AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Chargeurs

CR
Bloomberg   CRI FP
Holding Companies  /  France  Web Site   |   Investors Relation
Carrying on with strategic acquisitions
Target
Upside 95.5%
Price (€) 13.64
Market Cap (€M) 389
Debt

From 2014, Chargeurs has been running a net cash position down to c.€9m in 2017 and shifting to a €92m net debt as a result of the 2017 and 2018 acquisitions.

Funding has not been an issue as Chargeurs’ management wisely accumulated excess resources to that effect through a combination of private debt placings (Euro PP) between 2016 and 2017 and various credit lines. Most notably, Chargeurs syndicated a bank loan of €230m at the close of 2018. While the group is left with significant dry powder to go and purchase its growth, its 2021 objective of reaching €1bn in sales cannot be exclusively debt funded, with the company feeling comfortable with a net debt/EBITDA ratio below 2.5x. On a funding scenario used in AlphaValue modelling where Chargeurs raises €100m in new equity by 2020, its net debt/EBITDA ratio would remain below 1.5x.

Funding - Liquidity
  12/19A 12/20E 12/21E 12/22E
EBITDA €M 60.0 60.6 97.2 111
Funds from operations (FFO) €M 38.8 42.1 66.7 76.3
Ordinary shareholders' equity €M 232 354 387 428
Gross debt €M 216 206 199 194
   o/w Less than 1 year - Gross debt €M 22.8 16.7 13.1 49.7
   o/w 1 to 5 year - Gross debt €M 112 139 161 139
   of which Y+2 €M 4.70 3.10 41.7 62.0
   of which Y+3 €M 3.10 41.7 62.0 32.0
   of which Y+4 €M 41.7 62.0 32.0 25.0
   of which Y+5 €M 62.0 32.0 25.0 20.0
   o/w Beyond 5 years - Gross debt €M 82.0 50.0 25.0 5.00
 + Gross Cash €M 67.5 79.7 24.4 -40.0
 = Net debt / (cash) €M 149 126 174 234
Bank borrowings €M 132 120 108 103
Issued bonds €M 81.0 81.0 81.0 81.0
Financial leases liabilities €M 0.00 0.00 0.00 0.00
Other financing €M 3.10 4.30 9.60 9.50
Gearing (at book value) % 51.9 38.8 38.8 47.7
Adj. Net debt/EBITDA(R) x 2.48 2.08 1.79 2.11
Adjusted Gross Debt/EBITDA(R) x 3.92 3.67 2.22 1.90
Adj. gross debt/(Adj. gross debt+Equity) % 50.3 38.6 35.8 33.0
Ebit cover x 3.47 2.95 4.20 3.82
FFO/Gross Debt % 16.5 19.0 30.9 36.2
FFO/Net debt % 26.1 33.5 38.2 32.7
FCF/Adj. gross debt (%) % -0.64 6.07 22.5 18.5
(Gross cash+ "cash" FCF+undrawn)/ST debt x 2.89 5.58 5.56 -0.02
"Cash" FCF/ST debt x 0.01 0.82 3.71 0.79
Credit Risk
Covenants
BeginEndTriggerConditionConsequence
30/06/2017 31/12/2023 Net debt/Ebitda(R) < 3.50 Early repayment
30/06/2017 31/12/2023 Gearing < 85.0 Early repayment
Changes to Story : 17/04/2020, Changes to Forecasts : 17/04/2020.