FINANCIAL PLAN

The following sections will outline important financial information.

1.1 Important Assumptions

The following table details important financial assumptions.

Table: General Assumptions

General Assumptions

2021 2022 2023

Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

1.2 BREAK-EVEN ANALYSIS

The Break-even Analysis indicates what will be needed in monthly revenue to reach the break-even point.

Chart: Break-even Analysis

£40,000.00
BREAK-EVEN ANALYSIS

£20,000.00

£-

-£20,000.00

-£40,000.00

-£60,000.00

-£80,000.00

-£100,000.00

-£120,000.00
£-

£10,000.00

£20,000.00

£30,000.00

£40,000.00

£50,000.00

£60,000.00

£70,000.00

£80,000.00

£90,000.00

£100,000.00

£110,000.00

£120,000.00
Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even £92,727

Assumptions:
Average Percent Variable Cost 38%
Estimated Monthly Fixed Cost £57,491

1.3 PROJECTED PROFIT AND LOSS

ANNUAL PROFIT

200,000.00
150,000.00
100,000.00
50,000.00
-
(50,000.00)
(100,000.00)
(150,000.00)
2021 2022 2023

The following table will indicate projected profit and loss.

Chart: Profit Yearly

Table: Profit and Loss

£ £ £

2021 2022 2023

Sales 488,891 728,000 924,899

Direct Cost of Sales 76,951 110,240 135,764
Other Production Expenses 21,985 32,922 38123
Total Cost of Sales 98,932 143,162 173,887

   
Gross Margin 389,959 584,838 751,012
Gross Margin % 79.76% 80.33% 81.20%

   
   
Expenses
   
Payroll 163,120 167,000 169,854
Sales and Marketing and Other Expenses 100,100 34,200 35,764
 Depreciation 60,456 60,456 60456
Leased Equipment 10,100 8,500 4000
Utilities 20,981 11,765 10965
Insurance 10,800 10,800 10,800
Rent 139,000 139,000 139,000
Payroll Taxes 29,468 31,117 34,890
Other 0 0 0

 
Total Operating Expenses 534,025 462,838  465,729

   
Profit Before Interest and Taxes (144,066) 122,000 285,283
EBITDA (83,610) 61,544 224,827
Interest Expense 0 5,000 5000
Taxes Incurred 0 36,600 85,585

 
Net Profit (144,066) 80,400 194,698
Net Profit/Sales -29.47% 11.04% 21.05%

1.4 PROJECTED CASH FLOW

The following chart and table will indicate projected cash flow.

Table: Cash Flow

£ £ £

2021 2022 2023

Cash Received

Cash from Operations

Cash Sales 488,891 728,000 924,899

Subtotal Cash from Operations 488,891 728,000 924,899

Additional Cash Received

Sales Tax, VAT, Received 0 0 0

New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
 Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received 488,891 728,000 924,899

Expenditures 2021 2022 2023

Expenditures from Operations

Cash Spending 185,751 181,848 186,223

Bill Payments 371,502 363,696 373,498
Subtotal Spent on Operations 557,253 545,544 559,721

Additional Cash Spent

Sales Tax, VAT, Paid Out 0 0 0

Principal Repayment of Current Borrowing 0 0 0
Other Liabilities Principal Repayment 0 0 0
Long-term Liabilities Principal Repayment 0 0 0
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
Subtotal Cash Spent 557,253 545,544 559,721

Net Cash Flow (68,362) 182,456 365,178

Cash Balance 31,638 214,094 579,272

1.5 PROJECTED BALANCE SHEET

The following table will indicate the projected balance sheet.

Table: Balance Sheet

Balance Sheet £ £ £

2021 2022 2023

Assets

Current Assets

Cash 31,638 214,094 579,272

Other Current Assets 0 0 0
Total Current Assets 31,638 214,094 579,272

Long-term Assets

Long-term Assets 158,538 254,082 $230,615

Accumulated Depreciation 60,456 120,912 181,368
Total Long-term Assets 98,082 133,170 49,247
 Total Assets 129,720 347,264 628,519

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable 23,786 33,868 295,347

Current Borrowing 0 0 $0
Other Current Liabilities 0 0 $0
Subtotal Current Liabilities 23,786 33,868 295,347

Long-term Liabilities 50,000 50,000 50,000

Total Liabilities 73,786 83,868 345,347

Paid-in Capital 200,000 200,000 200,000

Retained Earnings 0 (17,004) (21,526)
Earnings (144,066) 80,400 194,698
Total Capital 55,934 263,396 283,172
Total Liabilities and Capital 129,720 347,264 628,519

Net Worth 55,934 193,396 283,172

1.6 BUSINESS RATIOS

The following table outlines some of the more important ratios from the Portfolio Fund Managing industry. The
final column, Industry Profile, details specific ratios based on the industry as it is classified by the NAICS
code, 523920.

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth N/A 47.31% 14.91% 11.35%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 34.12%
Total Current Assets 82.05% 94.30% 98.00% 95.71%
Long-term Assets 17.95% 5.70% 2.00% 4.29%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 31.90% 15.89% 9.33% 32.96%

Long-term Liabilities 0.00% 0.00% 0.00% 17.78%
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