Sireletso Protective Group Business Plan — Key Performance Indicators

The utilisation, incident, retention, debtor day and margin indicators monitored monthly, with intervention thresholds.

Key Performance Indicators

Jump to section

The following are reported monthly to the board and, where marked, quarterly to the lender as part of the covenant pack. Debtor days and PSIRA compliance are the two the transaction actually turns on.

Indicator

Definition

Target

Why it matters

Deployed personnel

Officers on active detail

168 by Year 5

Revenue per deployed officer is R638 000 at Year 5

Debtor days

Trade debtors ÷ revenue × 365

62 days or below

The covenant is 75; the facility is exhausted beyond 70

Facility utilisation

Drawn ÷ R12.00m limit

Below 90%

Drawn to R11.83m at Year 5; headroom is R0.17m

Gross margin by line

Line gross profit ÷ line revenue

Blended 37.5% at Year 5

Compressing 20 basis points a year on wage escalation

Advisory revenue share

Advisory ÷ total revenue

11% and rising

The 72% margin line that carries no deployed headcount

Officer attrition

Officers lost ÷ average deployed

Below 18%

Every departure is a re-vetting and re-certification cost

PSIRA compliance

Registrations current ÷ officers deployed

100%, without exception

A lapse is an event of default under the term facility

Firearm competency currency

Valid competency certificates ÷ armed officers

100%

Deployment without it is a criminal offence, not an oversight

Term debt service coverage

EBITDA ÷ term interest and capital

Above 1.30x from Year 2

2.14x at Year 2 rising to 3.71x

Contract renewal rate

Contracts renewed ÷ contracts expiring

Above 85%

Annuity revenue is the basis of the exit multiple

Previous section18. Investment Returns