Bloomhouse Florals — Projected Cash Flow
The projected cash flow over the five-year plan — operating, investing and financing cash flows, the funding-drawdown profile and the free cash flow to equity.
Section 14 · Business Plan
Projected Cash Flow
The projected cash flow over the five-year plan — operating, investing and financing cash flows, the funding-drawdown profile and the free cash flow to equity.
Cash flow is the measure that matters most to a lender and to
early-stage survival. The statement below sets out cash from operations,
investing and financing for each year, reconciling opening to closing
cash. The model holds a R3.2m opening liquidity buffer precisely to fund
the early ramp, and closing cash never falls below the minimum-cash
covenant in the base case.
14.1 Five-year cash-flow statement
| R’ millions | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash from operations | (R0.71m) | R0.63m | R2.34m | R4.54m | R6.25m |
| Cash used in investing | R0.00m | (R0.30m) | (R2.40m) | (R1.35m) | (R0.55m) |
| Cash from financing | (R0.36m) | (R0.36m) | (R0.96m) | (R0.96m) | (R0.96m) |
| Net change in cash | (R1.07m) | (R0.03m) | (R1.02m) | R2.23m | R4.74m |
| Opening cash | R3.20m | R2.13m | R2.10m | R1.09m | R3.31m |
| Closing cash | R2.13m | R2.10m | R1.09m | R3.31m | R8.05m |
Table 25. Projected cash-flow statement, Years
1–5. Investing cash flow reflects the capex programme; financing
reflects debt service.
ramp
Operating cash flow is negative in Year 1 (R-0.71m) as the business
launches, then turns firmly positive from Year 2. The R3.2m opening
buffer absorbs the early-year outflow, and closing cash troughs at
roughly R1.1m in Year 3 — above the R0.4m minimum-cash covenant — before
building strongly to over R8m by Year 5. The committed but undrawn R1.5m
revolver provides additional headroom should the ramp prove slower than
planned.
14.2 Working-capital dynamics
Working-capital movements are a modest use of cash as the business
grows, reflecting the build of corporate and event receivables and
inventory, partly offset by supplier payables. Because the model is
deliberately conservative on inventory and the bulk of retail and online
revenue is collected at or near the point of sale, working capital does
not become a significant drag on cash even as revenue nearly
quadruples.
14.3 Cash-flow quality
The quality of cash generation improves markedly across the plan.
Early cash flow is supported by the funding structure; by the back half
of the plan the business is self-funding its maintenance and expansion
capital, servicing its debt comfortably, and accumulating cash. This
progression — from externally funded ramp to self-sustaining cash
generation — is the foundation of the coverage and returns analysis in
the sections that follow.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Bloomhouse Florals (Pty) Ltd.