Kyalami Surface Business Plan — Implementation Roadmap

The phases from first studio to two, installer build-out, and the gate at each stage.

Section 19 of 31

Implementation Roadmap

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Thirty-six months from financial close to a two-studio group ready for a third site or a sale.

Figure 1. Implementation roadmap across five phases

The tranche 2 gate in month 21 is the critical decision point in the entire plan. Everything to its left must be delivered before any Cape Town capital is committed.

Table 26. Phase objectives and critical path

Phase	Months	Objective	Critical path item
Pre-launch	1–4	Facility built, first installer cohort certified, supplier accreditation secured, first import landed	Installer certification — everything else can be accelerated with money; this cannot
Launch	4–10	First revenue, brand established, dealer conversations opened	Achieving quality consistency before volume, so that early reviews are positive
Ramp-up	10–21	Utilisation to break-even and beyond, second installer cohort, dealer agreements signed	Reaching 59% utilisation by month 14
Scale-up	21–30	Tranche 2 released, Cape Town built and opened, group systems in place	Satisfying the tranche 2 conditions in month 21
Expansion	30–36	Cape Town to target utilisation, debt amortised, third site or exit preparation	Cape Town ramp within thirteen months of first revenue

Tranche 2 release conditions

The second equity tranche of R4.0m is released in month 21 only if all four of the following conditions are met on the preceding three months of trading. If they are not met, the tranche lapses or is renegotiated, and the Cape Town studio is not built.

Billable installer utilisation at the Kyalami studio at or above 70% for three consecutive months.
Trailing twelve-month EBITDA at or above R1.4m.
Rework and warranty cost at or below 2.5% of revenue on a trailing twelve-month basis.
At least four franchise dealer group referral agreements signed and generating volume.

Why the gate is the most important term in the structure

If the plan fails, it will fail in the first eighteen months and it will fail on utilisation. The gate converts that into a decision point rather than a loss. An investor who declines to release tranche 2 has R7.5m at risk in a single studio with a saleable fit-out and inventory, rather than R11.5m across two.

The stress case in Section 29 is modelled on precisely this basis — no tranche 2 and no second studio — and it still fails. The gate limits the loss; it does not eliminate it.