Bloomhouse Florals Business Plan › Section 13 › Projected Balance Sheet

The projected balance sheet is shown in full below. As a discipline
on the integrity of the model, the balance sheet is constructed to
balance exactly — assets equal liabilities plus equity — in every
projection year, with the reconciliation check returning zero
throughout.

13.1 Five-year balance sheet

Table 23. Projected balance sheet, Years 1–5.
The balance check returns zero in every year, confirming model
integrity.

13.2 Balance-sheet commentary

The asset base is dominated in early years by the property, plant and
equipment funded at launch — the fit-out, cold chain and fleet — which
depreciates over time while cash rebuilds as the business becomes
cash-generative. Interest-bearing debt amortises steadily from R5.4m at
drawdown toward R1.8m by Year 5 as the senior and asset facilities are
repaid. Equity, initially reduced by the early-year accumulated losses,
recovers as the business reaches and sustains profitability, so that
retained earnings turn positive and total equity grows through the
plan.

Working-capital items remain modest throughout, consistent with a
business that is largely cash-and-card at the point of sale and
deliberately lean on inventory given the perishability of its product.
The undrawn revolving facility does not appear on the balance sheet as
drawn debt in any year of the base case, reflecting that the opening
liquidity buffer is sufficient to fund the planned ramp without recourse
to the facility.

13.3 Solvency and gearing

The balance sheet de-levers steadily across the plan. Gearing —
measured as interest-bearing debt to debt-plus-equity — falls as debt
amortises and equity rebuilds through retained earnings, while net debt
turns to a net cash position by Year 5. The ratios below summarise the
strengthening solvency position that underpins the coverage analysis in
Section 15.

Table 24. Solvency and gearing ratios. Gearing
falls and the business moves to a net-cash position by Year 5.

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