Portobello Art Limited

Other

Funds Requested

£140,000.00

Offered so far

£0.00

Loan term

60 MONTHS

Auction Closed

2015-10-19

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About the Business

Company Name: Portobello Art Limited Company Number: 02729223
Business Type: Other Years Trading: more than 10 years
Business Location: OLD OTFORD ROAD

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

Personal Guarantee - Done (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?

Visit Our Website

Portobello Art is one of the UK's leading suppliers of Commercial Wall Art and Decorative Accessories to the Interior Design, Hotel, Leisure and Private Healthcare Industries. The company was established in 1987 by Richard & Carolyn Lewis, the current Owner/Directors, and building on the success of the company in the art, print and framing markets, they developed and launched their product offer into the lucrative world of digital printing in 2002. With this experience and knowledge we now offer a complete artwork consultancy service providing in-house design, digital printing, framing and installation capability as required.

We have an extensive and impressive blue-chip client base of over 500 corporate customers with around 160 major clients of which 20 are core to their business, all predominantly across the Hospitality, Leisure and Healthcare Industries. We are now preferred suppliers to Premier Inn, Guoman Thistle Hotels, Center Parcs, Housing 21, Cambian Health Care and Cygnet Hospitals, whilst doing regular projects for many other major Hotel groups including Hilton, Rezidor, Millennium, Bespoke, Marriott, Mercure and IHG’s Holiday Inn, Holiday Inn Express, Crowne Plaza and also Design Groups and Architects such as Fox Linton, GA Design, ADS Design, Dexter Moren Associates, Franklin Ellis and Brand Architects.

The Future

The Hospitality Industry has been very restrained over the past few years and we have put a lot of money back into the company, to keep it going, whilst many of our competitors fell by the wayside. But now it is taking off dramatically and with our customary high levels of repeat and referral business there is now huge potential for further growth. Some examples of future potential business are:-

• We have supplied 100s of hotels in over 30 hotel brands over the last 3-4 years, not including over 400 Premier Hotels alone in the Whitbread Group. This is actually only 10-15% of the total amount of hotels in each hotel chain. e.g. we have supplied about 30 Holiday Inns and Holiday Inn Expresses and there are actually over 250 in the UK

• Whitbread launched their new brand Hub by Premier Inn in London in 2014 where we supplied all artwork, and we have been promised the contract for the next 8 being built over the next 3 years. Indeed we have just started on a 2nd one in London and have already quoted for another 3

• We’ve quoted and supplied samples for a huge refurbishment plan for Whitbread’s Costa Coffee and have just been told that we will be given the opportunity to supply our first site in the next couple of months with a view to being given the final contract, which would be worth over £600,000 turnover in the first year

• Over the last 4 years we have supplied artwork for refurbishment of all 4 resorts at Center Parcs as well as the hotel, spa and 1,000 apartments in their new resort in Woburn Park last Summer, a £100,000 project. We’ve just been asked to quote for a new resort in Ireland, which could be another £100,000 contract

• Holiday Inn are in the process of rolling out their new open lobby concept to the rest of the chain (180 hotels) - which we helped to create in the first 12 UK hotels and have many more in the pipeline

• There is huge potential growth in the private Care Home sector, of which we only currently supply 3 or 4 of the major groups.

In summary, we already have over £230,000 of confirmed orders currently on our books for the next 6 months, with another £100,000 quoted for on new projects, and another possible £500,000 of potential projects that we know about. We are therefore convinced that at the current rate of progress, Portobello could grow back into a million pound turnover company within 18 months.

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Loan Offers

What is the loan for?

We would like the loan so that we can consolidate our other business debts - these are set out in the financials tab. The consolidation of the existing debts will save the company about £7-8,000 a month.

We have had a good business for 27 years but in recent times the Hospitality industry has pulled back sharply on refurbishment and new builds, resulting in a substantial loss of sales. To cover this we took out a number of short term funding solutions which unfortunately has put the business under financial strain.

However, as shown in our introduction, the pipeline for new contracts is healthy which we can provide evidence for. Hence the remainder of the loan would be for working capital to enable the business to continue with growth plans over the next couple of years.

Why consider investing?

We are a long standing business having traded for 27 years with an excellent track record. The Directors have a high level of experience, contacts & clients. We also benefit from an experienced team with long-standing loyal staff, currently totalling 7. We already have over £230,000 of confirmed orders currently on our books for the next 6 months, with another £100,000 quoted for on new projects, and another possible £500,000 of potential projects that we know about. We are therefore convinced that at the rate of current progress, Portobello could grow back into a million pound turnover company within 18 months.

Disclosures

Loans from directors at July 2015 are £41k.

The Accounts to July 2015 have not yet been filed

Security

The loan is to be secured by way of directors guarantee and a 2nd charge on a property.

The Directors have an estimate current net worth £430k. This is through ownership of a property with an estimate combined value of £ 1.2m and est. equity of £430k

The second charge will be on a personal property, but is the same property form which the business is run. This property has an estimate value of £1.2m and estimate equity of £430k. Part of this loan will be used to redeem the current legal charge holders, GE Money, (£46,000)

The Directors are also involved in the development of this property (with 4 acres of land) and will be signing an option agreement in December 2015 with a local property developer when the value of the property (and land) will be confirmed at £4-5m. Independently the Directors has also applied for Lawful Development permission which, when granted will increase the value of the property to £2-3m.

DateAmountCapitalInterestReceived
20/11/2015£3,681.93£1,389.43£2,292.50
20/12/2015£3,681.93£1,412.18£2,269.75
20/01/2016£3,681.93£1,435.31£2,246.62
20/02/2016£3,681.93£1,458.81£2,223.12
20/03/2016£3,681.93£1,482.70£2,199.23
20/04/2016£3,681.93£1,506.98£2,174.95
20/05/2016£3,681.93£1,531.66£2,150.27
25/06/2016£3,681.93£1,556.74£2,125.19
25/07/2016£3,681.93£1,582.23£2,099.70
25/08/2016£3,681.93£1,608.14£2,073.79
25/09/2016£3,681.93£1,634.47£2,047.46
25/10/2016£3,681.93£1,661.23£2,020.70
25/11/2016£3,681.93£1,688.44£1,993.49
25/12/2016£3,681.93£1,716.09£1,965.84
25/01/2017£3,681.93£1,744.19£1,937.74
25/02/2017£118,499.92£116,590.10£1,909.82
25/03/2017£0.00£0.00£0.00
25/04/2017£0.00£0.00£0.00
25/05/2017£0.00£0.00£0.00
25/06/2017£0.00£0.00£0.00
25/07/2017£0.00£0.00£0.00
25/08/2017£0.00£0.00£0.00
25/09/2017£0.00£0.00£0.00
25/10/2017£0.00£0.00£0.00
25/11/2017£0.00£0.00£0.00
25/12/2017£0.00£0.00£0.00
25/01/2018£0.00£0.00£0.00
25/02/2018£0.00£0.00£0.00
25/03/2018£0.00£0.00£0.00
25/04/2018£0.00£0.00£0.00
25/05/2018£0.00£0.00£0.00
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
Total:£139,998.70£33,730.17