North West Agri Feeds Business Plan — Capital Expenditure and Working Capital
The plant capital programme and the working capital cycle through grain buying and farmer credit.
Section 19 of 26
Capital Expenditure and Working Capital
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- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Industry Analysis
- 6. Market Analysis
- 7. Competitive Landscape
- 8. Business Model
- 9. Products and Services
- 10. Go-to-Market Strategy
- 11. Operating Model
- 12. Management and Organisation
- 13. Strategic Plan
- 14. SWOT Analysis
- 15. Risk Analysis
- 16. ESG and Sustainability
- 17. Implementation Roadmap
- 18. Financial Plan
- 19. Capital Expenditure and Working Capital
- 20. Funding Requirement and Structure
- 21. Investment Case and Returns
- 22. Sensitivity and Scenario Analysis
- 23. KPIs and Management Dashboard
- 24. Long-Term Growth Strategy
- 25. Conclusion
- 26. Appendices
Capital expenditure schedule
Table 10. Initial capital expenditure (R’000)
|
Category |
Amount |
% of capex |
|---|---|---|
|
Land & site works |
5,500 |
6.0% |
|
Buildings (production, warehouse, office) |
17,500 |
19.2% |
|
Feed mill & pelleting line (10 t/h) |
21,000 |
23.0% |
|
Silos & raw-material storage |
7,800 |
8.5% |
|
Batching, mixing & automation |
6,400 |
7.0% |
|
Bagging & palletising line |
3,200 |
3.5% |
|
Material handling & conveying |
3,600 |
3.9% |
|
Laboratory & QC equipment |
1,800 |
2.0% |
|
Electrical infrastructure & backup generation |
4,600 |
5.0% |
|
Vehicles & mobile plant |
5,800 |
6.3% |
|
Installation & commissioning |
4,400 |
4.8% |
|
Professional fees & pre-operating |
3,400 |
3.7% |
|
Contingency (7.5%) |
6,375 |
7.0% |
|
Total capital expenditure |
91,375 |
100.0% |
Working-capital requirement
Working capital rises with volume as maize inventory, finished feed and receivables build. The model funds an initial position and provides a revolving facility for the growth. The net working-capital investment and its trajectory are shown below.
Table 11. Net working capital (R’000)
|
Component |
Y1 |
Y2 |
Y3 |
Y4 |
Y5 |
|---|---|---|---|---|---|
|
Receivables |
9,225 |
12,775 |
15,902 |
19,541 |
23,736 |
|
Inventory |
6,950 |
8,983 |
11,057 |
13,778 |
16,999 |
|
Payables |
(5,212) |
(7,565) |
(10,442) |
(13,778) |
(17,999) |
|
Net working capital |
10,963 |
14,193 |
16,516 |
19,541 |
22,736 |