Chargeurs

CR
Bloomberg : <CRI FP>
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Re-energised Chargeurs
Target
Upside 2.15%
Price (€) 25.04
Market Cap (€M) 577
Debt

Chargeurs had completely exited by 2014 a 5-year history of debilitating high gearing which resulted from the deep restructuring of its businesses. It has been running a net cash position since, close to zero in 2016 after the funding of the Main Tape acquisition and an interim dividend. It retains financing resources well in excess of its immediate needs with two private debt placings (Euro PP) for a total of €72m and various unused credit lines. At the close of 2016, such resources were left unused and at the bank for an amount in excess of €160m. This obviously leaves plenty of leeway to boost external growth.

By mid 2014, all covenants linked to the debt restructuring which acted as a brake to the group’s growth had been terminated..

Note that apparent debt had also been deflated thanks to factoring. The use of this resource which had declined every year between 2010 and 2014 picked up again in 2015 as a mirror to the strengthening business.

Funding - Liquidity
  12/16A 12/17E 12/18E 12/19E
EBITDA €M 48.8 56.0 58.2 59.4
Funds from operations (FFO) €M 29.1 41.4 43.0 43.7
Ordinary shareholders' equity €M 227 249 270 305
Gross debt €M 141 133 125 118
   o/w Less than 1 year - Gross debt €M 8.00 8.00 7.00 22.0
   o/w 1 to 5 year - Gross debt €M 58.0 50.0 118 96.0
   of which Y+2 €M 8.00 7.00 22.0 21.0
   of which Y+3 €M 7.00 22.0 21.0 0.00
   of which Y+4 €M 22.0 21.0 0.00 75.0
   of which Y+5 €M 21.0 0.00 75.0
   o/w Beyond 5 years - Gross debt €M 75.0 75.0 0.00 0.00
 + Gross Cash €M 142 144 143 156
 = Net debt / (cash) €M -1.40 -10.9 -17.8 -37.5
Bank borrowings €M 50.0 40.0 35.0 28.0
Issued bonds €M 72.0 72.0 72.0 72.0
Financial leases liabilities €M 18.0 18.0 18.0 18.0
Other financing €M 1.00 3.00 0.00 0.00
Gearing (at book value) % -5.43 -2.46 -5.31 -9.05
Adj. Net debt/EBITDA(R) x 0.05 -0.19 -0.31 -0.63
Adjusted Gross Debt/EBITDA(R) x 3.32 2.66 2.42 2.26
Adj. gross debt/(Adj. gross debt+Equity) % 41.6 37.5 34.3 30.5
Ebit cover x 24.3 13.5 14.0 12.5
FFO/Gross Debt % 17.9 27.8 30.5 32.6
FFO/Net debt % -2,079 -381 -242 -117
FCF/Adj. gross debt (%) % 13.0 18.8 20.5 19.1
(Gross cash+ "cash" FCF+undrawn)/ST debt x 20.4 21.5 24.5 8.23
"Cash" FCF/ST debt x 2.35 3.45 4.08 1.15
Credit Risk
Covenants
Changes to Story : 24/04/2017, Changes to Forecasts : 24/04/2017.