Precision Coachworks Business Plan — Appendix C: Funding, Debt and Working Capital Schedules

Sources and uses, the asset finance schedule, the opening balance sheet and the working capital build across the projection.

Appendix C: Funding, Debt and Working Capital Schedules

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  • C.1 Sources and uses
  • C.2 Asset finance schedule
  • C.3 Working capital and the insurer debtor book
  • C.4 Opening balance sheet at day zero

C.1 Sources and uses

R

Note

Promoter and investor equity

12 100 000

70% of capital deployed

Asset finance against equipment

5 200 000

Drawn as commissioned at 42% of equipment cost, 13.25% over seven years, three-year moratorium

Total sources

17 300 000

Equipment, fit-out and accreditation

(12 320 000)

Appendix B.1

Working capital and the insurer debtor book

(4 980 000)

Sized at 52 debtor days plus three years of operating cash consumption

Total uses

(17 300 000)

Sources equal the requirement exactly

C.2 Asset finance schedule

R

Year 1

Year 2

Year 3

Year 4

Year 5

Drawn in the year

3 614 675

295 455

1 258 636

18 740

12 494

Interest at 13.25%

478 944

518 092

684 861

687 345

590 605

Capital repaid

— (moratorium)

— (moratorium)

— (moratorium)

742 606

901 701

Total debt service

478 944

518 092

684 861

1 429 951

1 492 306

Balance outstanding at year end

3 614 675

3 910 130

5 168 766

4 444 900

3 555 693

of which current portion

0

0

742 606

901 701

995 594

of which non-current portion

3 614 675

3 910 130

4 426 160

3 543 199

2 560 099

EBITDA

(1 776 000)

(500 000)

949 000

2 915 000

4 101 000

Debt service cover

n/a

n/a

1.39x

2.04x

2.75x

Gearing

28.9%

36.5%

47.5%

40.3%

29.2%

C.3 Working capital and the insurer debtor book

R

Year 1

Year 2

Year 3

Year 4

Year 5

Insurer debtor book at 52 days

683 836

1 356 986

2 613 677

3 568 767

4 175 529

Work in progress at 7 days

55 712

110 542

212 934

290 740

340 181

Parts float

73 717

146 283

281 757

384 713

450 131

Working capital employed

813 265

1 613 811

3 108 368

4 244 220

4 965 841

Trade payables at 35 days

(630 575)

(961 301)

(1 668 205)

(2 122 534)

(2 417 205)

Net working capital

182 690

652 510

1 440 163

2 121 686

2 548 636

Movement in the year

(182 690)

(469 820)

(787 653)

(681 523)

(426 950)

C.4 Opening balance sheet at day zero

R

Note

Equipment, fit-out and accreditation

8 564 000

Year 1 deployment: first booth, prep bays, chassis bench, welding, fit-out, solar, paint mixing and systems

Cash

7 150 675

Working capital, the debtor book provision and the balance of committed equity

Total assets

15 714 675

Share capital

12 100 000

Promoter and investor equity

Asset finance drawn

3 614 675

Against the Year 1 equipment

Total equity and liabilities

15 714 675