Kyalami Surface Business Plan — Projected Income Statement

Five-year income statement: revenue to R42.0m and EBITDA to R8.6m at a 20.5% margin by FY32.

Section 21 of 31

Projected Income Statement

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Revenue of R42.0m and EBITDA of R8.6m by FY32, after a first-year loss of R5.8m.

Table 30. Projected income statement, base case (R million)

Aggregated from the monthly model. Installer payroll is charged to cost of sales.

R million

FY28

FY29

FY30

FY31

FY32

Revenue

4.6

19.8

29.3

39.5

42.0

Film and chemicals

(1.0)

(4.3)

(6.1)

(8.0)

(8.3)

Consumables

(0.2)

(0.9)

(1.4)

(1.8)

(1.9)

Installer payroll

(1.4)

(2.9)

(4.6)

(5.4)

(5.8)

Rework and warranty

(0.1)

(0.4)

(0.6)

(0.8)

(0.8)

Cost of sales

(2.7)

(8.4)

(12.7)

(16.1)

(16.9)

Gross profit

1.9

11.3

16.6

23.4

25.1

Gross margin

41.6%

57.4%

56.7%

59.3%

59.8%

Operating expenditure

(6.5)

(9.6)

(13.8)

(15.6)

(16.5)

EBITDA

(4.6)

1.7

2.9

7.8

8.6

EBITDA margin

-98.4%

8.6%

9.8%

19.7%

20.5%

Depreciation

(1.0)

(1.2)

(1.7)

(1.5)

(1.6)

EBIT

(5.5)

0.6

1.2

6.3

7.0

Finance costs

(0.5)

(0.4)

(0.3)

(0.2)

(0.1)

Finance income

0.2

0.1

0.1

0.3

0.6

Profit before tax

(5.8)

0.3

1.0

6.4

7.6

Taxation

0.0

(0.1)

(0.1)

(0.4)

(2.0)

Net profit after tax

(5.8)

0.2

0.9

6.0

5.5

Net margin

-124.8%

1.0%

3.1%

15.3%

13.1%

Three features of the income statement warrant comment. First, the FY30 margin compression is the Cape Town studio: a full year of studio overhead against a partially ramped revenue base. It is a real cost of growth and has not been netted out. Second, net profit falls slightly from FY31 to FY32 despite EBITDA rising, because the assessed loss carried forward from the ramp-up period is largely exhausted by FY31 and the Company moves to a full tax charge. Third, revenue growth from FY31 to FY32 is only 6.4% because installer headcount and utilisation have both reached their targets — the business is capacity-constrained, and further growth requires a third studio.

The gap between the base and stress cases is more than twice the entire equity subscription
Figure 1. The gap between the base and stress cases is more than twice the entire equity subscription

Scenario definitions are set out in Section 19.