Kenya Greenmaster Fresh Business Plan — Appendix C: Funding, Working Capital and Balance Sheet Schedules
Equity, term loan and receivables facility schedules, the working capital build and the balance sheet by year.
Appendix C: Funding, Working Capital and Balance Sheet Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Opportunity
- 3. The Product Ladder
- 4. Operations and Certification
- 5. Market and Competitive Position
- 6. SWOT and Strategic Response
- 7. Financial Projections
- 8. Working Capital, Funding and the Balance Sheet
- 9. Sensitivity and Scenario Analysis
- 10. Risk Analysis
- 11. Regulatory and Compliance
- 12. Organisation
- 13. Implementation Roadmap
- 14. Key Performance Indicators
- 15. Investor Returns and Recommendation
- 16. Assumption Register
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Volume, Allocation and Price Schedules
- C. Appendix C: Funding, Working Capital and Balance Sheet Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Capital structure and use of equity
- C.2 Capital expenditure and depreciation
- C.3 Working capital and the facility
- C.4 Balance sheet
- C.5 Returns and the steady-state yield
C.1 Capital structure and use of equity
|
US$ million |
Note |
|
|---|---|---|
|
Promoter and investor equity |
6.00 |
45% of the company at subscription |
|
Development bank term loan |
3.00 |
8.5% over 7 years with 18 months of principal grace |
|
Receivables facility at peak |
4.20 |
80% advance against approved European receivables at 11.5% |
|
Total capital available |
13.20 |
|
Application of equity proceeds |
US$ million |
Share |
|---|---|---|
|
Working capital gap not covered by the receivables facility |
2.05 |
34% |
|
Prepared and high-care line, net of term loan allocation |
1.42 |
24% |
|
Early trading losses to EBITDA breakeven |
1.10 |
18% |
|
Outgrower recruitment, input credit and certification build |
0.78 |
13% |
|
Contingency |
0.65 |
11% |
|
Total |
6.00 |
100% |
C.2 Capital expenditure and depreciation
|
US$ thousand |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
Total |
|---|---|---|---|---|---|---|
|
Prepared and high-care line |
0 |
1 620 |
240 |
320 |
180 |
2 360 |
|
Packhouse fit-out and cold chain |
1 150 |
180 |
220 |
160 |
120 |
1 830 |
|
Collection centres and field cold rooms |
231 |
210 |
189 |
147 |
105 |
882 |
|
Refrigerated vehicles |
210 |
180 |
150 |
120 |
120 |
780 |
|
Traceability and enterprise systems |
190 |
70 |
90 |
60 |
60 |
470 |
|
Avocado grading and packing line |
0 |
340 |
0 |
120 |
0 |
460 |
|
Total capital expenditure |
1 781 |
2 600 |
889 |
927 |
585 |
6 780 |
|
Depreciation charge |
220 |
550 |
660 |
770 |
850 |
|
|
Net book value at year end |
1 560 |
3 610 |
3 840 |
4 000 |
3 730 |
C.3 Working capital and the facility
|
US$ million |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Trade receivables at 45 days |
0.37 |
1.23 |
2.43 |
3.60 |
4.64 |
|
Inventory and produce in transit |
0.15 |
0.49 |
0.95 |
1.39 |
1.80 |
|
Value added tax refund at 210 days |
0.17 |
0.41 |
0.67 |
0.84 |
0.95 |
|
Less grower payables at 12 days |
(0.03) |
(0.08) |
(0.16) |
(0.23) |
(0.29) |
|
Working capital employed |
0.66 |
2.05 |
3.89 |
5.60 |
7.10 |
|
Peak working capital absorbed |
0.53 |
1.91 |
3.75 |
5.47 |
6.96 |
|
Receivables facility available at peak |
0.33 |
1.13 |
2.24 |
3.31 |
4.25 |
|
Unfunded gap |
0.20 |
0.78 |
1.51 |
2.16 |
2.71 |
|
Facility drawn at year end |
0.00 |
0.05 |
1.89 |
3.31 |
4.25 |
|
Facility interest paid |
0.03 |
0.11 |
0.22 |
0.32 |
0.42 |
|
Term loan balance at year end |
3.00 |
2.73 |
2.18 |
1.64 |
1.09 |
C.4 Balance sheet
|
US$ million, at year end |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Packhouse, cold chain and vehicles, net |
1.56 |
3.61 |
3.84 |
4.00 |
3.73 |
|
Trade receivables |
0.37 |
1.23 |
2.43 |
3.60 |
4.64 |
|
Inventory and produce in transit |
0.15 |
0.49 |
0.95 |
1.39 |
1.80 |
|
Value added tax refund receivable |
0.17 |
0.41 |
0.67 |
0.84 |
0.95 |
|
Cash |
5.45 |
0.70 |
-0.08 |
0.09 |
1.14 |
|
Total assets |
7.70 |
6.44 |
7.81 |
9.92 |
12.26 |
|
Share capital |
6.00 |
6.00 |
6.00 |
6.00 |
6.00 |
|
Retained earnings / (accumulated deficit) |
(1.33) |
(2.42) |
(2.42) |
(1.26) |
0.63 |
|
Total equity |
4.67 |
3.58 |
3.58 |
4.74 |
6.63 |
|
Development bank term loan |
3.00 |
2.73 |
2.18 |
1.64 |
1.09 |
|
Receivables facility drawn |
0.00 |
0.05 |
1.89 |
3.31 |
4.25 |
|
Grower and trade payables |
0.03 |
0.08 |
0.16 |
0.23 |
0.29 |
|
Total liabilities |
3.03 |
2.86 |
4.23 |
5.18 |
5.63 |
|
Total equity and liabilities |
7.70 |
6.44 |
7.81 |
9.92 |
12.26 |
C.5 Returns and the steady-state yield
|
FY2031 exit assumption |
Enterprise value |
Equity value |
Investor proceeds |
Multiple |
Return |
|---|---|---|---|---|---|
|
4.0x EBITDA |
US$14.20m |
US$13.40m |
US$5.13m |
0.9x |
-3% |
|
5.0x EBITDA |
US$17.75m |
US$16.95m |
US$6.49m |
1.1x |
2% |
|
6.5x EBITDA |
US$23.07m |
US$22.27m |
US$8.53m |
1.4x |
7% |
|
8.0x EBITDA |
US$28.40m |
US$27.60m |
US$10.57m |
1.8x |
12% |
|
9.5x EBITDA |
US$33.73m |
US$32.93m |
US$12.61m |
2.1x |
16% |
|
Steady state at FY2031 scale |
US$ million |
Note |
|---|---|---|
|
EBITDA |
3.55 |
At FY2031 scale with the supply base no longer expanding |
|
Less maintenance capital expenditure |
(0.90) |
Replacement of cold chain, vehicles and packhouse equipment |
|
Less facility interest |
(0.42) |
On the receivables facility at 11.5% |
|
Less taxation |
(0.68) |
At the Kenyan corporate rate of 30%, losses exhausted |
|
Post-tax free cash flow |
1.55 |
|
|
Investor share at 38.3% |
0.59 |
|
|
Cash yield on the equity subscribed |
9.8% |
Against a five-year multiple of 1.4 times |