Midrand Print Company Business Plan — Appendix A: Assumption Register

The full assumption register behind the model, stated line by line for independent testing.

Section 26 of 28

Appendix A: Assumption Register

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The complete set of assumptions underlying the financial model. Every figure in the projections derives from an entry in this register; there are no unsupported growth rates.

A.1 Revenue and pricing

Assumption	Value	Basis
Practical capacity per machine	420,000 A3 / 2,600 m² / 1,450 m²	Digital, roll and flatbed respectively, per month on two shifts, net of make-ready, colour calibration, substrate changeover and planned maintenance
Realised prices	R4.90 / R285 / R520	Per A3 click, per m² roll and per m² rigid, FY2027 terms; all-in across job mix, net of programme rate-card discount
Programme fee	R11,800 / account / month	Priced against displaced client operating cost, not against print volume
Annual price escalation	5.5%	Applied to all revenue lines from FY2028
Trading commencement	Month 4	Three-month facility fit-out, plant installation and commissioning
Programme account renewal	88% annually	Reflects switching cost from embedded template libraries, net of procurement re-tender cycles
Account depth growth	9% annually	Real volume growth within retained accounts as categories and outlets migrate onto the platform

Table 47: Revenue and pricing assumptions

A.2 Cost structure

Assumption	Value	Basis
Materials, clicks and outwork	38.0% of revenue	Weighted across the four lines at FY2029 mix; substrate, click charges, ink and trade finishing
Freight and distribution	2.2% of revenue	Owned Gauteng fleet plus contracted national courier
Production labour	28.2% of revenue	Scales with volume; includes shift premium and retention allowance
Premises	R2.16m annually	2,000 m² industrial unit, escalating at 5.5% annually
Sales and marketing	2.6% of revenue at FY2031	Includes the unrecovered cost of concurrent paid pilots
Administration headcount	5, held flat	Systems-dependent; assumes the MIS carries estimating, costing, stock and invoicing
Salary inflation	5.5%	Applied annually to all payroll lines

Table 48: Cost structure assumptions

A.3 Working capital, capital and financing

Assumption	Value	Basis
Debtor days	52	Corporate 30-day terms with realistic settlement slippage; credit-controlled
Inventory days	38	Substrate and consumable holding across four production lines
Creditor days	41	Substrate merchant and OEM terms
Minimum cash balance	R1.2m	Operating float; the revolver absorbs movements around it
Opening capital expenditure	R24.6m	Committed at close; see Section 19.6
Expansion capital expenditure	R16.3m	Months 24 to 48; gated on utilisation triggers rather than dates
Asset lives	7 / 10 / 4 years	Plant; leasehold and finishing; IT and platform
Prime lending rate	10.5%	Held flat across the plan; a simplifying convention, not a forecast
Debt margins	Prime + 225 / 300 / 350bp	Asset finance (secured on plant); term loan (unsecured); revolver (secured on debtors)
Corporate income tax	27.0%	South African statutory rate
Assessed loss utilisation	80% cap	Per the South African assessed-loss limitation
Exit multiple	5.0x EBITDA	Midpoint of observed trading range for small privately held printers
Terminal growth rate	5.5%	Long-run nominal growth, approximating inflation

Table 49: Working capital, capital expenditure and financing assumptions