Sakhile Construction Business Plan — The Five-Year Roadmap and Gates

The climb from Grade 1GB to 6GB across five years, and the performance and capital gate each grade step requires.

The Five-Year Roadmap and Gates

Jump to section

Year

Grade

Turnover

Focus

Gate before proceeding

1

1GB

R4.20m

Private residential and small commercial. Register Grade 1 in 48 working hours and start building a track record.

Two contracts above R1m completed and certified; audited financials prepared; every project registered on the Register of Projects

2

3GB

R9.50m

First public contracts. Establish the guarantee facility on small bonds.

Debtor days at or below plan; guarantee facility in place; no contract loss-making at final account

3

4GB

R19.00m

Growth equity drawn. Site management layer appointed. Estimating function professionalised.

Gross margin at or above 17.4% across all completed contracts; invoice discounting facility sized to the public order book

4

5GB

R34.00m

Scale within existing systems. No new class of works.

EBITDA positive; retention register current with all releases claimed; quantity surveying function in place

5

6GB

R52.00m

Grade 6 achieved. First year of profit after tax.

Working capital funded to a 90-day delay tolerance

Year 1

Year 2

Year 3

Year 4

Year 5

CIDB grade

1GB

3GB

4GB

5GB

6GB

Turnover, R’000

4 200

9 500

19 000

34 000

52 000

Gross margin

15.8%

16.6%

17.4%

18.1%

18.7%

EBITDA, R’000

(206)

(48)

546

1 839

3 519

Net working capital, R’000

723

1 717

3 533

6 334

9 621

Closing cash, R’000

1 583

429

5 666

4 552

3 651

Shareholders’ funds, R’000

2 494

1 627

7 202

6 717

6 783

Next section10. Funding