Lumière Nail Bar Business Plan — Financial Plan

Five-year projections with full income statement, cash flow and balance sheet: revenue to R13.61m and EBITDA to R3.26m.

Financial Plan

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9.1 Basis of preparation
9.2 Projected income statement
9.3 Projected cash flow statement
9.4 Projected balance sheet
9.5 Capital requirement and funding

9.1 Basis of preparation

▪ All figures are in Rand and exclude VAT. The model is built from capacity — stations and rooms multiplied by trading hours — rather than from a growth rate applied to an assumed base.

▪ Capacity is 10 hours a day across 302 trading days, giving 3 020 sellable hours per station or room and approximately 45 300 hours at full build.

▪ Treatment revenue is hours sold multiplied by a realised rate of approximately R312 per treatment hour. Ancillary and add-ons are modelled proportionally to treatment volume.

▪ Membership revenue is the retained margin only — 26% of the R690 monthly fee — because the 74% consumed in included treatments is already recognised in the treatment line. Double counting is avoided by construction.

▪ Package breakage is recognised at 11% of prepaid value sold. Unredeemed value is carried as a liability until the three-year Consumer Protection Act validity period lapses.

▪ Gross margin is struck at line level: treatments 52%, ancillary 58%, retail 44%, and membership and breakage at 100% because they carry no additional direct cost.

▪ Depreciation is built from a phased asset schedule: solar over ten years, beds, stations and sterilisation over eight, fit-out over seven, retail fixtures over six, systems over four, and branding and launch over three.

▪ Term debt is R1 300 000 at 13.75% over five years with a twelve-month capital moratorium. Interest is paid from Year 1; principal from Year 2.

▪ Corporate income tax is 27%, with assessed losses carried forward subject to the section 20 limitation capping the set-off at the higher of R1 million or 80% of taxable income.

▪ Working capital assumes 4 debtor days, 30 creditor days and 55 days of retail and consumable stock.

9.2 Projected income statement

R	Year 1	Year 2	Year 3	Year 4	Year 5
Treatment revenue	3 518 000	6 018 000	6 848 000	9 154 000	9 598 000
Ancillary and add-ons	211 000	361 000	411 000	549 000	576 000
Membership retained margin	194 000	560 000	1 012 000	1 378 000	1 679 000
Package breakage	35 000	86 000	144 000	189 000	221 000
Retail	264 000	602 000	890 000	1 373 000	1 536 000
Total revenue	4 222 000	7 626 000	9 306 000	12 643 000	13 610 000
Direct costs	(2 815 000)	(4 319 000)	(5 064 000)	(6 431 000)	(6 821 000)
Gross profit	1 407 000	3 308 000	4 242 000	6 212 000	6 789 000
Gross margin	33.3%	43.4%	45.6%	49.1%	49.9%
Overhead	(2 250 000)	(2 600 000)	(2 875 000)	(3 305 000)	(3 530 000)
EBITDA	(843 000)	708 000	1 367 000	2 907 000	3 259 000
EBITDA margin	-20.0%	9.3%	14.7%	23.0%	23.9%
Depreciation	(491 750)	(545 750)	(547 917)	(587 750)	(587 750)
Interest	(178 750)	(178 750)	(142 294)	(100 826)	(53 656)
Profit / (loss) before tax	(1 513 500)	(16 500)	676 789	2 218 424	2 617 594
Taxation	—	—	—	(368 608)	(706 750)
Profit / (loss) after tax	(1 513 500)	(16 500)	676 789	1 849 816	1 910 844
Net margin	-35.8%	-0.2%	7.3%	14.6%	14.0%
Cumulative profit / (deficit)	(1 513 500)	(1 530 000)	(853 211)	996 605	2 907 449

Figure 15. Cumulative profit after tax and the peak deficit.

9.3 Projected cash flow statement

R	Year 1	Year 2	Year 3	Year 4	Year 5
Profit / (loss) after tax	(1 513 500)	(16 500)	676 789	1 849 816	1 910 844
Add back: depreciation	491 750	545 750	547 917	587 750	587 750
Movement in working capital and deferred prepaid income	403 874	181 140	153 448	153 631	88 272
Cash generated from operations	(617 876)	710 390	1 378 154	2 591 197	2 586 866
Capital deployed	— (funded at close)	(395 000)	(13 000)	(298 000)	(0)
Debt capital repaid	— (moratorium)	(265 132)	(301 588)	(343 056)	(390 224)
Net movement in cash	(617 876)	50 258	1 063 566	1 950 141	2 196 642
Opening cash	996 000	378 124	428 382	1 491 948	3 442 089
Closing cash	378 124	428 382	1 491 948	3 442 089	5 638 731

Figure 16. Cash flow — one year of consumption before the business pays for itself.

Opening cash after the Year 1 fit-out and the debt drawdown is R996 000. Cash generated from operations is negative R620 000 in Year 1, turns to R707 000 in Year 2 and reaches R2.59 million by Year 5. Closing cash reaches its low point of R378 124 at the end of Year 1, when the fit-out is complete, the diary is still filling and the membership base is at 90. That trough is what the equity provision is sized against, and it is the reason equity is R2.80 million rather than R2.40 million.

9.4 Projected balance sheet

R, at year end	Year 1	Year 2	Year 3	Year 4	Year 5
Fit-out, equipment and systems, net of depreciation	2 612 250	2 461 500	1 926 583	1 636 833	1 049 083
Retail and consumable stock	36 159	72 098	100 075	147 573	163 251
Trade receivables	46 268	83 573	101 984	138 553	149 151
Cash	378 124	428 382	1 491 948	3 442 089	5 638 731
Total assets	3 072 801	3 045 553	3 620 590	5 365 048	7 000 216
Share capital	2 800 000	2 800 000	2 800 000	2 800 000	2 800 000
Retained earnings / (accumulated loss)	(1 513 500)	(1 530 000)	(853 211)	996 605	2 907 449
Total equity	1 286 500	1 270 000	1 946 789	3 796 605	5 707 449
Term debt — non-current	1 034 868	733 280	390 224	0	0
Term debt — current	265 132	301 588	343 056	390 224	0
Trade payables	416 301	568 685	652 521	800 219	850 767
Deferred prepaid income	70 000	172 000	288 000	378 000	442 000
Total liabilities	1 786 301	1 775 553	1 673 801	1 568 443	1 292 767
Total equity and liabilities	3 072 801	3 045 553	3 620 590	5 365 048	7 000 216

Figure 17. Balance sheet — asset composition.

Net book value of the fit-out, equipment and systems peaks at R2.34 million at the end of Year 1 and declines thereafter as depreciation outruns the residual capital programme — a fit-out asset base is consumed, not maintained. Total equity falls from R2.80 million at inception to a low of R1.27 million at the end of Year 2 and recovers to R5.71 million by Year 5. Deferred prepaid income rises to R442 000, the unredeemed value the business still owes its clients under the three-year validity period.

9.5 Capital requirement and funding

Item	R	Note
Premises fit-out — reception, nail bar, rooms, wet area	1 680 000	Lease improvements, plumbing, partitioning, lighting and finishes
Treatment beds, steamers, wax and equipment	560 000	Five rooms plus a dedicated wet room
Nail stations, chairs, lamps and extraction	380 000	Station-level vapour and dust extraction
Branding, signage and launch marketing	290 000	Including pre-opening membership recruitment
Solar and backup power	290 000	Lamps, autoclave, water heating and point of sale are trading-critical
Retail fixtures and opening stock	260 000	Professional skincare counter and opening inventory
Sterilisation, laundry and back of house	210 000	Autoclave, ultrasonic cleaner, laundry, dispensary
Booking, point of sale and membership system	140 000	Client records, membership debit orders, stock and reporting
Fit-out, equipment and launch	3 810 000	Phased with station and room commissioning
Working capital and pre-opening costs	290 000	Staff, rent and stock ahead of trading
Total capital deployed over five years	4 100 000	Funded by R2.80m equity and R1.30m term debt

Year	Capital deployed (R)	What is commissioned
Year 1	3 104 000	Fit-out, six stations, three rooms, sterilisation, systems, solar and launch
Year 2	395 000	Two stations, one room, fit-out completion and retail stock
Year 3	13 000	Retail stock build
Year 4	298 000	Two stations, one room and fit-out extension
Year 5	0	Retail stock and residual
Total	3 810 000

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