South Africa Cattle Premium Company Business Plan — Funding Requirement & Capital Structure

Sources and uses

Uses	R m	Sources	R m
Flagship restaurants	95	Equity	220
Central kitchen	22
Distribution centre	15
Corporate offices	8
Restaurant equipment	24
Technology platform	12
Brand development	16
Working capital	28
Total	220	Total	220

Figure 20. *Use of funds across the R220m raise.*

Capital adequacy and the rollout

The R220 million funds the full programme, the flagship restaurants, central kitchen, distribution centre, corporate offices, restaurant equipment, technology, brand development and working capital. As Section 15 shows, the raise comfortably covers the phased capex with a substantial cash buffer throughout, complemented by the asset-light franchise model (franchisees fund their own outlets). The plan is well-capitalised; the principal recommendation is disciplined deployment, gating restaurant and franchise expansion on demonstrated performance rather than deploying capital ahead of proven economics.

Debt capacity — an option for the lender audience

Although the sponsor seeks equity, the business has meaningful unused debt capacity that founders may elect to use to reduce dilution or accelerate the rollout. Secured against the restaurants, kitchen and equipment and sized conservatively against early cash flow, an illustrative term facility of roughly R60–65 million would be serviced comfortably, with indicative early debt-service cover above 1.4×, without threatening the net-cash balance sheet. This is presented as an option, not the base case.

Debt-capacity illustration	Value
Indicative term facility	~R64m
Pricing	~13% (prime + 250bps)
Indicative Year-2 DSCR	~1.4×
Effect	Reduces equity dilution / accelerates rollout

NoteA financeable structure for both audiences

For equity investors, the all-equity base case is clean, debt-free and strongly net-cash throughout. For lenders, the restaurant, kitchen and equipment base and the cash generation support a modest secured facility with comfortable cover. Either way, the key recommendation is the same: deploy capital in step with proven restaurant economics and franchise traction, and hold the buffer against the execution risk inherent in a rapid, capital-intensive rollout.