MAYDAY HOUSING

Since 2021, we have seen a 30% increase in revenue, reflecting steady growth and demand for our services. This growth is expected to continue as we expand our portfolio and improve our operations. Our experience in managing large property portfolios and our established relationships with local authorities make us a reliable choice for landlords looking for secure, hands-off property management.

The funds raised will be used to further develop our business. We plan to strengthen our in-house sales team to attract more landlords and increase our portfolio. Additionally, we aim to build an internal maintenance team, allowing us to handle property upkeep more efficiently and offer maintenance services directly to local authorities. This will not only improve service quality but also create an additional revenue stream.

With the right financial support, we will be well-positioned to take on larger portfolios and continue growing. Given the current demand for long-term rental solutions and the strong partnerships we have in place, now is an excellent time to expand. Our proven track record, clear strategy, and commitment to providing reliable property management services make this a strong opportunity for further investment.

Credit Commentary:
Based in London, Mayday Housing is involved in leasing properties from landlords and then subletting them to local councils or housing associations under long-term agreements. The revenue is generated by property management for landlords under guaranteed rent. As of now, the company is managing around 70 residential properties, and all are tied into long-term contracts. The company is owned by Kevin Dyer and Hakan Yilmaz, via the holding company called IC Property. Mayday Housing holds an Equifax score of B. Both the shareholders are providing a personal guarantee, which means should the business fail to repay the loan, we can turn to the guarantor (s) to cover any shortfall. Moreover, both the directors have multiple real estate properties with either a good equity cover or a fully paid-off mortgage, which, whilst not directly charged in support of the proposed loan, does give strength to the personal guarantees they are providing in support of the proposed loan. In addition, both of them exhibit a good credit profile as well. The accounts of the company depict a stable financial profile. The turnover stood higher at £292K (FY 2023: £113K; FY2022: £270K) for FY2024. The increase in revenue, combined with a decline in expenses, resulted in a significant rise in Net Operating Profit to stand at £233.5K (FY2023: 46.9K; FY2022: 114K). The decline in repair and maintenance costs over the last 2 years enabled the company to post a significantly higher profit for the current year. Hence, the company’s EBITDA is sufficient to cover the proposed loan facility. The funds will be utilised to build a) sales team that will enable them to target a large number of properties and secure long-term agreements with landlords, b) increase marketing expenses to increase business visibility and attract more landlords, c) upgrade internal infrastructure to manage the increased volume, and lastly, d) build a team to focus on maintenance, customer support and operational activities to efficiently handle the larger scope of properties.

Inflation Risk:
The business is not affected by inflation.