Financial situation as of  01/01/2016

 

Balance sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization plan

According to Belgian law, Ecoshelves can amortize its assets using the degressive amortization method. That’s what Ecoshelves is going to use for its assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The typical lifetime of a LED being around 50,000 hours, that means 7 years. Moreover, the hydroponic farming techniques are still evolving. That’s why the both of them are to be replaced after 7 years.

 

Prevision for the P&L

Sales revenues: As said in the market analysis, our targeted market consists in the 24,600 inhabitants of Watermael-Boitsfort. Among them we made another distinction between our potential consumers and the others, which represents about €193,000 spent annually on organic vegetables in 2013.

 

Moreover, there is growth both in population and demand for organic food in Brussels. We estimate that the combined effects of these make it possible to make the market grow by an additional 5% per year. Ecoshelves has the ambitious objective to capture 15% of this value by the end of 2016, 25% in 2017 and 45% by 2018. 

 

 

 

 

 

 

 

 

In terms of output, we can compute how many vegetables we are going to produce. Indeed, knowing that we will not be able to sell as much as what we are able to produce, we are not going to use 100% of our facilities.

 

Knowing that it is possible to plant around 20 crops per square meter and that on average each of them will weight around 250g, we can compute the estimated production.

 

Furthermore, with an estimated price of €5/kg we can estimate our production.

 

 

 

 

 

 

 

 

With these production numbers and Ecoshelves’ market share objectives, we find the following numbers:

 

 

 

 

 

 

 

 

These figures will be needed further in this document.

 

​Subsidies: It is possible to receive a 15% subsidy from Brussels’ region on the investments. These investments are “Ground”, “Building”, “Solar panels” “Hydroponic equipment”, “Lighting material” and “store material”. The investment represents revenue in the first year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production supplies: There is a need for a substrate in order to plant the vegetables. Furthermore, the plants not only need water but also need nutrients disseminated in the water. The nutrients come from a juice extracted from compost. The cost of these supplies is estimated to be about 20€/m²/year, which means the following:

 

 

 

 

 

 

Goods & services: The other goods and services needed by Ecoshelves are listed here.

 

For the water consumption, each plant needs around 2 liters in order to fully grow, which is 80% less than other traditional agriculture methods. Accounted for the production objectives, that means a consumption of around 50m³ in 2016, 85m³ in 2017 and 160m³ in 2018. The price of a m³ of water in Brussels is €3.7.

 

The telecommunications concerns the expenses in internet and telephone. Also we dedicated a €300 budget each year as a precaution measure.

 

 

 

 

 

 

 

Workforce: Ecoshelves is going to hire two full-time workers. The full cost of each of them is estimated at around €26,000, leading to a total €52,000 salary expenses

 

Communication campaign: In order to promote Ecoshelves, we established a communication plan which can be consulted in another part of the website. It describes the channels used and their respective costs.

 

 

 

 

 

 

 

 

 

 

Prevision for the balance sheet

Assets

• Accounts receivable: Since Ecoshelves intends to sell its products directly to the final consumer there should not be any receivables.

• Stocks: Because of the proximity of the production unit and the selling point, there should not be any stocks.

• Cash: The evolution of the cash account follows the evolution of the liabilities of the company.

 

Cash flow statement

Accounted for the forecasted loss Ecoshelves is most likely to register, there is a huge need for cash. Therefor the company needs to plan it caution.

• Operating cash flow: This is the operating revenue plus the amortization.

• Investment cash flow: The total investments made over the period

• Financial cash flow: All the financial transactions concerning equity and liabilities. In this case it applies only on the repayment of the debt and its interest of 4%

 

 

 

 

 

 

 

 

As one can see in the table, the cash of Ecoshelves remains always at a decent level allowing it to avoid bankruptcy.