FluxCap Financial Services — Projected Cash Flow Statement

The projected cash-flow statement and the funding and liquidity profile underpinning FluxCap.

FluxCap Financial Services Business PlanSection 21 › Projected Cash Flow Statement

Section 21 · Business Plan

Projected Cash Flow Statement

The projected cash-flow statement and the funding and liquidity profile underpinning FluxCap.

R million FY2027 FY2028 FY2029 FY2030 FY2031
EBITDA (28) 42 210 520 1 080
Add back: impairment charge (non-cash) 22 83 190 370 636
Net finance costs paid (15) (82) (226) (448)
Taxation paid (31) (142)
Operating cash flow before lending (7) 110 318 634 1 126
Net loans advanced (book growth + write-offs) (202) (523) (1 070) (2 070) (3 236)
Capital expenditure (150) (110) (95) (105) (120)
Equity raised 720
Senior facility drawdown 241 659
Warehouse drawdown 189 1 542 2 230
Net movement in cash 362 (282) 0 -0 0
Closing cash balance 362 80 80 80 80
Figure 15
Figure 15 — FY2031 cash flow bridge (R million)

The lender’s cash-flow reality

A scaling lender consumes cash even while profitable: every rand of
book growth is a rand of cash out today for margin earned over the
loan’s life. Cumulative net loans advanced total R7.65 billion
over the plan
against R2.63 billion of cumulative operating
cash flow before lending. The gap — roughly R5.0 billion — is bridged by
the R720m equity, R900m senior facility and the warehouse programme.
Operating cash flow before lending is positive from FY2028 onward and
covers the entire opex base plus interest from FY2029, meaning
external funding is consumed by the loan book asset, not by
operating losses, from FY2029 forward
— the distinction a
credit committee should focus on.

RAMP-PERIOD COVERAGE — SURFACED, NOT
SMOOTHED

FY2027 operating cash flow before lending is −R6.5m and EBITDA is
negative, so there is no interest coverage in year one; the structure
survives it only because the plan draws zero debt in FY2027 — the equity
tranche funds the entire first-year book, losses and capex, closing the
year with R362m cash. EBITDA interest cover then runs at 2.8x (FY2028),
2.6x (FY2029), 2.3x (FY2030) and 2.4x (FY2031) — adequate but not
generous for a book doubling annually. Structural mitigants:
equity-first drawdown sequencing, a R180m committed revolver held
undrawn as liquidity backstop through FY2028, a debt-service reserve
account within the warehouse structure, and covenant-linked growth
throttling (origination volume is a controllable dial that can be turned
down within weeks if coverage tightens).

Treasury policy and liquidity runway

Policy element Rule Effect in the plan
Minimum cash floor R80m at all times, plus undrawn revolver ≥ 3 months’ opex through FY2028 Floor binds from FY2028; FY2027 closes at R362m
Drawdown sequencing Equity fully deployed before senior; senior fully drawn before warehouse Zero interest cost in FY2027; cheapest-capital-last preserves optionality
Origination-to-funding match Weekly pipeline forecast drives facility notices; no origination without 30-day funding visibility Prevents funding-gap origination — growth is throttled, never stranded
DSRA 3 months’ senior debt service held from first drawdown; 6 months within warehouse Included in interest-bearing cash; protects coverage in a shock quarter
Interest-rate posture Facilities float over prime; asset side reprices naturally on short duration No hedging cost assumed; a 100bp repo move shifts FY2031 interest ≈ R33m

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 FluxCap Financial Services (Pty) Ltd.