ReclaimHub — Projected Balance Sheet

The projected balance sheet and the loan-book, inventory and capital-structure evolution underpinning ReclaimHub.

ReclaimHub Business PlanSection 19 › Projected Balance Sheet

Section 19 · Business Plan

Projected Balance Sheet

The projected balance sheet and the loan-book, inventory and capital-structure evolution underpinning ReclaimHub.

The balance sheet ties to zero in every year. Its defining feature is
the dominance of the loan book, which by Year 5 is the largest single
asset at R3.8bn — larger than inventory, property and cash combined —
and is matched on the funding side by the warehouse facility.

Line item (R m) Year 1 Year 2 Year 3 Year 4 Year 5
Property, plant & intangibles 169 296 393 471 614
Inventory 40 122 288 576 1,026
Pawn loan book (net) 120 410 950 2,100 3,800
Cash & equivalents 1,123 1,532 1,127 896 947
Total assets 1,452 2,360 2,758 4,043 6,387
Corporate term debt 600 880 680 480 280
Pawn warehouse facility 90 308 713 1,575 2,850
Trade payables 13 37 85 166 290
Total liabilities 703 1,224 1,478 2,221 3,420
Share capital & reserves 900 1,400 1,400 1,400 1,400
Retained earnings (151) (264) (119) 422 1,567
Total equity 749 1,136 1,281 1,822 2,967
Figure 16
Figure 16: Balance sheet asset composition

The concentration in the loan book is the reason the funding
architecture in Section 16 matters so much: this is a balance sheet that
is roughly 60% lending book by Year 5. It behaves more like a
specialty-finance company than a pure retailer, which is why the
sum-of-the-parts valuation in Section 21 separates the credit book from
the retail estate.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of ReclaimHub Retail Group (Pty) Ltd.