Blast freezing

Rapid reduction of product core temperature in a dedicated tunnel, preserving cell structure. Priced per tonne and offered by few independents, which is why it wins the manufacturer relationship.

Break-even including debt service

The occupancy at which gross contribution covers fixed costs, variable costs and full interest and capital repayment. Between 56% and 65% across the projection — the operative measure for a geared business.

Debt service cover ratio

EBITDA divided by interest plus scheduled capital repayment. 0.22x in Year 1 and 1.15x in Year 2, both below a standard 1.30x covenant.

Dwell

Average days a pallet remains in store. Long dwell provides base load and stability; short dwell provides handling revenue, which earns more per unit of space.

Major hazard installation

The regulatory classification applying to an ammonia refrigeration plant of this size, bringing mandatory risk assessment, emergency planning and competent-person inspection.

Megaflex

Eskom’s standard time-of-use tariff for larger industrial sites. Prices a high-demand-season weekday peak unit at 720.19 c/kWh against 120.03 c/kWh overnight, both excluding VAT.

Notified maximum demand

The electrical capacity contracted at the connection point. A genuine constraint on site selection: a refrigeration plant of this size cannot be connected wherever a building is cheapest.

Pallet position

One rack location holding a standard pallet. The unit of capacity, of pricing and of the occupancy measure that decides this business.

Section 20 limitation

The South African rule capping the set-off of assessed losses at the higher of R1 million or 80% of taxable income. It is why tax becomes payable from Year 3 despite R22.2 million of accumulated losses.

Take-or-pay floor

A contractual minimum payment regardless of positions actually occupied. The term that converts anchor tenancy from a sales expectation into something a lender can underwrite.

Thermal flywheel

The stored cold in product and structure that allows a frozen chamber to be driven down overnight at 120 c/kWh and allowed to drift within tolerance through peak blocks at 720 c/kWh.

Tolerance band

The documented temperature range within which a product regime may vary. The load-shifting drift band must sit inside the customer specification rather than at its edge.