Highveld Detailing Business Plan — Projected Income Statement
Five-year income statement: revenue to R89.0m and EBITDA to R10.2m, with three loss-making years first.
Section 24 of 38
Projected Income Statement
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
The company does not report a profit until FY2031 and does not recover its accumulated losses within the plan period. Both facts are visible in the statement below and neither is unusual for a build-out of this shape, but they determine when, and whether, a return can be paid in cash.
Table 43. Projected income statement (R million)
|
FY2028 |
FY2029 |
FY2030 |
FY2031 |
FY2032 |
|
|---|---|---|---|---|---|
|
Revenue |
7.74 |
23.73 |
48.14 |
69.81 |
89.00 |
|
Consumables and film |
-1.21 |
-3.70 |
-7.54 |
-11.00 |
-14.11 |
|
Direct labour |
-2.02 |
-7.11 |
-15.19 |
-24.10 |
-33.12 |
|
Gross profit |
4.51 |
12.92 |
25.42 |
34.71 |
41.77 |
|
Gross margin |
58.3% |
54.4% |
52.8% |
49.7% |
46.9% |
|
Site fixed costs |
-3.34 |
-6.87 |
-12.15 |
-15.01 |
-17.51 |
|
Head-office payroll |
-2.45 |
-4.33 |
-6.42 |
-7.72 |
-8.64 |
|
Head-office other costs |
-1.65 |
-2.06 |
-2.58 |
-2.82 |
-2.98 |
|
Marketing and business development |
-0.39 |
-0.93 |
-1.74 |
-2.18 |
-2.49 |
|
Pre-operating and mobilisation |
-1.10 |
0.00 |
0.00 |
0.00 |
0.00 |
|
EBITDA |
-4.41 |
-1.28 |
2.53 |
6.98 |
10.15 |
|
EBITDA margin |
-57.0% |
-5.4% |
5.3% |
10.0% |
11.4% |
|
Depreciation and amortisation |
-1.33 |
-2.31 |
-3.77 |
-4.65 |
-5.32 |
|
EBIT |
-5.75 |
-3.59 |
-1.24 |
2.33 |
4.83 |
|
Finance costs |
-0.82 |
-0.97 |
-1.35 |
-1.11 |
-0.74 |
|
Finance income |
0.60 |
0.82 |
0.54 |
0.22 |
0.17 |
|
Profit before tax |
-5.96 |
-3.74 |
-2.06 |
1.44 |
4.26 |
|
Taxation |
0.00 |
0.00 |
0.00 |
-0.08 |
-0.24 |
|
Profit after tax |
-5.96 |
-3.74 |
-2.05 |
1.36 |
4.02 |
|
Net margin |
-77.1% |
-15.8% |
-4.3% |
1.9% |
4.5% |
|
Retained earnings, closing |
-5.96 |
-9.71 |
-11.76 |
-10.40 |
-6.37 |
Accumulated losses of R-6.4m remain at 29 February 2032. Under the Companies Act solvency and liquidity test, no dividend can be paid while retained earnings are negative. On these projections the earliest distribution is FY2034, which means investor return must be realised through exit rather than through yield.
Year one in detail
Table 44. FY2028 monthly summary (R thousand)
|
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Jan |
Feb |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Revenue |
0 |
0 |
275 |
320 |
418 |
576 |
793 |
910 |
1047 |
1181 |
1021 |
1198 |
|
Gross profit |
0 |
0 |
119 |
158 |
221 |
333 |
464 |
556 |
650 |
702 |
592 |
717 |
|
Operating costs |
-1361 |
-261 |
-549 |
-553 |
-616 |
-645 |
-901 |
-763 |
-773 |
-938 |
-777 |
-790 |
|
EBITDA |
-1361 |
-261 |
-430 |
-395 |
-395 |
-312 |
-437 |
-207 |
-122 |
-235 |
-185 |
-73 |
|
Profit after tax |
-1583 |
-288 |
-518 |
-485 |
-503 |
-438 |
-575 |
-348 |
-266 |
-389 |
-341 |
-230 |
|
Capital expenditure |
4867 |
2967 |
0 |
620 |
620 |
320 |
0 |
0 |
320 |
0 |
0 |
0 |
|
Closing cash |
11924 |
10666 |
10377 |
9856 |
9314 |
8853 |
8344 |
7954 |
7662 |
7296 |
7005 |
6796 |
|
Headcount |
3 |
3 |
14 |
14 |
17 |
19 |
25 |
25 |
27 |
33 |
31 |
33 |
March 2027 carries the pre-operating cost and the initial capital outlay with no revenue. The flagship studio opens in May 2027 and the first two embedded units go live in September and December 2027.