C.M.L. Engineering

Presentation of the company

Created in 2009, C.M.L. Engineering S.r.l. is active in the machinery manufacturing sector. The company, managed by Valentino Villa, has 13 employees and is based in Vimercate (Italy).

The company’s main activities are:

• Design and manufacturing machinery for wood processing;
• Design and manufacture production systems for wood processing.

The company works with 20 B2B customers both national and international.

Project Description

The company wishes to borrow 400.000 € over 48 months to finance the purchase of new production machinery, hire new employee and move to a new plant.. This project will be realised by the end of the year.

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.

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.

The amount offered on the platform is limited to 196 000 € in line with regulatory limits.

Analyst’s Opinion

With a turnover of 3 819 091 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Turnover growth has been mainly driven by the development of new advanced products and acquisition of new customers. The forecast is based on the 2017 performance and on 2018 budget.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,31 and a good financial structure, with a forecast net debt / ebitda ratio of 1,2 and a net debt / shareholder equity of 101%.

Considering the capitalization of 2018 expected profit.

The analysis of the project leads to a credit rating of B and a 6,65% annual interest rate.

Strong Points:

• Good historical performance based on diversified client base;
• Good repayment ability with a forecasted FCCR of 1,31;
• Strong company know how and management with long experience in the market.

Points of Vigilence:

• Small player in the market.

*The multiple of FCCR at 1,31 means that the company has a safety margin of 31 % 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.