Williams Plumbing 2018 Prepared for Williams Plumbing 05 December 2018

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Prepared for 5 December 218 Page 1/22

Data Reporting Period Period End 3-6-215 3-6-216 3-6-217 3-6-218 Period Length (months) 12 12 12 12 Profit & Loss Revenue 18,, 31,5, 35,, 42,, Gross Margin ($) 4,8, 9,1, 1,5, 13,2, Operating Profit 1,5, 2,56, 3,75,1 4,62, Net Profit (After Tax) 9, 1,154,56 1,652,68 2,83,22 Other Information Depreciation & Amortisation Interest Paid 58, 756, 1,165,9 1,363,48 Extraordinary Income/Expenses Distributions/Dividends Balance Sheet Assets Total Assets 14,7, 2,899,5 25,549,29 32,421,644 Cash 7, Accounts Receivable 4,1, 4,315,6 6,712,33 8,63,137 Inventory 6,2, 9,84,44 1,336,96 14,291,57 Total Current Assets 1,2, 13,399,5 17,49,29 22,921,644 Fixed Assets 4,5, 7,5, 8,5, 9,5, Liabilities Total Liabilities 12,, 15,51,18 18,48,29 22,837,621 Accounts Payable 4,, 4,29, 4,28,55 5,557,88 Total Current Liabilities 7,, 6,51,18 9,48,29 12,837,621 Funding Bank Loans - Current 1,2, 1,761,18 5,19,74 7,279,813 Bank Loans - Non Current 4,, 9,, 9,, 1,, Page 2/22

Power of One Your Power of One Net Cash Flow Operating Profit Your Current Position -3,26,73 4,62, Your Power of One Impact on Cash Flow Impact on Operating Profit Price Increase % 1 % 333,699 42, Volume Increase % 1 % -43,438 13,2 COGS Reduction % 1 % 377,137 289,8 Overheads Reduction % 1 % 84, 84, Reduction in Accounts Receivable Days 1 days 115,68 Reduction in Inventory Days 1 days 79,397 Increase in Accounts Payable Days 1 days 79,397 Your Power of One Impact 1,25,26 924, Net Cash Flow Operating Profit Your Adjusted Position -2,234,813 5,544, Your Power of One Impact 6,, 3,, Current $ Your Power of One -3,, -6,, Cash Flow Operating Profit Page 3/22

Business Value Indicator Your Business Value Parameters Targeted Business Value 1,, Profit Multiple 4 +/- 1 Weighted Average EBITDA Adjustment Adjusted EBITDA 4,24,2 Your Current Business Value Indicator - 1 + 1 Profit Multiple 4. 3. 5. Gross Business Value 16,96,8 12,72,6 21,2,1 Total Debt 17,279,813 17,279,813 17,279,813 Your Current Business Value -319,85-4,559,87 3,92,197 Your Power Of One Value Impact Profit Multiple 4. 3. 5. Price Increase (1%) 1,68, 1,26, 2,1, Volume Increase (1%) 52,8 39,6 651, COGS Reduction (1%) 1,159,2 869,4 1,449, Overheads Reduction (1%) 336, 252, 42, Profit Impact on Valuation 3,696, 2,772, 4,62, Reduction in Accounts Receivable Days (1d) 115,68 115,68 115,68 Reduction in Inventory Days (1d) 79,397 79,397 79,397 Increase in Accounts Payable Days (1d) 79,397 79,397 79,397 Cash Impact on Valuation 273,862 273,862 273,862 Your Power of One Impact 3,969,862 3,45,862 4,893,862 Your Improved Business Value 3,65,57-1,513,945 8,814,59 Page 4/22

Your Improved Value Indicator Profit Multiple 4. 3. 5. Your Current Business Value -319,85-4,559,87 3,92,197 Your Power of One Impact 3,969,862 3,45,862 4,893,862 Your Improved Business Value 3,65,57-1,513,945 8,814,59 12,, 8,, 4,, Current Business Value Power of One Impact -4,, Target Value Improved Value Your Targeted Business Value Profit Multiple 4. 3. 5. Targeted Business Value 1,, 1,, 1,, Your Current Business Value -319,85-4,559,87 3,92,197 Current Value Gap -1,319,85-14,559,87-6,79,83 Your Improved Business Value Profit Multiple 4. 3. 5. Targeted Business Value 1,, 1,, 1,, Improved Business Value 3,65,57-1,513,945 8,814,59 Improved Value Gap -6,349,943-11,513,945-1,185,941 Page 5/22

Summary Your Profit Story Revenue $42,, - COGS Gross Margin = - Overheads = $28,98, $13,2, $8,4, Operating Profit $4,62, Current Period Movement Revenue 42,, +7,, Gross Margin % 31. +1. Operating Profit % 11. +.29 Net Profit % 4.96 +.24 Your Balance Sheet Story Equity $9,584,23 Current Assets Non Current Assets Current Liabilities = + - - $22,921,644 $9,5, $12,837,621 Non Current Liabilities $1,, Current Period Movement Accounts Receivable Days 75. +5. Inventory Days 18. +26. Accounts Payable Days 7. +9.98 Working Capital Days 185. +21.2 Page 6/22

Your Cash Flow Story 2,, 15,, 1,, 1,761,18 5,19,74 7,279,813 Bank Loans - Current Bank Loans - Non Current 5,, 1,2, 4,, Total Debt 3-6-215 9,, 9,, 1,, Total Debt 3-6-216 Total Debt 3-6-217 Total Debt 3-6-218 Current Period Movement Cash Bank Loans - Current 7,279,813 +2,26,73 Bank Loans - Non Current 1,, +1,, Net Cash Flow -3,26,73 N/A Page 7/22

Chapter 1 Profitability Revenue Gross Margin Operating Profit Retained Profit 42,, 13,2, 4,62, 2,83,22 up by 7,, up by 2,52, up by 869,99 up by 43,342 Profitability Trends 32 24 16 8 26.7 28.9 3. 31. 8.3 8.1 1.7 11. 5. 3.7 4.7 5. 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Gross Margin % Operating Profit % Net Profit % Revenue Growth vs COGS Growth 8 6 75. 69.7 4 Revenue Growth % COGS Growth % 2 11.1 9.4 2. 18.3 3-6-216 3-6-217 3-6-218 Page 8/22

Revenue Growth vs Overheads Growth 12 9 6 75. 98.2 Revenue Growth % Overheads Growth % 3 11.1 3.2 2. 24.4 3-6-216 3-6-217 3-6-218 Profitability Ratios Chapter 1 - Profitability 3-6-217 3-6-218 Movement Revenue 35,, 42,, 7,, Revenue Growth % 11.11 2. 8.89 Gross Margin 1,5, 13,2, 2,52, Gross Margin % 3. 31. 1. Overheads 6,749,99 8,4, 1,65,1 Overheads % 19.29 2..71 Operating Profit 3,75,1 4,62, 869,99 Operating Profit % 1.71 11..29 EBITDA 3,75,1 4,62, 869,99 Net Profit 1,652,68 2,83,22 43,342 Net Profit % 4.72 4.96.24 Retained Profit 1,652,68 2,83,22 43,342 Interest Cover 3.22 3.39.17 Page 9/22

Chapter 2 Working Capital Accounts Receivable Inventory Accounts Payable Working Capital 8,63,137 14,291,57 5,557,88 17,363,836 up by 1,917,87 up by 3,954,547 up by 1,529,258 up by 4,343,96 Working Capital Trends 2 15 1 5 111 7 6 7 171 148 154 18 83 5 7 75 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Accounts Payable Days Inventory Days Accounts Receivable Days Page 1/22

Working Capital Timeline This Period Day Day 7 Day 18 Day 255 185 Inventory arrives Creditors paid Inventory sold Cash banked Working Capital Days Last Period -1,847,92 Cash Impact Day Day 6 Day 154 Day 224 164 Inventory arrives Creditors paid Inventory sold Cash banked Working Capital Days Working Capital per $1 Inventory $14,291,57 Receivables + - $8,63,137 Payables $5,557,88 = Working Capital 41 Inventory 34 Receivables 21 Payables 13 Revenue $42,, For each additional $1 of Revenue You invest $41 in Working Capital Page 11/22

Investment in Working Capital per $1 36 27 18 9 22 14 12 13 34 29 3 34 23 14 19 21 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Accounts Payable Inventory Accounts Receivable Gross Margin vs Working Capital per $1 6 45 3 27 35 29 29 3 37 31 41 Gross Margin Working Capital 15 3-6-215 3-6-216 3-6-217 3-6-218 Working Capital Ratios Chapter 2 - Working Capital 3-6-217 3-6-218 Movement Accounts Receivable Days 7. 75. 5. Inventory Days 154. 18. 26. Accounts Payable Days 6.2 7. 9.98 Working Capital Days 163.98 185. 21.2 Working Capital 13,2,74 17,363,836 4,343,96 Working Capital per $1 37.2 41.34 4.14 Working Capital Turnover 2.69 2.42 -.27 Marginal Cash Flow -7.2-1.34-3.14 Current Ratio 1.88 1.79 -.1 Page 12/22

Chapter 3 Other Capital Fixed Assets Other Assets Other Liabilities Other Capital 9,5, 9,5, up by 1,, - - up by 1,, Return on Capital Trends 2.83 8.33 8.13 1.71 11. 15.41 17.43 17.2 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period 2.5 1.9 1.63 1.56 Operating Profit % Asset Turnover Return on Capital % Return on Capital % Operating Profit % Asset Turnover Return on Capital % Operating Profit Revenue Operating Profit $4,62, $42,, $4,62, x = = 17.2% Return on Capital Revenue $42,, Working Capital $17,363,836 + Other Capital $9,5, Net Operating Assets $26,863,836 Chapter 1 Chapter 2 Chapter 3 Page 13/22

Other Capital Ratios Chapter 3 - Other Capital 3-6-217 3-6-218 Movement Other Capital 8,5, 9,5, 1,, Other Capital % 24.29% 22.62% -1.67 Other Capital Turnover 4.12 4.42.3 Net Operating Assets 61 64 5,343,96 Net Operating Assets % 61.49% 63.96% 2.47 Asset Turnover 1.63 1.56 -.6 Return on Capital % 17.43% 17.2% -.23 Return on Total Assets % 14.68% 14.25% -.43 Return on Equity % 22.3% 21.73% -.3 Page 14/22

Chapter 4 Funding Cash Total Debt Equity Total Funding 17,279,813 9,584,23 26,863,836 - up by 3,26,73 up by 2,83,23 up by 5,343,96 Funding Trends 17.28M 7K 5.2M 1.76M 14.2M 2.7M 5.85M 7.5M 9.58M 3-6-215 3-6-216 3-6-217 - last period 3-6-218 - this period Cash Total Debt Equity Page 15/22

Your Funding + Cash Flow - Cash Flow Chapter 1 Profit 2,83,22 Chapter 2 Working Capital Invested 4,343,96 Chapter 3 Other Capital Invested 1,, Total 2,83,22 5,343,96 Shortfall 3,26,74 Capital Introduced 1 Your business requires $ 3,26,73 of borrowings to fund the shortfall Your Equation Equity $9,584,23 Net Debt Working Capital + = + $17,279,813 $17,363,836 Other Capital $9,5, Funding Net Operating Assets Page 16/22

Profit vs Cash Flow Profit Cash Flow Variance Revenue 42,, Cash from Customers 4,82,193-1,917,87 COGS 28,98, Cash to Suppliers 31,45,289-2,425,289 Gross Margin 13,2, Gross Cash Profit 8,676,94-4,343,96 Overheads excl Depreciation 8,4, Overheads excl Depreciation 8,4, - Operating Cash Profit 4,62, Operating Cash Flow 276,94-4,343,96 Other Cash Outflow Interest Paid -1,363,48 Interest Paid -1,363,48 Tax Paid -1,173,498 Tax Paid -1,173,498 Extraordinary Income Extraordinary Income Distributions/Dividends Paid Distributions/Dividends Paid Depreciation & Amortisation Fixed Assets Acquired -1,, Other Net Assets Increased Capital Introduced +1 Retained Profit 2,83,22 Net Cash Flow -3,26,73 Operating Cash Profit vs Operating Cash Flow 6,, 4,, 2,, Operating Cash Profit Operating Cash Flow -2,, 3-6-216 3-6-217 3-6-218 Page 17/22

Funding Ratios Chapter 4 - Funding 3-6-217 3-6-218 Movement Marginal Cash Flow -7.2-1.34-3.14 Operating Cash Flow -161,23 276,94 438,134 Operating Cash Profit 3,75,1 4,62, 869,99 Net Cash Flow -3,258,56-3,26,73-1,513 Net Debt 14,19,74 17,279,813 3,26,73 Debt to Equity 1.87 1.8 -.7 Debt to Capital.65.64 -.1 Interest Cover 3.22 3.39.17 Debt Payback 3.74 3.74. Page 18/22

Sustainable Growth Your Sustainable Growth If you increase your Revenue by + $ 1 Your investment in Accounts Receivable will be + $ 2.55 Less COGS of - $ 69. Your investment in Inventory will be + $ 34.3 Provided by Accounts Payable of - $ 13.23 Your Gross Margin will be = $ 31. You will require Working Capital of = $ 41.34 Less Overheads of - $ 2. Your Operating Profit will be = $ 11. Less Extraordinary Income/Expenses $. Interest Paid $ 3.25 Tax Paid $ 2.79 Dividends Paid $. Your Debt to Equity ratio is 1.8:1 You can borrow $ 1.8 for each $ 1 of Retained Profit Your Retained Profit will be = $ 4.96 Your capacity to borrow will be = $ 8.93 You will have a shortfall of = $ 27.45 Page 19/22

Results & Projections Profit & Loss 3-6-215 3-6-216 3-6-217 3-6-218 Revenue 18,, 31,5, 35,, 42,, Cost of Goods 13,2, 22,4, 24,5, 28,98, Gross Margin 4,8, 9,1, 1,5, 13,2, Overheads 3,3, 6,54, 6,749,99 8,4, Operating Profit 1,5, 2,56, 3,75,1 4,62, Extraordinary Income/Expenses Interest Paid 58, 756, 1,165,9 1,363,48 Net Profit Before Tax 92, 1,84, 2,584,11 3,256,52 Tax Paid 2, 649,44 931,43 1,173,498 Net Profit 9, 1,154,56 1,652,68 2,83,22 Dividends Paid Retained Profit 9, 1,154,56 1,652,68 2,83,22 Balance Sheet Cash 7, Accounts Receivable 4,1, 4,315,6 6,712,33 8,63,137 Inventory 6,2, 9,84,44 1,336,96 14,291,57 Other Current Assets -8, Current Assets 1,2, 13,399,5 17,49,29 22,921,644 Fixed Assets 4,5, 7,5, 8,5, 9,5, Other Non Current Assets Non Current Assets 4,5, 7,5, 8,5, 9,5, Total Assets 14,7, 2,899,5 25,549,29 32,421,644 Accounts Payable 4,, 4,29, 4,28,55 5,557,88 Bank Loans - Current 1,2, 1,761,18 5,19,74 7,279,813 Other Current Liabilities 1,8, Current Liabilities 7,, 6,51,18 9,48,29 12,837,621 Bank Loans - Non Current 4,, 9,, 9,, 1,, Other Non Current Liabilities 1,, Non Current Liabilities 5,, 9,, 9,, 1,, Total Liabilities 12,, 15,51,18 18,48,29 22,837,621 Equity 2,7, 5,848,32 7,51, 9,584,23 Page 2/22

Chapter 1 - Profitability 3-6-215 3-6-216 3-6-217 3-6-218 Revenue 18,, 31,5, 35,, 42,, Revenue Growth % N/A 75. 11.11 2. Gross Margin 4,8, 9,1, 1,5, 13,2, Gross Margin % 26.67 28.89 3. 31. Overheads 3,3, 6,54, 6,749,99 8,4, Overheads % 18.33 2.76 19.29 2. Operating Profit 1,5, 2,56, 3,75,1 4,62, Operating Profit % 8.33 8.13 1.71 11. EBITDA 1,5, 2,56, 3,75,1 4,62, Net Profit 9, 1,154,56 1,652,68 2,83,22 Net Profit % 5. 3.67 4.72 4.96 Retained Profit 9, 1,154,56 1,652,68 2,83,22 Interest Cover 2.59 3.39 3.22 3.39 Chapter 2 - Working Capital Accounts Receivable Days 83.14 5. 7. 75. Inventory Days 171.44 148.3 154. 18. Accounts Payable Days 11.61 69.9 6.2 7. Working Capital Days 143.97 128.12 163.98 185. Working Capital 6,3, 9,19,5 13,2,74 17,363,836 Working Capital per $1 35. 28.92 37.2 41.34 Working Capital Turnover 2.86 3.46 2.69 2.42 Marginal Cash Flow -8.33 -.3-7.2-1.34 Current Ratio 1.46 2.21 1.88 1.79 Chapter 3 - Other Capital Other Capital 9, 7,5, 8,5, 9,5, Other Capital % 5.% 23.81% 24.29% 22.62% Other Capital Turnover 2. 4.2 4.12 4.42 Net Operating Assets 7,2, 16,69,5 21,52,74 26,863,836 Net Operating Assets % 4.% 52.73% 61.49% 63.96% Asset Turnover 2.5 1.9 1.63 1.56 Return on Capital % 2.83% 15.41% 17.43% 17.2% Return on Total Assets % 1.2% 12.25% 14.68% 14.25% Return on Equity % 33.33% 19.74% 22.3% 21.73% Page 21/22

Powered by TCPDF (www.tcpdf.org) Chapter 4 - Funding 3-6-215 3-6-216 3-6-217 3-6-218 Marginal Cash Flow -8.33 -.3-7.2-1.34 Operating Cash Flow N/A -249,5-161,23 276,94 Operating Cash Profit 1,5, 2,56, 3,75,1 4,62, Net Cash Flow N/A -6,261,18-3,258,56-3,26,73 Net Debt 4,5, 1,761,18 14,19,74 17,279,813 Debt to Equity 1.93 1.84 1.87 1.8 Debt to Capital.66.65.65.64 Interest Cover 2.59 3.39 3.22 3.39 Debt Payback 3. 4.2 3.74 3.74 Page 22/22