A.1 Depreciation schedule by asset class
|
Asset class |
Cost (US$) |
Life (yrs) |
Annual charge (US$) |
|---|---|---|---|
|
Premium tent inventory |
600,000 |
8 |
75,000 |
|
Furniture & event equipment |
180,000 |
5 |
36,000 |
|
Transport fleet |
250,000 |
5 |
50,000 |
|
Warehouse & office fit-out |
150,000 |
10 |
15,000 |
|
Installation equipment |
80,000 |
5 |
16,000 |
|
Technology systems |
40,000 |
3 |
13,333 |
|
Initial fleet subtotal |
1,300,000 |
— |
205,333 |
Expansion capex of US$180k / 260k / 340k / 420k in Years 2–5 is depreciated over a blended six-year life with a half-year convention in the year of purchase, producing the total charges of US$205,333 rising to US$357,000 shown in the profit and loss statement. Technology systems are assumed to be refreshed at equivalent cost within the expansion capex envelope after Year 3.
A.2 Debt amortisation schedule
|
Year |
Opening balance |
Interest (10.5%) |
Principal |
Closing balance |
|---|---|---|---|---|
|
Year 1 |
960,000 |
100,800 |
192,000 |
768,000 |
|
Year 2 |
768,000 |
80,640 |
192,000 |
576,000 |
|
Year 3 |
576,000 |
60,480 |
192,000 |
384,000 |
|
Year 4 |
384,000 |
40,320 |
192,000 |
192,000 |
|
Year 5 |
192,000 |
20,160 |
192,000 |
0 |
The schedule above shows the conservative straight-line base case used throughout the model. Under the recommended 12-month grace structure, Year 1 comprises interest only (US$100,800) with principal re-profiled equally across Years 2–5 (US$240,000 per annum); total interest paid rises by approximately US$25,000 over the facility life, the explicit price of the covenant headroom it purchases.
A.3 Working capital detail
|
US$ |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Trade debtors (45 days revenue) |
197,260 |
308,219 |
468,493 |
641,096 |
850,685 |
|
Inventory (5% of cost of sales) |
40,000 |
57,500 |
85,000 |
118,500 |
160,500 |
|
Trade creditors (30 days costs) |
(108,493) |
(153,699) |
(220,274) |
(294,904) |
(385,644) |
|
Net working capital |
128,767 |
212,020 |
333,219 |
464,692 |
625,541 |
|
Movement in the year |
128,767 |
83,253 |
121,199 |
131,473 |
160,849 |
A.4 CFADS and coverage detail
|
US$ |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
EBITDA |
280,000 |
630,000 |
1,120,000 |
1,612,000 |
2,208,000 |
|
Tax paid |
0 |
(81,781) |
(216,680) |
(345,064) |
(494,327) |
|
Working capital movement |
(128,767) |
(83,253) |
(121,199) |
(131,473) |
(160,849) |
|
Expansion capex |
0 |
(180,000) |
(260,000) |
(340,000) |
(420,000) |
|
CFADS |
151,233 |
284,966 |
522,121 |
795,463 |
1,132,824 |
|
Debt service (base case) |
292,800 |
272,640 |
252,480 |
232,320 |
212,160 |
Resulting DSCR (base case): Y1 0.52x · Y2 1.05x · Y3 2.07x · Y4 3.42x · Y5 5.34x