Frame & Field Studios Business Plan — Appendix C: Funding, Debt and Working Capital Schedules
Sources and uses, debt and asset finance schedules, the opening balance sheet and the working capital build.
Appendix C: Funding, Debt and Working Capital Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. What Artificial Intelligence Has Taken, and What It Has Not
- 2. Executive Summary
- 3. Service Lines, Clients and Pricing
- 4. Capacity: The Shooting Day and the Editing Day
- 5. SWOT and Competitive Position
- 6. Organisation, Rights and Compliance
- 7. Financial Plan
- 8. Break-Even and Debt Service
- 9. Investment Analysis
- 10. Sensitivity and Scenario Analysis
- 11. Risk Analysis
- 12. Implementation Roadmap
- 13. Key Performance Indicators
- 14. Key Assumptions
- 15. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capacity, Mix and Cost Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Sources and uses
- C.2 Capital expenditure and depreciation
- C.3 Debt schedule
- C.4 Working capital and the facility
- C.5 Opening balance sheet at drawdown
C.1 Sources and uses
|
R |
Note |
|
|---|---|---|
|
Promoter and investor equity |
5 900 000 |
49.7% of the funding requirement |
|
Debt and asset finance |
5 960 000 |
Five years at 13.22% |
|
Total sources |
11 860 000 |
|
|
Capital expenditure |
(6 940 000) |
58.5% of the requirement |
|
Working capital and pre-opening cost |
(4 920 000) |
41.5% of the requirement |
|
Total uses |
(11 860 000) |
Sources equal the requirement exactly |
|
Working capital facility |
3 600 000 |
Committed at drawdown; peaks at R2 954 905 drawn |
C.2 Capital expenditure and depreciation
|
Asset |
Cost (R) |
Life |
Annual depreciation (R) |
|---|---|---|---|
|
Camera bodies, lenses and capture systems |
1 680 000 |
4 years |
420 000 |
|
Studio fit-out: cyclorama, sets and acoustics |
1 150 000 |
10 years |
115 000 |
|
Lighting, grip and studio infrastructure |
1 050 000 |
7 years |
150 000 |
|
Motion and video equipment |
820 000 |
4 years |
205 000 |
|
Post-production workstations and colour-managed suites |
680 000 |
4 years |
170 000 |
|
Vehicles for location work |
620 000 |
6 years |
103 333 |
|
Network, storage and archive infrastructure |
440 000 |
5 years |
88 000 |
|
Furniture, client areas and reception |
280 000 |
8 years |
35 000 |
|
Professional fees and set-up |
220 000 |
5 years |
44 000 |
|
Total |
6 940 000 |
1 330 333 |
C.3 Debt schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
5 960 000 |
5 044 292 |
4 007 527 |
2 833 702 |
1 504 697 |
|
Interest at 13.22% |
787 912 |
666 855 |
529 795 |
374 615 |
198 921 |
|
Capital repaid |
915 708 |
1 036 765 |
1 173 825 |
1 329 005 |
1 504 697 |
|
Total debt service |
1 703 620 |
1 703 620 |
1 703 620 |
1 703 620 |
1 703 618 |
|
Closing balance |
5 044 292 |
4 007 527 |
2 833 702 |
1 504 697 |
0 |
|
of which current portion |
1 036 765 |
1 173 825 |
1 329 005 |
1 504 697 |
0 |
|
of which non-current portion |
4 007 527 |
2 833 702 |
1 504 697 |
0 |
0 |
|
EBITDA |
(602 241) |
1 622 728 |
3 767 790 |
4 448 903 |
5 338 585 |
|
Debt service cover |
-0.35x |
0.95x |
2.21x |
2.61x |
3.13x |
|
Gearing |
82.8% |
85.4% |
64.5% |
28.4% |
0.0% |
C.4 Working capital and the facility
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Trade receivables at 58 days |
1 325 269 |
2 269 797 |
3 266 633 |
3 839 075 |
4 442 840 |
|
Work in progress at 12 days |
274 194 |
469 613 |
675 855 |
794 291 |
919 208 |
|
Less trade payables at 28 days |
(210 146) |
(371 258) |
(550 947) |
(667 433) |
(795 914) |
|
Working capital employed |
1 389 316 |
2 368 152 |
3 391 541 |
3 965 933 |
4 566 135 |
|
Movement in the year |
(1 389 316) |
(978 836) |
(1 023 389) |
(574 392) |
(600 202) |
|
As a share of revenue |
16.7% |
16.6% |
16.5% |
16.4% |
16.3% |
|
Facility drawn at year end |
1 895 177 |
2 954 905 |
2 823 888 |
807 921 |
0 |
|
Headroom on the R3 600 000 facility |
1 704 823 |
645 095 |
776 112 |
2 792 079 |
3 600 000 |
C.5 Opening balance sheet at drawdown
|
R |
Note |
|
|---|---|---|
|
Equipment, fit-out and vehicles |
6 940 000 |
The full capital programme, in place before opening |
|
Cash |
2 600 000 |
Working capital after the capital programme and pre-opening spend |
|
Total assets |
9 540 000 |
|
|
Share capital |
5 900 000 |
49.7% of the funding requirement |
|
Debt and asset finance drawn |
5 960 000 |
Five years at 13.22% |
|
Total equity and liabilities |
11 860 000 |