MCARDLE MARKETING LIMITED

Other

Funds Requested

£44,000.00

Offered so far

£0.00

Loan term

60 MONTHS

Auction Closed

2014-06-23

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About the Business

Company Name: MCARDLE MARKETING LIMITED Company Number: NI041110
Business Type: Other Years Trading: more than 10 years
Business Location: ALLISTRAGH

About the Risk

Risk rating

B

Default rate

7.10%

Bad debt rate

5.84%

About the Security

Security Offered:

1st Charge on Commercial Property - First priority legal charge over commercial property

Est. Equity: 0.00

Personal Guarantee - PG from [name of director(s)]

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

The company are wholesalers, packers and distributors of Organic Fresh Produce and Organic Preserves. They work with companies supplying a range of customers from Multiples to Independents retailers, wholesalers, restaurants and hotels throughout Ireland and the UK. Predominately Mushroom Growers, the McArdle Group, who are based at Allistragh, County Armagh in Northern Ireland are maintaining a strong presence in the production of mushrooms.

This business is involved in growing, packing and marketing mushrooms. It also services Irish outlets with home grown Organic mushrooms as the company is Ireland’s only true Organic grower and packer.

Having its own peat bog the company also operates a small casing plant, which as well as providing casing for it’s own requirements for a high quality casing material, (both organic and non-organic), also exports some organic casings to UK mainland farms as well.

In the past it also ran a small Phase II compost yard, but that was last used for an additional 200 tonnes a week of bagged Phase II for McGeary Mushroom Compost Ltd before their closure last winter. After some alterations and changes to the site and the buildings, it is now to become the new home of the casing business, as the present location being used currently for this purpose is now too small.

The McArdle Group is a family run business, the start of their involvement in mushrooms being when brothers Sean and Liam first started growing mushrooms some 30 years ago. Since those early days of just 3 tunnels, now the business has diversified and is divided into several separate companies.

They trade as McArdle Marketing Ltd. Over the years other younger family members have been drawn in to the expanding business, and each has taken control of one or more of the sections of the company depending on their individual talents or inclinations.

Those working within the business now include Sean’s son John currently MD; Sean’s other son Anthony who manages the peat and casing operations; Sean’s twin daughters Ciara and Sinead who look after the pack-house and distribution, and Sean’s sister Jean McKeena who does the accounts.

The sales and marketing both for mushrooms and casing are handled by Maura McGurgan who has been with the business for several years.

Self-dependency

As they own their own peat bog, they found there was the opportunity to get involved with the production of casing not only for themselves, but also for sale within Ireland and for export, at times this has been as far away as Australia. Casing is delivered in bulk, dumpy bags and also 50 litre sacks.

Currently there are three mushroom growing sites. Some use blocks on racks, others use blocks on shelves, all have AEM controllers and use full air conditioning units. There is also one small site where the spawn running of blocks is carried out servicing the 6 shelf rooms with a weekly amount of spawn run blocks. Like most other Irish growers nowadays, labour is a mixture of local people, and Eastern European workers, many of whom have been in Ireland for some time now and are part of the local community. It has been acknowledged many times in the past few years, that the Irish Industry would have collapsed had it not been for these eastern Europeans arriving, as many local Irish people were drawn into other more lucrative industries that have sprung up over the recent years.

The new pack-house built two years ago was part of a push into self-dependency, which currently has a throughput of 30,000 lbs a week, but would be capable of much more given the opportunity. This building also houses the offices concerned with the group’s other business activities. Currently 75% of mushroom production is sold into the UK whilst the balance is sold 10% into the South of Ireland and 15% into the North. Casing production is mainly sold to growers in the north of Ireland, but about 40% is also sent to the UK.

Flexibility

The group intend to continue with more diversification as and when opportunities arise, so they are not so dependant on just one operation. Having built the new pack-house they are looking for other agricultural products that may compliment their mushroom outlets, so that maximum use can be made of the infrastructure they have built up.

As a small and independent business, with close family members involvement, McArdles see themselves as being able to provide a quick and efficient service to growers and traders, and by being flexible, attracting spot and long term business from larger companies in providing a top quality back up service.

Read more

Loan Offers

What is the loan for?

The loan is for the release of a farm shop building site on 2 acres of organic land which is currently held as security by close finance. We wish to raise the £40,000 to repay the debt and in the long term expand into a retail section through the farm shop. The site is valued at £65,000 and is available for security.

The second part of the loan is to repay a small amount owing to funding circle borrowed in 2011.

Why consider investing?

We are strong family business with an excellent reputation. We have been trading since 2001 and have worked hard to reduce our debt each year.

Notes On Accounts

For the period to March 14, £10,000 in dividends was paid. Leaving final net profit as £4,385

For the period YE Dec 2013, £56,252 in dividends was paid, leaving final net profit as 5,234

For the period YE Dec 2012, £63,752 in dividends was paid, leaving the final net profit as £1,259

Security

The loan will be secured with a 1st charge against the land. as well as a personal guarantee by the directors

A recent inspection of the property by St. James's Place, the site, approx. 2.38 acres, has an estimate the current market value of £65,000.

DateAmountCapitalInterestReceived
24/07/2014£1,030.14£506.64£523.50
24/08/2014£1,030.14£512.67£517.47
24/09/2014£1,030.14£518.77£511.37
24/10/2014£1,030.14£524.94£505.20
24/11/2014£1,030.14£531.18£498.96
10/01/2015£1,030.14£537.50£492.64
10/02/2015£1,030.14£543.90£486.24
10/03/2015£1,030.14£550.37£479.77
10/04/2015£1,030.14£556.92£473.22 (11 days late)
10/05/2015£1,030.14£563.54£466.60 (8 days late)
10/06/2015£1,030.14£570.25£459.89
10/07/2015£1,030.14£577.03£453.11
10/08/2015£1,030.14£583.90£446.24
10/09/2015£1,030.14£590.85£439.29
10/10/2015£1,030.14£597.88£432.26 (13 days late)
10/11/2015£1,030.14£604.99£425.15
10/12/2015£1,030.14£612.19£417.95
10/01/2016£1,030.14£619.47£410.67
10/02/2016£1,030.14£626.84£403.30
10/03/2016£1,030.14£634.30£395.84
10/04/2016£1,030.14£641.85£388.29
10/05/2016£1,030.14£649.48£380.66
10/06/2016£1,030.14£657.21£372.93
10/07/2016£1,030.14£665.03£365.11
10/08/2016£1,030.14£672.94£357.20
10/09/2016£1,030.14£680.95£349.19
10/10/2016£1,030.14£689.05£341.09
10/11/2016£1,030.14£697.25£332.89
10/12/2016£1,030.14£705.54£324.60
10/01/2017£1,030.14£713.94£316.20
10/02/2017£1,030.14£722.43£307.71
10/03/2017£1,030.14£731.03£299.11
10/04/2017£1,030.14£739.73£290.41
10/05/2017£1,030.14£748.53£281.61
10/06/2017£1,030.14£757.43£272.71
10/07/2017£1,030.14£766.44£263.70
10/08/2017£1,030.14£775.56£254.58
10/09/2017£1,030.14£784.79£245.35
10/10/2017£1,030.14£794.13£236.01
10/11/2017£1,030.14£803.58£226.56
10/12/2017£1,030.14£813.14£217.00
10/01/2018£1,030.14£822.81£207.33
10/02/2018£1,030.14£832.60£197.54
10/03/2018£1,030.14£842.51£187.63
10/04/2018£1,030.14£852.53£177.61
10/05/2018£1,030.14£862.67£167.47
10/06/2018£1,030.14£872.94£157.20
10/07/2018£1,030.14£883.32£146.82
10/08/2018£1,030.14£893.83£136.31
10/09/2018£1,030.14£904.47£125.67
10/10/2018£1,030.14£915.23£114.91
10/11/2018£1,030.14£926.12£104.02
10/12/2018£1,030.14£937.14£93.00
10/01/2019£1,030.14£948.29£81.85
10/02/2019£1,030.14£959.57£70.57
10/03/2019£1,030.14£970.99£59.15
10/04/2019£1,030.14£982.54£47.60
10/05/2019£1,030.14£994.23£35.91
10/06/2019£1,030.14£1,006.06£24.08
10/07/2019£1,030.14£1,018.03£12.11
Total:£44,000.03£17,808.37