Long Term Loan Details Term
Long Term Loan Details Term
Long Term Loan Details Term
Term
Tenor( Years)
Spread
Repayment
Amount ( in €thousand)
Covenants
Current Assets/Current Liabilities
Levearge ( Total Liabilities/Shareholders Equity)
Interest Cover ( Operating Cash Flows-DIV)/Interest Expense
Source: Financial Forecasting , Analysis & Modelling ( adapted)
By Michael Samonas
Page 44
Can the company maintain covenant rquirements?
Can the company repay 100% LTD at the end of 2026?
Value
10
2.50%
100% by 2026
70000
Acceptable Range
>1.25
<4
>2
Assumptions
Particulars UOM 2020A 2021A 2022A
Deposit Rate % 5% 3% 1%
Financing Cost-LT % 2.50% 2.50% 3.50%
Financing Cost-ST % 3.50% 3.50% 4.00%
Working Capital
Stock Days -DIO Days 78.67 82.5 85.97
Customer Days -DSO Days 137.67 135.6 132
Supplier Days-DPO Days 28.17 25.56 19.88
Calculated on Cost of sales
Effective Tax Rate % 33% 33% 25%
Depreciation
Rate % 3.73% 3.364% 3.614%
Accumulated depn at the beginning €'000 15000
PPE
Retained Earnings at the Beginning €'000 -3000
Other Non-current Assets
Dividend from Other Non-current Assets 0 0 0
Cash
Short term investment
Income from short term investment 5% 5% 5% 4%
Dividend
Working Notes:
Interest & Dividend income
Average Cash & Cash Equivalents
Average Short term Investments
Average long term Investments
Interest on Cash and Cash equivalents
Int/Div on Short terminvestments
Div on long term investments
2023F 2024F 2025F 2026F
1% 1% 1% 1%
3.50% 4.00% 4.00% 4.00% 2.50% However LTD agreement is non-cancellable
4.00% 4.25% 4.25% 4.25%
5000 in 2023 and thereafter PPE to grow @2% ; in 2024 there is no new investments
me, the mangement may decide to reduce dividend to facilitate loan repayment
id if net income is negative
3 Row 54
3 Row 57
3 Row 51
Steelco SA Financial Statements
2011-2013
Balance Sheet
PPE Gross €'000 65000 70000
Accumulated Depreciation €'000 17425 19779
PPE Net €'000 47575.5 50221
Non-current Investments €'000 18840 18840
Deferred Tax Assets 607 1139
Non-current Assets 67022 70200
Cash & Cash Equivalents €'000 4657 4652
Accounts Receivables €'000 69967 57480
Inventories €'000 39982 34971
Short term Investments €'000 1000 9086
Current Assets €'000 115605 106188
Total Assets €'000 182627 176388
Long Term Debt 70000 70000
Non-current Liabilities €'000 70000 70000
Short Term Debt €'000 69430 70000
Accounts Payable €'000 12813 9643
Other current Liabilities €'000 3944 1902
Current Liabilities 86187 81545
Total Liabilities 156187 151545
Share Capital €'000 31260 31260
Retained Earnings €'000 -4820 -6417
Shareholders' Equity 26440 24843
Total Liabilities & Equity 182627 176388
Check 0.00 0.00
No. of shares in ,000 3126 3126
Cash Flow Statement
Operating Activities
Profit/Loss Before Tax €'000 -2130
Adjustment for
Depreciation €'000 2355
Tax payment 0
Deferred Tax 0
Adjustment for changes in WC
Financing
Issue/(Buy Back) of Share Capital 0
Issue/(Repayment) of LTD 0
Issue/(Repayment) of STD 570
Dividend payment
570
0 70000 0 0 0
0 0 0 0 0
-6600 -23400 0 0 0
-280 -2974 -3039 -3391
-6600 46320 -2974 -3039 -3391
To remain unchanged'
Previous balance + Current year's balance
>1.25
<4
>2
100%
5% except in 2024 in which growth is anticipated to be 15%
used as plug to balance the Balance SheetTD becomes 60000 , Short term investment is used a
ear's balance
nvestment is used as plug ; see formula
Pessimistic
0.04
0.04
0.02
0.02
0.87
Page 23
Optimistic
0.06
0.06
0.03
0.03
0.79
Page 24
Most Likely
0.048
0.048
0.0225
0.0225
0.85
Page 25
Steelco SA Financial Statements
2011-2013
Balance Sheet
PPE Gross €'000 65000 70000
Accumulated Depreciation €'000 17425 19779
PPE Net €'000 47575.5 50221
Non-current Investments €'000 18840 18840
Deferred Tax Assets 607 1139
Non-current Assets 67022 70200
Cash & Cash Equivalents €'000 4657 4652
Accounts Receivables €'000 69967 57480
Inventories €'000 39982 34971
Short term Investments €'000 1000 9086
Current Assets €'000 115605 106188
Total Assets €'000 182627 176388
Long Term Debt 70000 70000
Non-current Liabilities €'000 70000 70000
Short Term Debt €'000 69430 70000
Accounts Payable €'000 12813 9643
Other current Liabilities €'000 3944 1902
Current Liabilities 86187 81545
Total Liabilities 156187 151545
Share Capital €'000 31260 31260
Retained Earnings €'000 -4820 -6417
Shareholders' Equity 26440 24843
Total Liabilities & Equity 182627 176388
Check 0.00 0.00
No. of shares in ,000 3126 3126
Cash Flow Statement
Operating Activities
Profit/Loss Before Tax €'000 -2130
Adjustment for
Depreciation €'000 2355
Tax payment 0
Deferred Tax 0
Adjustment for changes in WC
Financing
Issue/(Buy Back) of Share Capital 0
Issue/(Repayment) of LTD 0
Issue/(Repayment) of STD 570
Dividend payment
570
0 70000 0 0 0
0 0 0 0 0
-6600 -23400 0 0 0
-280 -2974 -3039 -3391
-6600 46320 -2974 -3039 -3391
To remain unchanged'
Previous balance + Current year's balance
>1.25
<4
>2
100%
5% except in 2024 in which growth is anticipated to be 15%
used as plug to balance the Balance SheetTD becomes 60000 , Short term investment is used a
ear's balance
nvestment is used as plug ; see formula
Steelco SA Financial Statements
2011-2013
Balance Sheet
PPE Gross €'000 65000 70000
Accumulated Depreciation €'000 17425 19779
PPE Net €'000 47575.5 50221
Non-current Investments €'000 18840 18840
Deferred Tax Assets 607 1139
Non-current Assets 67022 70200
Cash & Cash Equivalents €'000 4657 4652
Accounts Receivables €'000 69967 57480
Inventories €'000 39982 34971
Short term Investments €'000 1000 9086
Current Assets €'000 115605 106188
Total Assets €'000 182627 176388
Long Term Debt 70000 70000
Non-current Liabilities €'000 70000 70000
Short Term Debt €'000 69430 70000
Accounts Payable €'000 12813 9643
Other current Liabilities €'000 3944 1902
Current Liabilities 86187 81545
Total Liabilities 156187 151545
Share Capital €'000 31260 31260
Retained Earnings €'000 -4820 -6417
Shareholders' Equity 26440 24843
Total Liabilities & Equity 182627 176388
Check 0.00 0.00
No. of shares in ,000 3126 3126
Cash Flow Statement
Operating Activities
Profit/Loss Before Tax €'000 -2130
Adjustment for
Depreciation €'000 2355
Tax payment 0
Deferred Tax 0
Adjustment for changes in WC
Financing
Issue/(Buy Back) of Share Capital 0
Issue/(Repayment) of LTD 0
Issue/(Repayment) of STD 570
Dividend payment
570
0 70000 0 0 0
0 0 0 0 0
-6600 -23400 0 0 0
-140 -1487 -1520 -1696
-6600 46460 -1487 -1520 -1696
To remain unchanged'
Previous balance + Current year's balance
>1.25
<4
>2
100%
5% except in 2024 in which growth is anticipated to be 15%
used as plug to balance the Balance SheetTD becomes 60000 , Short term investment is used a
ear's balance
nvestment is used as plug ; see formula
Steelco SA Financial Statements
2011-2013
Balance Sheet
PPE Gross €'000 65000 70000
Accumulated Depreciation €'000 17425 19779
PPE Net €'000 47575.5 50221
Non-current Investments €'000 18840 18840
Deferred Tax Assets 607 1139
Non-current Assets 67022 70200
Cash & Cash Equivalents €'000 4657 4652
Accounts Receivables €'000 69967 57480
Inventories €'000 39982 34971
Short term Investments €'000 1000 9086
Current Assets €'000 115605 106188
Total Assets €'000 182627 176388
Long Term Debt 70000 70000
Non-current Liabilities €'000 70000 70000
Short Term Debt €'000 69430 70000
Accounts Payable €'000 12813 9643
Other current Liabilities €'000 3944 1902
Current Liabilities 86187 81545
Total Liabilities 156187 151545
Share Capital €'000 31260 31260
Retained Earnings €'000 -4820 -6417
Shareholders' Equity 26440 24843
Total Liabilities & Equity 182627 176388
Check 0.00 0.00
No. of shares in ,000 3126 3126
Cash Flow Statement
Operating Activities
Profit/Loss Before Tax €'000 -2130
Adjustment for
Depreciation €'000 2355
Tax payment 0
Deferred Tax 0
Adjustment for changes in WC
Financing
Issue/(Buy Back) of Share Capital 0
Issue/(Repayment) of LTD 0
Issue/(Repayment) of STD 570
Dividend payment
570
0 70000 0 0 0
0 0 0 0 0
-6600 -23400 0 0 0
-140 -1487 -1520 -1696
-6600 46460 -1487 -1520 -1696
To remain unchanged'
Previous balance + Current year's balance
>1.25
<4
>2
100%
5% except in 2024 in which growth is anticipated to be 15%
used as plug to balance the Balance SheetTD becomes 60000 , Short term investment is used a
ear's balance
nvestment is used as plug ; see formula