Mainstreet Brick Business Plan — Appendix B: Capital and Depreciation Schedules
Detailed capital expenditure and depreciation schedules covering the press, batching plant, yard works, moulds and vehicles.
Appendix B: Capital and Depreciation Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Unit Economics of Brick Making
- 3. Market Analysis
- 4. Products and Positioning
- 5. SWOT and Competitive Position
- 6. Site, Plant and Production
- 7. Route to Market and Sales Strategy
- 8. Regulatory, Environmental and Quality Compliance
- 9. Management and Organisation
- 10. Capital Requirement and Funding
- 11. Financial Projections
- 12. Break-Even Analysis
- 13. Debt Service and Working Capital
- 14. Investment Returns
- 15. Sensitivity and Scenario Analysis
- 16. Value Creation Levers
- 17. Risk Management
- 18. Implementation Timeline
- 19. Conditions for Success and Exit Options
- 20. Key Performance Indicators
- 21. Key Assumptions
- 22. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Depreciation Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- B.1 Capital expenditure
- B.2 Depreciation and asset roll-forward
- B.3 Year 1 operating cost detail
- B.4 Unit economics and capacity
B.1 Capital expenditure
|
Capital item |
Amount (R) |
% of total |
Treatment |
|---|---|---|---|
|
Static hydraulic block machine, semi-automatic pallet system |
2 400 000 |
13.0% |
Depreciated over 10 years |
|
Batching plant, pan mixer, aggregate bins and conveyors |
1 850 000 |
10.0% |
Depreciated over 10 years |
|
Delivery truck, 8 tonne with crane |
1 250 000 |
6.8% |
Depreciated over 10 years |
|
Yard preparation, hardstand, drainage and curing area |
1 450 000 |
7.9% |
Depreciated over 10 years |
|
Forklifts, three units |
1 380 000 |
7.5% |
Depreciated over 10 years |
|
Front-end loader |
850 000 |
4.6% |
Depreciated over 10 years |
|
Site electrical, transformer and reticulation |
780 000 |
4.2% |
Depreciated over 10 years |
|
Cement silo, 50 tonne, and screw conveyors |
680 000 |
3.7% |
Depreciated over 10 years |
|
Curing racks, GRP production pallets and spares |
1 150 000 |
6.2% |
Depreciated over 10 years |
|
Professional fees, environmental authorisation and licensing |
520 000 |
2.8% |
Depreciated over 10 years |
|
Installation, commissioning and operator training |
450 000 |
2.4% |
Depreciated over 10 years |
|
Office, ablutions and workshop, containerised |
420 000 |
2.3% |
Depreciated over 10 years |
|
Water supply, borehole and recycling system |
340 000 |
1.8% |
Depreciated over 10 years |
|
Laboratory and SANS compliance testing equipment |
180 000 |
1.0% |
Depreciated over 10 years |
|
Opening raw material inventory |
950 000 |
5.2% |
Opening inventory |
|
Working capital facility, debtor book funding |
2 400 000 |
13.0% |
Working capital |
|
Contingency at 8% of project cost |
1 364 000 |
7.4% |
Depreciated over 10 years |
|
Total capital budget |
18 414 000 |
100.0% |
B.2 Depreciation and asset roll-forward
|
R’000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
15 064 |
13 558 |
12 051 |
10 545 |
9 038 |
|
Depreciation charge |
(1 506) |
(1 506) |
(1 506) |
(1 506) |
(1 506) |
|
Closing balance |
13 558 |
12 051 |
10 545 |
9 038 |
7 532 |
|
Cumulative depreciation |
1 506 |
3 013 |
4 519 |
6 026 |
7 532 |
B.3 Year 1 operating cost detail
|
Operating cost |
Year 1 (R) |
% of gross profit |
% of revenue |
Escalation |
|---|---|---|---|---|
|
Salaries and wages including statutory on-costs |
3 480 000 |
30.0% |
9.85% |
6.5% |
|
Electricity and utilities |
1 320 000 |
11.4% |
3.73% |
9.0% |
|
Delivery, fuel and vehicle running |
1 560 000 |
13.4% |
4.41% |
7.5% |
|
Plant maintenance, spares and pallet replacement |
1 080 000 |
9.3% |
3.06% |
7.0% |
|
Land lease and yard rental |
720 000 |
6.2% |
2.04% |
7.0% |
|
Insurance including plant, liability and SASRIA |
395 000 |
3.4% |
1.12% |
7.5% |
|
Administration, IT, audit and compliance |
420 000 |
3.6% |
1.19% |
7.0% |
|
Sales, marketing and technical selling |
380 000 |
3.3% |
1.08% |
7.0% |
|
SANS testing, laboratory and certification |
180 000 |
1.6% |
0.51% |
7.0% |
|
Security and site services |
60 000 |
0.5% |
0.17% |
7.5% |
|
Total operating costs |
9 595 000 |
82.7% |
27.15% |
B.4 Unit economics and capacity
|
Product |
Price |
Material |
Margin |
Margin % |
Capacity a month |
Slots |
Per 1 000 slots |
|---|---|---|---|---|---|---|---|
|
Stock brick (7 MPa) |
R1.85 |
R1.33 |
R0.52 |
28.1% |
900 000 |
1.00 |
R520 |
|
Maxi brick (90 mm) |
R4.10 |
R2.43 |
R1.67 |
40.7% |
240 000 |
3.75 |
R445 |
|
M140 hollow block |
R8.60 |
R5.18 |
R3.42 |
39.8% |
140 000 |
6.43 |
R532 |
|
M190 hollow block |
R11.50 |
R6.53 |
R4.97 |
43.2% |
65 000 |
13.85 |
R359 |