Quick and Efficient Gas Business Plan — Appendix C: Funding, Debt and Working Capital Schedules
Sources and uses, the term loan 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. 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
- C.1 Use of funds
- C.2 Depreciation schedule
- C.3 Term loan schedule
- C.4 Working capital
- C.5 Opening balance sheet at day zero
C.1 Use of funds
|
Use of funds |
Amount |
Share |
|---|---|---|
|
Bulk LPG storage vessel, 4.9 tonne, and installation |
685 000 |
17.0% |
|
Cylinder float — initial stock of exchange cylinders |
512 000 |
12.7% |
|
Filling bay — pump, meters, scales, hoses and fittings |
384 000 |
9.5% |
|
Delivery vehicle — LDV with cylinder cage |
348 000 |
8.6% |
|
Fire protection — deluge, extinguishers, hydrant and detection |
196 000 |
4.9% |
|
Hardstand, bunding, bollards and perimeter fencing |
172 000 |
4.3% |
|
Shop fit-out, counter, display and signage |
148 000 |
3.7% |
|
Electrical — hazardous-area compliant reticulation |
96 000 |
2.4% |
|
Professional fees — design, SAQCC, CoC and permits |
88 000 |
2.2% |
|
Point of sale, security cameras and IT |
62 000 |
1.5% |
|
Capital expenditure subtotal |
2 691 000 |
66.6% |
|
Working capital and opening gas inventory |
342 000 |
8.5% |
|
Licence applications, fire permit and municipal approvals |
74 000 |
1.8% |
|
Pre-opening salaries, SAQCC training and certification |
62 000 |
1.5% |
|
Lease deposit and utility connections |
58 000 |
1.4% |
|
Launch marketing and opening promotion |
34 000 |
0.8% |
|
Additional working capital and contingency |
780 000 |
19.3% |
|
Total funding requirement |
4 041 000 |
100.0% |
C.2 Depreciation schedule
|
Asset |
Cost (R) |
Life |
Annual depreciation (R) |
|---|---|---|---|
|
Bulk LPG storage vessel, 4.9 tonne, and installation |
685 000 |
15 years |
45 667 |
|
Cylinder float — initial stock of exchange cylinders |
512 000 |
15 years |
34 133 |
|
Filling bay — pump, meters, scales, hoses and fittings |
384 000 |
10 years |
38 400 |
|
Delivery vehicle — LDV with cylinder cage |
348 000 |
6 years |
58 000 |
|
Fire protection — deluge, extinguishers, hydrant and detection |
196 000 |
12 years |
16 333 |
|
Hardstand, bunding, bollards and perimeter fencing |
172 000 |
12 years |
14 333 |
|
Shop fit-out, counter, display and signage |
148 000 |
8 years |
18 500 |
|
Electrical — hazardous-area compliant reticulation |
96 000 |
10 years |
9 600 |
|
Professional fees — design, SAQCC, CoC and permits |
88 000 |
5 years |
17 600 |
|
Point of sale, security cameras and IT |
62 000 |
4 years |
15 500 |
|
Total |
2 691 000 |
268 067 |
C.3 Term loan schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
1 941 000 |
1 786 397 |
1 411 234 |
992 571 |
524 428 |
|
Interest at 13.75% |
266 888 |
245 630 |
202 130 |
152 650 |
96 366 |
|
Capital repaid |
154 603 |
375 163 |
418 663 |
468 143 |
524 428 |
|
Total debt service |
421 491 |
620 793 |
620 793 |
620 793 |
620 794 |
|
Closing balance |
1 786 397 |
1 411 234 |
992 571 |
524 428 |
0 |
|
of which current portion |
375 163 |
418 663 |
468 143 |
524 428 |
0 |
|
of which non-current portion |
1 411 234 |
992 571 |
524 428 |
0 |
0 |
|
EBITDA |
(199 655) |
522 352 |
1 031 151 |
1 297 602 |
1 536 764 |
|
Debt service cover |
-0.47x |
0.84x |
1.66x |
2.09x |
2.48x |
|
Gearing |
59.9% |
54.0% |
36.0% |
16.9% |
0.0% |
C.4 Working capital
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Gas and accessory stock at 14 days |
224 533 |
315 368 |
384 748 |
429 089 |
471 909 |
|
Trade receivables at 9 days |
198 723 |
278 004 |
338 395 |
376 883 |
413 898 |
|
Trade payables at 21 days |
(475 175) |
(618 623) |
(730 263) |
(804 738) |
(877 345) |
|
Net working capital |
(51 919) |
(25 251) |
(7 120) |
1 234 |
8 462 |
|
Movement in the year |
51 919 |
(26 668) |
(18 131) |
(8 354) |
(7 228) |
C.5 Opening balance sheet at day zero
|
R |
Note |
|
|---|---|---|
|
Vessel, filling bay, vehicle and cylinder float |
2 691 000 |
The full capital programme, commissioned before trading |
|
Lease deposit |
58 000 |
Refundable on exit |
|
Cash |
952 000 |
Working capital and contingency after capital and pre-opening spend |
|
Total assets |
3 701 000 |
|
|
Owner equity |
2 100 000 |
52.0% of the funding requirement |
|
Term loan drawn |
1 941 000 |
Five years at 13.75% with a three-month capital moratorium |
|
Total equity and liabilities |
4 041 000 |