Precision Coachworks Business Plan — Appendix C: Funding, Debt and Working Capital Schedules
Sources and uses, the asset finance schedule, the opening balance sheet and the working capital build across the projection.
Appendix C: Funding, Debt and Working Capital Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Structure
- 3. Accreditation and Compliance
- 4. How a Panel Shop Actually Makes Money
- 5. SWOT and Competitive Position
- 6. Operations and the Capacity 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 Capacity Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Sources and uses
- C.2 Asset finance schedule
- C.3 Working capital and the insurer debtor book
- C.4 Opening balance sheet at day zero
C.1 Sources and uses
|
R |
Note |
|
|---|---|---|
|
Promoter and investor equity |
12 100 000 |
70% of capital deployed |
|
Asset finance against equipment |
5 200 000 |
Drawn as commissioned at 42% of equipment cost, 13.25% over seven years, three-year moratorium |
|
Total sources |
17 300 000 |
|
|
Equipment, fit-out and accreditation |
(12 320 000) |
Appendix B.1 |
|
Working capital and the insurer debtor book |
(4 980 000) |
Sized at 52 debtor days plus three years of operating cash consumption |
|
Total uses |
(17 300 000) |
Sources equal the requirement exactly |
C.2 Asset finance schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Drawn in the year |
3 614 675 |
295 455 |
1 258 636 |
18 740 |
12 494 |
|
Interest at 13.25% |
478 944 |
518 092 |
684 861 |
687 345 |
590 605 |
|
Capital repaid |
— (moratorium) |
— (moratorium) |
— (moratorium) |
742 606 |
901 701 |
|
Total debt service |
478 944 |
518 092 |
684 861 |
1 429 951 |
1 492 306 |
|
Balance outstanding at year end |
3 614 675 |
3 910 130 |
5 168 766 |
4 444 900 |
3 555 693 |
|
of which current portion |
0 |
0 |
742 606 |
901 701 |
995 594 |
|
of which non-current portion |
3 614 675 |
3 910 130 |
4 426 160 |
3 543 199 |
2 560 099 |
|
EBITDA |
(1 776 000) |
(500 000) |
949 000 |
2 915 000 |
4 101 000 |
|
Debt service cover |
n/a |
n/a |
1.39x |
2.04x |
2.75x |
|
Gearing |
28.9% |
36.5% |
47.5% |
40.3% |
29.2% |
C.3 Working capital and the insurer debtor book
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Insurer debtor book at 52 days |
683 836 |
1 356 986 |
2 613 677 |
3 568 767 |
4 175 529 |
|
Work in progress at 7 days |
55 712 |
110 542 |
212 934 |
290 740 |
340 181 |
|
Parts float |
73 717 |
146 283 |
281 757 |
384 713 |
450 131 |
|
Working capital employed |
813 265 |
1 613 811 |
3 108 368 |
4 244 220 |
4 965 841 |
|
Trade payables at 35 days |
(630 575) |
(961 301) |
(1 668 205) |
(2 122 534) |
(2 417 205) |
|
Net working capital |
182 690 |
652 510 |
1 440 163 |
2 121 686 |
2 548 636 |
|
Movement in the year |
(182 690) |
(469 820) |
(787 653) |
(681 523) |
(426 950) |
C.4 Opening balance sheet at day zero
|
R |
Note |
|
|---|---|---|
|
Equipment, fit-out and accreditation |
8 564 000 |
Year 1 deployment: first booth, prep bays, chassis bench, welding, fit-out, solar, paint mixing and systems |
|
Cash |
7 150 675 |
Working capital, the debtor book provision and the balance of committed equity |
|
Total assets |
15 714 675 |
|
|
Share capital |
12 100 000 |
Promoter and investor equity |
|
Asset finance drawn |
3 614 675 |
Against the Year 1 equipment |
|
Total equity and liabilities |
15 714 675 |