Section 12 · Business Plan
Funding Structure & Investor Returns
The funding structure, the equity and senior asset-backed debt mix, the use of funds, and the projected investor returns and payback.
12.1 Proposed Capital Structure
The ZAR 45 million capital raise is structured as a blend of equity
and senior secured debt. This structure balances three objectives: (i)
maintain promoter ownership at a level that preserves management
incentive alignment; (ii) deliver compelling IRR to equity investors by
leveraging asset-backed debt against the fleet; and (iii) preserve
balance sheet flexibility for follow-on capex without requiring a
distressed re-raise.
| Tranche | Amount (ZAR M) | Instrument | Cost | Tenor |
|---|---|---|---|---|
| Equity — Lead investor | 20.0 | Ordinary shares | — | Permanent |
| Equity — Co-investors | 5.0 | Ordinary shares | — | Permanent |
| Senior debt (asset-backed) | 15.0 | Secured loan / asset finance | Prime +2.0% | 5 years |
| Working capital facility | 5.0 | Revolving credit / invoice discount | Prime +2.5% | 364-day revolving |
| Total Capital Raise | 45.0 |
12.2 Use of Funds
The ZAR 45 million is deployed as shown below. Fleet acquisition
represents the largest line at 65% of total deployment, consistent with
an asset-heavy fleet business. Working capital at 15% reflects the 45–60
day receivables cycle for insurer-panel work and provides a buffer
against timing mismatches in early months.
| Use | ZAR (millions) | % of Total | Timing |
|---|---|---|---|
| Fleet acquisition — Tranche 1 (10 trucks) | 9.00 | 20% | Months 0–4 |
| Fleet acquisition — Tranche 2 (15 trucks) | 13.50 | 30% | Months 6–10 |
| Fleet reserve & contingency | 6.75 | 15% | Months 10–24 |
| Yard & infrastructure (3 provinces) | 4.50 | 10% | Months 2–18 |
| Technology & dispatch platform | 4.50 | 10% | Months 0–12 |
| Working capital & launch costs | 6.75 | 15% | Months 0–12 |
| Total | 45.00 | 100% |
12.3 Investor Returns — Base Case
Under base case assumptions, the equity investor earns a 5-year IRR
of approximately 30%, and a 5-year money multiple (MOIC) of
approximately 3.4x. Returns are driven by a combination of profit growth
(retained earnings compound into equity), margin expansion (EBITDA
margin grows from 18% to 32%), and terminal-value expansion on exit (the
business is projected to command a 7–9x EBITDA multiple at exit, vs.
acquisition at ~3x implied entry EBITDA).
| Return Metric | Base Case | Downside | Upside |
|---|---|---|---|
| Year 5 EBITDA (ZAR M) | 30.0 | 18.5 | 37.2 |
| Exit multiple (x EBITDA) | 8.0x | 6.5x | 9.0x |
| Exit enterprise value (ZAR M) | 240.0 | 120.3 | 334.8 |
| Less: Year 5 net debt (ZAR M) | (11.7) | (24.5) | (6.2) |
| Exit equity value (ZAR M) | 228.3 | 95.8 | 328.6 |
| Equity investor share (60%) | 137.0 | 57.5 | 197.2 |
| 5-year equity IRR | 30% | 18% | 41% |
| Money multiple (MOIC) | 3.4x | 1.9x | 5.3x |
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of National Recovery & Mobility Services (NRMS).