Castlerock Recruitment Group Ltd

Working Capital Loan

Paper Street Rating:   Rating_b Learn More
Equifax Score: B- (65) as of March, 2014

Community Rating
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15% Funded
£11,100 Funded
-908 days left
Loan Summary
Working Capital Loan: £75,000
Loan Term: 1 year
Interest rate: 10.50% per annum
Interest payments: Quarterly
Principal repayment: Repayable in full at the end of 12 months

Security:
• 100% secured by way of floating charge on assets
• Personal Guarantee from CRG Managing Director

What is the purpose of the loan?
CRG experience year on year growth due to the nature of the high volume of Central Government and Local Government contracts that are awarded annually and have a 3 – 5 year term, via tender submissions with a success rate of c. 65%. On average CRG are successful on 12+ contracts per annum which requires at least 3 to 4 branches to be opened each year to service the contracts. The purpose of the loan is to support working capital to continue this year on year growth at an increased pace securing further market share.

Please note that lending to small businesses puts your capital at risk.

What products or services do you provide?
We focus on healthcare service provision and temporary placements and this currently accounts for 100% of revenue. However, plans are in place to organically grow the permanent healthcare staffing, temporary & permanent non-healthcare staffing divisions and new healthcare services markets.



Our services include the provision of healthcare and medical staff such as: all grades of Allied Health Professionals (AHP’s) for example Physio’s & Occupational Therapists, General Practitioner Locums (GP’s), Medical Locums, Theatre Nurses, Operating Department Practitioners (ODP’s), Nurses of all grades & specialties, Health Care Assistants (HCA’s), Support Workers, Community Care Assistants, Care Workers, Dentists, Health Sciences Services Staff (HSS) e.g. Pharmacists & Pharmacy Technicians, Adults and Children’s Homecare Services.
Who are your main customers?
We are an approved Nationwide Framework Agreement Provider for the following, however, this is not an exhaustive list:

- Government Procurement Service (GPS) (formerly OGC Buying Solutions and NHS Purchasing Supply Agency)

- London Procurement Programme (LPP) and Health Trust Europe (HTE)

- NHS

- Ministry of Defence (MoD)

- Local Authorities

- Ramsay Healthcare

- General Healthcare Group including BMI Healthcare

- Nuffield Hospitals

- Spire Healthcare

- dePoel

- Comensura

- Matrix

- Manpower

- HC1 (formerly Southern Cross Healthcare)
Who are your main suppliers?
As CRG are a people led service business our main suppliers are our candidates and people, we have very few suppliers. Major suppliers are our IT and Communications suppliers Claranet, Bond Adapt, Daxtra, Webroster, Datalibrium and BT.
Where do you see your business in the future?
CRG’s strategy is to further develop its current service offerings in additional geographical areas of the UK utilising its current branch network i.e. nursing services into the South or Social Care from the East Midlands to the North East. In addition to this expanding our future branch network through contract successes at the rate of 6 - 8 branches per year.

To ultimately diversify its healthcare recruitment and healthcare services provision further in the areas listed below to become a leading top 10 provider for healthcare recruitment and healthcare services provision.



- Specialist Homecare services

- Social Care recruitment and services

- Forensic Medical Examiners and Sexual Offender Medical Examiners

- Locum services to prisons and secure services

- Healthcare service provision to prisons and secure services

- Occupational Health Services to the Public and Private Sector



Additionally to the healthcare recruitment and healthcare services provided CRG will further develop its current non-healthcare recruitment services through CRG Resourcing in additional geographical areas of the UK utilising its current and future branch network providing the ability to provide Public Sector, Quasi Government Bodies and the Private Sector with a managed service offering for the provision of general recruitment services through contract successes.

Listed below is a financial summary based on indicators we consider as being vital to our risk assessment methodology. This is by no means, an exhaustive set of indicators. Our due diligence process takes into account a number of different quantitative and qualitative parameters.

CRG more than doubled its turnover between December, 2011 and March, 2014. Its latest turnover as of March, 2014 is over £ 23 million, with a projected turnover as of March, 2016 of over £ 35 million.
Crgturnover
CRG has a positive PAT track record with the most recent PAR being £ 500,290 as of March, 2014. CRG expects PAT to more than triple to £ 1,681,546 by March, 2016.
Crgprofitaftertax
Assumptions
  • Operating Income (Revenues – Cost of goods sold – Selling and administrative expenses) is expected to double from £ 1,270,104 in March, 2014 to £2,584,015 in Mar, 2016.
  • Projected Net income to triple from £ 500,290 to £ 1,681,546 over the same period.
CRG’s DSCR is 0.89 as of March, 2014. The projected DSCR is 2.23 as of March 2015, and 9.47 as of March, 2016.
Crgdscr
Assumptions
  • DSCR as of March, 2014
    • EBIT assumed at £959,855 for the 15 months leading up-to March, 2014
    • Interest expenses assumed at £451,694 for the 15 months leading up-to March, 2014
    • Short Term Debt assumed at £632,666 for the 15 months leading up-to March, 2014
  • DSCR as of Dec, 2016 of 9.47. This is based on the Sept, 2013 management accounts, which assumes the existing debt as being fully paid off by 2016. On assuming the Paper Street funding of £250,000, the DSCR still comes out at 4.63.
Key Financials
  Year to date  Filed Accounts  Filed Accounts 
  15 months to 31/04/14 12 months to 31/12/12 12 months to 31/12/11
Profit & Loss
    Turnover £23,380,296 £17,690,174 £10,919,082
    Direct costs £16,709,162 £13,005,739 £8,174,694
    Gross Profit £6,671,135 £4,684,435 £2,744,388
    Operating costs £6,162,973 £3,749,095 £1,924,118
    Tax £7,871 £226,679 £204,494
    Profit/(Loss) after Tax £500,290 £708,661 £615,776
Balance Sheet
    Fixed Assets £3,418,967 £2,042,029 £1,820,628
    Current Assets £2,664,088 £2,135,608 £1,733,548
    Current Liabilities £3,393,507 £2,016,101 £2,406,455
    Long Term Liabilities £1,254,020 £917,768 £372,909
    Net Assets/Capital £1,435,527 £1,243,770 £774,812
Filed Accounts
Current Outstanding Debt
  Short Term (<1 Year) Long Term (>1 year) Monthy repayments
Hire Purchase/Lease £47,940 £1,254,020 £3,995
Loans £632,667 £1,201,449 £57,985
Total £680,607 £2,455,469 £61,980
Credit Risk
Paper Street’s risk rating for this loan is
Rating_b
Equifax’s credit rating for this company is
B- (65) as of March, 2014
Loan offer of 10.5% cash interest per annum on any loan amount
Minimum £100 loan per lender
No maximum

Loan Agreement

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