North West Egg Sales Business Plan — Financial Plan: Projected Balance Sheet
The balance sheet across the projection, including houses, equipment, flock and the debt position.
Section 27 of 31
Financial Plan: Projected Balance Sheet
Jump to section
- 0. Executive Summary
- 1. Investment Thesis
- 2. Company Overview
- 3. Location
- 4. Problem and Value Proposition
- 5. Products and Pricing
- 6. Industry Analysis
- 7. Market Sizing
- 8. Customers and Channels
- 9. Competitive Landscape
- 10. Competitive Positioning
- 11. Business Model and Unit Economics
- 12. Go-to-Market Strategy
- 13. Operating Model
- 14. Farm Infrastructure and Capital Expenditure
- 15. Biosecurity and Animal Health
- 16. Management and Organisation
- 17. Strategic Plan
- 18. SWOT Analysis
- 19. Risk Analysis
- 20. ESG and Sustainability
- 21. Implementation Roadmap
- 22. Financial Plan: Key Assumptions
- 23. Financial Plan: Revenue Build
- 24. Financial Plan: Projected Income Statement
- 25. Financial Plan: Projected Cash Flow
- 26. Financial Plan: Projected Balance Sheet
- 27. Funding Requirement and Structure
- 28. Debt Serviceability and Break-Even
- 29. Returns, Scenarios and Sensitivity
- 30. Investment Case and Next Steps
The balance sheet de-levers from 56% debt-to-capital in Year 1 to 38% by Year 5, and balances in every period
| R million, at 30 June | Y0 | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|
| Cash | 1.6 | 3.9 | 5.6 | 8.4 | 7.7 | 10.6 |
| Accounts receivable | 0.0 | 2.2 | 2.4 | 2.1 | 2.6 | 2.2 |
| Inventory (feed, packaging) | 0.0 | 0.8 | 0.8 | 0.7 | 0.9 | 0.8 |
| Biological assets (laying flock) | 0.0 | 2.7 | 3.9 | 2.7 | 3.9 | 2.6 |
| Property, plant and equipment | 28.5 | 42.5 | 39.3 | 36.9 | 34.4 | 31.8 |
| Total assets | 30.2 | 52.1 | 52.0 | 50.7 | 49.4 | 48.0 |
| Accounts payable | 0.0 | 1.5 | 1.6 | 1.4 | 1.8 | 1.6 |
| Senior term loan | 13.5 | 26.3 | 24.5 | 22.5 | 20.3 | 17.8 |
| Asset finance | 2.7 | 2.3 | 1.8 | 1.3 | 0.7 | 0.0 |
| Share capital | 14.4 | 24.0 | 24.0 | 24.0 | 24.0 | 24.0 |
| Retained earnings | (0.4) | (2.0) | 0.1 | 1.5 | 2.7 | 4.7 |
| Total equity and liabilities | 30.2 | 52.1 | 52.0 | 50.7 | 49.4 | 48.0 |
| Balance check | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Working capital
debtor days (blend of cash and 30-day accounts)
14 + 30
days of feed and packaging stock
creditor days on feed, packaging, vet and transport
So what: the cash conversion cycle is about five days, so growth barely absorbs cash. The real working asset is the flock: R3.9m of hens on the balance sheet that must be re-bought every 14 months.
Tax is assumed paid in the year incurred; no deferred tax is recognised in this illustrative model.