Highveld Detailing Business Plan — Capital Expenditure
R29.1m of capital across five years, front-loaded into the first two years of site build.
Section 27 of 38
Capital Expenditure
Jump to section
- 0. Basis of Preparation and Important Notice
- 1. Executive Summary
- 2. Investment Thesis
- 3. What Must Be True, and What Would Break the Thesis
- 4. Company, Structure and Governance
- 5. The Customer Problem and the Value Proposition
- 6. Service Portfolio, Pricing and Contribution
- 7. Industry Structure and Profitability
- 8. Market Sizing and the Addressable Opportunity
- 9. Customer Segments and Buying Behaviour
- 10. Competitive Landscape
- 11. Business Model and Revenue Architecture
- 12. Channel Economics: Where the Capital Should Go
- 13. Go-to-Market Strategy
- 14. Operating Model
- 15. People and Organisation
- 16. Strategic Plan
- 17. SWOT and Strategic Implications
- 18. Risk Analysis
- 19. ESG, Transformation and Development Impact
- 20. Implementation Roadmap
- 21. Financial Assumptions
- 22. Cost Structure and Operating Leverage
- 23. Projected Income Statement
- 24. Projected Balance Sheet
- 25. Projected Cash Flow
- 26. Capital Expenditure
- 27. Funding Requirement and Structure
- 28. Debt Serviceability
- 29. Break-even Analysis
- 30. Valuation and Investor Returns
- 31. Sensitivity and Scenario Analysis
- 32. Key Performance Indicators and Management Dashboard
- 33. Exit Strategy
- 34. Conclusion and Recommendation
- A. Appendix A: Detailed Assumptions Register
- B. Appendix B: Roll-out Schedule
- C. Appendix C: Model Integrity Verification
Two-thirds of the capital programme is committed in the first two years, before the dealer economics that justify the whole plan have been proven at scale. This sequencing is unavoidable, the studio must exist before dealers will contract, but it is the principal reason the Tranche B gate matters.
Table 48. Capital expenditure schedule by category and year (R million)
|
Category |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
FY2032 |
Total |
Life (yrs) |
|---|---|---|---|---|---|---|---|
|
Studio leasehold improvements and fit-out |
2.96 |
3.10 |
0.00 |
0.00 |
0.00 |
6.06 |
8 |
|
Studio plant and equipment |
1.45 |
1.52 |
0.00 |
0.00 |
0.00 |
2.98 |
5 |
|
Solar photovoltaic and battery storage |
0.73 |
0.77 |
0.00 |
0.00 |
0.00 |
1.50 |
10 |
|
Water reclamation and treatment plant |
0.37 |
0.38 |
0.00 |
0.00 |
0.00 |
0.75 |
10 |
|
Brand, signage and studio identity |
0.24 |
0.25 |
0.00 |
0.00 |
0.00 |
0.48 |
5 |
|
IT systems, booking platform and site hardware |
0.19 |
0.20 |
0.00 |
0.00 |
0.00 |
0.40 |
3 |
|
Mobile fleet vehicles and fitted plant |
1.24 |
1.30 |
1.37 |
0.00 |
0.00 |
3.91 |
5 |
|
In-dealership unit equipment |
0.64 |
2.02 |
2.82 |
2.96 |
2.72 |
11.16 |
4 |
|
Capitalised pre-operating costs |
1.90 |
0.00 |
0.00 |
0.00 |
0.00 |
1.90 |
5 |
|
Total capital expenditure |
9.71 |
9.55 |
4.19 |
2.96 |
2.72 |
29.14 |
Depreciation is calculated from this schedule on a straight-line basis over the lives shown, from the month following commissioning. In-dealership equipment is the only category that scales with proven demand, and substantially all of it is redeployable to another site if a contract is lost — an important recovery feature in the downside case. Studio fit-out, by contrast, is a single irreversible commitment made up front.
Capital intensity and its implications
Table 49. Capital intensity measures
|
Measure |
Value |
Comment |
|---|---|---|
|
Total capital expenditure over the plan |
29.1m |
Across all three channels |
|
FY2032 revenue per rand of cumulative capex |
3.05x |
A capital-light services profile |
|
Share committed in FY2028 and FY2029 |
66% |
Before the dealer model is proven at scale |
|
Maintenance capital, FY2032 |
R2.7m |
Falls to replacement levels as the roll-out completes |
|
Net property, plant and equipment at FY2032 |
R11.8m |
The entire fixed asset base of an R89.0m revenue business |