Cotelac

Presentation of the company

Created in 1993, Cotelac is active in the clothing design and retail sector. The company, managed by Pierre Pernod, has 293 employees and is based in Ambérieu-en-Bugey. The group is composed of an holding (PPO) and a main company (Cotelac). There are also some subsidiaries for foreign shops.

The company’s main activity is: the creation, manufacture and sale of ready-to-wear products.

The company works with retails customers and professional distributors.

Project Description

The company wishes to borrow 2 101 000€ over 48 months, including 342 000€ to finance recruitment, process improvement, and internet sales developpement and 1 759000€ to finance the partial refinancing of debt.

The amount offered on the platform is limited to 140 630€, which is in line with the regulatory limits.

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.

Analyst’s Opinion

The borrower is the main operating company representing 87% of the group’s turnover and 78% of the profitability. The financial analysis was carried-out on the consolidated financial statements, which reflects the group’s performance.

With a turnover of 38 508 800 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Increase of profitability is related to good control of fixed cost base. Forecast based on 2017.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,01 and an excellent financial structure, with a forecast net debt / ebitda ratio of 1,5 and a net debt / shareholder equity of 35%.

The analysis of the project leads to a credit rating of B and a 5,60% annual interest rate.

*The multiple of FCCR at 1,01 means that the company has a safety margin of 1% 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.

Strong points:

• Good historical performance based on diversified client base.
• Correct repayment ability with a forecasted FCCR of 1,01 reinforced by the support of shareholders.
• Good financial structure supported by the founding family

Point of caution:

• Competitive Market