Sireletso Protective Group Business Plan — Management and Organisation

The management team, officer establishment as contracts scale, recruitment and vetting, and the governance structure for investors.

Management and Organisation

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Function

Year 1

Year 3

Year 5

Responsibility

Executive

3

3

4

Managing director, operations director, finance director; commercial director from Year 5

Operations management

2

4

6

Detail commanders, scheduling, journey management

Control room controllers

4

6

8

24-hour manning across four shifts

Deployed protective personnel

71

145

168

The revenue-generating establishment

Academy and training

2

4

5

Accredited instruction, assessment and moderation

Risk advisory

1

3

4

Threat and vulnerability assessment, travel risk, journey planning

Compliance and SHEQ

1

2

3

PSIRA currency, firearm competency, incident investigation

Finance and administration

3

5

7

Includes dedicated credit control from Year 2

R million

Year 1

Year 2

Year 3

Year 4

Year 5

Overhead salaries

8.90

11.20

12.80

14.00

15.00

As a share of revenue

26.1%

17.1%

15.8%

14.8%

14.0%

Fixed overheads

3.58

3.82

4.08

4.36

4.66

Variable overheads

2.05

3.94

4.86

5.69

6.43

Total operating expenditure

14.53

18.96

21.74

24.05

26.09

As a share of revenue

42.6%

28.9%

26.9%

25.4%

24.3%

Overhead salaries fall from 26.1 per cent of revenue to 14.0 per cent as the executive, control room and compliance establishment is spread across a larger deployed base. That single movement is the principal source of the swing from a negative 4.1 per cent EBITDA margin to a positive 13.2 per cent, and it is why the break-even in Section 14 is high in absolute terms.