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CONFIDENTIAL
Grays Pharmaceuticals Pty Ltd
Striving towards absolute financial success and environmental change
Business planPrepared February 2020
Contact InformationSteve Booyens, MSc.
(+27) 0646730986
www.grayspharmaceuticals.com
14 Duiker Crescent, Silver Lakes
Pretoria, Gauteng 0081, South Africa
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Table of ContentsExecutive Summary ............................................................................................................................1
Opportunity ..................................................................................................................................1
Expectations.................................................................................................................................2
Opportunity...........................................................................................................................................5
Problem & Solution....................................................................................................................5
Target Market .............................................................................................................................6
Competition................................................................................................................................16
Execution..............................................................................................................................................19
Marketing & Sales ....................................................................................................................19
Operations...................................................................................................................................21
Milestones & Metrics .............................................................................................................29
Company...............................................................................................................................................32
Overview......................................................................................................................................32
Team..............................................................................................................................................33
Financial Plan .....................................................................................................................................37
Forecast........................................................................................................................................37
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Financing .....................................................................................................................................41
Statements..................................................................................................................................44
Appendix ...............................................................................................................................................51
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Executive Summary
Opportunity
Problem
It's been widely proven that traditional medicine for certain fatal illnesses provides severe and painful side effects, the emergence of medicinal cannabis has provided a better alternative with less side effects. We are looking to tackle the issue relating to rising demand in medicinal cannabis. Cultivators that have entered the industry haven't been able to run financially and operationally efficient businesses, which has lead to overpriced drugs and a failure to supply a fairly priced product.
There are currently many other fragilities in what is an important industry for the healthcare sector, which is also a very profitable and non-cyclical business. Our aim is to combat the fallacies and provide an exceptional product at a fair price.
Solution
South Africa has the ability to produce greenhouse grade 1 medicinal cannabis, which provides parity to the standard grown indoor in 1st world and certain developing nations who don't possess ideal climate and bare expensive labor costs.
We'll be able to produce at a low cost by utilising our 2,500 hours of sun per year and inexpensive labour to produce a high quality, low cost product.
It's important to note that we aim to grow medicinal cannabis, which is proscribed by general practitioners and health care specialists, we aren't aiming to grow hemp CBD, which is found in cafe's or unprescribed drug sections in pharmacies, those products aren't medicinal standard.
Market
The market is under exponential growth as Deloitte predicts 35% year on year growth in sales until 2023. The market is in a transitional phase where it's moving towards more cost efficient cultivation, which is one of the many reasons why the
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WHO (world health organisation) predicts South Africa being the 3rd largest producer of medicinal cannabis by 2023. South Africa's medicinal cannabis industry is predicted to be worth R27 billion by 2023 and this is only the embryonic stage of it.
Competitors
There are high barriers to entry as the initial capital layout required is high as well as the fact that the labour required is specialised and hard to obtain especially as it's a new industry. The result will thus be an oligopoly type market where there are few entrants and even less competitive firms but with a quota on production preventing a dominant farm controlling the market.
Why Us?
We have the ability to be efficient operationally and financially. We have financial and operational skills, which we believe are far superior to our competitors whilst our variety of backgrounds allows us to resolve issues effectively. We are ready to make a social impact whilst achieving absolute financial success.
Expectations
Forecast
We used standard cash accounting financial projections to do our forecast. Our data is based on primary research (quotes and interviews with key industry organisations), secondary data is used to determine growth rates.
Revenue is projected at R24 million at the end of our first year, growth due to excess off-take agreements, harvests and linear expansion of the facility could see revenues reach R300 million (excluding inflation) at the end of year 6, when we reach our core business growth peak.
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Our net profit margins will be at it's lowest in year 1 0.35 and at it's highest in year 6 predicted at 0.54.
We expect a positive cash flow, income statement and a strong balance sheet in all years due to the profit margins involved. We'll however only reach break-even point 18-months into the project.
• It is worth remembering that we are looking at leveraging to amplify returns.• Possibility of diversifying into ancillary business investments by year 5 with
retained earnings.• Our expenses are assets with a lot of worth and liquidation there-of is worth
a large additional amount of capital.
Financial Highlights by Year
Financing Needed
We are committing R3 million of our own equity and require an additional R 25 million via a syndicated financing of equity investors, where 1 million rand is the minimum investment. We plan on leveraging the business once revenue streams
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occur and we have a strong gross profit margin. The capital will be spent on non-current assets such as development of facilities and PP&E; operating expenses such as wages, leases; and on expenses related to inventory such as, seeds and fertilizer.
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Opportunity
Problem & Solution
Problem Worth Solving
For a number of years there have been complaints regarding the rigorous side effects of traditional drugs that cure symptoms of various medical conditions. Alternatives have been looked at at medicinal cannabis has been identified as a supplement/replacement for traditional medicine in order to treat symptoms of various types of cancer, Parkinson's, chron's disease, HIV &Aids, arthritis, epilepsy and depression, to name a few illnesses. Due to the reputation and illegality of marijuana there have been significant barriers to publishing research, with liberalisation of laws the research done my institutes such as Harvard, MIT and other Ivy League schools, PhDs and professors has proven that medicinal cannabis does provide the same treatment as traditional drugs but doesn't bare the side effects.
This has resulted in an exponential demand in medicinal cannabis, which keeps on growing as global centralised health systems are allowed to proscribe the drugs due to more liberal legislation.
There's however the issue that persists with production being expensive in 1st world countries due to expensive labour and not having optimal weather conditions to produce high yields, year round.
South Africa have thus legalised the cultivation of grade 1 medicinal cannabis and expects to be the world's 3rd largest producer by 2023.
There's however financial and operating issues with market entrants as there's an influx of participants with no real business, financial or agricultural experience contesting to enter the market along with "old school " farmers who's methods are outdated and also lack advanced financial and business knowledge. Wesgro reiterated this issue at various cannabis conventions and stated that it's not unique to South Africa but that when cannabis cultivation legalised in Canada, most of the companies failed due to lack of financial and business knowledge.
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Our solution
It's important to understand that our aim is to grow grade 1 medicinal cannabis and not hemp CBD, which is currently sold on the shelves or in cafe's. The product we are aiming to produce gets proscribed by general practitioners and GPs in over 40 countries and is expensive as well as difficult to cultivate.
By growing grade 1 medicinal cannabis with THC and CBD compositions we'll have the ability to provide labs (who manufacture listed medicinal cannabis drugs, which are sold by dispensaries) with a high quality product . As mentioned the drugs are currently being proscribed (at an increasing rate) by doctors for curing symptoms of Parkinson's, various types of Cancer, HIV, Alzheimers, Chron's disease it also cures various neurological illnesses such as bi-polar, anxiety, depression, loss of appetite and then assists in blood flow, which in turn improves arthritis and related health implications.
By farming the natural resource in South Africa we can make use of greenhouses, which will yield high amounts of cannabis year round at a lower cost vs indoor growth (currently used in 1st world country cultivators and 33.3% more expensive to procure) and in addition we have a much lower cost of labour in our favour. By providing a better product at a lower price we can take advantage of the export market and help generate a significant profit margin for the company, its investors as well as our employees whilst generating jobs.
Grays Pharmaceuticals has a value proposition, which is that we have a team who are very strong in ensuring the firm is financial efficient as well as operationally efficient. The techniques applied by our company with regards to agriculture and finance is what will set us apart from most other cultivators in the industry.
Target Market
Market Size & Segments
Market Size
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According to PhamOut the current industry size is 20 Billion USD with it expected to grow towards 650 Billion USD by 2020.
The world health organisation states that it expects South Africa to be the 3rd largest producer of medicinal cannabis by 2025, with prohibition partners' report suggesting an industry value of R27 Billion by 2023. When considering that there are only 4 licenses granted and that there will be a quota, there's amount of money to be made for a successful cultivator.
The segmentation is of importance to see growth in the market and to see who spends money on the products in order to determine future growth and purchasing power, it should however be noted that we supply the raw product and that drugmakers will adapt their drug development according to the segments, so for us there's no need to adjust our product according to changes in types of usage but only for purchasing power (pricing elasticity).
Segmentation
• Geographic (Study done by Sean Williams, 2019)
These statistics are based on Medicinal flower sales and excludes hemp CBD:
- 59% sold in Canada and USA
-30% Sold in EU (mainly Germany), expected switch in the UK (Considered as part of the EU) from CBD Hemp to medicinal flowers
-11% Other sold mainly in Australasia
These are retrospective stats, the major growth in sales will be in Asia and the UK, we'll also see movement away from CBD hemp to CBD flowers, which will change this geographic and make for a more even dispersion.
• Types and Treatment :
Medicinal cannabis are also known as Medical marijuana, which area used either to treat disease or to improve their symptoms. The two cannabinoids - delta-9-
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tetrahydrocannabinol (THC) and Cannabidiol (CBD) are used in treatment of certain disease or health conditions such as pain, blood pressure, memory, concentration, appetite, sensory stimulus, muscular problems, and seizures. There's usually a ration of anything in excess of 2% of THC to 98% or less of CBD for the drug to be effective, if not then it will be as effective as Hemp CBD, which doesn't help at all. An optimal level according to Dr.Shiksha Gallow from Cannabis Oil Research is 13% of THC and 87% CBD, this is still a prospect in the making as safety tests has to be passed first before drugs are approved (2-3 years).
Medical names:
-Tetrahydrocannabinol (THC)
-Cannabidiol (CBD)
Proscribed for treatments of:
-Pain: Cancer, HIV & AIDS, Chron's disease, Parkinson's.
-Arthritis, increased blood flow
-Neurological Disease (Epilepsy, Anxiety, Depression, Multiple Sclerosis and Other Neurological Applications)
• Demographic (Cross sectional survey done by a conglomerate of US Universities)
-The consumption by males (54.6%) marginally outweighs the female consumption.
-Earners of between 20 to 60 000 USD per year consume the most if using income bracket as a metric (41.3%), in addition (47.1%) of users are full-time employees, which also makes up for the majority.
-High school and bachelors degree earners make up for the majority of consumption measured in qualification (26.2%)
-86.5% of users are caucasian.
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Market Growth & Value Drivers
According to Deloitte 66% of purchases will be moving to legal channels from recreational use this year and sales in medicinal cannabis is expected to rise by 35% per annum (projected until 2025).
CanbiGold predicts the market cap size of medicinal cannabis to quadruple its current price after shows-term supply has met demand whereafter a correction will take place with linear industry growth.
Key Value Drivers
• The Business Cycle
As the economy enters different cycles the consumption will change less than other industries as pharmaceuticals are considered a non-cyclical business, it’s however to be considered that when the economy takes a turn for the worse less business ventures will be undertaken and as this on its own will slow down growth in demand, whilst supply might carry on increasing. It’s important to constantly evaluate demand and supply elasticity.
• Legislation
The key factor to legislation regarding this project is on the demand side, where liberalisation of laws regarding medicinal cannabis creates a snowball effect in the private sector and expands business. It also has the potential to contract rapidly if laws tighten and policies shift. We've recently seen major breakthroughs as countries such as the UK (NHS), China, Japan, South Korea, Thailand, Uruguay, all legalised the use of medicinal cannabis (proscribed by general practitioners), in 2018-2019. This adds to the 30 countries that had already approved the use of the drugs of synthetics there of.
• Institutional Investors
As the market becomes more established, institutional investors will step in and expectations will change. This will lead to exponential growth in the industry
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The arrival of well-financed participants from adjacent industries will not only boost competition in the marketplace but also raise the standard of products and services. At the same time, with so many emerging players in the field, cannabis companies will be forced to move away from a vertically-integrated business model.
• Increase in social acceptance
There's a strong rise in social acceptance for medicinal cannabis use as it's now proscribed by general practitioners and specialists. The factor of it being an illegal drug with a bad reputation is depreciating at a rapid pace.
In the medicinal cannabis market segment, there will be an increase in research and development to understand the effects of cannabinoids, which will lead to greater physician awareness and support to recommend cannabis as a therapy. As a result, insurance companies will begin to offer improved medicinal cannabis coverage and businesses will design new cannabis formulations that target specific therapeutic areas and conditions.
• Ancillary Businesses
The gradual internationalization of both the medicinal and adult-use cannabis segments will offer successful cannabis companies lucrative expansion opportunities.
South Africa's key unique value drivers
• Cost Efficiency
Labour and materials are significantly less expensive in South Africa than current producing nations. We have an absolute and comparative advantage of producing the same quality cannabis in greenhouses as which other nations have with indoor production. The difference is 600 USD per kilogram in value for the same product, which will see labs consuming our product instead.
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Although one might think this will lead to excess market supply, the cost is still a steep ask for your average South African farmer, which will eliminate that concern.
• Weather
South Africa has ideal weather, especially in Gauteng where we'll be based. Growth yields high during summer and winter time as the sun is ever present. We have 2, 500 hours of sunlight per year.
Key Customers
In farming you usually settle off-take agreements (buyers agreements) before your project is underway, we've used the Cannabis Compliance Bureau to assist us with our first off-take, Nico and Jean-Pierre Kriek has vouched for us by negotiating an off-take for us worth 960-1000 KG (R12 million in revenue) per year with a pharmaceutical company.
We're using this off-take as proof to our investors of the demand we'll be able to generate, and we'll be able to secure more off-takes once we have started building.
Off-Take Agreement 1 (See Appendix A)
Demand we've forecasted with the Cannabis Compliance Bureau by doing a comparable with other companies (i.e CANANAC Pty ltd.)
• Canada• Australia• USA• Germany
This an indication of the demand, it will take time for us to achieve growth in sales as we'll need to expand on harvests and greenhouses in time, this is indicated in our financial statements where our revenue in year 1 is forecasted at R12 million but that figure grows to near R300 million at the end of year 6.
South African Government's trade agreements
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South Africa are in serious need of an influx of capital and Cyril Ramaphosa as well as Tito Mbaweni are working hard on trade agreements for medicinal cannabis, which will see exports grow rapidly in the industry.
Growth in Labs
There's an exponential growth in pharmaceutical companies abroad, which means by the time we harvest there will be a large amount of off-take agreements available, which aren't even present as yet.
SWOT Analysis
Strengths:
• Efficient Cost, Investment and cash flow management.• Strong operational management with agricultural experience• A team with diverse ways of thinking, which helps solving problems faster.• Good weather with 2, 500 of sunlight per year• Planning on growing greenhouse and in an indoor fortress to ensure yields
are constant.• Passion, Belief and Ambition: We are here to be successful as businesspeople
and make a social change.
Weaknesses:
• Crop Loss due to high quality control demands• Difficulties with finding employees in a new industry• High electricity and water requirements, which is scarce• Financial Strength is low vs industry leader
Opportunities:
• Innovation is growing rapidly in the industry and we have a lot of ideas ourselves.
• Global market liberalisation of laws, resulting in an increase in demand.
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• joint-ventures will allow synergies and business expansion.
Threats:
• Political climate regarding medicinal cannabis is unstable.• Market Collapse is always a possibility with a booming industry.• Licensing delays: The duration it takes for license approval is very variable.
Pricing
FLOWERS:
We aim to sell at projected market value for march 2021, which is R 20.00 (1.38 USD) per gram of dry weight grade 1 cannabis.
PRICING STRATEGY:
Our efficient production costs and the global consumption of the product will allow us to achieve elasticity by lowering prices when the market is in less demand and conversely sell at a higher price when the demand rises. There's also the option of selling at different prices to different nations by using perfect price discrimination, as labs in certain nations pay more than in others.
SOUTH AFRICA'S PRICING CONDITIONS:
Due to high barrier to entry the pricing of the the products globally there will be an oligopoly in South Africa, which sees only a few companies be competitive. There is luckily a collusive agreement on production quantities and a standardised price setting organisation for export to specific nations, which will see to that there are no market dominants due to pricing as well as no rapid decline in pricing.
The Implied Forward Curve:
According to Cannabis Benchmarks the greenhouse price for medicinal cannabis is 1250 USD per pound. which translates to 1860 USD per kilogram. The implied forward curve shows little difference for greenhouse prices in the future but a
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significant drop in indoor prices for the next 18-months. This is due to prospective cheaper production from countries like South Africa being priced in by the market.
Future Markets
Product Based Future Markets
• Higher THC drugs
The drugs that are currently developed are very low in THC (narrowly over 2%), which provides just enough THC to compliment CBD in patient treatment but according to Dr.Shiksha Gallow from the University of Witwatersrand and Cannabis Oil Research the THC levels in newly developed drugs will increase incrementally (to up to 13% and over, which is regarded an optimal level) as safety tests are passed, which will broaden the market significantly.
• Seeds & Hemp
There's an option for us to extract hemp seeds, which is what's currently seen in your energy drinks, creams, tablets and all the other hemp CBD you find in stores. These products don't work for symptoms but people love them, we'd just like to see if this market will be sustainable as supply isn't costly or difficult and the fact that medicinal cannabis is being proscribed now will possibly terminate the hemp CBD product industry as people start to realise that it doesn't work for symptoms but medicinal cannabis does. But if consumers still enjoy the products, obtaining a license for us will be easy we'll just have to grow them separately from our medicinal cannabis.
• Drug Creation
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SAPHRA currently don't have any drugs registered but it's predicted by lab fitting company X that we are about 5 years away from registering drugs, we'll have the option to embark into that direction in the future, which is capital intensive but exceptionally profitable. A way to make it less capital intensive is to collide into a joint-venture with other cultivators at home or abroad.
Financial
• Joint Ventures With Ancillaries:
When we reach a stage of large enough organic growth and a more mature market, there will be opportunities for ancillary businesses as has happened in Canada, our vision is to venture out and buy controlling interest in various start-up firms with the help of new employment who've private equity experience.
• Medicinal Cannabis Securities Trading:
We also aim to enter the financial markets as our understanding of the business and the prices will be second to none, we would benefit out of trading financial securities as a hedging strategy against falling prices or as a way to amplify profits. We'll do this by employing the correct individuals.
• Underwriting:
I'm currently doing my PhD in the underwriting process for medicinal companies in Canada and how it can be applied in South Africa. It will presumably be against the mandate of big investment banks to do IPOs for medicinal cannabis companies just as it was in Canada and Aurora stepped in and did their own IPO and since then every public medicinal cannabis company in Canada. We'd like to open an IBD for medicinal companies, either nearing our exit stage or of companies who aren't in direct competition, underwriters receive 5.4% commission on the IPO.
Core Business and Future Segments
We'll always remain cultivators during our project, our aim is to balance organic growth and future business segments so that growth remains our core business. It
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is however important to note that a failure to innovate will result in an unsuccessful business in this industry.
Competition
Current alternatives
In South Africa:
Currently 5 licenses granted with Felbridge Pty ltd. the largest. Even though they have great financial strength, they've been given a quota of only being able to produce 20 tonnes of medicinal cannabis. The scale of the industry quota for licensed growers in South Africa is set to be around 5-20 tonnes (R750 000 000-R300 000 0000).
Global Producers:
Foreign producers don't have quotas and in the world's leading production nation (Canada), they average 6.3 tonnes per year under the big companies. Although this will be scaled down as cheaper production will take them out of the market and they're re-structuring business to move into the downstream/retail side of the industry swell as ancillary businesses.
Related Businesses:
Ancillary businesses in the way to go in countries where medicinal cannabis cultivation is at a mature stage, but for South Africa that's still 5-6 years down the line and it will only be direct competitors to us if they have the same or similar business units to us (i.e growth, financial markets, joint ventures, drug development)
Our advantages
Global Advantage
Low Price vs Foreign producers:
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We'll be looking at producing at a cost of inventory of X per single unit whilst Aurora who are currently the global market leaders are producing at Y per unit and are predicted to bring that amount down to Z with new growing techniques and technology, which is still well above our planned cost of production. These estimates are based on COGS, where we also included cost of transportation but excludes SG&A as well as R&D.
Advantage over South African companies
Financial and Operational Efficiency:
Other cultivators who will be competitive firms to us are relatively lean with regards to their capabilities of running finances and farms. This was seen at general conferences and information shares by competitors about their farms.
Making Medicinal Cannabis our core business:
Assumed market leaders, Felbridge Pty Ltd are planning on becoming the market leaders but their focus is predominantly on strawberries, which does help them with regards to farming experience but it has to be asked if they'll be more efficient than us if we are solely focusing on the medicinal cannabis industry.
Barriers to Entry
High Initial Investment Required:
The cheapest license that's been granted in South Africa was a 3 million ZAR development. Your required amount to enter the market, which is required for medicinal standard development of facility and operating expenses costs is 20 million ZAR accord to Wesgrow.
Strict Licensing Procedures
Licensing is exceptionally strict as this is schedule 7 medicine in South Africa and you need 5 sectors to be approved versus normal farming, which just requires
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global GAP. This makes it more expensive and thus a bigger risk to your average farmer.
Growth Methods
You need a master grower that knows how to handle the pressure of growing an excess of a 1000 plats at once, according to WesGrow this is where many companies faltered in Canada, they thought that growth would be easy but it has turned out to be a major deciding factor and a good master grower will most likely make the difference between success and failure.
Correct Off-Take Agreements
Off-take agreements are challenging as you're essentially asking someone to buy a product from you that hasn't been created yet. This requires that the buyer has confidence in you to produce for him and is certainly very important for a farmer to secure financing to farm.
Completely new industry
There are many variables in farming and medicinal cannabis being a new industry, obtaining the correct information is both expensive and requires intuitive sense.
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Execution
Marketing & Sales
Marketing Plan
It's worth understanding that we are part of the upstream in the supply-chain and it's thus important to realise that we won't have the scale of marketing a dispensary has who are in the downstream of the supply-chain. When we reach a stage where we feel that excess marketing is required, it will be outsourced or we'll contact a consultant and set out our aims and objectives whilst handing over the technical aspects of marketing to the correct professionals, whether that be the firm we're outsourcing it to or if it would be more efficient, the employee/s we've decided to hire.
Trade Fairs and Direct Contact with Pharmaceutical Companies
Our first step will be to budget and arrange for trips to global trade fairs where we'll set up stands, in addition to this we'll need to visit global pharmaceutical companies.
Image & Awareness
This will serve the purpose of point of reference for us when dealing with key stakeholders (investors, buyers, suppliers, unions and government), we also need to raise awareness of social responsibility, which has a clear distinction between medicinal cannabis and recreational use on all our advertising platforms.
We would like to be published in articles to raise awareness of our company such as in Business Insider (foreign markets for off-takes) and we plan to appear on the business news in South Africa to raise awareness of our project, which could attract future key stakeholders and portray a positive image to the public .
Platforms
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We'll be required to set-up a website for reference and do a promotional video in order to add personalisation to our company, we also feel that this could be informative, the video will appear on our website and youtube.
Other platforms will include all the directories we can find, an example would be "New Cannabis Ventures", which connects companies within the industry.
Sales Plan
Supply-chain
We'll be selling our product to foreign laboratories where they'll be producing medicinal cannabis products. Our responsibility will be to cultivate and send the raw product via air freight. W'll have a seed to sale system, which will monitor the seed from when it's planted all the way until the finished product reached our buyers.
Payments
We'll accept payments on credit but limit it to 40% of our sales with net payment of 45 days (industry average=41) as we believe this will encourage laboratories to buy from us as it's above industry average by (7.5%-10%), counter-party risk will be mitigated with factoring, where the bank will purchase the debt agreement if 90 day payment can't be met, for a 10% share.
Funds will be legally binding via a letter of credit and deposited into the company's bank account.
Re-funds aren't an option but in the unlikely event of the crops not being delivered as stipulated by contract (damaged or lost), then the owns will be on us to send fresh product to the buyers free of charge.
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Operations
Locations & Facilities
Property
We have various options where we can buy a property in Gauteng or even Kwa-Zulu natal, and we'll do so with our own capital, the only reason we haven't is because we don't want to invest capital without knowing we'll be able to obtain more from investors in order to develop our farm as that would result in deadweight for us and a waste of hard earned money.
We would ideally like to buy in the Pretoria East area (Gauteng) in a place called Boschkop, as there's a forecasted appreciation of 20-30% over 10 years as it's the prospective most expensive property market in South Africa due to city developments moving out into the area. This would have an added benefit when assets are liquidated at the end of the project.
In addition, the water supply is strong and it's near where we currently reside.
Facilities
Our facilities will include rooms for drying, curing, cloning and storage (R3 million). This will add additional value to the property. All the details of the processing facility is included in the SAPHRA guidelines document under GMP.
For cultivation purposes and this is elaborated on in the equipment section of the business-plan, we require greenhouses which are medicinal standard (R1.8 million initial investment) to obtain the license and will require an additional R 10.2 million to develop a facility, which is ready to produce.
Lastly we'll require 2 temporary housing structures which bares a cost of R75 ooo each for the security guard on site as well as the farm-manager on site.
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Regulatory Requirements
Licensing
In addition to obtaining global GAP to start a farm we will need to adhere to SAPHRA's (South African Health Products Regulatory Authority) requirements for a medicinal cannabis license to cultivate, which can be found in attached appendix or on the following link: https://www.sahpra.org.za/documents/84a71af62.44_cannabis_growth_feb2017_v1_for_comment.pdf
We'll be using turnkey projects to ensure we are ready to acquire a license to cultivate grade 1 medicinal cannabis. But to summarise what we need to adhere to needs to be broken down into 5 steps:
1. Comply with standards of good agricultural practices2. Comply with good manufacturing practise3. Comply with good agricultural and collection practices4. Comply with regulations on good laboratory practises
An annual fee needs to be paid for renewal of license and this includes another inspection to certify that you're still in line with the licensing criteria.
Submission of building plans to State Department
In order to apply for a license we'll need to file and have all our building plans approved, this is also required for the development of the property to add appreciation. It takes 3-months to get approved but construction can start beforehand and the procedure is usually just "file and obtain", there won't be hassles, especially regarding this project.
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Technology
• Seed to Sale: Seed to sale system that tracks seed from when it's planted all the way until the finished product reaches its customers. The system costs R2, 900 per month.
• Security CCTV: We require a CCTV system to cover our premisis and this comes at a cost of R7, 900
• Accounting systems: Accounting system such as SAGE (R2915 annually), it will make accounting faster and more reliable as well as easier for internal audits.
Equipment & Tools
• Fittings for Drying, Curing, Cloning and Storage: Our fitting for drying, curing, cloning and storing will cost an additional R1 million according to the cannabis compliance bureau and this will ensure we are ready for full processing of our raw materials (cannabis) and natural resources (seeds).
• Water Tanks and fittings: JoJo tanks and fittings for them will be required in order to assemble borehole water, we'll need 4 tanks at R7000 a piece (fully fitted), 2 will store water and the other will recycle used water.
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• Generators: Generators will be required for substitution if there's a failure in the unlikely occurrence of solar panel system failure. Because we need electric fencing at ALL times we can't take any chances and will require 2 generators (R160 000).
• Tractor: We'll need a tractor for the farm and we'd like to buy a new one for R400, 000.
• Other: This will include smaller items the farmer managers and master grower might need to use around the farm (i.e mobile phones, hardware tools, etc.), we'll budget R100, 000 for this.
Intellectual Property
• SAPHRA Cultivation License , accurately measured will be worth R21 8OO.
• Off-Take Agreements with buyers: These are complex to negotiate and we buy the letters of intent through agents for R5 000 each and then proceed to make our own bespoke deals, which add a significant amount of value to it.
• Company Domains: Website domains valued at approximately R 2000
• Company Logo: Valued at approximately R4000
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Risks & Mitigation
Financial
• Market: Medicinal marijuana is a booming market, but as with all booms there’s the possibility of a crash. The business is thus focused on constantly measuring key risk indicators and adjusting the dynamics of the business accordingly.
• Credit: W'll be maintaining low-medium levels of debt to equity ratios from year to until the end of the project, credit risk is thus not an issue for this company. In the event where it might be, we'll keep strong cash and equivalents as a safety net.
• Liquidity: The business will remain very illiquid until inventory is produced, in the event of a need for liquidity we'll delve into our cash reserves or liquidate inventory to meet short-term obligations (if there are any), because the business will be efficient and running on low levels of debt (starting year 2), this is a low risk.
Business Risk
• Strategic Risk: It’s important that there is frequent reference to the SWOT analysis to define and refine business strategy and objectives. Refer to KPIs on a frequent basis as a review, and KRIs should be continuously updated (monthly), in order to stay up to date with new market risks and roadblocks that might be ahead. It should also be remembered that with the change in strategic risks, there will be strategic opportunities to pursue.
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• Compliance Risk: A compliance risk framework should be set out and updated based on input from all segments of the business. There are strict measures to farming and farming medicinal cannabis especially, it’s important that all the operational compliance is handled by the farm managers in tandem with the farmers and that all Financial compliance is handled by the CFO in tandem with the internal auditor, all legal matters should be handled by Steve Booyens in tandem with external lawyers. Constant compliance risk assessment should be done.
• Operational Risk: There's a risk of losing crops due to pests and human error, but because we will be growing in numerous greenhouses and a fortress will mitigate that everything gets destroyed. We'll also sell our inventory continuously instead of sending large batches discreetly, which will leave us with no inventory.
• Settlement Risk: Not a massive area of concern if we have the correct letter of credits set-up and use factoring with the bank to streamline our payments. There will be a need to have numerous off-take agreements for if certain of our buyers have reached their buying capacity. It’s also important to set currency agreements before sales agreement as the products will be sold abroad and there’s a lot of volatility in the FX markets.
Scenario Analysis
The market crumbles like Bitcoin did in 2018 and we are stuck with newly produced inventory, which nobody wants to sell. We have to find a solution.
First it will be important to present our possible solutions to shareholders and vote on what needs to happen.
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• Solution 1: We subsidise the inventory so that we can achieve inventory liquidation and we start planting fresh produce (as well already have the facilities to do so), we won't be earning the billions of rands of revenue we were hoping for/or used to earn but we'll be able to sustain a profitable business and we can wait for the market to pick up again.
• Solution 2: We immediately start to subsidise inventory and we liquidate all of the assets, starting with the most liquid, we return the capital to all the shareholders on a weighted average and we will have all made an interim return, it was good while it lasted.
Other countries with cheap labour and good weather start producing medicinal cannabis and our buyer switch suppliers
• Solution 1: We immediately invest money into more modern growth methods, employ the best growers we can find and find new buyers as well as bolster marketing.
• Solution 2: We take advantage of elasticity and enormous profit margins to achieve comparative advantage, we grow more and achieve economies of scale whilst increasing capital and labour we shall be able to subsidise our prices and provide our products at a lower price. Remember they might have absolute advantage but in South Africa we've the ability of both absolute and comparative advantage.
The industry reaches maturity, there's no more growth and we are seeing an effect on our business
• Solution 1: Cash out via IPO, sale of business or liquidation.• Solution 2: Engage in joint-venture, acquisitions, ancillary businesses,
develop other business segments. If we do this and change the dynamics of our business, the maturity of cultivation could be a blessing in disguise for us to evolve.
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Exit strategy
Exit strategy for us will be to return the capital plus gains to our investors after 5-8 years, where they will have the option to re-invest their capital into our new project. Our current vision is to attempt to do an IPO or to sell the business. Alternatively we'll start a new related project without either. It remains variable at this stage.
• Strategy 1: IPO
This will be a strategy where we'll either require an exponential amount of extra funding or we would be looking to cash out. Aurora in Canada went public for 4.5 billion Canadian Dollars (R50 billion). Demand for shares in an IPO in South Africa is significantly lower than in Canada and it depends at what stage the business IPOs but with a small IPO size at R5 billion, it won't be an unfeasible exit strategy.
• Strategy 2: Sell-Business
The market will be heading to maturity and we'll be an attractive business to buy for local or foreign institutions as we will potentially have multiple business UNITS and an efficient business with potential for growth. If larger businesses in the industry are looking to gain market share, we'll be a lucrative investment
• Strategy 3: Return weighted % to Investors and start a new project
This strategy entails returning the weighted invested percentile and capital appreciation to our investors whilst providing them with the option to re-buy into our new venture, which will likely be a similar project but with a new value proposition and a much larger scale.
This is an exceptionally profitable business with a short cycle, that's why our exit strategy is planned on 5-8 years instead of the conventional 10-12 as we believe the industry will develop rapidly. We'll be required to innovate and change the dynamics of our business between year 5-8.
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Milestones & Metrics
Milestones Table
Milestone Due Date Who's Responsible Details
Secure initial investment of R3 million.
Completed Own equity We need this investment to procure land, secure inspection date, put up pre-licensing tunnels and to build a processing facility. Expenses such as CCB's licensing audit need to be covered as well.
Syndicated funding Round of R25 000 000 (1.7 Million USD)
May 02, 2020 Investors Additional capital to convert to medicinal standard facility & start cultivation.
Start Construction and be ready for licensing inspection
May 31, 2020 Grays Pharmaceuticals Construct the facility (will take 1 month) and apply for license inspection.
Finish medicinal facility and start growth
October 02, 2020 Grays Pharmaceuticals Finish facility, procure license and start growing.
Harvest, Processing and First Off-Take
February 01, 2021 Grays Pharmaceuticals We'll be ready for sale on February the 1st.
Key metrics
We'll use keep it simple but be detailed with our KPIs, which will be monitored weekly and updated with changes in the industry as well as our internal operations.
Key Performance Indicators
• Financial Ratios - We'll mainly be using profitability ratios and financial strength ratios. We'll compare these to industry averages. It will be important to compare ratios of companies who serve the same purpose and not with other cannabis companies who operate differently.
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• Quality Control Results -We aught to pass quality control with all our crops that we've finished but have accounted for a 10% 'throw out', which may be because of reasons such as cross-polution or processing errors.
• Production Efficiency- The industry average for dry-weight yield is 80g per plant, we'll use this as a measure of our production performance, allowing a 10% deviation, it's not necessarily better having a higher yield as the plant could be distressed and will fail quality control.
• Yield to Stock- Related to production efficiency we'll be looking at a 10% deviation off of the 80g per plant and 480g per square meter, which is the industry average.
• Employee Satisfaction- Annual questionnaires will be provided on what the consensus is and happy employees normally indicate you have a successful business.
• Customer Satisfaction & Churn Rate, New vs Repeat Orders- This will be measured with our seed to sale, we'll compare the data with the industry average on a monthly basis and assess where our shortages are and why we're better than others in certain aspects.
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Roadmap
Our immediate goal is to obtain the required financing in order to ensure we'll have enough capital to develop the farm to be a competitive firm before we proceed to procure land and build the initial pre-licensing structure with our own capital. We'll then use the capital raised in addition to our own capital to buy a property and set up a pre-licensing structure.
We'll then be able to book a licensing date, and once approved we'll start construction of the entire facility as well as start our farming process shortly after. Once this has been achieved we'll aim to become a successful producer of grade 1 medicinal cannabis and we'll expand annually whilst remaining profitable. Our aim is to have produced and sold 76.32 tonnes of medicinal cannabis by the end of year 5, which will hold a value in the range of R915840000 (R900.2 million)-R1295400000 (R 1.3 billion).
After year 5 we'll look to diversify our business whilst still paying dividends and providing the option to investors to keep their capital in the business or to cash out. It's important to diversify at this stage in order to increase market share as well as stay in touch with innovation within the industry.
After 8-years we'll exit the project life cycle and return all capital to our investors, and do another round of funding for our ongoing business activities.
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Company
Overview
Ownership & Structure
Grays Pharmaceuticals is a registered Pty Ltd.
Ownership
• Steve Booyens 20% (2000 shares)• Dr. Stephanus Jakobus Booyens & Joeleen Booyens from Gray Familie Trust
10% (1000 shares)• 70% (7000 shares) to be distributed to investors • The percentage of shares held equates to percentage of profit share and total
assets.
Investment Terms
1. Minimum investment of R1 million is accepted.2. Shares are allocated weighted to investment and shares authorized (R1
million= 2.8%)3. 20% of Net Income will be distributed to shareholders annually on a share
weighted basis. 4. At the end of the project (estimated 8-years) the capital will be paid out to
shareholders after debt obligation, on a share weighted basis. 5. Lock-up period of 2 years, a withdrawal is available at any time thereafter but
has to be requested 6-months prior.
Note: Kindly see term sheet for our investment term outlay. All our terms are negotiable.
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Company history
This is a new company consisting of professionals from a variety of backgrounds. As individuals we hold numerous achievements in finance, agriculture and pharmaceuticals. Our CVs show that our capabilities are geared towards carrying out this project successfully. As a collective we'll work well in achieving absolute financial success whilst contributing to social change.
Team
Management team
• Steve Booyens
CEO
Current part-time PhD-Finance candidate at University of Cape Town, MSc in Investment Banking from Queen Mary in London, in addition to his online retail business he owned in 2015 (Kings Road Luxuries). Steve has work experience in the financial sector obtained in London and currently runs an ESG property portfolio.
• Heiko Feddersen
COO
BSc in aquafarming with 8 years of experience in farm management. Heiko has sound financial and business knowledge. Heiko is ready to take the step up and move into the business side of farming.
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• Pieter van Heerden CFA
Finance
With 10+ years of agricultural experience and a CFA charter Piet is well suited to provide us with independent financial services relating to cash flow management, financial planning and analysing the company's financial performance.
• Ryan van der Watt CA (SA)
Finance
Ryan holds a Bcom accounting degree from NWU and honours in audition from Monash. Ryan will do the Internal audits and provide assistance to Pieter.
• Lothar Hartslief
Has more than 8 years of experience in farming and to be specific quality control adhering to global gap.
• Christo Botha
Mastergrower
Cannabis expert with 10+ years' agricultural experience.
• Rudi Lombaard
Genetics & Propagation
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BSc (Hons) Behavioural Genetics with 2 years of work experience.
•
Advisors
• Cannabis Compliance Beareu-Nico Kriek : Nico shall be providing us with the turnkey solution in order to ensure our facility is fit for licensing and our staff is trained, in addition Nico is one of our off-take agreement providers
• Schindlers-Stefan Bezuidenhoudt LLM: Schinders is South Africa's first company to focus on the medicinal cannabis industry and he'll be handling our legal matters within the Industry.
• Daniel Laas Attorneys-Daniel Laas LLB: Daniel will handle all other legal matters such as contracts with investors, buy contracts and all Legal matters that might occur.
• Vegtech: Vegtech provides us with a turnkey solution in medicinal greenhouse tunnels, vegtech ensures we have the correct equipment of the highest standard in the industry.
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• Geneticist from University of Witwatersrand - Dr.Mabaso PhD : He'll be providing consultation on growing and cloning procedures to our master-grower.
Personnel Table
FY2021 FY2022 FY2023 FY2024 FY2025
Farm Managers (3) ZAR4,665,600 ZAR9,331,200 ZAR31,104,000 ZAR34,992,000 ZAR62,208,000
Master Grower ZAR300,000 ZAR360,000 ZAR432,000 ZAR518,400 ZAR622,080
Security Guards (3) ZAR432,000 ZAR496,800 ZAR571,320 ZAR657,018 ZAR755,571
Assistants to Farm Managers (2) ZAR120,000 ZAR138,000 ZAR158,700 ZAR182,506 ZAR209,880
Totals ZAR5,517,600 ZAR10,326,000 ZAR32,266,020 ZAR36,349,924 ZAR63,795,531
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Financial Plan
Forecast
Key assumptions
5-year forecast on accrued basis
We've created a 5-year financial forecast based on a projected accrued basis. Although the project life cycle is 8 years, our thought process with the 5-year forecast is that it cover the next business and political cycle as well as the duration of our expansion of our core business, as stated in the business-plan we'll potentially be changing the dynamics of our business after year 5. These are the factors that lead to our decision of a 5-year forecast but we can provide an 8 year as well if requested.
Data Forecasting
We used primary and secondary data to determine earnings and expenses. We used historical cost to value our assets (GAAP Standards). We didn't adjust for inflation as it would add subjectivity but we can provide a model, which is inflation adjusted if requested.
Breakdown of Key Assumptions:
• Revenue & Cogs
Worked closely with Vegtech and Cannabis compliance bureau to find out how much we'll be able to yield out of each tunnel and what our COGS will be. In addition I've consulted our farm managers to cross-check farming costs and refine our yield expectations when taking into consideration crop losses and other issues.
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We expect our revenue to grow exponentially from our second off-take onwards as our off-take agreements increase and to achieve larger profit margins due to COGS lessening with time as we implement techniques such as cloning instead of buying new seeds for all of our greenhouse tunnels.
• Operating Expenses
This was very straight forward it was just about obtaining quotes and assembling it into a financial model.
• Financing Activities
Interest calculated on financing activities are based on benchmarks for leveraging and payout to shareholders is a normal weighted 20% payout per year with return of appreciated capital at the end of the project.
• Balance Sheet Items
We used current fair value for the balance sheet's assets, which later becomes historical cost. These are all quoted values we received. depreciation and amortisation is done with a straight line method.
Other assumptions
Apart from the primary assumptions we assumed a stable economy and constant tax rate. We assumed linear growth whilst taking into consideration expansion required to be a competitive firm and realise such growth. There are smaller costs (i.e wages), which has been rounded to an assumption that we feel can't be accurately determined as of now and has an infinitesimal difference on the profitability of the company.
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Revenue by Month
Expenses by Month
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Net Profit (or Loss) by Year
Expected return
• ROI (Return on Investment):
Year 5- 575%
• Dividends
In addition we'll be paying out annual dividends of 20% of net income. Our debt gearing will allow us to fund expansion efficiently, which will allow us to pay out annual dividends.
Year 1: R1.8 million
Year 2: R1.64 million
Year 3: R14.62 million
Year 4: R16 million
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Year 5: R32.1 million
Financing
Use of funds
In simple terms, the biggest expense for us will be to convert the facility into a medicinal standard facility, we can commit our R3 million into a farm, which will pass global GAP standards but if we can't obtain an extra R15 500 000 then we won't be able to complete the processing facilities in order to obtain the license. We'll also require an additional 9 950 000 to cover operating expenses and have a cash reserve available.
Completing of processing facilities
We'll commit our entire R3 million into property (R600 000), a pre-licensing greenhouse (R1.7 million) as well as electric fencing (R500, 000) and the remaining R200 000 will have to be deposited into the cash and cash equivalents account and used to pay for JoJo tanks and equipment such as CCTV, which is listed under other non-current assets.
Conversion into medicinal facility
We'll require extra capital to complete our processing facilities in order to pass the Good Manufacturing Processes principal (R2 million). In order to complete our greenhouses to medicinal cultivation standard we'll need a significant capital investment (R13 million)
Preparing to cultivate
We'll now be ready to start cultivation but we'll require capital for COGS, which covers seeds and the freight there of. We'll need R3 000 000 to purchase enough seeds to start growing and this will cost us R2.4 million to fill all of our tunnels. We'll start cloning from there onwards but there will be new innovation with the seeds and we'll need to set aside annual budget to buy new seeds (R500, 000) but that will be paid out of our retained earnings.
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We'll need to pay labour but fortunately enough we've made a deal to most employees incentive based apart from the 3 security guards (250, 000) for the first year and the farm managers' assistants (R200, 000) for the first year.
In order to be operational we'll need to purchase a tractor (R500, 000) as well as solar panels (R200 000) and 2 back-up 2 generators (160 000).
Lastly we'll need to build 2 temporary structures for our security guards and for the farm manager on-site (R250, 000).
Post Cultivation
SG&A will then require us to outsource the transportation of our finished products, which we'll do an an accounts payable basis. But we'd like to set aside (R200, 000) for any hick-ups and if there aren' we'll add it to cash and cash equivalents.
Opex
Our initial operating expenses are low because I've negotiated incentive based terms with most of our business but there will be unforeseen operating expenses and we'd like to keep a safety net of (R2 million) in our cash and cash equivalents account.
Raised funds that we won't use in year 1
We are being safe and raising more than required but any funds that are surplus of our requirements in year 1 will be added to cash and cash equivalents or used for expansion in year 2.
Sources of Funds
Stage 1 Seed Capital-Own Equity
We have R3 million of our own equity that we'll invest in the form of cash, our initial plan is to use this on the property and keep the rest as cash and cash equivalents.
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Stage 2: VC Capital-Syndicated Loans
We'll be approaching various venture capitalists such as yourself with our business plan and do a syndicated loan amounting to R25 million. This is obviously an early investment but it will result in high yields if you do decide to invest at this stage.
Stage 3: Debt leveraging
After the first financial year and revenue, we'll leverage the business by adding debt to the balance sheet. We'll be looking to leverage approximately 30%, which will significantly amplify our returns to the business, our investors and make expansion more efficient. We'll constantly control gearing and pre-negotiate terms of gearing and set clauses in our contract regarding gearing, which suits our equity investors.
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Statements
Projected Profit and Loss
FY2021 FY2022 FY2023 FY2024 FY2025
Revenue ZAR25,920,000 ZAR51,840,000 ZAR172,800,000
ZAR194,400,000
ZAR345,600,000
Direct Costs ZAR8,550,720 ZAR12,650,400 ZAR39,763,224 ZAR44,591,909 ZAR78,462,637
Gross Margin ZAR17,369,280 ZAR39,189,600 ZAR133,036,776 ZAR149,808,091 ZAR267,137,363
Gross Margin % 67% 76% 77% 77% 77%
Operating Expenses
Marketing ZAR500,000 ZAR100,000 ZAR100,000 ZAR100,000 ZAR100,000
Property Tax ZAR3,600 ZAR3,600 ZAR3,600 ZAR3,600 ZAR3,600
Office Supplies ZAR20,000 ZAR20,000 ZAR20,000 ZAR20,000 ZAR20,000
Amortization of Other Current Assets
ZAR3,066,000 ZAR24,164,333 ZAR26,933,167 ZAR32,603,167 ZAR36,555,000
Total Operating Expenses ZAR3,589,600 ZAR24,287,933 ZAR27,056,767 ZAR32,726,767 ZAR36,678,600
Operating Income ZAR13,779,680 ZAR14,901,667 ZAR105,980,00
9ZAR117,081,32
5ZAR230,458,76
2
Interest Incurred ZAR1,281,114 ZAR1,192,179 ZAR1,094,077 ZAR986,986
Depreciation and Amortization ZAR759,524 ZAR2,235,714 ZAR3,319,048 ZAR5,164,285 ZAR6,878,572
Gain or Loss from Sale of Assets
Income Taxes ZAR3,645,644 ZAR3,187,754 ZAR28,411,260 ZAR31,030,429 ZAR62,326,097
Total Expenses ZAR16,545,488 ZAR43,642,916 ZAR99,742,477 ZAR114,607,467
ZAR185,332,892
Net Profit ZAR9,374,512 ZAR8,197,084 ZAR73,057,523 ZAR79,792,533 ZAR160,267,108
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Net Profit / Sales 36% 16% 42% 41% 46%
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Projected Balance Sheet
FY2021 FY2022 FY2023 FY2024 FY2025
Cash ZAR11,452,480 (ZAR13,860,692) (ZAR5,277,990) (ZAR2,113,479) ZAR105,897,135
Accounts Receivable ZAR0 ZAR1,944,000 ZAR6,480,000 ZAR7,290,000 ZAR12,960,000
Inventory ZAR64,800 ZAR261,000 ZAR243,000 ZAR477,000 ZAR477,000
Other Current Assets ZAR29,610,000 ZAR61,853,667 ZAR135,276,500 ZAR205,553,333 ZAR277,038,333
Total Current Assets ZAR41,127,280 ZAR50,197,975 ZAR136,721,51
0ZAR211,206,85
5ZAR396,372,46
8
Long-Term Assets ZAR15,674,000 ZAR15,674,000 ZAR29,674,000 ZAR41,674,000 ZAR53,674,000
Accumulated Depreciation (ZAR759,524) (ZAR2,995,238) (ZAR6,314,286) (ZAR11,478,571) (ZAR18,357,143)
Total Long-Term Assets ZAR14,914,476 ZAR12,678,762 ZAR23,359,714 ZAR30,195,429 ZAR35,316,857
Total Assets ZAR56,041,756 ZAR62,876,737 ZAR160,081,224
ZAR241,402,283
ZAR431,689,325
Accounts Payable ZAR21,600 ZAR87,000 ZAR81,000 ZAR159,000 ZAR159,000
Income Taxes Payable ZAR3,645,644 ZAR3,187,754 ZAR28,411,260 ZAR31,030,429 ZAR62,326,097
Sales Taxes Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Short-Term Debt ZAR979,614 ZAR1,070,541 ZAR1,168,643 ZAR1,275,734 ZAR1,392,639
Prepaid Revenue
Total Current Liabilities ZAR4,646,858 ZAR4,345,295 ZAR29,660,903 ZAR32,465,163 ZAR63,877,736
Long-Term Debt ZAR14,020,386 ZAR12,959,845 ZAR11,791,203 ZAR10,515,468 ZAR9,122,829
Long-Term Liabilities ZAR14,020,386 ZAR12,959,845 ZAR11,791,203 ZAR10,515,468 ZAR9,122,829
Total Liabilities ZAR18,667,244 ZAR17,305,140 ZAR41,452,105 ZAR42,980,632 ZAR73,000,565
Paid-In Capital ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000
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Retained Earnings ZAR9,374,512 ZAR17,571,596 ZAR90,629,119 ZAR170,421,652
Earnings ZAR9,374,512 ZAR8,197,084 ZAR73,057,523 ZAR79,792,533 ZAR160,267,109
Total Owner's Equity ZAR37,374,512 ZAR45,571,596 ZAR118,629,11
9ZAR198,421,65
2ZAR358,688,76
0
Total Liabilities & Equity ZAR56,041,756 ZAR62,876,737 ZAR160,081,22
4ZAR241,402,28
3ZAR431,689,32
5
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Projected Cash Flow Statement
FY2021 FY2022 FY2023 FY2024 FY2025
Net Cash Flow from Operations
Net Profit ZAR9,374,512 ZAR8,197,084 ZAR73,057,523 ZAR79,792,533 ZAR160,267,108
Depreciation & Amortization ZAR3,825,524 ZAR26,400,048 ZAR30,252,214 ZAR37,767,452 ZAR43,433,571
Change in Accounts Receivable
ZAR0 (ZAR1,944,000) (ZAR4,536,000) (ZAR810,000) (ZAR5,670,000)
Change in Inventory (ZAR64,800) (ZAR196,200) ZAR18,000 (ZAR234,000) ZAR0
Change in Accounts Payable
ZAR21,600 ZAR65,400 (ZAR6,000) ZAR78,000 ZAR0
Change in Income Tax Payable
ZAR3,645,644 (ZAR457,890) ZAR25,223,506 ZAR2,619,169 ZAR31,295,668
Change in Sales Tax Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Prepaid Revenue
Net Cash Flow from Operations ZAR16,802,480 ZAR32,064,442 ZAR124,009,24
3ZAR119,213,15
4ZAR229,326,34
8
Investing & Financing
Assets Purchased or Sold
(ZAR48,350,000)
(ZAR56,408,000)
(ZAR114,356,000)
(ZAR114,880,000)
(ZAR120,040,000)
Net Cash from Investing
(ZAR48,350,000)(ZAR56,408,000
)(ZAR114,356,00
0)(ZAR114,880,00
0)(ZAR120,040,00
0)
Investments Received ZAR28,000,000
Dividends & Distributions
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Change in Short-Term Debt
ZAR979,614 ZAR90,927 ZAR98,102 ZAR107,092 ZAR116,905
Change in Long-Term Debt ZAR14,020,386 (ZAR1,060,541) (ZAR1,168,643) (ZAR1,275,734) (ZAR1,392,639)
Net Cash from Financing ZAR43,000,000 (ZAR969,614) (ZAR1,070,541) (ZAR1,168,643) (ZAR1,275,734)
Cash at Beginning of Period ZAR0 ZAR11,452,480 (ZAR13,860,692) (ZAR5,277,990) (ZAR2,113,479)
Net Change in Cash ZAR11,452,480 (ZAR25,313,172) ZAR8,582,702 ZAR3,164,511 ZAR108,010,614
Cash at End of Period ZAR11,452,480 (ZAR13,860,692
) (ZAR5,277,990) (ZAR2,113,479) ZAR105,897,135
Gross Margin by Year
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Net Profit (or Loss) by Year
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AppendixProfit and Loss Statement (With monthly detail)
FY2021 May '20 June '20 July '20 Aug '20 Sept '20 Oct '20 Nov '20 Dec '20 Jan '21 Feb '21 Mar '21 Apr '21
Total Revenue ZAR25,920,000 ZAR0
Total Direct Costs ZAR5,813,520 ZAR85,200 ZAR85,200 ZAR85,200 ZAR85,200 ZAR85,200 ZAR85,200 ZAR85,200 ZAR1,885,200 ZAR85,200 ZAR85,200 ZAR85,200
Gross Margin ZAR20,106,480 (ZAR85,200) (ZAR85,200) (ZAR85,200) (ZAR85,200) (ZAR85,200) (ZAR85,200) (ZAR85,200) (ZAR1,885,200) (ZAR85,200) (ZAR85,200) (ZAR85,200)
Gross Margin % 78%
Operating Expenses
Marketing ZAR500,000
Property Tax ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300
Office Supplies ZAR1,666 ZAR1,666 ZAR1,666 ZAR1,666 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667
Amortization of Other Current Assets
ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR250,000 ZAR250,000 ZAR1,283,000 ZAR1,283,000
Total Operating Expenses
ZAR1,966 ZAR1,966 ZAR1,966 ZAR1,966 ZAR1,967 ZAR1,967 ZAR1,967 ZAR1,967 ZAR751,967 ZAR251,967 ZAR1,284,967 ZAR1,284,967
Operating Income
ZAR20,104,514 (ZAR87,166) (ZAR87,166) (ZAR87,166) (ZAR87,167) (ZAR87,167) (ZAR87,167) (ZAR87,167)(ZAR2,637,167
) (ZAR337,167)(ZAR1,370,167)(ZAR1,370,167
)
Interest Incurred
Depreciation and Amortization ZAR1,786 ZAR1,785 ZAR1,786 ZAR1,786 ZAR1,786 ZAR1,785 ZAR1,786 ZAR1,786 ZAR186,309 ZAR186,310 ZAR186,309 ZAR186,310
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Gain or Loss from Sale of Assets
Income Taxes ZAR5,628,764 (ZAR24,907) (ZAR24,906) (ZAR24,907) (ZAR24,906) (ZAR24,907) (ZAR24,907) (ZAR24,907) (ZAR790,573) (ZAR146,573) (ZAR435,814) (ZAR435,813)
Total Expenses ZAR11,446,036 ZAR64,044 ZAR64,046 ZAR64,045 ZAR64,047 ZAR64,045 ZAR64,046 ZAR64,046 ZAR2,032,903 ZAR376,904 ZAR1,120,662 ZAR1,120,664
Net Profit ZAR14,473,964 (ZAR64,044) (ZAR64,046) (ZAR64,045) (ZAR64,047) (ZAR64,045) (ZAR64,046) (ZAR64,046)(ZAR2,032,903
) (ZAR376,904)(ZAR1,120,662)(ZAR1,120,664
)
Net Profit / Sales 56%
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FY2022 May '21 June '21 July '21 Aug '21 Sept '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22
Total Revenue ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000 ZAR4,320,000
Total Direct Costs ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200 ZAR1,054,200
Gross Margin ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800 ZAR3,265,800
Gross Margin % 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76%
Operating Expenses
Marketing ZAR8,333 ZAR8,334 ZAR8,333 ZAR8,333 ZAR8,334 ZAR8,333 ZAR8,333 ZAR8,334 ZAR8,333 ZAR8,333 ZAR8,334 ZAR8,333
Property Tax ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300
Office Supplies ZAR1,666 ZAR1,666 ZAR1,666 ZAR1,666 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667
Amortization of Other Current Assets
ZAR1,434,722 ZAR1,586,444 ZAR1,738,167 ZAR1,889,889 ZAR2,041,611 ZAR2,193,333 ZAR2,345,056 ZAR2,496,778 ZAR2,398,500 ZAR2,550,222 ZAR1,668,944 ZAR1,820,667
Total Operating Expenses
ZAR1,445,021 ZAR1,596,745 ZAR1,748,465 ZAR1,900,188 ZAR2,051,912 ZAR2,203,634 ZAR2,355,355 ZAR2,507,079 ZAR2,408,800 ZAR2,560,522 ZAR1,679,246 ZAR1,830,966
Operating Income ZAR1,820,779 ZAR1,669,055 ZAR1,517,335 ZAR1,365,612 ZAR1,213,888 ZAR1,062,166 ZAR910,445 ZAR758,721 ZAR857,000 ZAR705,278 ZAR1,586,554 ZAR1,434,834
Interest Incurred ZAR110,000 ZAR109,425 ZAR108,846 ZAR108,263 ZAR107,675 ZAR107,083 ZAR106,487 ZAR105,886 ZAR105,281 ZAR104,672 ZAR104,058 ZAR103,439
Depreciation and Amortization ZAR186,309 ZAR186,310 ZAR186,309 ZAR186,310 ZAR186,309 ZAR186,310 ZAR186,309 ZAR186,310 ZAR186,310 ZAR186,309 ZAR186,310 ZAR186,309
Gain or Loss from Sale of Assets
Income Taxes ZAR426,851 ZAR384,530 ZAR342,210 ZAR299,891 ZAR257,573 ZAR215,257 ZAR172,941 ZAR130,628 ZAR158,314 ZAR116,003 ZAR362,933 ZAR320,623
Total Expenses ZAR3,222,382 ZAR3,331,209 ZAR3,440,031 ZAR3,548,851 ZAR3,657,670 ZAR3,766,482 ZAR3,875,293 ZAR3,984,103 ZAR3,912,904 ZAR4,021,707 ZAR3,386,745 ZAR3,495,539
Net Profit ZAR1,097,618 ZAR988,791 ZAR879,969 ZAR771,149 ZAR662,330 ZAR553,518 ZAR444,707 ZAR335,897 ZAR407,096 ZAR298,293 ZAR933,255 ZAR824,461
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Net Profit / Sales 25% 23% 20% 18% 15% 13% 10% 8% 9% 7% 22% 19%
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FY2023 May '22 June '22 July '22 Aug '22 Sept '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23 Apr '23
Total Revenue ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
ZAR14,400,000
Total Direct Costs ZAR3,313,601 ZAR3,313,601 ZAR3,313,600 ZAR3,313,601 ZAR3,313,601 ZAR3,313,601 ZAR3,313,603 ZAR3,313,603 ZAR3,313,603 ZAR3,313,604 ZAR3,313,603 ZAR3,313,603
Gross Margin ZAR11,086,399 ZAR11,086,399 ZAR11,086,399 ZAR11,086,399 ZAR11,086,399 ZAR11,086,399 ZAR11,086,397 ZAR11,086,397 ZAR11,086,397 ZAR11,086,397 ZAR11,086,397 ZAR11,086,397
Gross Margin % 77% 77% 77% 77% 77% 77% 77% 77% 77% 77% 77% 77%
Operating Expenses
Marketing ZAR8,333 ZAR8,334 ZAR8,333 ZAR8,333 ZAR8,334 ZAR8,333 ZAR8,333 ZAR8,334 ZAR8,333 ZAR8,333 ZAR8,334 ZAR8,333
Property Tax ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300 ZAR300
Office Supplies ZAR1,666 ZAR1,666 ZAR1,666 ZAR1,666 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667 ZAR1,667
Amortization of Other Current Assets
ZAR1,885,861 ZAR1,951,056 ZAR2,016,250 ZAR2,081,444 ZAR2,146,639 ZAR2,211,833 ZAR2,277,028 ZAR2,342,222 ZAR2,407,417 ZAR2,472,611 ZAR2,537,806 ZAR2,603,000
Total Operating Expenses
ZAR1,896,160 ZAR1,961,356 ZAR2,026,549 ZAR2,091,743 ZAR2,156,940 ZAR2,222,134 ZAR2,287,327 ZAR2,352,524 ZAR2,417,716 ZAR2,482,911 ZAR2,548,107 ZAR2,613,300
Operating Income ZAR9,190,239 ZAR9,125,043 ZAR9,059,851 ZAR8,994,655 ZAR8,929,460 ZAR8,864,266 ZAR8,799,069 ZAR8,733,873 ZAR8,668,680 ZAR8,603,486 ZAR8,538,290 ZAR8,473,097
Interest Incurred ZAR102,889 ZAR102,261 ZAR101,628 ZAR100,991 ZAR100,349 ZAR99,702 ZAR99,050 ZAR98,394 ZAR97,733 ZAR97,067 ZAR96,396 ZAR95,720
Depreciation and Amortization ZAR200,199 ZAR214,087 ZAR227,976 ZAR241,865 ZAR255,754 ZAR269,643 ZAR283,532 ZAR297,420 ZAR311,310 ZAR325,198 ZAR339,088 ZAR352,976
Gain or Loss from Sale of Assets
Income Taxes ZAR2,488,403 ZAR2,466,434 ZAR2,444,469 ZAR2,422,504 ZAR2,400,540 ZAR2,378,578 ZAR2,356,616 ZAR2,334,657 ZAR2,312,698 ZAR2,290,742 ZAR2,268,786 ZAR2,246,833
Total Expenses ZAR8,001,252 ZAR8,057,738 ZAR8,114,224 ZAR8,170,704 ZAR8,227,183 ZAR8,283,657 ZAR8,340,129 ZAR8,396,598 ZAR8,453,060 ZAR8,509,521 ZAR8,565,979 ZAR8,622,432
Net Profit ZAR6,398,748 ZAR6,342,262 ZAR6,285,776 ZAR6,229,296 ZAR6,172,817 ZAR6,116,343 ZAR6,059,871 ZAR6,003,402 ZAR5,946,940 ZAR5,890,479 ZAR5,834,021 ZAR5,777,568
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Net Profit / Sales 44% 44% 44% 43% 43% 42% 42% 42% 41% 41% 41% 40%
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FY2021 FY2022 FY2023 FY2024 FY2025
Total Revenue ZAR25,920,000 ZAR51,840,000 ZAR172,800,000 ZAR194,400,000 ZAR345,600,000
Total Direct Costs ZAR8,550,720 ZAR12,650,400 ZAR39,763,224 ZAR44,591,909 ZAR78,462,637
Gross Margin ZAR17,369,280 ZAR39,189,600 ZAR133,036,776 ZAR149,808,091 ZAR267,137,363
Gross Margin % 67% 76% 77% 77% 77%
Operating Expenses
Marketing ZAR500,000 ZAR100,000 ZAR100,000 ZAR100,000 ZAR100,000
Property Tax ZAR3,600 ZAR3,600 ZAR3,600 ZAR3,600 ZAR3,600
Office Supplies ZAR20,000 ZAR20,000 ZAR20,000 ZAR20,000 ZAR20,000
Amortization of Other Current Assets ZAR3,066,000 ZAR24,164,333 ZAR26,933,167 ZAR32,603,167 ZAR36,555,000
Total Operating Expenses ZAR3,589,600 ZAR24,287,933 ZAR27,056,767 ZAR32,726,767 ZAR36,678,600
Operating Income ZAR13,779,680 ZAR14,901,667 ZAR105,980,009 ZAR117,081,325 ZAR230,458,762
Interest Incurred ZAR1,281,114 ZAR1,192,179 ZAR1,094,077 ZAR986,986
Depreciation and Amortization ZAR759,524 ZAR2,235,714 ZAR3,319,048 ZAR5,164,285 ZAR6,878,572
Gain or Loss from Sale of Assets
Income Taxes ZAR3,645,644 ZAR3,187,754 ZAR28,411,260 ZAR31,030,429 ZAR62,326,097
Total Expenses ZAR16,545,488 ZAR43,642,916 ZAR99,742,477 ZAR114,607,467 ZAR185,332,892
Net Profit ZAR9,374,512 ZAR8,197,084 ZAR73,057,523 ZAR79,792,533 ZAR160,267,108
Net Profit / Sales 36% 16% 42% 41% 46%
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Balance Sheet (With Monthly Detail)
FY2021 May '20 June '20 July '20 Aug '20 Sept '20 Oct '20 Nov '20 Dec '20 Jan '21 Feb '21 Mar '21 Apr '21
Cash ZAR15,243,314 ZAR19,044,148 ZAR22,780,182 ZAR47,693,016 ZAR47,605,849 ZAR46,618,682 ZAR46,531,515 ZAR45,544,348 ZAR26,457,181 ZAR26,359,214 (ZAR3,438,753) ZAR11,452,480
Accounts Receivable ZAR7,776,000 ZAR3,888,000 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Inventory ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR1,800,000 ZAR1,800,000 ZAR1,800,000 ZAR0 ZAR21,600 ZAR43,200 ZAR64,800
Other Current Assets ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR2,750,000 ZAR2,500,000 ZAR30,893,000 ZAR29,610,000
Total Current Assets
ZAR23,019,314
ZAR22,932,148
ZAR22,780,182
ZAR47,693,016
ZAR47,605,849
ZAR48,418,682
ZAR48,331,515
ZAR47,344,348
ZAR29,207,181
ZAR28,880,814
ZAR27,497,447
ZAR41,127,280
Long-Term Assets ZAR150,000 ZAR150,000 ZAR150,000 ZAR150,000 ZAR150,000 ZAR150,000 ZAR150,000 ZAR150,000 ZAR15,650,000 ZAR15,650,000 ZAR15,674,000 ZAR15,674,000
Accumulated Depreciation (ZAR1,786) (ZAR3,571) (ZAR5,357) (ZAR7,143) (ZAR8,929) (ZAR10,714) (ZAR12,500) (ZAR14,286) (ZAR200,595) (ZAR386,905) (ZAR573,214) (ZAR759,524)
Total Long-Term Assets ZAR148,214 ZAR146,429 ZAR144,643 ZAR142,857 ZAR141,071 ZAR139,286 ZAR137,500 ZAR135,714 ZAR15,449,40
5ZAR15,263,09
5ZAR15,100,78
6ZAR14,914,47
6
Total Assets ZAR23,167,528
ZAR23,078,577
ZAR22,924,825
ZAR47,835,873
ZAR47,746,920
ZAR48,557,968
ZAR48,469,015
ZAR47,480,062
ZAR44,656,586
ZAR44,143,909
ZAR42,598,233
ZAR56,041,756
Accounts Payable ZAR64,800 ZAR64,800 ZAR0 ZAR0 ZAR0 ZAR900,000 ZAR900,000 ZAR0 ZAR0 ZAR10,800 ZAR21,600 ZAR21,600
Income Taxes Payable ZAR5,628,764 ZAR5,603,857 ZAR5,578,951 ZAR5,554,044 ZAR5,529,138 ZAR5,504,231 ZAR5,479,324 ZAR5,454,417 ZAR4,663,844 ZAR4,517,271 ZAR4,081,457 ZAR3,645,644
Sales Taxes Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Short-Term Debt ZAR979,614
Prepaid Revenue
Total Current Liabilities ZAR5,693,564 ZAR5,668,657 ZAR5,578,951 ZAR5,554,044 ZAR5,529,138 ZAR6,404,231 ZAR6,379,324 ZAR5,454,417 ZAR4,663,844 ZAR4,528,071 ZAR4,103,057 ZAR4,646,858
Long-Term Debt ZAR14,020,386
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Long-Term Liabilities
ZAR14,020,386
Total Liabilities ZAR5,693,564 ZAR5,668,657 ZAR5,578,951 ZAR5,554,044 ZAR5,529,138 ZAR6,404,231 ZAR6,379,324 ZAR5,454,417 ZAR4,663,844 ZAR4,528,071 ZAR4,103,057 ZAR18,667,24
4
Paid-In Capital ZAR3,000,000 ZAR3,000,000 ZAR3,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000
Retained Earnings
Earnings ZAR14,473,964 ZAR14,409,920 ZAR14,345,874 ZAR14,281,829 ZAR14,217,782 ZAR14,153,737 ZAR14,089,691 ZAR14,025,645 ZAR11,992,742 ZAR11,615,838 ZAR10,495,176 ZAR9,374,512
Total Owner's Equity
ZAR17,473,964
ZAR17,409,920
ZAR17,345,874
ZAR42,281,829
ZAR42,217,782
ZAR42,153,737
ZAR42,089,691
ZAR42,025,645
ZAR39,992,742
ZAR39,615,838
ZAR38,495,176
ZAR37,374,512
Total Liabilities & Equity
ZAR23,167,528
ZAR23,078,577
ZAR22,924,825
ZAR47,835,873
ZAR47,746,920
ZAR48,557,968
ZAR48,469,015
ZAR47,480,062
ZAR44,656,586
ZAR44,143,909
ZAR42,598,233
ZAR56,041,756
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FY2022 May '21 June '21 July '21 Aug '21 Sept '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22
Cash ZAR8,522,920 ZAR6,241,360 ZAR962,156 (ZAR671,404) (ZAR2,304,965) (ZAR3,938,526) (ZAR5,572,087) (ZAR7,205,648) (ZAR8,839,209) (ZAR10,505,470) (ZAR12,171,731) (ZAR13,860,692)
Accounts Receivable ZAR1,296,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000 ZAR1,944,000
Inventory ZAR64,800 ZAR64,800 ZAR64,800 ZAR64,800 ZAR64,800 ZAR64,800 ZAR64,800 ZAR64,800 ZAR64,800 ZAR130,200 ZAR195,600 ZAR261,000
Other Current Assets ZAR32,875,945 ZAR35,990,166 ZAR38,952,667 ZAR41,763,445 ZAR44,422,500 ZAR46,929,833 ZAR49,285,445 ZAR51,489,333 ZAR53,791,500 ZAR55,941,945 ZAR58,973,666 ZAR61,853,667
Total Current Assets
ZAR42,759,665
ZAR44,240,326
ZAR41,923,623
ZAR43,100,841
ZAR44,126,335
ZAR45,000,107
ZAR45,722,158
ZAR46,292,485
ZAR46,961,091
ZAR47,510,675
ZAR48,941,535
ZAR50,197,975
Long-Term Assets ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000 ZAR15,674,000
Accumulated Depreciation (ZAR945,833) (ZAR1,132,143) (ZAR1,318,452) (ZAR1,504,762) (ZAR1,691,071) (ZAR1,877,381) (ZAR2,063,690) (ZAR2,250,000) (ZAR2,436,310) (ZAR2,622,619) (ZAR2,808,929) (ZAR2,995,238)
Total Long-Term Assets
ZAR14,728,167
ZAR14,541,857
ZAR14,355,548
ZAR14,169,238
ZAR13,982,929
ZAR13,796,619
ZAR13,610,310
ZAR13,424,000
ZAR13,237,690
ZAR13,051,381
ZAR12,865,071
ZAR12,678,762
Total Assets ZAR57,487,831
ZAR58,782,183
ZAR56,279,170
ZAR57,270,079
ZAR58,109,263
ZAR58,796,726
ZAR59,332,467
ZAR59,716,485
ZAR60,198,781
ZAR60,562,056
ZAR61,806,607
ZAR62,876,737
Accounts Payable ZAR21,600 ZAR21,600 ZAR21,600 ZAR21,600 ZAR21,600 ZAR21,600 ZAR21,600 ZAR21,600 ZAR21,600 ZAR54,300 ZAR87,000 ZAR87,000
Income Taxes Payable ZAR4,072,495 ZAR4,457,025 ZAR1,153,591 ZAR1,453,482 ZAR1,711,055 ZAR1,926,312 ZAR2,099,253 ZAR2,229,881 ZAR2,388,195 ZAR2,504,198 ZAR2,867,131 ZAR3,187,754
Sales Taxes Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Short-Term Debt ZAR986,798 ZAR994,034 ZAR1,001,324 ZAR1,008,667 ZAR1,016,064 ZAR1,023,515 ZAR1,031,020 ZAR1,038,581 ZAR1,046,198 ZAR1,053,870 ZAR1,061,598 ZAR1,070,541
Prepaid Revenue
Total Current Liabilities ZAR5,080,893 ZAR5,472,659 ZAR2,176,515 ZAR2,483,749 ZAR2,748,719 ZAR2,971,427 ZAR3,151,873 ZAR3,290,062 ZAR3,455,993 ZAR3,612,368 ZAR4,015,729 ZAR4,345,295
Long-Term Debt ZAR13,934,808 ZAR13,848,603 ZAR13,761,766 ZAR13,674,291 ZAR13,586,175 ZAR13,497,413 ZAR13,408,000 ZAR13,317,932 ZAR13,227,202 ZAR13,135,808 ZAR13,043,743 ZAR12,959,845
Long-Term Liabilities
ZAR13,934,808
ZAR13,848,603
ZAR13,761,766
ZAR13,674,291
ZAR13,586,175
ZAR13,497,413
ZAR13,408,000
ZAR13,317,932
ZAR13,227,202
ZAR13,135,808
ZAR13,043,743
ZAR12,959,845
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Total Liabilities
ZAR19,015,701
ZAR19,321,262
ZAR15,938,280
ZAR16,158,040
ZAR16,334,894
ZAR16,468,840
ZAR16,559,874
ZAR16,607,994
ZAR16,683,195
ZAR16,748,176
ZAR17,059,472
ZAR17,305,140
Paid-In Capital ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000
Retained Earnings ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512 ZAR9,374,512
Earnings ZAR1,097,618 ZAR2,086,409 ZAR2,966,378 ZAR3,737,527 ZAR4,399,857 ZAR4,953,374 ZAR5,398,081 ZAR5,733,979 ZAR6,141,074 ZAR6,439,368 ZAR7,372,622 ZAR8,197,084
Total Owner's Equity
ZAR38,472,130
ZAR39,460,921
ZAR40,340,890
ZAR41,112,039
ZAR41,774,369
ZAR42,327,887
ZAR42,772,594
ZAR43,108,491
ZAR43,515,587
ZAR43,813,880
ZAR44,747,135
ZAR45,571,596
Total Liabilities & Equity
ZAR57,487,831
ZAR58,782,183
ZAR56,279,170
ZAR57,270,079
ZAR58,109,263
ZAR58,796,726
ZAR59,332,467
ZAR59,716,485
ZAR60,198,781
ZAR60,562,056
ZAR61,806,607
ZAR62,876,737
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FY2023 May '22 June '22 July '22 Aug '22 Sept '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23 Apr '23
Cash (ZAR15,526,819) (ZAR15,680,946) (ZAR17,510,826) (ZAR16,152,953) (ZAR14,795,081) (ZAR13,437,209) (ZAR12,079,339) (ZAR10,721,469) (ZAR9,363,599) (ZAR8,002,730) (ZAR6,641,860) (ZAR5,277,990)
Accounts Receivable ZAR4,968,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000 ZAR6,480,000
Inventory ZAR261,000 ZAR261,000 ZAR261,000 ZAR261,000 ZAR261,000 ZAR261,000 ZAR261,000 ZAR261,000 ZAR261,000 ZAR255,000 ZAR249,000 ZAR243,000
Other Current Assets ZAR68,330,806 ZAR74,742,750 ZAR81,089,500 ZAR87,371,056 ZAR93,587,417 ZAR99,738,583 ZAR105,824,556 ZAR111,845,333 ZAR117,800,917 ZAR123,691,306 ZAR129,516,500 ZAR135,276,500
Total Current Assets
ZAR58,032,987
ZAR65,802,804
ZAR70,319,674
ZAR77,959,102
ZAR85,533,336
ZAR93,042,375
ZAR100,486,217
ZAR107,864,864
ZAR115,178,317
ZAR122,423,576
ZAR129,603,640
ZAR136,721,510
Long-Term Assets ZAR16,840,667 ZAR18,007,333 ZAR19,174,000 ZAR20,340,667 ZAR21,507,333 ZAR22,674,000 ZAR23,840,667 ZAR25,007,333 ZAR26,174,000 ZAR27,340,667 ZAR28,507,333 ZAR29,674,000
Accumulated Depreciation (ZAR3,195,437) (ZAR3,409,524) (ZAR3,637,500) (ZAR3,879,365) (ZAR4,135,119) (ZAR4,404,762) (ZAR4,688,294) (ZAR4,985,714) (ZAR5,297,024) (ZAR5,622,222) (ZAR5,961,310) (ZAR6,314,286)
Total Long-Term Assets
ZAR13,645,230
ZAR14,597,809
ZAR15,536,500
ZAR16,461,302
ZAR17,372,214
ZAR18,269,238
ZAR19,152,373
ZAR20,021,619
ZAR20,876,976
ZAR21,718,445
ZAR22,546,023
ZAR23,359,714
Total Assets ZAR71,678,217
ZAR80,400,614
ZAR85,856,174
ZAR94,420,404
ZAR102,905,550
ZAR111,311,613
ZAR119,638,590
ZAR127,886,483
ZAR136,055,293
ZAR144,142,021
ZAR152,149,664
ZAR160,081,224
Accounts Payable ZAR87,000 ZAR87,000 ZAR87,000 ZAR87,000 ZAR87,000 ZAR87,000 ZAR87,000 ZAR87,000 ZAR87,000 ZAR84,000 ZAR81,000 ZAR81,000
Income Taxes Payable ZAR5,676,157 ZAR8,142,591 ZAR7,399,306 ZAR9,821,810 ZAR12,222,350 ZAR14,600,928 ZAR16,957,544 ZAR19,292,201 ZAR21,604,899 ZAR23,895,641 ZAR26,164,427 ZAR28,411,260
Sales Taxes Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Short-Term Debt ZAR1,078,392 ZAR1,086,300 ZAR1,094,266 ZAR1,102,291 ZAR1,110,374 ZAR1,118,517 ZAR1,126,719 ZAR1,134,982 ZAR1,143,305 ZAR1,151,689 ZAR1,160,135 ZAR1,168,643
Prepaid Revenue
Total Current Liabilities ZAR6,841,549 ZAR9,315,891 ZAR8,580,572 ZAR11,011,10
1ZAR13,419,72
4ZAR15,806,44
5ZAR18,171,26
3ZAR20,514,18
3ZAR22,835,20
4ZAR25,131,33
0ZAR27,405,56
2ZAR29,660,90
3
Long-Term Debt ZAR12,866,324 ZAR12,772,117 ZAR12,677,219 ZAR12,581,626 ZAR12,485,331 ZAR12,388,330 ZAR12,290,618 ZAR12,192,189 ZAR12,093,038 ZAR11,993,161 ZAR11,892,550 ZAR11,791,203
Long-Term Liabilities
ZAR12,866,324
ZAR12,772,117
ZAR12,677,219
ZAR12,581,626
ZAR12,485,331
ZAR12,388,330
ZAR12,290,618
ZAR12,192,189
ZAR12,093,038
ZAR11,993,161
ZAR11,892,550
ZAR11,791,203
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Total Liabilities
ZAR19,707,873
ZAR22,088,008
ZAR21,257,791
ZAR23,592,726
ZAR25,905,055
ZAR28,194,775
ZAR30,461,881
ZAR32,706,372
ZAR34,928,243
ZAR37,124,491
ZAR39,298,113
ZAR41,452,105
Paid-In Capital ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000
Retained Earnings ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596 ZAR17,571,596
Earnings ZAR6,398,748 ZAR12,741,009 ZAR19,026,786 ZAR25,256,082 ZAR31,428,898 ZAR37,545,241 ZAR43,605,113 ZAR49,608,515 ZAR55,555,455 ZAR61,445,933 ZAR67,279,955 ZAR73,057,523
Total Owner's Equity
ZAR51,970,344
ZAR58,312,606
ZAR64,598,382
ZAR70,827,678
ZAR77,000,495
ZAR83,116,838
ZAR89,176,709
ZAR95,180,111
ZAR101,127,051
ZAR107,017,530
ZAR112,851,551
ZAR118,629,119
Total Liabilities & Equity
ZAR71,678,217
ZAR80,400,614
ZAR85,856,174
ZAR94,420,404
ZAR102,905,550
ZAR111,311,613
ZAR119,638,590
ZAR127,886,483
ZAR136,055,293
ZAR144,142,021
ZAR152,149,664
ZAR160,081,224
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FY2021 FY2022 FY2023 FY2024 FY2025
Cash ZAR11,452,480 (ZAR13,860,692) (ZAR5,277,990) (ZAR2,113,479) ZAR105,897,135
Accounts Receivable ZAR0 ZAR1,944,000 ZAR6,480,000 ZAR7,290,000 ZAR12,960,000
Inventory ZAR64,800 ZAR261,000 ZAR243,000 ZAR477,000 ZAR477,000
Other Current Assets ZAR29,610,000 ZAR61,853,667 ZAR135,276,500 ZAR205,553,333 ZAR277,038,333
Total Current Assets ZAR41,127,280 ZAR50,197,975 ZAR136,721,510 ZAR211,206,855 ZAR396,372,468
Long-Term Assets ZAR15,674,000 ZAR15,674,000 ZAR29,674,000 ZAR41,674,000 ZAR53,674,000
Accumulated Depreciation (ZAR759,524) (ZAR2,995,238) (ZAR6,314,286) (ZAR11,478,571) (ZAR18,357,143)
Total Long-Term Assets ZAR14,914,476 ZAR12,678,762 ZAR23,359,714 ZAR30,195,429 ZAR35,316,857
Total Assets ZAR56,041,756 ZAR62,876,737 ZAR160,081,224 ZAR241,402,283 ZAR431,689,325
Accounts Payable ZAR21,600 ZAR87,000 ZAR81,000 ZAR159,000 ZAR159,000
Income Taxes Payable ZAR3,645,644 ZAR3,187,754 ZAR28,411,260 ZAR31,030,429 ZAR62,326,097
Sales Taxes Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Short-Term Debt ZAR979,614 ZAR1,070,541 ZAR1,168,643 ZAR1,275,734 ZAR1,392,639
Prepaid Revenue
Total Current Liabilities ZAR4,646,858 ZAR4,345,295 ZAR29,660,903 ZAR32,465,163 ZAR63,877,736
Long-Term Debt ZAR14,020,386 ZAR12,959,845 ZAR11,791,203 ZAR10,515,468 ZAR9,122,829
Long-Term Liabilities ZAR14,020,386 ZAR12,959,845 ZAR11,791,203 ZAR10,515,468 ZAR9,122,829
Total Liabilities ZAR18,667,244 ZAR17,305,140 ZAR41,452,105 ZAR42,980,632 ZAR73,000,565
Paid-In Capital ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000 ZAR28,000,000
Retained Earnings ZAR9,374,512 ZAR17,571,596 ZAR90,629,119 ZAR170,421,652
Earnings ZAR9,374,512 ZAR8,197,084 ZAR73,057,523 ZAR79,792,533 ZAR160,267,109
Total Owner's Equity ZAR37,374,512 ZAR45,571,596 ZAR118,629,119 ZAR198,421,652 ZAR358,688,760
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Total Liabilities & Equity ZAR56,041,756 ZAR62,876,737 ZAR160,081,224 ZAR241,402,283 ZAR431,689,325
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Cash Flow Statement (With Monthly Detail)
FY2021 May '20 June '20 July '20 Aug '20 Sept '20 Oct '20 Nov '20 Dec '20 Jan '21 Feb '21 Mar '21 Apr '21
Net Cash Flow from Operations
Net Profit ZAR14,473,964 (ZAR64,044) (ZAR64,046) (ZAR64,045) (ZAR64,047) (ZAR64,045) (ZAR64,046) (ZAR64,046) (ZAR2,032,903) (ZAR376,904) (ZAR1,120,662) (ZAR1,120,664)
Depreciation & Amortization ZAR1,786 ZAR1,786 ZAR1,786 ZAR1,786 ZAR1,786 ZAR1,786 ZAR1,786 ZAR1,786 ZAR436,310 ZAR436,310 ZAR1,469,310 ZAR1,469,310
Change in Accounts Receivable
(ZAR7,776,000) ZAR3,888,000 ZAR3,888,000 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Inventory ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 (ZAR1,800,000) ZAR0 ZAR0 ZAR1,800,000 (ZAR21,600) (ZAR21,600) (ZAR21,600)
Change in Accounts Payable
ZAR64,800 ZAR0 (ZAR64,800) ZAR0 ZAR0 ZAR900,000 ZAR0 (ZAR900,000) ZAR0 ZAR10,800 ZAR10,800 ZAR0
Change in Income Tax Payable
ZAR5,628,764 (ZAR24,907) (ZAR24,906) (ZAR24,907) (ZAR24,906) (ZAR24,907) (ZAR24,907) (ZAR24,907) (ZAR790,573) (ZAR146,573) (ZAR435,814) (ZAR435,813)
Change in Sales Tax Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Prepaid Revenue
Net Cash Flow from Operations
ZAR12,393,314 ZAR3,800,834 ZAR3,736,034 (ZAR87,166) (ZAR87,167) (ZAR987,167) (ZAR87,167) (ZAR987,167) (ZAR587,167) (ZAR97,967) (ZAR97,967) (ZAR108,767)
Investing & Financing
Assets Purchased or Sold
(ZAR150,000) (ZAR18,500,000)
(ZAR29,700,000)
Net Cash from Investing (ZAR150,000) (ZAR18,500,00
0)(ZAR29,700,00
0)
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Investments Received ZAR3,000,000 ZAR25,000,000
Dividends & Distributions
Change in Short-Term Debt
ZAR979,614
Change in Long-Term Debt
ZAR14,020,386
Net Cash from Financing ZAR3,000,000 ZAR25,000,00
0ZAR15,000,00
0
Cash at Beginning of Period ZAR0 ZAR15,243,314 ZAR19,044,148 ZAR22,780,182 ZAR47,693,016 ZAR47,605,849 ZAR46,618,682 ZAR46,531,515 ZAR45,544,348 ZAR26,457,181 ZAR26,359,214 (ZAR3,438,753)
Net Change in Cash ZAR15,243,314 ZAR3,800,834 ZAR3,736,034 ZAR24,912,834 (ZAR87,167) (ZAR987,167) (ZAR87,167) (ZAR987,167) (ZAR19,087,167) (ZAR97,967) (ZAR29,797,967) ZAR14,891,233
Cash at End of Period
ZAR15,243,314
ZAR19,044,148
ZAR22,780,182
ZAR47,693,016
ZAR47,605,849
ZAR46,618,682
ZAR46,531,515
ZAR45,544,348
ZAR26,457,181
ZAR26,359,214
(ZAR3,438,753)
ZAR11,452,480
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FY2022 May '21 June '21 July '21 Aug '21 Sept '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22
Net Cash Flow from Operations
Net Profit ZAR1,097,618 ZAR988,791 ZAR879,969 ZAR771,149 ZAR662,330 ZAR553,518 ZAR444,707 ZAR335,897 ZAR407,096 ZAR298,293 ZAR933,255 ZAR824,461
Depreciation & Amortization ZAR1,621,032 ZAR1,772,754 ZAR1,924,476 ZAR2,076,198 ZAR2,227,921 ZAR2,379,643 ZAR2,531,365 ZAR2,683,087 ZAR2,584,810 ZAR2,736,532 ZAR1,855,254 ZAR2,006,976
Change in Accounts Receivable
(ZAR1,296,000) (ZAR648,000) ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Inventory ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 (ZAR65,400) (ZAR65,400) (ZAR65,400)
Change in Accounts Payable
ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR32,700 ZAR32,700 ZAR0
Change in Income Tax Payable
ZAR426,851 ZAR384,530 (ZAR3,303,434) ZAR299,891 ZAR257,573 ZAR215,257 ZAR172,941 ZAR130,628 ZAR158,314 ZAR116,003 ZAR362,933 ZAR320,623
Change in Sales Tax Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Prepaid Revenue
Net Cash Flow from Operations
ZAR1,849,501 ZAR2,498,075 (ZAR498,989) ZAR3,147,238 ZAR3,147,824 ZAR3,148,417 ZAR3,149,013 ZAR3,149,613 ZAR3,150,219 ZAR3,118,128 ZAR3,118,741 ZAR3,086,661
Investing & Financing
Assets Purchased or Sold
(ZAR4,700,667) (ZAR4,700,666) (ZAR4,700,667) (ZAR4,700,667) (ZAR4,700,666) (ZAR4,700,667) (ZAR4,700,667) (ZAR4,700,666) (ZAR4,700,667) (ZAR4,700,667) (ZAR4,700,666) (ZAR4,700,667)
Net Cash from Investing
(ZAR4,700,667)(ZAR4,700,666
)(ZAR4,700,667
)(ZAR4,700,667
)(ZAR4,700,666
)(ZAR4,700,667
)(ZAR4,700,667
)(ZAR4,700,666
)(ZAR4,700,667
)(ZAR4,700,667
)(ZAR4,700,666
)(ZAR4,700,667
)
Investments Received
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Dividends & Distributions
Change in Short-Term Debt
ZAR7,184 ZAR7,237 ZAR7,290 ZAR7,343 ZAR7,397 ZAR7,451 ZAR7,506 ZAR7,561 ZAR7,616 ZAR7,672 ZAR7,728 ZAR8,943
Change in Long-Term Debt
(ZAR85,578) (ZAR86,205) (ZAR86,838) (ZAR87,474) (ZAR88,116) (ZAR88,762) (ZAR89,413) (ZAR90,069) (ZAR90,729) (ZAR91,395) (ZAR92,065) (ZAR83,898)
Net Cash from Financing (ZAR78,394) (ZAR78,969) (ZAR79,548) (ZAR80,131) (ZAR80,719) (ZAR81,311) (ZAR81,907) (ZAR82,508) (ZAR83,113) (ZAR83,722) (ZAR84,336) (ZAR74,955)
Cash at Beginning of Period ZAR11,452,480 ZAR8,522,920 ZAR6,241,360 ZAR962,156 (ZAR671,404) (ZAR2,304,965) (ZAR3,938,526) (ZAR5,572,087) (ZAR7,205,648) (ZAR8,839,209) (ZAR10,505,470) (ZAR12,171,731)
Net Change in Cash (ZAR2,929,560) (ZAR2,281,560) (ZAR5,279,204) (ZAR1,633,560) (ZAR1,633,561) (ZAR1,633,561) (ZAR1,633,561) (ZAR1,633,561) (ZAR1,633,561) (ZAR1,666,261) (ZAR1,666,261) (ZAR1,688,961)
Cash at End of Period ZAR8,522,920 ZAR6,241,360 ZAR962,156 (ZAR671,404)(ZAR2,304,965
)(ZAR3,938,526
)(ZAR5,572,087
)(ZAR7,205,648
)(ZAR8,839,209
)(ZAR10,505,47
0)(ZAR12,171,73
1)(ZAR13,860,69
2)
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FY2023 May '22 June '22 July '22 Aug '22 Sept '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23 Apr '23
Net Cash Flow from Operations
Net Profit ZAR6,398,748 ZAR6,342,262 ZAR6,285,776 ZAR6,229,296 ZAR6,172,817 ZAR6,116,343 ZAR6,059,871 ZAR6,003,402 ZAR5,946,940 ZAR5,890,479 ZAR5,834,021 ZAR5,777,568
Depreciation & Amortization ZAR2,086,060 ZAR2,165,143 ZAR2,244,226 ZAR2,323,310 ZAR2,402,393 ZAR2,481,476 ZAR2,560,559 ZAR2,639,643 ZAR2,718,726 ZAR2,797,810 ZAR2,876,893 ZAR2,955,976
Change in Accounts Receivable
(ZAR3,024,000) (ZAR1,512,000) ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Inventory ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR6,000 ZAR6,000 ZAR6,000
Change in Accounts Payable
ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 (ZAR3,000) (ZAR3,000) ZAR0
Change in Income Tax Payable
ZAR2,488,403 ZAR2,466,434 (ZAR743,285) ZAR2,422,504 ZAR2,400,540 ZAR2,378,578 ZAR2,356,616 ZAR2,334,657 ZAR2,312,698 ZAR2,290,742 ZAR2,268,786 ZAR2,246,833
Change in Sales Tax Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Prepaid Revenue
Net Cash Flow from Operations
ZAR7,949,211 ZAR9,461,838 ZAR7,786,718 ZAR10,975,109
ZAR10,975,749
ZAR10,976,397
ZAR10,977,047
ZAR10,977,702
ZAR10,978,364
ZAR10,982,030
ZAR10,982,700
ZAR10,986,377
Investing & Financing
Assets Purchased or Sold
(ZAR9,529,667) (ZAR9,529,666) (ZAR9,529,667) (ZAR9,529,667) (ZAR9,529,666) (ZAR9,529,667) (ZAR9,529,667) (ZAR9,529,666) (ZAR9,529,667) (ZAR9,529,667) (ZAR9,529,666) (ZAR9,529,667)
Net Cash from Investing
(ZAR9,529,667)(ZAR9,529,666
)(ZAR9,529,667
)(ZAR9,529,667
)(ZAR9,529,666
)(ZAR9,529,667
)(ZAR9,529,667
)(ZAR9,529,666
)(ZAR9,529,667
)(ZAR9,529,667
)(ZAR9,529,666
)(ZAR9,529,667
)
Investments Received
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Dividends & Distributions
Change in Short-Term Debt
ZAR7,851 ZAR7,908 ZAR7,966 ZAR8,025 ZAR8,083 ZAR8,143 ZAR8,202 ZAR8,263 ZAR8,323 ZAR8,384 ZAR8,446 ZAR8,508
Change in Long-Term Debt
(ZAR93,521) (ZAR94,207) (ZAR94,898) (ZAR95,594) (ZAR96,295) (ZAR97,001) (ZAR97,712) (ZAR98,429) (ZAR99,151) (ZAR99,878) (ZAR100,610) (ZAR101,348)
Net Cash from Financing (ZAR85,671) (ZAR86,299) (ZAR86,932) (ZAR87,569) (ZAR88,211) (ZAR88,858) (ZAR89,510) (ZAR90,166) (ZAR90,827) (ZAR91,493) (ZAR92,164) (ZAR92,840)
Cash at Beginning of Period (ZAR13,860,692) (ZAR15,526,819) (ZAR15,680,946) (ZAR17,510,826) (ZAR16,152,953) (ZAR14,795,081) (ZAR13,437,209) (ZAR12,079,339) (ZAR10,721,469) (ZAR9,363,599) (ZAR8,002,730) (ZAR6,641,860)
Net Change in Cash (ZAR1,666,127) (ZAR154,127) (ZAR1,829,881) ZAR1,357,873 ZAR1,357,872 ZAR1,357,872 ZAR1,357,870 ZAR1,357,870 ZAR1,357,870 ZAR1,360,870 ZAR1,360,870 ZAR1,363,870
Cash at End of Period
(ZAR15,526,819)
(ZAR15,680,946)
(ZAR17,510,826)
(ZAR16,152,953)
(ZAR14,795,081)
(ZAR13,437,209)
(ZAR12,079,339)
(ZAR10,721,469)
(ZAR9,363,599)(ZAR8,002,730
)(ZAR6,641,860
)(ZAR5,277,990
)
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FY2021 FY2022 FY2023 FY2024 FY2025
Net Cash Flow from Operations
Net Profit ZAR9,374,512 ZAR8,197,084 ZAR73,057,523 ZAR79,792,533 ZAR160,267,108
Depreciation & Amortization ZAR3,825,524 ZAR26,400,048 ZAR30,252,214 ZAR37,767,452 ZAR43,433,571
Change in Accounts Receivable ZAR0 (ZAR1,944,000) (ZAR4,536,000) (ZAR810,000) (ZAR5,670,000)
Change in Inventory (ZAR64,800) (ZAR196,200) ZAR18,000 (ZAR234,000) ZAR0
Change in Accounts Payable ZAR21,600 ZAR65,400 (ZAR6,000) ZAR78,000 ZAR0
Change in Income Tax Payable ZAR3,645,644 (ZAR457,890) ZAR25,223,506 ZAR2,619,169 ZAR31,295,668
Change in Sales Tax Payable ZAR0 ZAR0 ZAR0 ZAR0 ZAR0
Change in Prepaid Revenue
Net Cash Flow from Operations ZAR16,802,480 ZAR32,064,442 ZAR124,009,243 ZAR119,213,154 ZAR229,326,348
Investing & Financing
Assets Purchased or Sold (ZAR48,350,000) (ZAR56,408,000) (ZAR114,356,000) (ZAR114,880,000) (ZAR120,040,000)
Net Cash from Investing (ZAR48,350,000) (ZAR56,408,000) (ZAR114,356,000) (ZAR114,880,000) (ZAR120,040,000)
Investments Received ZAR28,000,000
Dividends & Distributions
Change in Short-Term Debt ZAR979,614 ZAR90,927 ZAR98,102 ZAR107,092 ZAR116,905
Change in Long-Term Debt ZAR14,020,386 (ZAR1,060,541) (ZAR1,168,643) (ZAR1,275,734) (ZAR1,392,639)
Net Cash from Financing ZAR43,000,000 (ZAR969,614) (ZAR1,070,541) (ZAR1,168,643) (ZAR1,275,734)
Cash at Beginning of Period ZAR0 ZAR11,452,480 (ZAR13,860,692) (ZAR5,277,990) (ZAR2,113,479)
Net Change in Cash ZAR11,452,480 (ZAR25,313,172) ZAR8,582,702 ZAR3,164,511 ZAR108,010,614
Cash at End of Period ZAR11,452,480 (ZAR13,860,692) (ZAR5,277,990) (ZAR2,113,479) ZAR105,897,135