Quick and Efficient Gas Business Plan

Investor-ready LPG refill business plan: R4.04m funding, 4.9 tonne bulk vessel, 49 fills a day and R16.79m Year 5 revenue on a regulated price.

Quick and Efficient Gas — a filled LPG cylinder at a licensed refill installation

Business Plan & Investment Proposal · South Africa

LPG Gas Refill Shop Business Plan — South Africa

Quick and Efficient Gas (Pty) Ltd · The Government Sets The Price. Everything Follows From That.

A licensed LPG cylinder refill shop on a high-traffic peri-urban site in Gauteng —
refilling from an on-site 4.9 tonne bulk vessel at the regulated selling price of R378 a 9 kg cylinder,
building to 47 fills a day and 246.5 tonnes of LPG a year at maturity. Total funding of R4 041 000:
R2 100 000 owner equity at 52 per cent and a R1 941 000 term loan at 13.75 per cent with
a three-month capital moratorium.

R4.04mTotal funding

259 tLPG sold a year

R16.79mYear 5 revenue

9.2%Year 5 EBITDA margin

Read the executive summary →

Most business plans open by explaining what the founder will do. This one opens by
explaining what the founder cannot do. The maximum LPG refill price is set by government and published by zone —
R42.00 a kilogram, or R378 for a 9 kg cylinder, in Johannesburg — so there is no pricing strategy available
here, only a volume strategy. That single constraint shapes everything: the shop earns in the gap between wholesale
cost and a number it cannot change, which is R12.40 a kilogram by Year 5, and it turns R16.79 million of
revenue into R1.54 million of EBITDA at a 9.2 per cent margin. A funder should read that margin rather than
the turnover. The reassuring number is the safety margin on volume: break-even needs 30.9 cylinder fills a day
against a plan of 47.

The plan at a glance

Six measures that determine whether this shop and its funding stand up.

R4.04mTotal funding requirementR2.10m owner equity at 52% and a R1.94m term loan at 13.75% with a three-month capital moratorium.

R42.00Regulated price per kilogramIn the Johannesburg zone — R378 for a 9 kg cylinder. Set by government, not by the shop, and reviewed on its own schedule.

30.9 / 47Break-even against planned fills a dayA margin of safety of about a third. Volume is the only lever the operator controls.

R12.40Gas margin per kilogram at Year 5From R10.64. The whole business sits in the gap between the wholesale cost and a price it cannot change.

9.2%Year 5 EBITDA marginOn R16.79m of revenue. Turnover looks substantial; the regulated margin means the profit does not scale with it.

2.48xYear 5 debt service coverFrom negative in Year 1 — which is what the three-month capital moratorium and the equity buffer exist to bridge.

What is fixed and what is not

The one variable the operator cannot touch, and the one that decides the outcome.

The priceSet by governmentR42.00 a kilogram in the Johannesburg zone. The operator cannot raise it to recover a cost increase, cannot discount to win share, and cannot forecast when it changes.

so the lever is

The volume27 → 49 fills a dayBreak-even needs 30.9. Everything the shop controls — siting, hours, service, cylinder availability — exists to move that one number.

Five years of trading

Revenue and EBITDA on the base case. Fills a day and the gas margin per kilogram are the two assumptions that matter most, and both are stressed in Section 10.

Revenue build — and the fills a day behind it

Revenue is fills multiplied by a price the shop does not set. Volume rises from 27.3 cylinder fills a day to 49.4, taking LPG sold from 143 tonnes a year to 259.

Year 1

R8.06m · 27.3 fills/day

Year 2

R11.27m · 37.6

Year 3

R13.72m · 44.2

Year 4

R15.28m · 47.0

Year 5

R16.79m · 49.4

EBITDA and margin, Year 2 onward

Year 1 runs a small EBITDA deficit of R200,000. Note the scale against revenue: R16.79m of turnover produces R1.54m of EBITDA — a 9.2% margin, because the selling price is regulated.

Year 2

R0.52m · 4.6%

Year 3

R1.03m · 7.5%

Year 4

R1.30m · 8.5%

Year 5

R1.54m · 9.2%

Why this plan works the way it does

The price is set by governmentThe maximum refill price is regulated by zone — R42.00 a kilogram in Johannesburg. There is no pricing strategy in this business, only a volume strategy, and the plan opens by saying so.

Turnover is not the measureR16.79 million of Year 5 revenue produces R1.54 million of EBITDA, a 9.2% margin. A regulated reseller looks larger than it earns, and a funder should read the margin rather than the top line.

The margin squeeze is structural, not cyclicalOperating costs rise with inflation while the selling price moves on a regulatory schedule the operator does not control. The plan gives that its own section rather than treating it as a risk-register line.

Licensing and safety come before tradingSite and trade licences, SANS-compliant bulk storage and filling, and fire approvals gate the opening date. No amount of capital shortens that path.

Volume has a comfortable margin of safetyBreak-even sits at 30.9 fills a day against a plan of 47 — about a third of headroom. That is the one genuinely reassuring number in a thin-margin model.

Financial snapshot

Four charts from the plan. The full set of twenty-four appears throughout the sections below.

Figure 7. Cylinder mix by share of fills.

Figure 10. Operating cost base at Year 1 levels.

Sixteen sections and five appendices. Every page carries full navigation, a section outline and links to the sections either side of it.

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Important Notice and Basis of PreparationBasis of preparation, data sources and forward-looking statement caveats. Please read first.

Appendices

Confidential. This document is provided for the purpose of evaluating an
investment in Quick and Efficient Gas (Pty) Ltd and may not be reproduced or distributed without written consent. Projections are
forward-looking statements based on the assumptions registered in Section 16 and are not guarantees of future
performance.