Vela Footwear — Appendices
Supporting appendices — the consolidated income statement, balance sheet and cash flow, the key metrics summary and the glossary underpinning the Vela Footwear business plan and financial model.
Section 20 · Business Plan
Appendices
Supporting appendices — the consolidated income statement, balance sheet and cash flow, the key metrics summary and the glossary underpinning the Vela Footwear business plan and financial model.
The appendices consolidate the full five-year financial statements, a
recap of key metrics, and a glossary of terms used in this plan. All
figures derive from the same underlying model that drives the analysis
in the body of the document.
Appendix A — Consolidated income statement (R’000)
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | 192,075 | 306,430 | 446,080 | 608,355 | 768,595 |
| Cost of goods sold | (149,242) | (230,435) | (326,531) | (435,582) | (541,091) |
| Gross profit | 42,833 | 75,995 | 119,550 | 172,773 | 227,504 |
| Operating expenses | (41,139) | (55,417) | (72,124) | (91,002) | (109,685) |
| Production incentive income | 0 | 5,654 | 9,237 | 13,962 | 17,847 |
| EBITDA | 1,694 | 26,231 | 56,663 | 95,732 | 135,666 |
| Depreciation & amortisation | (16,500) | (16,500) | (16,500) | (16,500) | (16,500) |
| EBIT | (14,807) | 9,731 | 40,163 | 79,232 | 119,166 |
| Net interest | (13,650) | (13,650) | (15,624) | (16,347) | (15,841) |
| Profit before tax | (28,457) | (3,919) | 24,539 | 62,886 | 103,325 |
| Taxation | — | — | — | (14,863) | (27,898) |
| Net profit / (loss) | (28,457) | (3,919) | 24,539 | 48,023 | 75,427 |
Appendix B — Consolidated balance sheet (R’000)
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Non-current assets | 158,500 | 146,500 | 136,000 | 127,500 | 120,500 |
| Current assets | 71,357 | 102,112 | 140,963 | 185,593 | 229,234 |
| Total assets | 229,857 | 248,612 | 276,963 | 313,093 | 349,734 |
| Total equity | 87,544 | 83,625 | 100,802 | 134,417 | 187,217 |
| Non-current liabilities | 130,000 | 110,417 | 90,833 | 71,250 | 51,667 |
| Current liabilities | 12,314 | 54,570 | 85,328 | 107,426 | 110,851 |
| Total equity & liabilities | 229,857 | 248,612 | 276,963 | 313,093 | 349,734 |
Appendix C — Consolidated cash flow (R’000)
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Operating cash flow | (56,446) | (12,849) | 10,384 | 29,256 | 57,398 |
| Investing cash flow | — | (4,500) | (6,000) | (8,000) | (9,500) |
| Financing cash flow | 0 | 15,795 | (4,384) | (21,256) | (47,898) |
| Net change in cash | (56,446) | (1,554) | 0 | 0 | 0 |
| Closing cash | 14,554 | 13,000 | 13,000 | 13,000 | 13,000 |
Appendix D — Key metrics summary
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Pairs produced (’000) | 615 | 950 | 1,345 | 1,785 | 2,190 |
| Blended ASP (R/pair) | 312 | 323 | 332 | 341 | 351 |
| Gross margin | 22.3% | 24.8% | 26.8% | 28.4% | 29.6% |
| EBITDA margin | 0.9% | 8.6% | 12.7% | 15.7% | 17.7% |
| Net margin | -14.8% | -1.3% | 5.5% | 7.9% | 9.8% |
| DSCR (x) | 0.12 | 1.59 | 1.52 | 2.34 | 3.38 |
| Net debt / EBITDA (x) | 68.17 | 5.06 | 2.40 | 1.35 | 0.76 |
| Direct employees | 300 | 436 | 589 | 742 | 875 |
Appendix E — Glossary
| Term | Definition |
|---|---|
| ASP | Average selling price per pair |
| B-BBEE | Broad-Based Black Economic Empowerment |
| CTFLGP | Clothing, Textile, Footwear and Leather Growth Programme |
| DSCR | Debt-service coverage ratio: cash available for debt service divided by debt service |
| DSRA | Debt-service reserve account |
| EBITDA | Earnings before interest, tax, depreciation and amortisation |
| IDC | Industrial Development Corporation |
| IRR | Internal rate of return |
| MVA | Manufacturing value addition |
| NPV | Net present value |
| PI | Production Incentive (7.5% of manufacturing value addition) |
| RCF | Revolving credit (working-capital) facility |
| R-CTFL | Retail-Clothing, Textile, Footwear and Leather (Master Plan) |
| SANS / ISO 20345 | Standard governing personal protective safety footwear |
| the dtic | Department of Trade, Industry and Competition |
Methodology note
All projections in this document are generated by a single integrated
three-statement financial model. Revenue is built bottom-up from volume
and price by segment; cost of goods and operating expenses are driven by
revenue-linked ratios and fixed-cost schedules; the balance sheet and
cash flow are fully linked, with working capital, debt, interest, tax
and dividends modelled explicitly. The model enforces a balance-sheet
identity in every year (maximum imbalance R0.1 thousand) and a minimum
cash floor maintained by the revolving facility. Returns are computed at
the project level. Figures are rounded for presentation; minor rounding
differences may occur in totals.
This document is confidential and is provided for discussion and
due-diligence purposes only. It does not constitute an offer of
securities or investment advice. Independent professional advice should
be obtained before any capital commitment.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Vela Footwear Manufacturing (Pty) Ltd.