Sakhile Construction Business Plan — The Five-Year Roadmap and Gates
The climb from Grade 1GB to 6GB across five years, and the performance and capital gate each grade step requires.
The Five-Year Roadmap and Gates
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- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The CIDB Grading Ladder
- 3. The Market in 2026
- 4. Strategy: Private Work First
- 5. SWOT and Competitive Position
- 6. The Working Capital Problem
- 7. Retention and Guarantees
- 8. Unit Economics of a Contract
- 9. The Five-Year Roadmap and Gates
- 10. Funding
- 11. Estimating and Contract Control
- 12. People and Plant
- 13. Compliance and Registrations
- 14. Financial Projections
- 15. Break-Even
- 16. Sensitivity and Scenarios
- 17. Risk Management
- 18. Implementation Timeline
- 19. Returns
- 20. Key Performance Indicators
- 21. Key Assumptions
- 22. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
|
Year |
Grade |
Turnover |
Focus |
Gate before proceeding |
|---|---|---|---|---|
|
1 |
1GB |
R4.20m |
Private residential and small commercial. Register Grade 1 in 48 working hours and start building a track record. |
Two contracts above R1m completed and certified; audited financials prepared; every project registered on the Register of Projects |
|
2 |
3GB |
R9.50m |
First public contracts. Establish the guarantee facility on small bonds. |
Debtor days at or below plan; guarantee facility in place; no contract loss-making at final account |
|
3 |
4GB |
R19.00m |
Growth equity drawn. Site management layer appointed. Estimating function professionalised. |
Gross margin at or above 17.4% across all completed contracts; invoice discounting facility sized to the public order book |
|
4 |
5GB |
R34.00m |
Scale within existing systems. No new class of works. |
EBITDA positive; retention register current with all releases claimed; quantity surveying function in place |
|
5 |
6GB |
R52.00m |
Grade 6 achieved. First year of profit after tax. |
Working capital funded to a 90-day delay tolerance |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
CIDB grade |
1GB |
3GB |
4GB |
5GB |
6GB |
|
Turnover, R’000 |
4 200 |
9 500 |
19 000 |
34 000 |
52 000 |
|
Gross margin |
15.8% |
16.6% |
17.4% |
18.1% |
18.7% |
|
EBITDA, R’000 |
(206) |
(48) |
546 |
1 839 |
3 519 |
|
Net working capital, R’000 |
723 |
1 717 |
3 533 |
6 334 |
9 621 |
|
Closing cash, R’000 |
1 583 |
429 |
5 666 |
4 552 |
3 651 |
|
Shareholders’ funds, R’000 |
2 494 |
1 627 |
7 202 |
6 717 |
6 783 |