SA Best Peanut Butter Business Plan — Appendix C: Funding, Debt and Working Capital Schedules
Sources and uses, senior debt and DFI facility schedules, the opening balance sheet and the working capital build.
Appendix C: Funding, Debt and Working Capital Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Aflatoxin: The Question That Defines the Business
- 3. Market, Products and Pricing
- 4. Regulation and Food Safety
- 5. SWOT and Competitive Position
- 6. Operations
- 7. Financial Plan
- 8. Break-Even and Debt Service
- 9. Investment Analysis
- 10. Sensitivity and Scenario Analysis
- 11. Risk Analysis
- 12. Implementation Roadmap
- 13. Key Performance Indicators
- 14. Key Assumptions
- 15. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Volume, Kernel and Cost Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Sources and uses
- C.2 Capital expenditure and depreciation
- C.3 Term facility schedule
- C.4 Working capital and the facility
- C.5 Opening balance sheet at day zero
C.1 Sources and uses
|
R |
Note |
|
|---|---|---|
|
Promoter and investor equity |
33 120 000 |
44.7% of the requirement |
|
DFI facility |
16 000 000 |
Eight years at 11.42% with a one-year capital moratorium |
|
Senior debt |
25 000 000 |
Eight years at 11.42% with a one-year capital moratorium |
|
Total sources |
74 120 000 |
|
|
Capital expenditure |
(47 400 000) |
Appendix C.2 |
|
Working capital: kernel stock and finished goods |
(16 400 000) |
|
|
Retail listing fees and launch trade investment |
(3 600 000) |
Listings are bought, not won |
|
Pre-operational, brand development and certification |
(6 720 000) |
Charged to Year 1 below EBITDA |
|
Total uses |
(74 120 000) |
Sources equal the requirement exactly |
|
Working capital facility |
26 000 000 |
Committed at drawdown, in addition to the above |
C.2 Capital expenditure and depreciation
|
Asset |
Cost (R) |
Life |
Annual depreciation (R) |
|---|---|---|---|
|
Roasting, blanching and cooling line |
7 100 000 |
12 years |
591 667 |
|
Filling, capping and labelling lines, jar and pail |
6 400 000 |
10 years |
640 000 |
|
Grinding, milling and homogenising plant |
5 600 000 |
12 years |
466 667 |
|
Factory building fit-out, floors and food-grade finishes |
5 400 000 |
15 years |
360 000 |
|
Optical sorting and foreign body detection |
4 900 000 |
10 years |
490 000 |
|
Aflatoxin laboratory and analytical equipment |
3 400 000 |
8 years |
425 000 |
|
Raw material intake, silos and conditioned storage |
3 300 000 |
15 years |
220 000 |
|
Steam, compressed air and electrical reticulation |
2 600 000 |
12 years |
216 667 |
|
Finished goods warehouse racking and handling |
1 900 000 |
12 years |
158 333 |
|
Traceability, ERP and quality management systems |
1 900 000 |
5 years |
380 000 |
|
Professional fees, commissioning and validation |
1 700 000 |
10 years |
170 000 |
|
Standby generation |
1 600 000 |
12 years |
133 333 |
|
Metal detection, X-ray and end-of-line inspection |
1 600 000 |
10 years |
160 000 |
|
Total at launch |
47 400 000 |
4 411 667 |
|
|
Second shift capital, Year 2 |
3 400 000 |
10 years |
340 000 |
|
Total at full capacity |
50 800 000 |
4 751 667 |
C.3 Term facility schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
41 000 000 |
41 000 000 |
36 862 971 |
32 253 493 |
27 117 613 |
|
Interest at 11.42% |
4 682 200 |
4 682 200 |
4 209 751 |
3 683 349 |
3 096 831 |
|
Capital repaid |
— (moratorium) |
4 137 029 |
4 609 478 |
5 135 880 |
5 722 398 |
|
Total debt service |
4 682 200 |
8 819 229 |
8 819 229 |
8 819 229 |
8 819 229 |
|
Closing balance |
41 000 000 |
36 862 971 |
32 253 493 |
27 117 613 |
21 395 215 |
|
of which current portion |
4 137 029 |
4 609 478 |
5 135 880 |
5 722 398 |
6 351 862 |
|
of which non-current portion |
36 862 971 |
32 253 493 |
27 117 613 |
21 395 215 |
15 043 353 |
|
EBITDA |
(3 526 611) |
1 258 597 |
7 500 683 |
13 133 179 |
17 471 301 |
|
Debt service cover |
-0.75x |
0.14x |
0.85x |
1.49x |
1.98x |
|
Gearing |
76.4% |
91.0% |
93.3% |
86.0% |
72.4% |
C.4 Working capital and the facility
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Trade receivables at 48 days |
6 646 775 |
11 064 897 |
14 845 690 |
18 388 198 |
21 267 229 |
|
Kernel stock at 42 days |
2 718 182 |
4 451 328 |
5 925 263 |
7 321 608 |
8 448 122 |
|
Finished goods at 24 days |
2 523 593 |
4 173 970 |
5 583 763 |
6 910 637 |
7 986 811 |
|
Less trade payables at 46 days |
(4 064 232) |
(6 667 657) |
(8 876 801) |
(10 958 439) |
(12 632 646) |
|
Working capital employed |
7 824 318 |
13 022 538 |
17 477 915 |
21 662 004 |
25 069 516 |
|
Movement in the year |
(7 824 318) |
(5 198 220) |
(4 455 377) |
(4 184 089) |
(3 407 512) |
|
As a share of revenue |
15.5% |
15.5% |
15.5% |
15.5% |
15.5% |
|
Facility drawn at year end |
3 633 129 |
19 791 981 |
25 565 904 |
25 689 744 |
24 964 815 |
|
Headroom on the facility |
22 366 871 |
6 208 019 |
434 096 |
310 256 |
1 035 185 |
C.5 Opening balance sheet at day zero
|
R |
Note |
|
|---|---|---|
|
Plant, laboratory and building fit-out |
47 400 000 |
The full capital programme, commissioned before trading |
|
Cash |
16 400 000 |
Working capital after the capital programme and pre-operational spend |
|
Total assets |
63 800 000 |
|
|
Share capital |
33 120 000 |
44.7% of the requirement |
|
DFI facility and senior debt drawn |
41 000 000 |
One-year capital moratorium; interest paid from Year 1 |
|
Total equity and liabilities |
74 120 000 |