Quick and Efficient Gas Business Plan — Key Performance Indicators
The fills, tonnes, margin per kilogram and safety indicators reported weekly, with targets and intervention thresholds.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Business and the Regulated Price
- 3. Licensing, Safety and Compliance
- 4. Market and Customers
- 5. SWOT and Competitive Position
- 6. Operations
- 7. Financial Plan
- 8. Break-Even and Debt Service
- 9. Investment Analysis
- 10. Sensitivity and Scenario Analysis
- 11. The Margin Squeeze
- 12. Risk Analysis
- 13. Implementation Roadmap
- 14. Key Performance Indicators
- 15. Key Assumptions
- 16. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Volume, Price and Cost Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this business should be managed. Three of them — the realised gas margin per kilogram, the bulk delivered price, and cylinder fills a trading day — should be calculated on every delivery and every trading day rather than monthly.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Cylinder fills per trading day |
Fills divided by trading days |
47 by Year 4 |
Break-even is 30.9. The single volume measure the whole model rests on |
|
Realised gas margin per kilogram |
Gas gross profit divided by kilograms sold |
R10.64 rising to R12.40 |
The only gas variable the shop influences, and it is set in the supply agreement |
|
Bulk delivered price per kilogram |
Invoiced bulk cost divided by kilograms received |
At or below R30.80 |
Break-even buying price is R34.39. Headroom is roughly 12% |
|
Fill loss |
Kilograms received less kilograms sold, divided by received |
Below 1.8% |
Vapour, purging and weighing tolerance. Calibration and discipline; small but free |
|
Accessory gross profit as a share of total |
Accessory gross profit divided by total gross profit |
Above 20% |
Without accessories break-even rises from 30.9 to 43.1 fills a day |
|
Bulk deliveries per month |
Deliveries received |
1.2 in January rising to 4.9 in July |
The vessel holds 4165 kg. Winter demand is met by frequency, not by stockpiling |
|
Cylinder float integrity |
Float cylinders counted against register |
R512 000 of capital |
Theft and loss run against a capital item, not an expense line |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x from Year 3 |
Cover is negative in Year 1. Covenants must be structured for that |
|
Compliance currency |
Licence, fire permit, CoC and SAQCC registration current |
100% |
Every one of these is a gating item. A lapse stops trading, not merely a renewal |
|
Safety incidents and near misses |
Reportable incidents recorded |
Zero |
Insurance is conditional on maintaining compliance |
14.1 How the four gating approvals are monitored
|
Approval |
Renewal or review cycle |
Who owns it |
What a lapse costs |
|---|---|---|---|
|
Filling licence |
Annual renewal on the issuing authority’s cycle |
Owner-manager |
Trading stops immediately. This is not a fine; it is a closure |
|
Fire department permit |
Periodic inspection by the local authority |
Owner-manager |
Trading stops, and the insurance position falls away with it |
|
Certificate of Conformity |
On installation and after any material modification |
SAQCC practitioner |
Any change to the vessel or filling bay without a fresh certificate voids the compliance position |
|
SAQCC Gas registration |
Per practitioner, on the committee’s cycle |
The registered filler |
The shop cannot lawfully fill. A single expiry stops the business |
|
Municipal consent use |
Site-specific, reviewed on change of use |
Owner-manager |
Cannot be transferred to another site. It is why the site is chosen before the lease |
|
Cylinder revalidation |
Roughly every ten years per cylinder |
Counter and admin |
Applies to the float and to customer cylinders. A rejected fill becomes a revalidation sale |
Every one of these is a gating item rather than a cost line, and each has a different owner and a different cycle. A single compliance register with named ownership and dated renewals is the control, and it is reviewed monthly alongside the three operating numbers. The reason to hold it in one place is that the items expire independently: a shop can be entirely current on its filling licence and still be unable to trade because a practitioner’s registration lapsed a fortnight earlier.