Close protection officer

A security officer qualified and registered to provide personal protection to a named principal. A 24-hour principal consumes four to five officers once rotation, leave and relief are accounted for.

Debtor days

Trade debtors divided by revenue multiplied by 365. Modelled at 62 days against 30-day contractual terms; the covenant is 75 and the facility is exhausted at 70.

Dedicated detail

A full-time protective detail assigned to a named principal and billed monthly per officer. The annuity core of the business at 36 per cent gross margin.

Firearms Control Act 60 of 2000

The statute governing firearm competency certificates for individuals and section 20 business licences for a security service provider.

Invoice discounting

A revolving facility advancing a percentage of approved invoices raised, repaid as they are collected. Modelled at 65 per cent of eligible debtors on a R12.00 million limit.

Journey management plan

A documented route, timing, contingency and escalation plan for a principal’s movement, held by the control room and refreshed for each journey.

Principal

The individual receiving protection. The term is used in preference to ‘client’ because the paying party is frequently the principal’s employer.

PSIRA

The Private Security Industry Regulatory Authority, established under the Private Security Industry Regulation Act 56 of 2001, reporting to the Minister of Police.

SASSETA

The Safety and Security Sector Education and Training Authority, which accredits close protection training providers.

Section 20 licence

A business firearm licence issued to a security service provider under the Firearms Control Act, distinct from individual competency certificates.

Section 20 limitation

The South African tax rule capping the set-off of assessed losses at the higher of R1 million or 80 per cent of taxable income.

Sectoral determination

The mechanism setting minimum remuneration in the private security sector. Escalation has historically run above headline consumer inflation.

Term debt service coverage

EBITDA divided by term loan interest and capital. 2.14 times at Year 2 rising to 3.71 times, against a 1.30 times covenant.

Threat and vulnerability assessment

A written analysis of the specific risks to a principal and the countermeasures required. A condition of deployment and the basis of the renewal conversation.