Tarlton Beetroot Business Plan — Projected Balance Sheet

The balance sheet across the projection, including land, packhouse, irrigation and the net debt position.

Section 24 of 37

Projected Balance Sheet

Jump to section

A land-heavy balance sheet from Year 3, with accumulated losses of R11.6 million still carried at Year 5.

Table 37 Projected balance sheet at each financial year end, R thousand, base case

R’000	Year 1 FY2028	Year 2 FY2029	Year 3 FY2030	Year 4 FY2031	Year 5 FY2032
ASSETS
Cash and cash equivalents	667	0	0	0	0
Trade receivables	22	106	782	1 621	2 463
Growing crop (biological asset)	34	145	674	692	922
VAT receivable	22	47	143	228	308
Total current assets	746	298	1 600	2 541	3 694
Property, plant and equipment, net	2 097	1 799	17 783	16 752	14 282
Land at cost	0	0	10 620	10 620	10 620
Total non-current assets	2 097	1 799	28 403	27 372	24 902
Total assets	2 842	2 097	30 003	29 913	28 596
LIABILITIES
Trade and other payables	177	374	1 144	1 826	2 470
Overdraft	0	1 211	2 185	3 737	1 235
Total current liabilities	177	1 585	3 329	5 563	3 705
Interest-bearing debt	551	438	10 474	9 476	8 298
Deferred tax liability	244	357	2 473	3 405	3 782
Total liabilities	972	2 379	16 276	18 444	15 785
EQUITY
Share capital	3 950	3 950	24 450	24 450	24 450
Accumulated loss	(2 079)	(4 233)	(10 723)	(12 981)	(11 639)
Total equity	1 871	(283)	13 727	11 469	12 811
Total equity and liabilities	2 842	2 097	30 003	29 913	28 596
Balance check	0.00	-0.00	0.00	-0.00	0.00

The model is built monthly and iterated to convergence. The balance sheet balances to less than one rand in all 60 months, in each of the base, downside and stress cases.

Figure 1. Capital employed by category across the plan horizon.

Two features of this balance sheet deserve comment. First, cash is nil at every year end from Year 2 onward, because the model sweeps surplus cash against the overdraft and draws on it when short; the overdraft balance is therefore the correct measure of liquidity, and it peaks at R3.74 million at the Year 4 close. Second, equity at Year 5 is R12.8 million against R24.45 million of capital subscribed, the difference being R11.6 million of accumulated losses. An investor is subscribing for shares in a company that will not have recovered its accumulated deficit by the end of the plan period.