Warcom

Presentation of the company

Created in 1979, Warcom is active in the industrial equipment sector. The company, managed by Marini Viviana, has 26 employees and is based in Adro.

The company’s main activities are:

• manufacturing of hydraulic press brakes
• manufacturing of shears with numeric control

The company works with more than 25 B2B customers both national and international

Project Description

The company requests a loan of 200.000 € over 36 months to finance the costs of parecipation to the global biannual exibition EUROBLECH in October in Hanover. This project will be realised this quarter.

As a reminder, the Lendix lending community supported Warcom Engineering & Service (100% owned by Warcom S.r.L.) in 2017 with 250 000 € to finance the development of new machinery.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 98000€, which is in line with the regulatory limits.

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.

Analyst’s Opinion

With a turnover of 10 307 223 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

Increase of turnover has been driven by market recovery, acquisition of new customers and development of new modern products with higher profitability. The forecast is based on the 2017 performance, 2018 half year results and order portfolio.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,24 and a good financial structure, with a forecast net debt / ebitda ratio of 0,79 and a net debt / shareholder equity of 16%.

Taking into account the expected 2018 profit.

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

*The multiple of FCCR at 1,24 means that the company has a safety margin of 24 % 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.

Strong points

• Good historical performance based on diversified client base.
• Good repayment ability with a forecasted FCCR of 1,24.
• Historical Company successfully recovered from crisis

Points of caution

• Competition of foreign players with lower production costs