Highveld Detailing Business Plan — Projected Balance Sheet

The balance sheet across the projection, including site fit-out, equipment and the funding position.

Section 25 of 38

Projected Balance Sheet

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The balance sheet is modest in every year: this is a business that rents its premises, works inside other people’s buildings, and owns little beyond equipment and trained people who do not appear on it. The balance sheet balances in every month of every scenario.

Table 45. Projected balance sheet (R million)

As at last day of February	FY2028	FY2029	FY2030	FY2031	FY2032
Assets
Cash and cash equivalents	6.80	9.56	4.58	2.35	3.87
Trade receivables	0.89	2.76	5.09	7.49	9.85
Inventory	0.26	0.60	1.01	1.35	1.68
Current assets	7.94	12.92	10.69	11.18	15.40
Property, plant and equipment, net	8.38	15.62	16.04	14.35	11.76
Total assets	16.32	28.54	26.73	25.53	27.16
Liabilities
Trade payables	0.57	1.21	1.72	2.11	2.42
Accrued expenses	0.32	0.78	1.28	1.71	2.17
Taxation payable	0.00	0.00	0.00	0.00	0.00
Revolving facility drawn	0.00	0.00	0.00	0.00	0.00
Term loan and asset finance	6.39	12.26	11.48	8.11	4.94
Total liabilities	7.29	14.25	14.49	11.93	9.53
Equity
Share capital	15.00	24.00	24.00	24.00	24.00
Retained earnings	-5.96	-9.71	-11.76	-10.40	-6.37
Total equity	9.04	14.29	12.24	13.60	17.63
Total equity and liabilities	16.32	28.54	26.73	25.53	27.16
Balance check	nil	nil	nil	nil	nil

The balance check is the difference between total assets and total equity and liabilities, computed in every one of the sixty projection months across all four scenarios. It is nil throughout.

Working capital

Table 46. Working capital and the cash conversion cycle

	FY2028	FY2029	FY2030	FY2031	FY2032
Trade receivables	0.89	2.76	5.09	7.49	9.85
Inventory	0.26	0.60	1.01	1.35	1.68
Trade payables	-0.57	-1.21	-1.72	-2.11	-2.42
Accrued expenses	-0.32	-0.78	-1.28	-1.71	-2.17
Net working capital	0.25	1.37	3.11	5.02	6.94
Movement in the year	-0.25	-1.12	-1.73	-1.91	-1.92
Debtor days	41.9	42.4	38.6	39.2	40.4
Cash conversion cycle, days	99.2	77.4	67.1	64.0	64.6

Dealer groups settle at 52 days and fleet customers at 38 days, against 32-day supplier terms. Retail revenue settles on the day of service, which is the only reason the cash conversion cycle remains manageable. As the dealer share of revenue grows, the cycle lengthens — a direct and often overlooked cost of the contracted model.