Eighteen centre staff across three centres, a licensed technology stack and no proprietary development, the operating model is deliberately conventional so that execution risk sits in leasing and sales, where it can be managed.

12.1 Centre operating model

Table 35 Centre operating structure and staffing

Cleaning, security and food and beverage are outsourced. Cleaning and security are procured on a per-square-metre basis and modelled at R34 per square metre per month escalating with inflation. Food and beverage is a concession: the operator pays the Company a commission on turnover and carries its own staff, licensing and stock. This keeps roughly nine full-time equivalents and a food-safety compliance regime off the Company’s books at the cost of a share of a low-margin revenue line.

12.2 Facilities and infrastructure specification

Table 36 Infrastructure specification and capital cost

12.3 Technology stack

The Company licenses rather than builds. Member management, booking, access control, billing and accounting are all commercially available platforms with established South African implementations. Total technology operating cost is modelled at a fixed R22,000 per centre per month plus R165 per occupied desk, escalating with inflation, R2.6 million in FY2031, or 3.5% of revenue.

Table 37 Systems architecture

12.4 Procurement and supply chain

• Fit-out is procured on a single principal contractor basis per centre, with a quantity surveyor appointed to the Company and a fixed-price contract with a defined provisional sums schedule. Contingency of 6% of capital cost is carried in the funding plan.
• Furniture is procured directly from two suppliers to a standard specification across all three centres, which supports both price and the ability to move stock between centres.
• Connectivity is contracted with two independent carriers on separate physical routes. The second carrier is a cost the Company chooses to carry because enterprise IT approval depends on it.
• Consumables, cleaning and security are contracted annually with a documented rate card and a service level agreement that mirrors the standards published to members in Section 5.4.

12.5 Working capital and cash operations

All member fees are invoiced monthly in advance and collected by debit order on the first business day of the month. Deposits of one month are held for suite and dedicated members and are not treated as revenue. Arrears are escalated at day 7, suspended at day 21 and set against deposit at day 45. The model assumes five days of receivables, thirty-two days of payables and a deferred revenue balance equal to approximately 55% of a month’s revenue.

Table 38 Working capital profile (R million)

Source: Company financial model. A negative cash conversion cycle means the business is funded in part by its customers.

12.6 Compliance, health and safety

• Occupational Health and Safety Act 85 of 1993: appointed health and safety representative per centre, documented emergency evacuation plan, quarterly drills, first-aid and fire-equipment compliance certificates.
• Municipal occupancy certificates, fire compliance certificates and annual electrical certificates of compliance for each centre, obtained before opening and maintained.
• POPIA: registered information officer, member data inventory, retention schedule, access-control policy and a documented breach response procedure. Required by enterprise members as a condition of contracting.
• Consumer Protection Act: member agreements drafted for compliance with the cooling-off, cancellation and plain-language provisions applicable to smaller members.
• Insurance: public liability, business interruption, contents and leasehold improvements, and cyber liability, with cover levels reviewed annually against the replacement cost of the fitted estate.