Torque Precision Auto Business Plan — Appendix B: Capital and Operating Schedules

Equipment, fit-out and depreciation lives, capital phasing, the three ratios and hours, and gross profit by stream.

Appendix B: Capital and Operating Schedules

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  • B.1 Equipment, fit-out and depreciation lives
  • B.2 Capital phasing
  • B.3 The three ratios and hours
  • B.4 Gross profit by stream

B.1 Equipment, fit-out and depreciation lives

Item

Amount (R)

Life

Annual depreciation at full deployment (R)

Vehicle lifts and bay equipment, 10 bays

1 320 000

10 years

132 000

Diagnostic equipment and initial data subscriptions

680 000

5 years

136 000

Wheel alignment, balancing and tyre equipment

420 000

8 years

52 500

Aircon, brake, press, welding and specialist tools

460 000

8 years

57 500

Premises fit-out, oil bay, waste and compressed air

780 000

10 years

78 000

Solar and backup power

410 000

10 years

41 000

Workshop management system and IT

180 000

3 years

60 000

Courtesy and parts vehicles

480 000

5 years

96 000

Total equipment and fit-out

4 730 000

653 000

B.2 Capital phasing

R

Year 1

Year 2

Year 3

Year 4

Year 5

Lifts and bay equipment

528 000

264 000

264 000

132 000

132 000

Other equipment and fit-out

2 750 000

660 000

0

0

0

Total capital deployed

3 278 000

924 000

264 000

132 000

132 000

Depreciation charge

473 300

600 200

626 600

639 800

653 000

Net book value at year end

2 804 700

3 128 500

2 765 900

2 258 100

1 737 100

B.3 The three ratios and hours

Year 1

Year 2

Year 3

Year 4

Year 5

Bays

4

6

8

9

10

Clock hours paid

7 840

11 760

15 680

17 640

19 600

Bay utilisation

46%

63%

73%

78%

81%

Efficiency against book time

90%

98%

104%

108%

110%

Book hours invoiced

3 245

7 260

11 904

14 859

17 463

Book hours as a share of clock hours

41.4%

61.7%

75.9%

84.2%

89.1%

Book hours per bay

811

1 210

1 488

1 651

1 746

Effective labour rate, R

739

739

739

739

739

B.4 Gross profit by stream

R

Year 1

Year 2

Year 3

Year 4

Year 5

Labour gross profit at 66%

1 584 000

3 542 880

5 808 660

7 251 420

8 521 920

Parts gross profit at 27%

615 600

1 478 520

2 566 620

3 322 350

3 974 130

Sundries gross profit

-809 600

-633 400

-113 280

154 230

491 950

Total gross profit

1 390 000

4 388 000

8 262 000

10 728 000

12 988 000

Labour share of gross profit

114%

81%

70%

68%

66%

Parts attachment ratio

0.95

1.02

1.08

1.12

1.14