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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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Opportunity
- 3. How a Workshop Actually Makes Money
- 4. Accreditation and Compliance
- 5. SWOT and Competitive Position
- 6. Operations and the Bay Build
- 7. Route to Market
- 8. Management and Governance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Operating Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- 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 |