LedgerPro — Appendices
A.1 Revenue Build-Up Assumptions
Section 20 · Business Plan
Appendices
A.1 Revenue Build-Up Assumptions
Appendix A: Detailed Assumptions
A.1 Revenue Build-Up Assumptions
| Assumption | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Number of Subscription Clients (Year-End) | 120 | 200 | 350 | 480 | 600 |
| Average Clients During Year | 60 | 160 | 275 | 415 | 540 |
| Weighted Average Monthly Fee per Client | R5,333 | R3,281 | R2,597 | R2,386 | R2,204 |
| Total Subscription Revenue | R3,840,000 | R6,300,000 | R8,568,000 | R11,880,000 | R14,280,000 |
| Client Mix – Starter (%) | 30% | 35% | 40% | 40% | 40% |
| Client Mix – Growth (%) | 45% | 40% | 35% | 35% | 35% |
| Client Mix – Professional (%) | 20% | 20% | 20% | 20% | 20% |
| Client Mix – Enterprise (%) | 5% | 5% | 5% | 5% | 5% |
| Client Churn Rate (Annual) | 15% | 12% | 10% | 8% | 8% |
A.2 Cost Assumptions
| Cost Item | Assumption |
|---|---|
| Salary Inflation | 6% per annum |
| Rental Escalation | 7% per annum |
| Insurance Escalation | 6% per annum |
| Marketing (% of Revenue) | 9.4% (Y1), 6.0% (Y2), 4.0% (Y3), 3.0% (Y4), 2.4% (Y5) |
| Bad Debt Provision | 2% of revenue |
| Depreciation Method | Straight-line over 3–5 years |
| Corporate Tax Rate | 27% |
| Loan Interest Rate | Prime + 2% (est. 13.5%) |
| Loan Term | 5 years, monthly instalments |
| Dividend Policy | 0% (Y1–2), 20% of PAT (Y3), 24% of PAT (Y4), 29% of PAT (Y5) |
Appendix B: Sensitivity Analysis
The following sensitivity analysis demonstrates the impact of changes in key variables on LedgerPro’s Year 3 net profit:
| Scenario | Change | Impact on Year 3 Net Profit | Net Profit (ZAR) |
|---|---|---|---|
| Base Case | No change | – | R1,804,980 |
| Revenue – Optimistic | +10% revenue | +R625,000 | R2,429,980 |
| Revenue – Pessimistic | -10% revenue | -R625,000 | R1,179,980 |
| Staff Costs – Higher | +10% staff costs | -R424,000 | R1,380,980 |
| Staff Costs – Lower | -10% staff costs | +R424,000 | R2,228,980 |
| Client Churn – Higher | 15% churn (vs 10%) | -R321,600 | R1,483,380 |
| Combined Downside | -10% revenue, +10% costs | -R1,049,000 | R755,980 |
| Combined Upside | +10% revenue, -10% costs | +R1,049,000 | R2,853,980 |
The sensitivity analysis indicates that LedgerPro remains profitable under all individual stress scenarios and under a moderate combined downside scenario. The business model’s resilience is underpinned by the recurring nature of subscription revenue, the non-discretionary nature of compliance services, and the firm’s ability to manage its cost base through flexible staffing arrangements.
Appendix C: Contact Information
Company: LedgerPro Accounting & Bookkeeping
Services (Pty) Ltd
Services (Pty) Ltd
Managing Director: Thabo Mokoena CA(SA)
Address: Sandton, Johannesburg, Gauteng, 2196, South
Africa
Africa
Telephone: +27 (0)11 XXX XXXX
Email: info@ledgerpro.co.za
Website: www.ledgerpro.co.za
— End of Business Plan —
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