Attachment

Retail revenue as a percentage of treatment revenue. 16.0% by Year 5, or 15.1% measured against total service revenue including ancillary.

Breakage

Prepaid value bought and never redeemed, recognised at 11%. It is a residual rather than a target, and unredeemed value is a liability until the validity period lapses.

Certificate of acceptability

Municipal environmental health approval of the premises, covering ventilation, ablutions, water, waste and treatment areas. A salon trading without it is trading unlawfully and is uninsurable.

Churn

Members lost as a proportion of the base. A member who stops redeeming is a churn signal months before the debit order stops.

Consumer Protection Act

Under which prepaid vouchers in South Africa remain valid for three years, making unredeemed value a balance sheet liability long before it is income.

Membership retained margin

The 26% of the R690 monthly fee not consumed in included treatments — R179 a member a month, carrying no additional direct cost.

POPIA

The Protection of Personal Information Act, requiring consent for client skin records and imagery, and requiring that client data be held by the business rather than on therapists’ personal devices.

Realised rate per treatment hour

Treatment revenue divided by treatment hours sold, approximately R312 at Year 5. Blended across nail and treatment room services.

Rebooking rate

Clients leaving with a next appointment as a proportion of clients served. The leading indicator of every other number in the business.

Revenue per station

Total revenue divided by nail stations plus treatment rooms — R907 333 by Year 5. The benchmark against which a second site is judged.

Section 20 limitation

The South African rule capping the set-off of assessed losses at the higher of R1 million or 80% of taxable income in any year.

Utilisation

Hours sold divided by sellable hours, measured per station and per hour of day. A practical ceiling of around 70% reflects the concentration of demand into peak periods.