asset summary

asset code UT-FR-SH-AMTI-2018-002
asset description 33% Shareholdings of MPS, with profit sharing agreement of net profits proportional to percentage shareholdings, on a quarterly basis.
category Amenities
type Shareholder – Profit Sharing
validity Ongoing without Expiry / Maturity

Asset Code Format:

  • Category Code: EN for energy, IN for infrastructure, UT for utilities and amenities, IT for internet related, TG for new technologies and technological applications, ED for education and CL for cultural.
  • Country Code: 2 letters, the internationally recognized country code.
  • Asset Type: SH for shareholdings, DO for direct ownership, PS for profit sharing agreement, LN for loans and debt, PD for financial product.
  • Asset Name: 4 letters assigned to asset, which is unique to this code only.

 

Background and Market

In 2017, MPS together with Saint-Denis government started a project to raise the standard of the public toilet in the city of Saint-Denis. This massive project which cost €14.4 million will involve upgrading 68 existing public toilets and install an additional 132 more over a span of 3 years. Saint-Denis will host most of the games during the 2024 Summer Olympics Game and the around 200 public toilets are needed to cater for the sporting event.

After the installation of the entire public toilet system, the company will continue to operate and manage the public toilet for the next 5 years on total contract sum of €12.2 million.

MPS was founded with a mission to raise the standard of public toilets in France. Focused on improving the standards of public safety, hygiene and the accessibility of Public Toilets, MPS specializes in the rental of portable toilet units to meet the needs of the construction, industrial, commercial and special events sectors. Established over 21 years ago, the company is now ranked as the leader in its field. It has over 1,000 toilet units available for hire, all manufactured using the latest technology and conforming to the highest European health and safety standards.

MPS is also prominent in the rental of portable shower units, the rental and sale of mains-connected toilet units and cabins, and the provision of a liquid waste disposal service. Its products and services are in constant demand from leading building contractors, industrial concerns, and special events organizers, with units suited for every event and eventuality.

 

Investment and ROI

Cirro Capital Limited has made a direct investment of €1,727,233.20 for the acquisition of a 33% stake of MPS. The investment is based on the following terms:

Amount €1,727,233.20
(Total valuation = € 5,234,040)
Shareholdings 33%
Business Description A public amenities company incorporated in France, with the following business functions
- Build and install public sanitary amenities
- Operates and manage sanitary amenities
Annual Revenue Est € 4,148,240 (As of August 2018)
Annual Profit Est €2,903,768 (As of August 2018), 70% of revenue
Annual Investment ROI Est €958,243.44 (As of August 2018)
Annual Investment ROI Rate (%) 55.0%

 

Exit Strategy

Given that majority of France cities are still using labor manage public toilet, there will be an increase in demand for auto clean toilet system in the future. This system will also attract interest from civic and commercial project as it will reduce the need for labor cost in sanitary amenities operations.

In the longer term, we expect to sell our stake via capital markets as its projects and revenues mature, as part of our investment exit strategy.