North West Agri Feeds Business Plan — Financial Plan

Five-year projections: revenue to R228.0m, gross margin reaching 20.0% and EBITDA of R20.4m.

Section 18 of 26

Financial Plan

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The financial plan is built as a fully integrated three-statement model, income statement, balance sheet and cash flow, driven from operational assumptions (tonnes, prices, ingredient costs, working-capital days and financing terms) rather than from arbitrary growth rates. The statements reconcile: the balance sheet balances in every period, cash flow ties to the balance-sheet cash line, and debt and retained earnings roll forward correctly.

Key modelling assumptions

Assumption

Basis

Plant capacity

10 t/h; single-shift nameplate ~20,000 t/yr; extended hours to ~40,500 t/yr by Year 5

Utilisation of available hours

55% → 65% across the plan (disciplined, with headroom)

Average selling price

R6,803/t (Y1) rising to R8,660/t, mix- and inflation-driven

Ingredient cost

2026 SA prices: maize ~R3,550/t, soybean meal ~R8,600/t; ~83% of COGS

General inflation

5% p.a. on prices and costs from Year 2

Corporate tax

27%, with assessed-loss carry-forward and 80% utilisation cap

Senior debt

Prime + 1.75%; 7-year tenor; 2-year capital moratorium

Asset finance

Prime + 2.5%; 5-year amortising

Working-capital RCF

Prime + 3.0%; revolving, sized to net working capital

Discount rate (DCF)

15.0% blended WACC (structure-derived; range 13.6–16.2%)

Exit assumption

6.5x Year 5 EBITDA (SA agri-processing range 6–8x)

Projected income statement

Table 7. Projected income statement (base case, R’000)

R’000

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

74,829

103,618

138,196

178,309

227,987

Cost of sales

(63,415)

(86,285)

(112,103)

(143,682)

(182,492)

Gross profit

11,414

17,333

26,093

34,627

45,496

Gross margin

15.3%

16.7%

18.9%

19.4%

20.0%

Operating expenses

(14,645)

(16,828)

(19,255)

(21,994)

(25,120)

EBITDA

(3,231)

505

6,838

12,633

20,375

EBITDA margin

-4.3%

0.5%

5.0%

7.1%

8.9%

Depreciation

(7,481)

(7,601)

(7,751)

(7,931)

(8,141)

EBIT

(10,713)

(7,097)

(914)

4,702

12,234

Finance costs

(6,163)

(6,082)

(6,059)

(5,375)

(4,576)

Profit before tax

(16,875)

(13,178)

(6,973)

(674)

7,658

Tax

(0)

(0)

(0)

(0)

(414)

Net profit after tax

(16,875)

(13,178)

(6,973)

(674)

7,244

Net margin

-22.6%

-12.7%

-5.1%

-0.4%

3.2%

Projected balance sheet

Table 8. Projected balance sheet (base case, R’000)

R’000

Year 1

Year 2

Year 3

Year 4

Year 5

Non-current assets (NBV)

83,894

77,493

71,241

65,110

59,069

Inventory

6,950

8,983

11,057

13,778

16,999

Trade & other receivables

9,225

12,775

15,902

19,541

23,736

Cash & equivalents

23,088

13,104

4,365

602

3,087

Total assets

123,157

112,355

102,565

99,031

102,891

Trade & other payables

5,212

7,565

10,442

13,778

17,999

Senior term debt

32,000

32,000

27,013

21,402

15,090

Asset finance

8,532

6,779

4,794

2,546

0

Working-capital RCF

6,030

7,806

9,084

10,747

12,000

Total liabilities

51,774

54,150

51,333

48,473

45,089

Share capital

88,258

88,258

88,258

88,258

88,258

Retained earnings

(16,875)

(30,054)

(37,027)

(37,700)

(30,456)

Total equity

71,383

58,204

51,231

50,558

57,802

Total equity & liabilities

123,157

112,355

102,565

99,031

102,891

Projected cash flow statement

Table 9. Projected cash flow (base case, R’000)

R’000

Year 1

Year 2

Year 3

Year 4

Year 5

EBITDA

(3,231)

505

6,838

12,633

20,375

Working-capital movement

-0

(3,230)

(2,323)

(3,024)

(3,195)

Tax paid

-0

-0

-0

-0

(414)

Operating cash flow

(3,231)

(2,726)

4,515

9,608

16,767

Maintenance capex

0

(1,200)

(1,500)

(1,800)

(2,100)

Investing cash flow

0

(1,200)

(1,500)

(1,800)

(2,100)

Interest paid

(6,163)

(6,082)

(6,059)

(5,375)

(4,576)

Debt repayment

(1,548)

(1,753)

(6,972)

(7,859)

(8,858)

RCF movement

30

1,777

1,278

1,663

1,253

Financing cash flow

(7,681)

(6,058)

(11,754)

(11,571)

(12,182)

Net cash movement

(10,912)

(9,984)

(8,740)

(3,762)

2,485

Opening cash

34,000

23,088

13,104

4,365

602

Closing cash

23,088

13,104

4,365

602

3,087

Year 5 cash flow waterfall: the business self-funds at maturity
Figure 1. Year 5 cash flow waterfall: the business self-funds at maturity