Mainstreet Junction Business Plan — Appendix B: Capital and Depreciation Schedules
Detailed capital expenditure and depreciation schedules covering tanks, pumps, canopy, shop fit-out, car wash and solar.
Appendix B: Capital and Depreciation Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. How Fuel Retail Economics Actually Work
- 3. The Business and Its Revenue Streams
- 4. Market and Site Analysis
- 5. SWOT and Competitive Position
- 6. Regulatory Pathway and Licensing
- 7. Operations Plan
- 8. Management and Organisation
- 9. Capital Requirement and Funding Structure
- 10. Financial Projections
- 11. Break-Even Analysis
- 12. Debt Service and Working Capital
- 13. Investment Returns
- 14. Sensitivity and Scenario Analysis
- 15. Risk Management
- 16. Implementation Timeline
- 17. Exit Options for Investors
- 18. Key Performance Indicators
- 19. Key Assumptions
- 20. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Depreciation Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- B.1 Capital expenditure
- B.2 Depreciation and asset roll-forward
- B.3 Year 1 operating cost detail
B.1 Capital expenditure
|
Capital item |
Amount (R) |
% of total |
Treatment |
|---|---|---|---|
|
Land acquisition, 2 400 m² arterial corner site |
8 500 000 |
19.1% |
Not depreciated |
|
Site preparation, earthworks and civils |
3 200 000 |
7.2% |
Depreciated over 15 years |
|
Underground tanks, 4 x 46 000 litres, pipework and leak detection |
5 800 000 |
13.0% |
Depreciated over 15 years |
|
Dispensers, 8 pumps and 16 nozzles, and forecourt controller |
3 600 000 |
8.1% |
Depreciated over 15 years |
|
Canopy, pylon, branding and signage |
4 200 000 |
9.4% |
Depreciated over 15 years |
|
Shop building and quick-service restaurant shell, 450 m² |
5 800 000 |
13.0% |
Depreciated over 15 years |
|
Shop fit-out, refrigeration, point of sale and back-office |
3 400 000 |
7.6% |
Depreciated over 15 years |
|
Automatic car wash bay and equipment |
1 400 000 |
3.1% |
Depreciated over 15 years |
|
Electrical reticulation, 60 kWp solar PV and battery backup |
1 900 000 |
4.3% |
Depreciated over 15 years |
|
Professional fees: town planning, environmental, traffic, engineering |
1 800 000 |
4.0% |
Depreciated over 15 years |
|
Licensing, legal, branding rights and pre-opening costs |
900 000 |
2.0% |
Depreciated over 15 years |
|
Opening fuel and shop inventory |
2 600 000 |
5.8% |
Opening inventory |
|
Working capital buffer |
1 400 000 |
3.1% |
Working capital |
|
Total project cost |
44 500 000 |
100.0% |
B.2 Depreciation and asset roll-forward
|
R’000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Depreciable asset base, opening |
32 000 |
29 867 |
27 733 |
25 600 |
23 467 |
|
Depreciation charge |
(2 133) |
(2 133) |
(2 133) |
(2 133) |
(2 133) |
|
Depreciable asset base, closing |
29 867 |
27 733 |
25 600 |
23 467 |
21 333 |
|
Land, not depreciated |
8 500 |
8 500 |
8 500 |
8 500 |
8 500 |
|
Total property, plant and equipment |
38 367 |
36 233 |
34 100 |
31 967 |
29 833 |
B.3 Year 1 operating cost detail
|
Operating cost |
Year 1 (R) |
% of gross profit |
% of revenue |
Escalation |
|---|---|---|---|---|
|
Salaries and wages including statutory on-costs, 40 staff, 24/7 |
6 624 000 |
35.7% |
5.37% |
6.5% |
|
Bank, card and merchant service fees |
1 296 000 |
7.0% |
1.05% |
8.0% |
|
Security, armed response and cash-in-transit |
1 008 000 |
5.4% |
0.82% |
7.5% |
|
Repairs, maintenance, pump calibration and tank testing |
691 200 |
3.7% |
0.56% |
7.0% |
|
Utilities net of solar generation |
652 800 |
3.5% |
0.53% |
9.0% |
|
Insurance including environmental liability and SASRIA |
595 200 |
3.2% |
0.48% |
7.5% |
|
Administration, IT, point of sale, audit and licence renewals |
595 200 |
3.2% |
0.48% |
7.0% |
|
Marketing, loyalty and brand licence fees |
537 600 |
2.9% |
0.44% |
7.0% |
|
Stock losses, evaporation and shrinkage |
518 400 |
2.8% |
0.42% |
8.0% |
|
Municipal rates and refuse |
403 200 |
2.2% |
0.33% |
8.0% |
|
Cleaning, consumables, uniforms and waste management |
297 600 |
1.6% |
0.24% |
7.0% |
|
Total operating costs |
13 219 200 |
71.3% |
10.71% |