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Blue Charter's objective is to acquire a new fleet worth €20 million per year, and place it on long-term charter contracts with professional operators. The sales pipeline is provided by Fountaine Pajot sales support and direct sales generated by the Blue Charter sales force.
In terms of equity raise, the breakdown is as follow:
It should be noted that structural and operating costs are covered by the first capital increase of €870,000. The capital from the second capital increase (€4,630,000) will be used as leverage for bank financing to acquire the boats. Bank financing is secured. A Belgian bank has approved a €14.5 million credit line. The subscription price of the new shares is the same as the first capital increase, with no share premium.
Revenue and income generation of the company is made up of:
Margin per contract: Each leasing contract generates an average gross margin of 20-25%, depending on the duration and type of boat.
Residual value: Each contract includes a residual value of 20% (at the end of a 7-year rental period). The market value at the end of the rental period typically ranges between 30% and 50% of the acquisition price.
The expected returns for the investors
Liquidity clause: investors can expect a return of 5 to 7 times their initial investment thanks to an exit opportunity offered by Fountaine Pajot: upon investor's request, during the 7th fiscal year of operations, investors can sell their shares to Fountaine-Pajot at market conditions (based on an external valuation), with a 25% discount. The current business plan indicates a potential annual return on capital exceeding 30%, including the discount, with a multiple of 7.
Buyout by leasing companies affiliated with major European banks: A company buyout by leasing firms is a highly likely exit scenario, based on past experience. A formal market offer will be made in the 8th year. Based on known parameters (discounted cash flow methodology), the current business plan indicates a potential annual return on capital exceeding 35%, with a multiple of 9.
Dividends will be distributed from the 7th fiscal year, at a rhythm of 50% of the net income generated
Based on key market parameters, the following financial projection has been worked out:
TAX SHELTER
30%
Investments in this company benefit from a 30% personal income tax reduction. Read more…
A remaining amount of €197,865 is available for the Tax Shelter benefit.
