Kyalami Surface Business Plan — Capital Expenditure and Working Capital

Studio fit-out and equipment capital, film stock and the working capital cycle through the ramp.

Section 24 of 31

Capital Expenditure and Working Capital

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R9.5m of capital expenditure and a cash conversion cycle that halves from 119 days to 44 days.

Table 33. Capital expenditure schedule

Studio 1 is incurred in month 1 and Studio 2 in month 22. Maintenance capital expenditure of 1.2% of revenue runs from Year 3.

Category	Studio 1	Studio 2	Total	Depreciation life
Leasehold improvements — controlled bays, floors, lighting, filtration	R2.35m	R1.64m	R3.99m	10 years
Plant and equipment — lifts, plotter, compressors, IR curing, tooling	R1.90m	R1.33m	R3.23m	5 years
Vehicles — collection and delivery	R0.62m	R0.43m	R1.05m	5 years
Technology — DMS, POS, network, security, inverter capacity	R0.73m	R0.51m	R1.24m	3 years
Total studio capital expenditure	R5.60m	R3.90m	R9.50m
Maintenance capex, FY30–FY32			R1.33m

The Year 1 cycle of 119 days reflects inventory build ahead of a small revenue base and is not representative of the steady state.

Table 34. Working capital summary (R million)

R million	FY28	FY29	FY30	FY31	FY32
Trade receivables	0.3	0.8	1.4	1.6	1.7
Inventory	0.5	1.1	1.6	1.7	1.8
VAT and other receivables	0.1	0.1	0.2	0.2	0.2
Trade and other payables	(0.6)	(0.9)	(1.5)	(1.6)	(1.6)
Customer deposits	(0.2)	(0.4)	(0.6)	(0.7)	(0.7)
Net working capital	0.1	0.7	1.1	1.3	1.4
Debtor days	21	14	18	15	15
Inventory days	146	76	78	65	64
Creditor days	49	33	40	35	35
Cash conversion cycle (days)	119	57	56	45	44