Midrand Compute Distribution Business Plan — Appendix: Detailed Financial Statements

The full projected income statement, balance sheet and cash flow underpinning the summary financials.

Section 25 of 25

Appendix: Detailed Financial Statements

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Supporting schedules — capex and depreciation, working capital, and the debt roll — underpinning the three statements in Section 19.

Capital expenditure schedule

Item	Amount (R’m)	Useful life	Basis
Warehouse fit-out, racking & dock	4.5	6 yrs	Straight-line
Materials handling equipment	1.2	8 yrs	Straight-line
Delivery fleet	2.8	5 yrs	Straight-line
IT infrastructure & ERP	3.5	3 yrs	Straight-line
Config/imaging lab & RMA bench	1.5	5 yrs	Straight-line
Office fit-out & furniture	1.2	6 yrs	Straight-line
Security & access control	0.8	6 yrs	Straight-line
Initial capex	15.5		Plus maintenance capex in Years 2–5

Table 38. Initial capital expenditure and depreciation basis.

Working-capital schedule (R'000)

Component	Y1	Y2	Y3	Y4	Y5
Inventory	21,632	30,353	40,728	52,695	67,099
Trade receivables	12,790	18,143	24,610	32,213	40,762
Trade payables	(8,723)	(13,659)	(19,662)	(28,230)	(37,820)
Net working capital	25,699	34,837	45,676	56,678	70,041
Cash conversion cycle (days)	63	58	55	50	48

Table 39. Working-capital schedule and cash conversion cycle.

Debt schedule (R'000)

Facility	Y1	Y2	Y3	Y4	Y5
Term loan — closing	12,000	9,508	6,703	3,549	0
Asset finance — closing	2,542	2,021	1,431	761	0
Revolver — closing	15,536	14,103	19,110	17,860	8,681
Total debt	30,078	25,632	27,245	22,169	8,681
Net finance cost	2,993	3,918	3,786	3,619	2,404
DSCR (x)	1.1x	1.8x	3.1x	4.5x	6.6x

Table 40. Debt schedule, finance cost and debt-service coverage.

Key assumptions framework

The register below consolidates the principal assumptions driving the model. All are commercially reasonable and benchmarked to the industry; the model is fully integrated, so any of these can be flexed and the three statements will re-reconcile.

Driver	Base-case assumption	Basis
Revenue build	Units × ASP by segment, + accessories attach, services and SADC re-export	Bottom-up
Blended gross margin	~18% rising toward ~19% as mix shifts to services/accessories	Segment mix
ASP / pricing	Segment-differentiated, USD-referenced, priced to target blended margin	Market benchmark
Personnel	Headcount 22→50; cost per head held ~constant in real terms	Staffing plan
Other OpEx	Premises, logistics, marketing (~2.2% rev), IT, insurance, professional	Cost build
Capex	R15.5m initial across 7 asset classes + maintenance capex Yrs 2–5	Schedule above
Working capital	Inventory ~55–62 days, receivables ~35–45 days, payables ~30–40 days	Trade norms
Tax	27% SA corporate rate on taxable profit; losses carried forward	SA statute
Inflation	Cost escalation ~5–6% p.a.	SARB range
USD/ZAR	Landed cost indexed to USD; majority of exposure hedged	Treasury policy
Financing	Equity R25m; term R12m @12.5%; asset R3m @13.5%; revolver R55m @14.0%	Term sheet
Exit	Trade sale at 6.5x Year-5 EBITDA; no interim distributions	Base case

Table 41. Key assumptions framework underpinning the integrated financial model.