WashWorks Premium Laundromat Business Plan — Financial Plan & Projections

Sponsor headline revenue and EBITDA are preserved exactly as briefed. Everything beneath EBITDA is independently re-derived: component depreciation from…

Financial Plan & Projections

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15.1 Basis of preparation

Sponsor headline revenue and EBITDA are preserved exactly as briefed. Everything beneath EBITDA is independently re-derived: component depreciation from the capital-expenditure register (laundry equipment on an 8-year life, building fit-out and furniture over 6 years, delivery vehicles over 5 years, and the solar installation over 10 years), interest on the R1.3 million term and asset finance at 13% (prime plus 250 basis points), 27% South African corporate tax with assessed-loss carry-forward, and working capital. Funding is structured as R1.95 million of equity and R1.3 million of term and asset finance. The three statements integrate and the balance sheet ties to zero every year, enforced by an automated assertion. All figures are in thousands of rand unless stated.

15.2 Key assumptions

Assumption	Value	Basis
Revenue & EBITDA	Preserved	Sponsor headline (R4.65m→R10.05m; 25.6%→38.6%)
Funding	R1.95m equity + R1.3m finance	Equity + term / asset finance (13%, 5-yr)
Corporate tax	27%	SA rate; assessed losses carried forward
Depreciation	Component (5–10 yr)	Equipment 8yr; fit-out/F&F 6yr; vehicles 5yr; solar 10yr
Working capital	Light	Small inventory + B2B receivables less payables
Repo / prime	7.0% / 10.5%	SARB, mid-2026
Utilisation	52% → 76%	Throughput ramp on fixed equipment base
Exit valuation	4×–6× EV/EBITDA	Scalable-services comparables (illustrative)

Key findingRe-derived net profit runs below the sponsor’s illustrative figures

Preserving revenue and EBITDA exactly, the fully-loaded model produces net profit of roughly R0.45m, R0.85m, R1.31m, R1.85m and R2.44m across Years 1–5, below the sponsor’s illustrative R0.74m to R2.91m. The difference is depreciation, financing and tax: the model applies full component depreciation on the substantial equipment, vehicle, solar and fit-out base, interest on the term and asset finance, and full 27% corporate tax, all of which the sponsor’s illustrative net profit treats more lightly. The operating performance (EBITDA) is preserved exactly and remains strong; the gap is the honest, fully-loaded cost of financing and depreciating a capital-intensive business, disclosed rather than smoothed.

15.3 Projected profit & loss

R’000	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	4650	5880	7180	8560	10050
EBITDA	1190	1710	2310	3020	3880
EBITDA margin	25.6%	29.1%	32.2%	35.3%	38.6%
Depreciation	(406)	(406)	(409)	(424)	(507)
EBIT	784	1304	1901	2596	3374
Interest (term / asset finance)	(169)	(135)	(101)	(68)	(34)
Profit before tax	615	1169	1799	2528	3340
Taxation (27%)	(166)	(316)	(486)	(683)	(902)
Net profit after tax	449	853	1314	1846	2438
Net margin	9.7%	14.5%	18.3%	21.6%	24.3%

Figure 14. Margin trajectory: EBITDA (preserved) and net (re-derived).

Figure 15. Year-1 revenue-to-EBITDA build.

15.4 Operating economics

The per-rand economics show why utilisation and cost control matter. Of every R100 of revenue at scale, labour absorbs around R27, utilities (electricity and water) around R15, premises around R10, and consumables and other costs around R9, leaving an EBITDA of roughly R39. The two levers that most affect this are utilisation, spreading the largely fixed equipment, premises and core-staff costs over more volume, and utility cost, which the solar and water-recycling investment is designed to reduce. This is a business where reaching healthy utilisation and controlling the power and water bill are the difference between a good and an outstanding result.

Figure 16. Illustrative operating economics per R100 of revenue, at scale.

15.4b Working capital and liquidity

Working capital is light and well-controlled. Inventory is limited to consumables (detergents and products); the main working-capital item is business-to-business receivables from commercial contracts, modelled at roughly 45 days, partly offset by supplier and utility payables. Because consumer services are paid immediately (cashless or app) while only the B2B book carries terms, the overall cash conversion cycle is short. The R180,000 working-capital allocation in the raise, together with strong operating cash flow, comfortably funds the modest working-capital build, and closing cash grows steadily from around R0.7 million in Year 1 to roughly R2.9 million by Year 5. No funding beyond the R3.25 million raise is required in any year, and disciplined B2B credit control keeps receivables healthy.

15.5 Projected cash flow

R’000	Year 1	Year 2	Year 3	Year 4	Year 5
EBITDA	1190	1710	2310	3020	3880
Tax paid	(166)	(316)	(486)	(683)	(902)
Working-capital movement	(238)	(38)	(40)	(42)	(46)
Operating cash flow	786	1357	1784	2295	2933
Capital expenditure	(2890)	(0)	(20)	(120)	(425)
Interest & debt service	(429)	(395)	(361)	(328)	(294)
Equity & finance raised	3250	0	0	0	0
Dividends	—	(341)	(788)	(1292)	(1829)
Closing cash	717	1338	1952	2508	2893

Figure 17. Operating cash flow, capex and closing cash.

15.6 Projected balance sheet

R’000	Year 1	Year 2	Year 3	Year 4	Year 5
Equipment, vehicles & fit-out (net)	2484	2078	1689	1384	1303
Receivables	229	290	354	422	496
Inventory	123	130	138	146	155
Cash	717	1338	1952	2508	2893
Total assets	3554	3836	4133	4461	4847
Term / asset finance	1040	780	520	260	0
Trade payables	115	145	177	211	248
Share capital / equity in	1950	1950	1950	1950	1950
Retained earnings	449	961	1486	2040	2649
Total equity & liabilities	3554	3836	4133	4461	4847

Figure 18. Balance-sheet build: asset composition.

StrengthThree statements that integrate — and a balance sheet that ties every year

The model is fully integrated: the profit and loss drives cash flow and retained earnings, capital expenditure and depreciation drive net asset value, working capital reflects receivables, inventory and payables, and funding and dividends flow through equity. The balance sheet ties to zero in every year, machine-verified, and the business builds a strong cash position throughout, needing no funding beyond the R3.25 million raise. This integrity is what separates a bankable financial plan from a set of disconnected projections.