Sirio #03

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 748 employees and is based in Ravenna (Italy).

The company’s main activity is to manage points of sale:

• in hospitals with brand “Siriobar”;
• in motorways services areas with brand “Siriogrill”;
• in airports with brand “La Ghiotta”;
• fast foods with brand “Burger King”.

The company works with 82 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 requests a loan of 900 000 € over 30 months to finance the opening of new points of sale. This project will be realized this semester.

As a reminder, the October lending community supported Sirio S.p.a. in April 2018 with 1 500 000 € and in September 2018 with 700 000 € to finance the opening of additional points of sale. These two loans are in regular amortization.

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 441 000€, which is in line with the regulatory limits.

Analyst’s Opinion

In 2017 Sirio SpA 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 2017 and on draft 2018 accounts which shows an increase in sales and stable profitability.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,12 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,91 and a net debt / shareholder equity of 164%.

The analysis of the project leads to a credit rating of B and a 5,35% annual interest rate.

*The multiple of FCCR at 1,12 means that the company has a safety margin of 12% 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 based on diversified client base.

• Correct repayment ability with a forecasted FCCR of 1,12 reinforced by the support of banking pool.

• Market leader in hospital segment.

Points of caution:

• Aggressive opening strategy mainly financed by debt.