Business Plan Africa Investor-Ready Plans

Precision Coachworks Business Plan — Appendix B: Capital and Capacity Schedules

Equipment, booth and fit-out capital, depreciation lives, capital phasing and the capacity build behind the throughput plan.

Appendix B: Capital and Capacity Schedules

Jump to section

On this page

B.1 Equipment, fit-out and depreciation lives
B.2 Capital phasing
B.3 Capacity and the binding constraint
B.4 Cycle time and Year 5 throughput
B.5 Gross profit by line

B.1 Equipment, fit-out and depreciation lives

Item	Amount (R)	Life	Annual depreciation at full deployment (R)
Spray booths — 2 heated, filtered, downdraught	4 600 000	12 years	383 333
Premises fit-out, extraction, bunding and compliance	1 560 000	10 years	156 000
Chassis straightening bench and electronic measuring	1 380 000	12 years	115 000
Preparation bays and extraction	1 150 000	10 years	115 000
Welding — MIG, MAG, resistance spot and aluminium	820 000	8 years	102 500
Solar, compressed air and backup power	780 000	10 years	78 000
Hand tools, lifting, jigs and workshop equipment	740 000	8 years	92 500
Paint mixing room, scales and colour matching	560 000	8 years	70 000
Accreditation, audits and manufacturer approvals	420 000	3 years	140 000
Estimating and management systems	310 000	3 years	103 333
Total equipment, fit-out and accreditation	12 320 000		1 355 666

B.2 Capital phasing

R	Year 1	Year 2	Year 3	Year 4	Year 5
Capital deployed in the year	8 564 000	700 000	2 982 000	44 400	29 600
Cumulative capital deployed	8 564 000	9 264 000	12 246 000	12 290 400	12 320 000
Depreciation charge	969 950	1 063 250	1 346 416	1 351 966	1 355 666
Net book value at year end	7 594 050	7 230 800	8 866 384	7 558 818	6 232 752

B.3 Capacity and the binding constraint

	Year 1	Year 2	Year 3	Year 4	Year 5
Spray booths	1	1	2	2	2
Booth capacity at 2.4 cycles a day, 245 days	588	588	1 176	1 176	1 176
Floor positions	16	20	32	36	38
Key-to-key cycle time, days	14.0	12.0	10.5	9.5	9.0
Floor capacity	280	408	747	928	1 034
Binding constraint	Floor	Floor	Floor	Floor	Floor
Utilisation	48%	66%	70%	77%	81%
Vehicles repaired	134	270	523	715	838
Vehicles per floor position	8.4	13.5	16.3	19.9	22.1
Revenue per floor position, R	300 000	476 250	573 313	695 833	771 289

B.4 Cycle time and Year 5 throughput

Cycle time, days	Floor capacity	Vehicles at 81% utilisation	Year 5 EBITDA (R)	Binding constraint
13.0	716	580	538 665	Floor
12.0	776	629	1 215 259	Floor
11.0	846	685	1 988 509	Floor
10.0	931	754	2 941 265	Floor
9.5	980	794	3 493 587	Floor
9.0	1 034	838	4 101 140	Floor
8.5	1 095	887	4 777 734	Floor
8.0	1 164	943	5 550 985	Spray booth
7.5	1 241	953	5 689 065	Spray booth

B.5 Gross profit by line

R	Year 1	Year 2	Year 3	Year 4	Year 5
Labour gross profit at 63%	967 680	1 920 240	3 698 730	5 050 080	5 908 770
Paint and materials gross profit at 46%	353 280	701 040	1 350 100	1 843 680	2 156 940
Parts gross profit at 23%	574 080	1 139 190	2 194 200	2 995 980	3 505 430
Total gross profit	1 895 000	3 761 000	7 243 000	9 890 000	11 571 000
Labour share of gross profit	51.1%	51.1%	51.1%	51.1%	51.1%
Parts share of gross profit	30.3%	30.3%	30.3%	30.3%	30.3%

Previous sectionA. Appendix A: Consolidated Financial Summary

Next sectionC. Appendix C: Funding, Debt and Working Capital Schedules