GrainCore — Projected Balance Sheet
The projected balance sheet and the working-capital analysis underpinning GrainCore.
Section 17 · Business Plan
Projected Balance Sheet
The projected balance sheet and the working-capital analysis underpinning GrainCore.
The projected balance sheet demonstrates a deleveraging, asset-backed
enterprise. Long-term debt amortises from R430 million to zero over the
five years, while retained earnings accumulate to over R1.35 billion,
transforming the capital structure from debt-funded at inception to
substantially equity-funded by Year 5.
| Balance sheet (R’m) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Net property, plant & equipment | 602 | 564 | 530 | 502 | 476 |
| Inventory | 55 | 126 | 166 | 198 | 216 |
| Trade & other receivables | 86 | 176 | 229 | 271 | 296 |
| Cash & cash equivalents | 67 | 104 | 261 | 496 | 784 |
| Total assets | 810 | 970 | 1,186 | 1,467 | 1,772 |
| EQUITY & LIABILITIES | |||||
| Share capital | 290 | 290 | 290 | 290 | 290 |
| Retained earnings | 84 | 286 | 578 | 945 | 1,357 |
| Long-term debt | 430 | 335 | 230 | 120 | 0 |
| Trade & other payables | 40 | 92 | 121 | 144 | 157 |
| Total equity & liabilities | 844 | 1,003 | 1,219 | 1,499 | 1,804 |
Table 17.1 — Projected balance sheet, Years 1–5. Minor rounding
differences between totals and components reflect R’m
presentation.
17.1 Working Capital Analysis
Milling is a working-capital-intensive business: the Company must
finance grain inventory, work-in-progress, and trade receivables ahead
of collecting on sales. The model adopts conservative,
industry-consistent working-capital assumptions — inventory at
approximately 30–35 days of cost of sales (reflecting the strategic
grain holding described in Section 14.3), trade receivables at
approximately 35–40 days of revenue (a blend of cash retail,
formal-trade terms, and institutional accounts), and trade payables at
approximately 25 days. The R720 million funding package explicitly
ring-fences working-capital headroom so that the ramp is not constrained
by liquidity.
| Working capital (R’m) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Inventory | 55 | 126 | 166 | 198 | 216 |
| Trade & other receivables | 86 | 176 | 229 | 271 | 296 |
| Less: trade & other payables | (40) | (92) | (121) | (144) | (157) |
| Net working capital | 101 | 210 | 274 | 325 | 355 |
| NWC as % of revenue | 11.7% | 12.0% | 12.0% | 12.0% | 12.0% |
Table 17.2 — Net working capital build, Years 1–5.
Net working capital stabilises at approximately 12% of revenue once
the business reaches steady state, a level consistent with integrated
FMCG millers. Because working capital grows with the revenue ramp, the
cash-flow statement (Section 18) treats its annual increase as an
investing/operating outflow; even after funding this growth, the
business generates substantial positive free cash flow from Year 1,
underpinning the debt-service coverage ratios 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 GrainCore Milling & Foods (Pty) Ltd.