FMCG1 LIMITED

Other

Funds Requested

£50,000.00

Offered so far

£0.00

Loan term

36 MONTHS

Auction Closed

2014-06-10

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About the Business

Company Name: FMCG1 LIMITED Company Number: 06409606
Business Type: Other Years Trading: 6-10 years
Business Location: POTTERS BAR

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

Personal Guarantee - PG from director and majority shareholder

Est. Equity: 0.00

2nd Charge on Residential Property - Second priority legal charge over personally-owned residential property

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

FMCG1 Limited was set up 5 years ago to acquire Brands. Current Brands are Knights Castile ( ex Unilever, personal care products including soap/ bathcream /shower creams and Gumption (ex Rekkits )household products including trigger sprays/ cream cleaners / washing up liquid. The Brands have a very loyal consumer base due to the strong heritage. The customer base are major blue chip retailers in the UK plus selective export markets including Morrisons / Tesco/ Poundland / Savers / TJ Morris / B&M retail / 99p Stores / Poundstretcher. Also hot off the press is confirmation of new business with the Wilkinsons Company which is incremental turnover to current budgets, forecasts £500K per annum conservative.

Business was set up by Gary Williams who has 25 years’ experience within Fast Moving Consumer Goods with extensive experience in managing business in the top Food / Discount / Drug retailers in the UK with a background in Sales / Marketing / Supply Chain. He gained his experience with major FMCG companies including Gillette / Proctor&Gamble / Jeyes / Leaf Group

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Loan Offers

What is the loan for?

Funding required to finish off paying for the Brands plus working capital to grow the business moving forward. On the back of clearing off Brands FMCG1 generates cash very quickly which in return ensures the company has very strong cash flow moving forward, this will enable us generate more business.

Brands

Purchase costs:

  • Knights Castile £415K;
  • Gumption £385K;
  • Time £30K
  • Brands are on balance sheet at purchase cost(lower of cost)

    FMCG1 own the following brands; Knights Castile/Gumption/Time. The Brands have been accounted at purchase price, which is very conservative(lower of cost). When Knights Castile was purchased at £415K its turnover was averaging £450K/year over the previous 5 years. This year the Brand will achieve sales of £1750K. We have not had the Brand revalued but would expect value to be £1m plus.

    Why consider investing?

    FMCG1 has strong Brands that operate in a Blue Chip Customer Base and has established itself over the last 5 years. Customers pay to terms 45 days average and we insure all debt within the business. Gary Williams has also invested significant funds into business £140K. These are exciting times for the business with a conservative budget in place with incremental business already coming through.

    Current Liquidity

    Please see the attached Aged Creditors Analysis.

    In essence, the imbalance centred on the trade creditor position is a reflection of approximately £160K of aged debt, specifically with long standing and, indeed, current suppliers, Euromis and Sachets Limited.

    All current debt is being serviced under trade finance structures via Bibby. There is, however, a hard core of debt that is older than 12 months, all with the prior agreement of the two creditors in question, their ongoing support obviously reflected in their willingness to continue supplies.

    Euromis, an Istanbul based supplier, are scheduled a meet in early June where repayment terms over the coming 12 months will be formalised. This is already reflected in the cashflow as is the agreement to pay down the Sachets Limited exposure, the latter albeit over the next 6 months.

    An up to date Aged Creditor Analysis is duly attached. Also noteworthy is a £16K balance in relation to Global Soaps which remains under dispute due to an incorrect product being delivered. Sigma is being traded on standard terms with FMCG1 Limited being one of Sigma’s major customers with a spend of upwards of £1.5m forecast in this financial year.

    Security

    The loan is to be secured against a 2nd Charge on an investment property, a personal guarantee given by the director as well as cross corporate guarantee.

    The property has an est. value of £750K ( Valued approx. 15 months ago), with approx. £320k equity.

    The Director has an estimate net worth of £570k, primarily from equity in two properties with combine estimate value of £1.5m and approximately £560k equity.

    Empire Brands Limited will also act as corporate guarantor

    DateAmountCapitalInterestReceived
    10/07/2014£1,840.65£1,036.06£804.59
    10/08/2014£1,840.65£1,052.74£787.91
    10/09/2014£1,840.65£1,069.68£770.97
    10/10/2014£1,840.65£1,086.89£753.76
    10/11/2014£1,840.65£1,104.38£736.27
    10/12/2014£1,122.15£1,122.15£0.00
    10/01/2015£1,140.21£1,140.21£0.00
    10/02/2015£1,158.56£1,158.56£0.00
    10/03/2015£1,177.20£1,177.20£0.00
    10/04/2015£1,196.14£1,196.14£0.00
    10/05/2015£1,215.39£1,215.39£0.00
    10/06/2015£1,234.95£1,234.95£0.00
    10/07/2015£1,254.82£1,254.82£0.00
    10/08/2015£1,275.01£1,275.01£0.00
    10/09/2015£1,295.53£1,295.53£0.00
    10/10/2015£1,316.38£1,316.38£0.00
    10/11/2015£1,337.56£1,337.56£0.00
    10/12/2015£1,359.08£1,359.08£0.00
    10/01/2016£1,380.95£1,380.95£0.00
    10/02/2016£1,403.17£1,403.17£0.00
    10/03/2016£1,425.75£1,425.75£0.00
    10/04/2016£1,448.70£1,448.70£0.00
    10/05/2016£1,472.01£1,472.01£0.00
    10/06/2016£1,495.69£1,495.69£0.00
    10/07/2016£1,519.76£1,519.76£0.00
    10/08/2016£1,544.22£1,544.22£0.00
    10/09/2016£1,569.07£1,569.07£0.00
    10/10/2016£1,594.32£1,594.32£0.00
    10/11/2016£1,619.97£1,619.97£0.00
    10/12/2016£1,646.04£1,646.04£0.00
    10/01/2017£1,672.53£1,672.53£0.00
    10/02/2017£1,699.44£1,699.44£0.00
    10/03/2017£1,726.79£1,726.79£0.00
    10/04/2017£1,754.57£1,754.57£0.00
    10/05/2017£1,782.81£1,782.81£0.00
    10/06/2017£1,811.50£1,811.50£0.00
    Total:£50,000.01£3,853.50