Troc de l’ile

Presentation of the company

Founded in 1995, Troc de l’Ile is a company specializing in the resale of used items in stores. The company, managed by Fabrice BAJ, employs 67 people and is based in Les Angles (30) :

• The cash deposit.
• The deposit-sale.
• The sale of new.

The brand has a total of 115 stores, mainly in France and Belgium.

A large proportion of these stores are franchised and pay a sign and advertising fee to the holding company.

The brand also has an e-commerce site with over 5 million unique visitors per year.

Project description

Within the framework of a €2 million development project, the company wishes to borrow €415,000 over 36 months to finance the redesign of the website and the reinforcement of the sales force by the end of 2018 as well as the renovation of 4 stores. The additional requirement will be financed by its banking pool.

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

The amount offered on the platform is limited to 203 350€, which is in line with the regulatory limits.

Analyst’s opinion

Our borrower is the holding company Troc de l’Ile SA whose income comes from its subsidiaries. The financial analysis was performed on the consolidated financial statements, which reflect the Group’s performance.

With a turnover of 9 256 000 € in 2017 and an experienced team, the group has a good performance record in terms of activity combined with a solid operating profitability after an exceptional 2016, profitability returned to historical levels.

The forecast has been prepared on the basis of 2017 performance.

taking into account the decline in historical turnover linked to competition from websites.

The borrower has a good repayment capacity with a fixed charge cover ratio* (FCCR) of 1.08 and an excellent financial structure with a net debt to EBITDA ratio of 1.1 and net debt to equity ratio of 11.0%.

The associated current accounts were treated as quasi-equity.

The analysis of the project and the borrower leads to a C rating with excellent financial solidity and a rate of 6.20% per year.

Highlights 

• Good performance history on a diversified client base.
• Historic and leading company in Europe.
• Correct forecast repayment capacity with a CCRF of 1.08.

Vigilance Points 

• Strong competition from the Internet."

"The multiple of CRFC at 1.08 means that the company has a safety margin of 8% 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 (Scores & Decisions, Corporate Banking File). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project."