Ascend Strength & Conditioning 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. Market and Positioning
- 3. How a Studio Actually Makes Money
- 4. Churn and the Retention Engine
- 5. SWOT and Competitive Position
- 6. Operations and the Capacity Build
- 7. Compliance and Consumer Protection
- 8. Management and Team
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capacity and Unit Economics Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Sources and uses
- C.2 Term debt schedule
- C.3 Working capital
- C.4 Opening balance sheet at day zero
C.1 Sources and uses
|
R |
Note |
|
|---|---|---|
|
Promoter and investor equity |
5 300 000 |
69% of capital deployed |
|
Term debt |
2 400 000 |
Five years at 13.5% with a twelve-month capital moratorium |
|
Total sources |
7 700 000 |
|
|
Fit-out, equipment and launch |
(6 630 000) |
Appendix B.5 |
|
Working capital and pre-opening costs |
(1 070 000) |
Coach salaries, rent and marketing ahead of trading, plus two loss-making years |
|
Total uses |
(7 700 000) |
Sources equal the requirement exactly |
C.2 Term debt schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
2 400 000 |
2 400 000 |
1 908 736 |
1 351 151 |
718 292 |
|
Interest at 13.5% |
324 000 |
324 000 |
257 679 |
182 405 |
96 969 |
|
Capital repaid |
— (moratorium) |
491 264 |
557 585 |
632 859 |
718 292 |
|
Total debt service |
324 000 |
815 264 |
815 264 |
815 264 |
815 261 |
|
Closing balance |
2 400 000 |
1 908 736 |
1 351 151 |
718 292 |
0 |
|
of which current portion |
491 264 |
557 585 |
632 859 |
718 292 |
0 |
|
of which non-current portion |
1 908 736 |
1 351 151 |
718 292 |
0 |
0 |
|
EBITDA |
(1 744 000) |
897 000 |
1 527 000 |
3 230 000 |
3 693 000 |
|
Debt service cover |
n/a |
1.10x |
1.87x |
3.96x |
4.53x |
|
Gearing |
48.2% |
44.0% |
32.8% |
13.1% |
0.0% |
C.3 Working capital
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Retail stock |
15 238 |
18 752 |
24 374 |
24 966 |
24 041 |
|
Trade receivables at 6 days |
61 463 |
117 600 |
162 690 |
200 729 |
211 742 |
|
Trade payables at 30 days |
(450 658) |
(514 274) |
(687 945) |
(738 164) |
(755 178) |
|
Net working capital |
(373 957) |
(377 922) |
(500 881) |
(512 469) |
(519 395) |
|
Movement in the year |
373 957 |
3 965 |
122 959 |
11 588 |
6 926 |
C.4 Opening balance sheet at day zero
|
R |
Note |
|
|---|---|---|
|
Fit-out, equipment and launch |
4 339 600 |
Year 1 deployment: two studios, change rooms, reception, systems, solar and launch |
|
Cash |
3 360 400 |
Working capital, pre-opening costs and the balance of committed equity |
|
Total assets |
7 700 000 |
|
|
Share capital |
5 300 000 |
Promoter and investor equity |
|
Term debt drawn |
2 400 000 |
Drawn at close against the fit-out |
|
Total equity and liabilities |
7 700 000 |