Citrus Business Planning Perspective

進行中 投稿 Apr 18, 2016 着払い
進行中 着払い

Given with a current Financial reports for the last 4 years, the financial model has been created to forecast the next five years. The objectives are to increase the current operation of citrus packing shed value into $20million value expansion and to be written to attract the investor to invest in this project as well as to increase the profit margin of the investor's perspective.

The objective of this project is to raise $50 million capital from local and foreign investors based on the current citrus business (Packing shed) in NSW (Leeton), of which the investors may first buyout $10million of the business (Packing shed) or 50% of the equity including the business, goodwill, the land, plant and equipments, and the rest will be used to add value by acquiring more assets and farms to grow more citrus, increase the production levels, increase the level of vertical integrated marketing, reducing the cost, securing the supplies from the existing growers (which they will be part of the shareholder), increase the export level as it has already export supplies to China, America, etc, future revenues. There is also a plan to build a juice manufacturing in near future.

There is an example of business plan as attached (different industry which is education industry), but we would like to use this as a example guide as this business plan has been approved by the government. The pro-forma business plan can be found at: www.industry.nsw.gov.au/__data/assets/pdf_file/0006/57930/Business-Plan_132.pdf.
We would like to follow this guide to create the business plan.
It is a business plan for 132(a) visa where we are targeting for the investors from overseas. We emphasised the particular areas the Government will look focus on include: - the number of 132a investor partners and what will the management role for each in the business; and, - the company equity each $1 million investment produces. The management roles could include marketing, export development, transport logistics, horticulture etc. From the Government's perspective, the objective of the visa is to attract business talent to Australia, whereas from ours it's about attracting capital - however we need to write the plan with them in mind.

Hereby I attached, the valuation report (BDO PFE Valuation) of the current company since 2009, the organisation board, and all assets has not been changed, so we can continue to include all management roles, farms, suppliers in the business plan. We will enhance on the financials from 2012-2015 and look for the opportunity to add value. We have created a financial model for a better understanding based on the current operation production (Packing Shed) in the excel spreadsheet and we try to use the available information to forecast for the next 5 years. We were given the P&L and balance sheet based on 2012-2015.

There maybe some gap you may question but please highlight it and let me know as we may let the business (Pacific fresh to fill in the gap for us). We need to have a business plan framework ready and done that is required by the government.

Some market research need to be done on the area of Leeton in regards of Citrus for the opportunity to increase more productions, job opportunities, populations that is beneficial to the community together with a significant improvements to the place with the capital raised of $50Million.

I have also attached the grower list (Lists of the 28 external growers) and the maps (8 blocks plan of the plant in the PFP farms ) which is attached to the packing shed. There are 28 growers outside the group (28%) + 8 suppliers (72%). Pacific Fresh pay the growers according to the growers on the grading and earn $1 a box.

Other Information as below:
1. The Farm. Total income from the farm was $ 201,000 and expenses were $95,000. The income is expected to double within 3 years as trees get bigger.

2. The workers. We use contractors for some our seasonal workers, total was 27122 hours at $20.50 per hour plus GST ;Casuals we have 3 at $21.66 per hour for a total of 4397 hours combined ;We have 18 permanent part time ranging from $17.55 to $30.82 per hour for a total of 27324 hours combined ;We have 4 permanent at $40000 per year.

3. With the sales, all our income is from fruit sales, we currently pack between 500,000 to 600,000 per year and work on about $1 profit per carton.

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