Highveld Detailing Business Plan — Projected Income Statement

Five-year income statement: revenue to R89.0m and EBITDA to R10.2m, with three loss-making years first.

Section 24 of 38

Projected Income Statement

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The company does not report a profit until FY2031 and does not recover its accumulated losses within the plan period. Both facts are visible in the statement below and neither is unusual for a build-out of this shape, but they determine when, and whether, a return can be paid in cash.

Profitability summary, base case
Figure 1. Profitability summary, base case

Table 43. Projected income statement (R million)

FY2028

FY2029

FY2030

FY2031

FY2032

Revenue

7.74

23.73

48.14

69.81

89.00

Consumables and film

-1.21

-3.70

-7.54

-11.00

-14.11

Direct labour

-2.02

-7.11

-15.19

-24.10

-33.12

Gross profit

4.51

12.92

25.42

34.71

41.77

Gross margin

58.3%

54.4%

52.8%

49.7%

46.9%

Site fixed costs

-3.34

-6.87

-12.15

-15.01

-17.51

Head-office payroll

-2.45

-4.33

-6.42

-7.72

-8.64

Head-office other costs

-1.65

-2.06

-2.58

-2.82

-2.98

Marketing and business development

-0.39

-0.93

-1.74

-2.18

-2.49

Pre-operating and mobilisation

-1.10

0.00

0.00

0.00

0.00

EBITDA

-4.41

-1.28

2.53

6.98

10.15

EBITDA margin

-57.0%

-5.4%

5.3%

10.0%

11.4%

Depreciation and amortisation

-1.33

-2.31

-3.77

-4.65

-5.32

EBIT

-5.75

-3.59

-1.24

2.33

4.83

Finance costs

-0.82

-0.97

-1.35

-1.11

-0.74

Finance income

0.60

0.82

0.54

0.22

0.17

Profit before tax

-5.96

-3.74

-2.06

1.44

4.26

Taxation

0.00

0.00

0.00

-0.08

-0.24

Profit after tax

-5.96

-3.74

-2.05

1.36

4.02

Net margin

-77.1%

-15.8%

-4.3%

1.9%

4.5%

Retained earnings, closing

-5.96

-9.71

-11.76

-10.40

-6.37

Accumulated losses of R-6.4m remain at 29 February 2032. Under the Companies Act solvency and liquidity test, no dividend can be paid while retained earnings are negative. On these projections the earliest distribution is FY2034, which means investor return must be realised through exit rather than through yield.

Year one in detail

FY2028 monthly revenue and EBITDA
Figure 2. FY2028 monthly revenue and EBITDA

Table 44. FY2028 monthly summary (R thousand)

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Revenue

0

0

275

320

418

576

793

910

1047

1181

1021

1198

Gross profit

0

0

119

158

221

333

464

556

650

702

592

717

Operating costs

-1361

-261

-549

-553

-616

-645

-901

-763

-773

-938

-777

-790

EBITDA

-1361

-261

-430

-395

-395

-312

-437

-207

-122

-235

-185

-73

Profit after tax

-1583

-288

-518

-485

-503

-438

-575

-348

-266

-389

-341

-230

Capital expenditure

4867

2967

0

620

620

320

0

0

320

0

0

0

Closing cash

11924

10666

10377

9856

9314

8853

8344

7954

7662

7296

7005

6796

Headcount

3

3

14

14

17

19

25

25

27

33

31

33

March 2027 carries the pre-operating cost and the initial capital outlay with no revenue. The flagship studio opens in May 2027 and the first two embedded units go live in September and December 2027.