Salvatore

Presentation of the company

Created in 2016, Salvatore is active in the food service sector. The company, managed by Giusto Cedric, has 4 employees and is based in Saint Cyr sur mer. The restaurant, called le Cabestan was bought in ocotber 2016 by the Giusto family.

The company’s main activity is: classic restaurant serving mediterranean food

The company works with particular clients that are tourists and local inhabitants. The essential of the activity is made in the high season. The restaurant is ideally located in front of the sea with a 80 seats terrace.

Project Description

The company wishes to borrow 42 000 € over 36 months to refinance the renovation of the restaurant.

Analyst’s Opinion

On the last exercise, the financial statements represent 18 months of activity due to the owners’ transition in 2016.

With a turnover of 732 287 € over 18 months in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

Over the last two years, the increase of profitability is linked to lower salaries and a better control over expenses. The forecast is based on the performance of the last exercise calculated on 12 months

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,23 and an excellent financial structure, with a forecast net debt / ebitda ratio of 1,7 and a net debt / shareholder equity of 57%.

The analysis of the project leads to a credit rating of B+ and a 4,80 % annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Correct repayment ability with a forecasted FCCR of 1,23 reinforced by the support of shareholders.
• Good record of the management team that operated 2 restaurants in the last 15 years.

Points of vigilence:

• Activity dependant to seasonnality
• Highly competitive market

*The multiple of FCCR at 1,23 means that the company has a safety margin of 23% 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.