Business Plan Africa Investor-Ready Plans

Kasi Kicks Business Plan — Appendix C: Funding, Debt and Stock Schedules

Sources and uses, debt and asset finance schedules, the stock facility and the working capital build across the projection.

Appendix C: Funding, Debt and Stock Schedules

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C.1 Sources and uses
C.2 Capital expenditure and depreciation
C.3 Debt schedule
C.4 Stock and the facility
C.5 Opening balance sheet at drawdown

C.1 Sources and uses

	R	Note
Promoter and investor equity	10 300 000	63.9% of the funding requirement
Debt and asset finance	5 830 000	Five years at 13.46%
Total sources	16 130 000
Capital expenditure	(6 190 000)	Appendix C.2
Opening stock	(5 200 000)	32.2% of the requirement
Working capital, deposits, pre-opening and launch	(4 740 000)
Total uses	(16 130 000)	Sources equal the requirement exactly
Stock facility	6 500 000	Committed at drawdown; peaks at R1 421 546 drawn

C.2 Capital expenditure and depreciation

Asset	Cost (R)	Life	Annual depreciation (R)
Store fit-out, two stores	3 900 000	7 years	557 143
Warehouse racking, handling and pick systems	640 000	10 years	64 000
Merchandise planning and retail systems	520 000	5 years	104 000
E-commerce platform and integration	460 000	4 years	115 000
Delivery vehicle and logistics	380 000	6 years	63 333
Head office fit-out and equipment	290 000	8 years	36 250
Total at launch	6 190 000		939 726
Store fit-out, stores three and four	3 900 000	7 years	557 143

C.3 Debt schedule

R	Year 1	Year 2	Year 3	Year 4	Year 5
Opening balance	5 830 000	4 938 521	3 927 049	2 779 433	1 477 348
Interest at 13.46%	784 718	664 725	528 581	374 112	198 851
Capital repaid	891 479	1 011 472	1 147 616	1 302 085	1 477 348
Total debt service	1 676 197	1 676 197	1 676 197	1 676 197	1 676 199
Closing balance	4 938 521	3 927 049	2 779 433	1 477 348	0
of which current portion	1 011 472	1 147 616	1 302 085	1 477 348	0
of which non-current portion	3 927 049	2 779 433	1 477 348	0	0
EBITDA	(1 144 734)	1 045 146	4 420 064	8 504 144	10 308 910
Debt service cover	-0.68x	0.62x	2.64x	5.07x	6.15x
Gearing	43.8%	43.6%	33.2%	12.4%	0.0%

C.4 Stock and the facility

R	Year 1	Year 2	Year 3	Year 4	Year 5
Cost of sales	4 702 519	12 635 957	23 192 648	35 818 998	40 614 420
Stock at cost	1 119 647	3 008 561	5 522 059	8 528 333	9 670 100
Stock turns	4.2x	4.2x	4.2x	4.2x	4.2x
Stock as a share of revenue	12.7%	12.7%	12.8%	12.8%	12.9%
Less supplier credit at 34 days	(438 043)	(1 177 048)	(2 160 411)	(3 336 564)	(3 783 261)
Net working capital	681 604	1 831 513	3 361 648	5 191 769	5 886 839
Movement in the year	4 518 396	(1 149 909)	(1 530 135)	(1 830 121)	(695 070)
Facility drawn at year end	0	533 495	1 421 546	524 270	0
Headroom on the R6 500 000 facility	6 500 000	5 966 505	5 078 454	5 975 730	6 500 000

C.5 Opening balance sheet at drawdown

	R	Note
Fit-out, systems and vehicles	6 190 000	Two stores, the warehouse and the head office
Opening stock	5 200 000	Two stores and the warehouse
Lease deposits	980 000	Held against the two launch leases
Cash	2 400 000	Working capital for the first two seasons
Total assets	14 770 000
Share capital	10 300 000	63.9% of the funding requirement
Debt and asset finance drawn	5 830 000	Five years at 13.46%
Total equity and liabilities	16 130 000

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