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Tomet Mechanics

presented by October Italy

€550,000

5.5%

36 months

B

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location

Location

Zona Industriale Nord, Italy

activity

Activity

Industry

Presentation of the company

Created in 2010, Tomet Mechanics S.r.l. is active in the metalworker sector. The company, managed by Armando Concato, has 121 employees and is based in Castelgomberto (Italy).

The company’s main activity is the production of high-precision shafts for rotating machines (electric motors, gearboxes).

The company works with about 60 customers mainly active in the pumps and electric engines production.

Project Description

The company requests a loan of 550 000 € over 36 months to finance the acquisition of a machine used for precision work of shafts for electric motors. This project will be realized in the next few months.

As a reminder, the October lending community supported CR S.p.A. (holding company of Tomet) in October 2018 with 500 000 € to finance the renovation of production plants. The loan repayment is regular.

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 269 500 €, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 11 719 441 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

2016 results are influenced by a contraction in market served and increasing price of raw materials. The forecast is based on the performance of 2017 taking into account preliminary results of 2018.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,1 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,89 and a net debt / shareholder equity of 164%, considering shareholders loan as quasi-equity.

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

*The multiple of FCCR at 1,1 means that the company has a safety margin of 10% 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 1,1 reinforced by the support of shareholders;
  • Company operates in a market niche.

Points of caution:

  • Market influenced by cost of raw materials.