The latest offering to land on site is rated A+ – a rare mark of distinction from our credit committee – and has a duration of two years. The gross yield is seven per cent.
Mar-Key Group is well-known to Money&Co. Below is an excerpt of its representations to lenders. We have done due diligence on these statements and believe them to be true, though we cannot warrant that they are true.
Mar-Key Goup is a leading supplier of rental structures to the highest quality corporate and sporting events in the UK. Mar-Key are also the only UK manufacturers of larger temporary and permanent aluminium structures. During the pandemic lockdown, events have not been taking place, so the company has focussed heavily on the manufacturing sector with great success. Projects have ranged from Covid related (Morgues, testing, vaccination) to full industrial warehouses completely clad in steel insulated panels. In the case of school classrooms, we are achieving full building control including Part L. Mar-Key is a privately-owned British company based in Bournemouth, Dorset, working throughout the UK and internationally. The company has a strong growth profile with a year-to-date order book of 5m. The growth profile is supported by a strong foundation of annual contracted clients with multiple year security ranging between 3-5 years. In addition, many other jobs occur on a one-off basis each year in the form repeat clients, with Mar-Key boasting a client retention rate in excess of 97% year-on-year. The company has marquee structure assets book valued at 5.68m as of 31/12/2020 and 10m at replacement value. The number of full-time staff members is currently 49, with a senior management team of 12, who have been in place for the past 6 years. Staff retention rates are in excess of 95% year-on-year.
Past History and Growth
The company has scope to increase its sales base through the development of the Industrial and Manufacturing divisions, particularly between December and May each year. The Business has a proven track record of growth whereby the Event sector has sustained momentum and is controlled to circa 10% growth per annum. Industrial and Manufacturing has capacity and scope to produce growth rates between 50-200% per annum in a sustainable manner, balanced with annual phasing of workloads. The fall of sterling against the euro post Brexit has been beneficial to the company as its major competitors are European. This has contributed to the increase in revenues over the last few months and this is an ongoing benefit to the company. Mar-Key Group is the only British company that manufactures large-scale structures onshore. Work with Tesco continues to grow and with the demand for temporary structures being driven by store refurbishments and the need for seasonal stockpiling. Looking to the past the company has excelled with a considerably reduced paper loss against forecast with a reasonable EBITDA profit. Going forward we are currently running ahead of forecast while still looking to the future of events returning. Some substantial (high profile) orders have already materialised, and we are starting to see activity across the event sector for later in the year. This brings with it challenges of a different kind. As the events return with annual turnover of circa 7M the company will also see new work in the manufacturing and industrial sector of around 3m which will create expansion. This brings a requirement for increased skilled staffing and CAPEX related items. Hence the request to our long term funding partners at Money and Co.We would recommend accessing our web site at www.mar-key.com where our portfolio can be viewed.
Historical Performance And IFISA Process Guide
That figure is the result of over £26 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.