The cash flow statement reconciles net profit to the movement in cash, capturing the heavy investing outflow of the clinic build and the financing inflows that fund it. Operating cash flow is negative in Year 1 and builds as clinics mature; the equity-first, phased-debt structure keeps the cash balance positive throughout, though it thins to about R77 million in Year 3 at the base of the rollout J-curve.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Operating cash flow |
-28 |
-4 |
72 |
141 |
195 |
|
Investing (capex) |
-138 |
-138 |
-138 |
-35 |
-45 |
|
Financing |
370 |
50 |
30 |
-40 |
-50 |
|
Net change in cash |
204 |
-92 |
-36 |
66 |
100 |
|
Closing cash |
204 |
113 |
77 |
142 |
242 |
Analyst flagThe cash position is positive — but thin at the base of the rollout
The plan draws equity first, phases debt to match the build, holds a grace period on principal, and defers dividends. Together these keep the modelled cash balance positive across the rollout. But the balance thins to roughly R77 million in Year 3, when all nine clinics are built but the last six are still ramping and several are loss-making. This is the tightest point of the plan and the moment a slower ramp or a medical-aid receivable delay would bite. Committing a working-capital facility and a standby line, and sequencing the rural clinics only once the metros are cash-generative, are what keep the position robust.