The balance sheet below ties in every year, total assets equal total equity and liabilities, a consistency enforced by assertion in the underlying model. It reflects the asset profile of a capital-light clinic network: a modest property and equipment base, working capital dominated by medical-aid receivables, and a cash buffer maintained through the rollout.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Assets |
|||||
|
Net property, plant & equipment |
14 |
34 |
54 |
71 |
85 |
|
Working capital |
2 |
5 |
9 |
12 |
16 |
|
Cash & equivalents |
8 |
33 |
57 |
29 |
6 |
|
Total assets |
24 |
72 |
120 |
113 |
107 |
|
Equity & liabilities |
|||||
|
Share capital |
25 |
55 |
85 |
85 |
85 |
|
Retained earnings |
-2 |
-3 |
-0 |
8 |
22 |
|
Total equity |
24 |
52 |
85 |
93 |
107 |
|
Debt (closing) |
0 |
20 |
35 |
20 |
0 |
|
Total equity & liabilities |
24 |
72 |
120 |
113 |
107 |
Asset backing and leverage
The balance sheet is deliberately light: the equipped clinics and the platform, plus medical-aid receivables, against a modest debt facility. Leverage is conservative throughout, debt peaks at R35 million and the business is in a net-cash position by Year 5, which is exactly what one expects of a capital-light, cash-generative model. The relevant question for a lender is less about leverage headroom (which is ample) than about the equity funding of the rollout, discussed under sources and uses.
