CluckCore Integrated Poultry Group — Financial Plan, Basis of Preparation & Key Assumptions
The financial plan basis of preparation and the key assumptions - the modelling framework and the assumptions register underpinning CluckCore.
Section 18 · Business Plan
Financial Plan, Basis of Preparation & Key Assumptions
The financial plan basis of preparation and the key assumptions – the modelling framework and the assumptions register underpinning CluckCore.
The projections adopt a two-layer discipline. Layer one
preserves the sponsor’s headline revenue, EBITDA, throughput and farmer
numbers exactly. Layer two, everything below EBITDA plus the
whole balance sheet, cash flow and funding, is independently re-derived:
full straight-line depreciation on abattoir, cold-chain and equipment
assets; full cash interest on drawn debt; 27% SA corporate tax with
assessed-loss carry-forward; and a working-capital build (feed,
live-bird and finished-goods inventory, receivables, farmer advances)
appropriate to a livestock-and-feed business. The balance sheet is
asserted to tie to zero in every year.
| Assumption | Value | Basis / comment |
|---|---|---|
| Currency & horizon | ZAR (R million), FY2027–FY2031 | March financial year-ends |
| Corporate tax | 27%, assessed-loss carry-forward | Current SA rate; losses shelter FY2028–29 |
| Fixed capex | R910m across plant, cold chain, equipment | Phased; from use-of-funds |
| Depreciation — abattoir plant | Straight-line, 15 years | Industrial processing plant |
| Depreciation — cold chain/vehicles | Straight-line, 12 years | Refrigeration & fleet |
| Depreciation — equipment/IT | Straight-line, 8 years | Automation & systems |
| Feed & live-bird cost | 62–66% of opex | Feed is ~70% of broiler production cost industry-wide |
| Net working capital | ~11% of revenue | Feed/live-bird/finished inventory + receivables |
| Farmer-support advances | ~R90k/farmer, revolving | Funded via working-capital facility |
| Term debt pricing | ~11.75% senior; ~9.5% IDC tranche | Agri term debt |
| Working-capital facility | ~12.5%, revolving, R600m cap | Funds inventory & advances |
| Equity raise | R500m, drawn at close | Portion of R1.25bn |
| TWO STRUCTURAL FINDINGS Margin realism: the sponsor’s EBITDA margin reaches 32.4% by FY2031. This is roughly triple the 4–12% band in which listed SA poultry processors operate. We preserve the headline but flag that it is only achievable if the higher-margin processing, cold-chain and value-added mix materialises as assumed. Section 23 presents an industry-normalised (12% margin) return case alongside the headline case so investors can judge both. Capital efficiency: the R1.25bn raise substantially exceeds what the plan absorbs (~R699m of equity plus peak debt). The result is a large idle-cash balance and flattered leverage ratios. We recommend right-sizing or phasing the raise; the modelling below reflects the full raise as committed but draws only what the business needs. |
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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 CluckCore Integrated Poultry Group (Pty) Ltd.