Verdant Fungi Farms Business Plan — Appendix C: Funding, Debt and Working Capital Schedules
Sources and uses, the term loan schedule, the opening balance sheet and the working capital build across the projection.
Appendix C: Funding, Debt and Working Capital Schedules
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Structure
- 3. How a Mushroom Farm Makes Money
- 4. Contamination and the Oyster Ceiling
- 5. SWOT and Competitive Position
- 6. Operations and the Room Build
- 7. Compliance and Food Safety
- 8. Management and Team
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Production and Capital Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- C.1 Sources and uses
- C.2 Term debt schedule
- C.3 Working capital
- C.4 Opening balance sheet at day zero
C.1 Sources and uses
|
R |
Note |
|
|---|---|---|
|
Promoter and investor equity |
12 400 000 |
60% of capital deployed |
|
Term debt |
8 200 000 |
Eight years at 13.0% with a two-year capital moratorium |
|
Total sources |
20 600 000 |
|
|
Facility and infrastructure |
(17 350 000) |
Appendix B.5 |
|
Working capital |
(3 250 000) |
Compost, substrate and payroll ahead of first sales, plus three loss-making years |
|
Total uses |
(20 600 000) |
Sources equal the requirement exactly |
C.2 Term debt schedule
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Opening balance |
8 200 000 |
8 200 000 |
8 200 000 |
7 214 743 |
6 101 403 |
|
Interest at 13.0% |
1 066 000 |
1 066 000 |
1 066 000 |
937 917 |
793 182 |
|
Capital repaid |
— (moratorium) |
— (moratorium) |
985 257 |
1 113 340 |
1 258 075 |
|
Total debt service |
1 066 000 |
1 066 000 |
2 051 257 |
2 051 257 |
2 051 257 |
|
Closing balance |
8 200 000 |
8 200 000 |
7 214 743 |
6 101 403 |
4 843 328 |
|
of which current portion |
0 |
985 257 |
1 113 340 |
1 258 075 |
1 421 625 |
|
of which non-current portion |
8 200 000 |
7 214 743 |
6 101 403 |
4 843 328 |
3 421 703 |
|
EBITDA |
(1 237 000) |
418 000 |
2 986 000 |
4 136 000 |
4 814 000 |
|
Debt service cover |
n/a |
0.39x |
1.46x |
2.02x |
2.35x |
|
Gearing |
47.2% |
53.1% |
48.8% |
40.1% |
29.8% |
C.3 Working capital
|
R |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Compost and substrate stock at 18 days |
106 323 |
176 153 |
295 989 |
322 373 |
338 499 |
|
Trade receivables at 32 days |
399 693 |
742 663 |
1 302 619 |
1 486 729 |
1 601 578 |
|
Trade payables at 30 days |
(476 384) |
(661 808) |
(975 781) |
(1 053 863) |
(1 105 808) |
|
Net working capital |
29 632 |
257 008 |
622 827 |
755 239 |
834 269 |
|
Movement in the year |
(29 632) |
(227 376) |
(365 819) |
(132 412) |
(79 030) |
C.4 Opening balance sheet at day zero
|
R |
Note |
|
|---|---|---|
|
Facility and infrastructure |
9 508 002 |
Year 1 deployment: three growing rooms, climate plant, cold chain, packhouse, solar and site works |
|
Cash |
11 091 998 |
Working capital and the balance of committed equity and debt |
|
Total assets |
20 600 000 |
|
|
Share capital |
12 400 000 |
Promoter and investor equity |
|
Term debt drawn |
8 200 000 |
Drawn at close against the construction programme |
|
Total equity and liabilities |
20 600 000 |