Rosebank Workspace Business Plan — Appendix A: Detailed Financial Statements

The full projected income statement, balance sheet and cash flow behind the summary financials.

Section 26 of 29

Appendix A: Detailed Financial Statements

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The statements in this appendix are presented in thousands of rand and reconcile to the summarised statements in Section 20. Figures in brackets are negative.

A.1 Income statement (R’000)

Table 76 Detailed income statement (R’000)

	2027	2028	2029	2030	2031
Private suite revenue	4,809	18,227	28,068	36,665	43,917
Dedicated desk revenue	1,038	3,831	5,810	7,611	9,044
Flexible membership revenue	834	2,919	4,307	5,682	6,653
Virtual office revenue	833	2,857	4,136	5,329	6,184
Parking revenue	341	1,269	1,934	2,532	3,017
Meeting room and event revenue	328	1,219	1,858	2,432	2,898
Other ancillary revenue	191	711	1,084	1,419	1,690
Total revenue	8,374	31,033	47,197	61,671	73,402
Property rental	(5,200)	(13,645)	(17,495)	(24,307)	(26,657)
Centre staff costs	(1,939)	(4,344)	(5,173)	(7,461)	(7,908)
Utilities	(1,451)	(3,352)	(4,013)	(6,026)	(6,387)
Cleaning and security	(796)	(1,838)	(2,200)	(3,304)	(3,503)
Connectivity and IT	(378)	(1,147)	(1,579)	(2,265)	(2,589)
Community and member services	(104)	(379)	(567)	(761)	(915)
Maintenance	(164)	(350)	(393)	(540)	(540)
Total direct centre costs	(10,031)	(25,053)	(31,421)	(44,664)	(48,499)
Centre contribution	(1,657)	5,979	15,776	17,007	24,903
Head office payroll	(2,688)	(3,562)	(4,530)	(4,802)	(5,090)
Marketing	(293)	(1,086)	(1,652)	(2,158)	(2,569)
Corporate overhead	(1,740)	(2,175)	(2,393)	(2,816)	(2,984)
Brokerage	(733)	(939)	(252)	(855)	(74)
Total central overhead	(5,454)	(7,762)	(8,828)	(10,631)	(10,717)
EBITDA	(7,111)	(1,783)	6,948	6,376	14,185
Depreciation	(1,595)	(3,043)	(3,385)	(4,213)	(3,972)
EBIT	(8,706)	(4,825)	3,564	2,163	10,213
Net finance costs	(1,659)	(1,950)	(1,608)	(1,366)	(872)
Profit before tax	(10,366)	(6,776)	1,955	797	9,341
Taxation	–	–	(112)	(102)	(504)
Net profit after tax	(10,366)	(6,776)	1,844	694	8,837

A.2 Balance sheet (R’000)

Table 77 Detailed balance sheet (R’000)

	2027	2028	2029	2030	2031
Cash and cash equivalents	14,273	11,957	6,929	10,845	20,374
Trade and other receivables	234	547	656	931	1,006
Prepayments	84	154	172	235	248
Total current assets	14,591	12,658	7,756	12,012	21,628
Property, plant and equipment at cost	14,301	25,309	34,654	35,340	35,567
Accumulated depreciation	(1,595)	(4,638)	(8,023)	(12,235)	(16,208)
Property, plant and equipment — net	12,706	20,671	26,631	23,105	19,360
Total assets	27,296	33,329	34,388	35,117	40,988
Trade and other payables	1,761	3,247	3,622	4,950	5,219
Deferred revenue	781	1,828	2,193	3,115	3,365
Member deposits held	990	2,365	2,869	4,072	4,414
Revolving credit facility	–	–	–	–	–
Senior term debt	12,000	10,667	8,000	5,333	2,667
Asset finance	2,131	3,364	4,003	3,251	2,090
Total liabilities	17,662	21,471	20,686	20,721	17,755
Share capital	20,000	29,000	29,000	29,000	29,000
Accumulated profit / (deficit)	(10,366)	(17,142)	(15,298)	(14,604)	(5,767)
Total equity	9,634	11,858	13,702	14,396	23,233
Total equity and liabilities	27,296	33,329	34,388	35,117	40,988
Balance check	nil	nil	nil	nil	nil

A.3 Cash flow statement (R’000)

Table 78 Detailed cash flow statement (R’000)

	2027	2028	2029	2030	2031
EBITDA	(7,111)	(1,783)	6,948	6,376	14,185
Movement in trade and other receivables	(234)	(313)	(109)	(276)	(75)
Movement in prepayments	(84)	(71)	(18)	(63)	(13)
Movement in trade and other payables	1,761	1,487	375	1,328	270
Movement in deferred revenue	781	1,047	365	922	250
Movement in member deposits	990	1,375	504	1,203	343
Net working capital movement	3,214	3,525	1,116	3,114	775
Taxation paid	–	–	(112)	(102)	(504)
Net finance costs paid	(1,659)	(1,950)	(1,608)	(1,366)	(872)
Cash flow from operating activities	(5,556)	(208)	6,345	8,021	13,584
Capital expenditure	(17,681)	(14,198)	(11,745)	(686)	(227)
Landlord installation allowances received	3,380	3,190	2,400	–	–
Cash flow from investing activities	(14,301)	(11,008)	(9,345)	(686)	(227)
Equity subscribed	20,000	9,000	–	–	–
Senior term debt drawn	12,000	–	–	–	–
Senior term debt repaid	–	(1,333)	(2,667)	(2,667)	(2,667)
Asset finance drawn	2,497	2,030	1,556	549	182
Asset finance repaid	(366)	(797)	(917)	(1,301)	(1,343)
Cash flow from financing activities	34,131	8,900	(2,028)	(3,418)	(3,828)
Net movement in cash	14,273	(2,316)	(5,029)	3,917	9,529
Cash at beginning of year	0	14,273	11,957	6,929	10,845
Cash at end of year	14,273	11,957	6,929	10,845	20,374

A.4 Supporting schedules

Table 79 Property, plant and equipment schedule (R’000)

	2027	2028	2029	2030	2031
Opening cost	0	14,301	25,309	34,654	35,340
Additions at cost	17,681	14,198	11,745	686	227
Landlord installation allowances capitalised	(3,380)	(3,190)	(2,400)	–	–
Closing cost	14,301	25,309	34,654	35,340	35,567
Opening accumulated depreciation	0	(1,595)	(4,638)	(8,023)	(12,235)
Depreciation charge	(1,595)	(3,043)	(3,385)	(4,213)	(3,972)
Closing accumulated depreciation	(1,595)	(4,638)	(8,023)	(12,235)	(16,208)
Net book value	12,706	20,671	26,631	23,105	19,360

Landlord installation allowances are capitalised against the cost of the related leasehold improvements, so the depreciation charge is computed on the net capitalised amount.

Table 80 Debt schedule (R’000)

	2027	2028	2029	2030	2031
Senior term debt — opening	0	12,000	10,667	8,000	5,333
Drawn	12,000	–	–	–	–
Repaid	–	(1,333)	(2,667)	(2,667)	(2,667)
Senior term debt — closing	12,000	10,667	8,000	5,333	2,667
Asset finance — opening	0	2,131	3,364	4,003	3,251
Drawn	2,497	2,030	1,556	549	182
Repaid	(366)	(797)	(917)	(1,301)	(1,343)
Asset finance — closing	2,131	3,364	4,003	3,251	2,090
Revolving credit facility drawn	–	–	–	–	–
Total debt	14,131	14,031	12,003	8,585	4,756
Total interest charge	1,659	1,950	1,608	1,366	872

Table 81 Taxation and assessed loss schedule (R’000)

	2027	2028	2029	2030	2031
Profit before tax	(10,366)	(6,776)	1,955	797	9,341
Assessed loss brought forward	–	10,366	17,142	15,600	15,183
Taxable income after the 80% loss limitation	–	–	414	379	1,868
Taxation at 27%	–	–	112	102	504
Assessed loss carried forward	10,366	17,142	15,600	15,183	7,710

Under section 20 of the Income Tax Act as amended, assessed losses may be set off against no more than 80% of taxable income in a year of assessment, which is why a tax charge arises in FY2029 while an assessed loss remains available.