to borrow 700 000 € over 36 months to finance the opening of new store branded Burger King in Ravenna. This project will be realised by the end of the year.

As a reminder, the Lendix lending community supported Sirio S.p.A. in April 2018 with 1 500 000 € to finance new stores which are already operative.

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 343 000€, which is in line with the regulatory limits.

Like all projects presented to private lenders on Lendix, it is co-financed with institutional investors, sophisticated investors and the management of Lendix, subscribers to the Lendix Fund.

Analyst’s Opinion

In 2017, Sirio S.p.A. changed the accounting method driving a revaluation of concession contracts.

With a turnover of 58 533 000 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Increase of turnover and profitability is related to the opening of new stores under concession contracts. The forecast is based on the performance of 2017 taking into account first months of 2018

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,16 and a good financial structure, with a forecast net debt / ebitda ratio of 1,12 and a net debt / shareholder equity of 87%.

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

Strong points:

• Good historical performance based on diversified client base;
• Correct repayment ability with a forecasted FCCR of 1,16 reinforced by the support of banking pool;
• Market leader in hospital segment.

Point of vigilance:

• Aggressive opening strategy mainly financed by debt.

*The multiple of FCCR at 1,16 means that the company has a safety margin of 16 % 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.