Business Plan Africa Investor-Ready Plans

Streetfire Kitchens Business Plan — Appendix C: Funding, Debt and Working Capital Schedules

Sources and uses, the asset finance schedules for trucks one to five, the opening balance sheet and the working capital build.

Appendix C: Funding, Debt and Working Capital Schedules

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C.1 Sources and uses at launch
C.2 Capital expenditure and depreciation
C.3 Asset finance schedule
C.4 Working capital
C.5 Opening balance sheet at day zero

C.1 Sources and uses at launch

	R	Note
Promoter and investor equity	5 900 000	73.4% of launch funding
Asset finance secured on the three launch trucks	2 137 000	Five years at 14.00%
Total sources	NaN
Capital expenditure	(3 837 000)	Appendix C.2
Pre-opening costs	(416 000)	Charged to Year 1 below EBITDA
Working capital and contingency	(3 784 000)	Carries two loss-making years
Total uses	(NaN)	Sources equal the requirement exactly
Working capital facility	350 000	Committed in addition; working capital peaks at R144 127

C.2 Capital expenditure and depreciation

Asset	Cost (R)	Life	Annual depreciation (R)
Food trucks — vehicle, conversion and kitchen fit-out, 3 at launch	2 055 000	7 years	293 571
Commissary kitchen fit-out, cold rooms and equipment	1 180 000	10 years	118 000
Generators, gas installation and certification	168 000	7 years	24 000
Branding, signage and launch photography	128 000	4 years	32 000
Professional fees, permits and certification	118 000	5 years	23 600
Small wares, service equipment and stock containers	96 000	4 years	24 000
Point of sale, tablets and connectivity	92 000	4 years	23 000
Total at launch	3 837 000		528 771
Trucks four and five, Years 3 and 4	1 370 000	7 years	195 714
Total at full fleet	5 207 000		724 486

C.3 Asset finance schedule

R	Year 1	Year 2	Year 3	Year 4	Year 5
Opening balance	2 137 000	1 813 707	1 445 153	1 431 961	1 277 252
Drawn in the year	— (drawn at close)	—	479 500	479 500	—
Interest at 14.00%	299 180	253 919	269 451	267 604	178 815
Capital repaid	323 293	368 554	492 692	634 209	722 997
Total debt service	622 473	622 473	762 143	901 813	901 812
Closing balance	1 813 707	1 445 153	1 431 961	1 277 252	554 255
of which current portion	368 554	492 692	634 209	722 997	0
of which non-current portion	1 445 153	952 461	797 752	554 255	554 255
EBITDA	(1 380 153)	(412 216)	560 057	1 803 341	2 736 480
Debt service cover	-2.22x	-0.66x	0.73x	2.00x	3.03x
Gearing	35.6%	41.0%	45.1%	33.3%	11.2%

C.4 Working capital

R	Year 1	Year 2	Year 3	Year 4	Year 5
Event and corporate revenue invoiced	528 493	1 387 056	2 653 746	4 139 685	5 485 673
Trade receivables at 21 days	30 406	79 803	152 681	238 174	315 614
Stock at 9 days	24 543	52 976	86 932	119 617	143 232
Less trade payables at 14 days	(54 276)	(116 877)	(191 525)	(263 180)	(314 719)
Working capital employed	673	15 902	48 088	94 611	144 127
Movement in the year	(673)	(15 229)	(32 186)	(46 523)	(49 516)
As a share of revenue	0.0%	0.2%	0.4%	0.6%	0.8%

C.5 Opening balance sheet at day zero

	R	Note
Trucks, commissary and equipment	3 837 000	Three trucks, the commissary fit-out and launch equipment
Cash	3 784 000	Working capital and contingency after capital and pre-opening spend
Total assets	7 621 000
Share capital	5 900 000	73.4% of launch funding
Asset finance drawn	2 137 000	Secured on the three launch trucks
Total equity and liabilities	8 037 000

Previous sectionB. Appendix B: Truck-Day and Trading Schedules

Next sectionD. Appendix D: Risk Register