Highveld Detailing Business Plan — Projected Cash Flow
Operating, investing and financing cash flows, and the cash trough through the roll-out.
Section 26 of 38
Projected Cash Flow
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- 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
Operating cash flow turns positive in FY2030 and free cash flow only in FY2031. The four years before that are funded by the capital stack, which is why the funding structure in Section 27 matters more to this plan than the profit and loss account does.
Table 47. Projected cash flow statement (R million)
|
FY2028 |
FY2029 |
FY2030 |
FY2031 |
FY2032 |
|
|---|---|---|---|---|---|
|
Operating activities |
|||||
|
EBITDA |
-4.41 |
-1.28 |
2.53 |
6.98 |
10.15 |
|
Movement in working capital |
-0.25 |
-1.12 |
-1.73 |
-1.91 |
-1.92 |
|
Interest paid |
-0.82 |
-0.97 |
-1.35 |
-1.11 |
-0.74 |
|
Interest received |
0.60 |
0.82 |
0.54 |
0.22 |
0.17 |
|
Taxation paid |
0.00 |
0.00 |
0.00 |
-0.08 |
-0.24 |
|
Cash flow from operations |
-4.67 |
-2.40 |
0.80 |
4.99 |
7.99 |
|
Investing activities |
|||||
|
Capital expenditure |
-9.71 |
-9.55 |
-4.19 |
-2.96 |
-2.72 |
|
Cash flow from investing |
-9.71 |
-9.55 |
-4.19 |
-2.96 |
-2.72 |
|
Free cash flow |
-14.38 |
-11.95 |
-3.39 |
2.02 |
5.27 |
|
Financing activities |
|||||
|
Equity subscribed |
15.00 |
9.00 |
0.00 |
0.00 |
0.00 |
|
Term loan drawn |
5.09 |
3.91 |
0.00 |
0.00 |
0.00 |
|
Asset finance drawn |
1.50 |
2.65 |
0.34 |
0.00 |
0.00 |
|
Term loan repaid |
0.00 |
0.00 |
0.00 |
-2.25 |
-2.25 |
|
Asset finance repaid |
-0.20 |
-0.70 |
-1.12 |
-1.13 |
-0.92 |
|
Movement in revolving facility |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
Cash flow from financing |
21.39 |
14.87 |
-0.77 |
-3.38 |
-3.17 |
|
Opening cash |
0.00 |
6.80 |
9.56 |
4.58 |
2.35 |
|
Closing cash |
6.80 |
9.56 |
4.58 |
2.35 |
3.87 |
Two features of this statement warrant comment. First, closing cash is held close to the R1.5m operating floor throughout FY2031, supported by the revolving facility. Liquidity is adequate but not comfortable in that year, and any deterioration in dealer payment behaviour would be felt immediately. Second, the movement in working capital is a persistent drag in every growth year, the business consumes cash as it grows and only stops doing so when growth slows.