SA Premier Poultry Business Plan — Appendix C: Funding, Debt and Working Capital Schedules
Sources and uses, senior debt and DFI quasi-equity 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. Scale and Business Model
- 3. Registration, Food Safety and Compliance
- 4. Market and Customers
- 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: Throughput, Yield 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 |
|
|---|---|---|
|
Equity |
48 000 000 |
47.9% of the funding requirement |
|
DFI quasi-equity |
24 240 000 |
Subordinated |
|
Senior debt |
28 000 000 |
Eight years at 11.03% with a two-year capital moratorium |
|
Total sources |
100 240 000 |
|
|
Plant and equipment |
(74 530 000) |
Appendix C.2 |
|
Working capital and pre-operational cost |
(25 710 000) |
Of which R5 420 000 charged to Year 1 |
|
Total uses |
(100 240 000) |
Sources equal the requirement exactly |
|
Working capital facility |
24 000 000 |
Committed at drawdown, in addition to the above |
C.2 Capital expenditure and depreciation
|
Asset |
Cost (R) |
Life |
Annual depreciation (R) |
|---|---|---|---|
|
Processing line — stunner, scalder, plucker, evisceration, chiller |
19 600 000 |
12 years |
1 633 333 |
|
Blast freezer, cold store and chilled holding |
13 200 000 |
15 years |
880 000 |
|
Building, civil works and food-grade finishes |
12 800 000 |
20 years |
640 000 |
|
Effluent treatment plant and water reticulation |
7 100 000 |
15 years |
473 333 |
|
Portioning, deboning and packaging equipment |
6 400 000 |
10 years |
640 000 |
|
Refrigerated distribution vehicles, 5 units |
4 800 000 |
7 years |
685 714 |
|
Standby generation and electrical reticulation |
2 900 000 |
12 years |
241 667 |
|
Live bird reception, lairage and crate wash |
2 100 000 |
12 years |
175 000 |
|
Professional fees, registration and commissioning |
1 900 000 |
10 years |
190 000 |
|
Rendering and by-product handling |
1 450 000 |
12 years |
120 833 |
|
Laboratory, quality and traceability systems |
1 180 000 |
8 years |
147 500 |
|
Offices, ablutions, change rooms and hygiene barriers |
1 100 000 |
20 years |
55 000 |
|
Total, single shift |
74 530 000 |
5 882 381 |
|
|
Second shift capital, Year 4 |
14 200 000 |
12 years |
1 183 333 |
|
Total, double shift |
88 730 000 |
7 065 714 |
C.3 Term facility schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
52 240 000 |
52 240 000 |
52 240 000 |
45 643 087 |
38 318 534 |
|
Interest at 11.03% |
5 762 072 |
5 762 072 |
5 762 072 |
5 034 432 |
4 226 534 |
|
Capital repaid |
— (moratorium) |
— (moratorium) |
6 596 913 |
7 324 553 |
8 132 451 |
|
Total debt service |
5 762 072 |
5 762 072 |
12 358 985 |
12 358 985 |
12 358 985 |
|
Closing balance |
52 240 000 |
52 240 000 |
45 643 087 |
38 318 534 |
30 186 083 |
|
of which current portion |
0 |
6 596 913 |
7 324 553 |
8 132 451 |
9 027 021 |
|
of which non-current portion |
52 240 000 |
45 643 087 |
38 318 534 |
30 186 083 |
21 159 062 |
|
EBITDA |
(4 174 807) |
5 225 414 |
12 387 558 |
22 000 234 |
38 869 531 |
|
Debt service cover |
-0.72x |
0.91x |
1.00x |
1.78x |
3.15x |
|
Gearing |
66.5% |
74.5% |
73.2% |
67.2% |
45.0% |
C.4 Working capital and the facility
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Trade receivables, 38 days |
6 390 718 |
10 830 190 |
14 415 102 |
21 423 622 |
29 458 205 |
|
Inventory, 21 days |
2 642 862 |
4 493 322 |
5 996 876 |
8 933 681 |
12 313 088 |
|
Less trade payables, 7 days |
(709 239) |
(1 236 885) |
(1 671 094) |
(2 498 202) |
(3 454 739) |
|
Working capital employed |
8 324 341 |
14 086 627 |
18 740 884 |
27 859 101 |
38 316 553 |
|
Movement in the year |
(8 324 341) |
(5 762 286) |
(4 654 257) |
(9 118 217) |
(10 457 452) |
|
Committed facility |
24 000 000 |
24 000 000 |
24 000 000 |
24 000 000 |
24 000 000 |
|
Facility drawn at year end |
971 220 |
7 270 164 |
11 895 848 |
24 000 000 |
15 371 510 |
|
Headroom / (shortfall) against the facility |
15 675 659 |
9 913 373 |
5 259 116 |
(3 859 101) |
(14 316 553) |
C.5 Opening balance sheet at day zero
|
R |
Note |
|
|---|---|---|
|
Plant, line, cold store and vehicles |
74 530 000 |
The full capital programme, commissioned before trading |
|
Cash |
20 290 000 |
Working capital after the capital programme and pre-opening spend |
|
Total assets |
94 820 000 |
|
|
Equity and DFI quasi-equity |
48 000 000 |
47.9% of the funding requirement |
|
Term facilities drawn |
52 240 000 |
Two-year capital moratorium; interest paid from Year 1 |
|
Total equity and liabilities |
100 240 000 |