Nicky Noo Nursery Limited

Education

Funds Requested

£120,000.00

Offered so far

£0.00

Loan term

60 MONTHS

Auction Closed

2015-12-15

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About the Business

Company Name: Nicky Noo Nursery Limited Company Number: 09895801
Business Type: Education Years Trading: 6-10 years
Business Location: Birmingham

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

All Assets Debenture - Fixed and floating charge created over all assets of applicant company

Est. Equity: 0.00

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

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?

This loan is for the purchase of an existing, established, children’s day nursery in Sutton Coldfield in the Midlands A nursery currently trading as Greenhill Lodge Nursery Limited, owns and operates the building at present. A company has been formed in the name of Nicky Noo Nursery Limited to trade the business in the future, subject to successfully completing the purchase.

Please note that the historic accounts listed in the Financials section and the Business Plan are those of Greenhill Lodge Nursery Limited.

ReBS membership support is requested to enable mother and daughter team, Svita and Nicky Lewis, 100% owners of the newly formed company, to acquire a new 20 year lease and the goodwill of the current trading operation.

Read more

Loan Offers

What is the loan for?

A loan of £120K is sought to facilitate the purchase supplemented by £50K of personal funds being introduced to make up the purchase price, acquisition costs and initial working capital.

A comprehensive business plan is attached for consideration by members. This includes:

  • Detailed Proposal
  • Previous OFSTED Inspection Reports
  • Director CVs
  • Historic Accounts and Cash and Profit Budgets for 2016 and 2017

A purchase price of £185K has been agreed, £150K payable at the point of acquisition with a deferred consideration of a further £35K payable in two years’ time. This essentially acquires the goodwill and lease of the current trading business with a new lease of 20 years being entered into. Opportunities are presented to increase child numbers and therefore lift both fee income and bottom line profit with the current owners having been comfortable with the flat turnover of the last few years.

Why consider investing?

Prudent business planning assumptions underpinning the new company’s projections demonstrate that the loan facility is affordable and net profit of £17790 in 2016 and £52020 in 2017 is forecast, post all debt servicing costs. Comparable EBITDA for previous years of actual trading and budgets again demonstrate the assumptions to have been prudent.

As security, Personal Guarantees are offered by Svita and Nicky. These are supplemented by a further PG from Svita’s brother , Rajesh Kumar Parbhakar together with a second legal charge over an investment property owned jointly by Svita and Rajesh. This is valued at £135K with an outstanding first charge to HSBC Bank of £19K giving equity of £116K. This is let at £500 per month and the first charge holder is happy to give consent to the creation of the proposed second charge.

Whilst no other personal security is on offer, Svita also owns, jointly with her husband their matrimonial home valued at £250K subject to a Halifax mortgage of £175K. With unsecured personal debt of just £6K, this gives additional net worth to back Svita’s guarantee. To be fair, Nicky is fresh out of university so has not managed to build a net worth in her own right, but she will guarantee and at least is clear of any unsecured debt.

In addition, a debenture is offered which picks up any value in the new 20 year lease, the goodwill which will be absorbed into the newco balance sheet as well as any fixture and fittings which nominally have a value of £10K .

DateAmountCapitalInterestReceived
16/01/2016£3,059.63£1,240.63£1,819.00
16/02/2016£3,059.63£1,259.43£1,800.20
16/03/2016£3,059.63£1,278.52£1,781.11
16/04/2016£3,059.63£1,297.91£1,761.72
16/05/2016£3,059.63£1,317.58£1,742.05
16/06/2016£3,059.63£1,337.55£1,722.08
16/07/2016£3,059.63£1,357.83£1,701.80
16/08/2016£3,059.63£1,378.41£1,681.22
16/09/2016£3,059.63£1,399.30£1,660.33
16/10/2016£3,059.63£1,420.51£1,639.12
16/11/2016£3,059.63£1,442.05£1,617.58
22/12/2016£3,059.63£1,463.91£1,595.72
25/01/2017£3,059.63£1,486.10£1,573.53
25/02/2017£3,059.63£1,508.62£1,551.01
25/03/2017£3,059.63£1,531.49£1,528.14
25/04/2017£3,059.63£1,554.71£1,504.92
25/05/2017£3,059.63£1,578.27£1,481.36
25/06/2017£3,059.63£1,602.20£1,457.43
25/07/2017£3,059.63£1,626.48£1,433.15
25/08/2017£3,059.63£1,651.14£1,408.49
25/09/2017£3,059.63£1,676.17£1,383.46
25/10/2017£3,059.63£1,701.57£1,358.06
25/11/2017£3,059.63£1,727.37£1,332.26
25/12/2017£3,059.63£1,753.55£1,306.08
25/01/2018£3,059.63£1,780.13£1,279.50
25/02/2018£3,059.63£1,807.12£1,252.51
25/03/2018£3,059.63£1,834.51£1,225.12
25/04/2018£3,059.63£1,862.32£1,197.31
25/05/2018£76,854.31£75,684.76£1,169.55
25/06/2018£0.00£0.00£0.00
25/07/2018£0.00£0.00£0.00
25/08/2018£0.00£0.00£0.00
25/09/2018£0.00£0.00£0.00
25/10/2018£0.00£0.00£0.00
25/11/2018£0.00£0.00£0.00
25/12/2018£0.00£0.00£0.00
25/01/2019£0.00£0.00£0.00
25/02/2019£0.00£0.00£0.00
25/03/2019£0.00£0.00£0.00
25/04/2019£0.00£0.00£0.00
25/05/2019£0.00£0.00£0.00
25/06/2019£0.00£0.00£0.00
25/07/2019£0.00£0.00£0.00
25/08/2019£0.00£0.00£0.00
25/09/2019£0.00£0.00£0.00
25/10/2019£0.00£0.00£0.00
25/11/2019£0.00£0.00£0.00
25/12/2019£0.00£0.00£0.00
25/01/2020£0.00£0.00£0.00
25/02/2020£0.00£0.00£0.00
25/03/2020£0.00£0.00£0.00
25/04/2020£0.00£0.00£0.00
25/05/2020£0.00£0.00£0.00
25/06/2020£0.00£0.00£0.00
25/07/2020£0.00£0.00£0.00
25/08/2020£0.00£0.00£0.00
25/09/2020£0.00£0.00£0.00
25/10/2020£0.00£0.00£0.00
25/11/2020£0.00£0.00£0.00
25/12/2020£0.00£0.00£0.00
Total:£118,560.14£43,963.81