Vantage Social House Business Plan — Appendix B. Assumptions Register

Section 23 of 24

Appendix B. Assumptions Register

Parameter

Value

Source / rationale

Cost of sales

32% of revenue

Food 28–32%, beverage cost <30% (>70% margin)

Gross margin

68%

Derived from beverage-weighted mix

Senior debt rate

13.25%

Prime 10.5% + 2.75% margin

Capital grace

2 years

Standard for greenfield rollout ramp

Amortisation

5 years straight-line

Post-grace, to year 7

Corporate tax

27%

SA statutory rate

Assessed-loss set-off cap

80%

Post-2022 SA restriction on loss set-off

Capex per venue

R13m

Lower end of sponsor R8–14m setup range

Debtor days

8

Card/cash-led hospitality receivables

Inventory days

12

Food & beverage stock on COS

Creditor days

35

Supplier terms on COS

Dividend payout

30%

Of positive NPAT from first profitable year

Exit multiple

7x EV/EBITDA

SA listed hospitality band ~6–10x

B.1 Sponsor-versus-analyst reconciliation

Net profit after tax (Rm)

Year 1

Year 3

Year 5

Sponsor forecast

(18)

95

385

Re-derived (this plan)

(38)

82

429

Principal difference

Deeper interest & depreciation

Higher finance/dep charge

Assessed-loss tax shelter

Note
Why the re-derived numbers differ from the sponsor’s.

The re-derivation preserves revenue and EBITDA exactly and changes only what sits below them. The deeper early losses reflect full cash interest on the senior facility and realistic depreciation on the phased asset base; the stronger Year 5 net profit reflects the assessed losses from the ramp years sheltering early taxable income. The effect is a more conservative early profile and a more tax-efficient mature one — a more bankable representation of the same operating plan.