Table 1: Summary income statements for year ending 31 December

Freedom Camping Supplies Oct - Dec 2022

Income statement (NZD$) $
Sales revenue 548,690
Cost of Revenue (282,148)
Gross profit 266,542

Other Income 4,140

Selling expenses (106,472)
General and administration expenses (93,204)
(195,536)

Earnings before interest, tax, depreciation and amortisation 71,006

Depreciation and amortisation (49,508)

Earnings before interest and tax 21,498

Finance costs (net) (6,068)

Net Profit before income tax 15,430

Income tax expense (2,460)

Net (Loss)/profit after income tax 12,970
Opening Retained Earnings 47,080
Dividends 49,346
Closing Retained Earnings 10,704

Table 2: Summary balance sheets as at end of quarter

Freedom Camping Supplies Oct - Dec 2022
Balance sheet at end of quarter (NZD$) $
EQUITY
Contributed Equity 300,000
Retained earnings 10,704
Total equity 310,704

Represented by:
ASSETS
Current assets
Cash and cash equivalents 18,444
Accounts receivables 25,486
Inventories 112,152
Total current assets 156,082

Non-current assets
Net Property, plant and equipment 432,306
Intangible assets 39,622
Total non-current assets 471,928
Total assets 628,010

LIABILITIES
Current Liabilities
Accounts payables 85,376
Other Current Liabilities 42,806
 Total current liabilities 128,182

Non-current liabilities
Trade and other payables 7,106
Interest bearing borrowings 89,928
Other non-current liabilities 92,090
Total non-current liabilities 189,124
Total liabilities 317,306

Net assets 310,704

Table 3: Selected ratios

Selected ratios Oct - Dec 2022
Gross profit margin 49%
Return on assets (EBIT/total assets) 3.42%
Interest coverage ratio (earnings basis) (EBIT/interest) 3.5
Inventory days (using quarter-end balances) 36.3
Current ratio 1.2
Debt equity ratio (total liabilities/total equity) 1.0
 Kaiteriteri Oct - Dec 2022 Jan - Mar 2023 Apr - Jun 2023 July - Sept 2023 Oct - Dec 2023
Revenue 301,780 205,756 191,062 188,514 159,374
Gross profit 138,602 100,116 121,610 117,026 96,188
Gross margin % 45.9% 48.7% 63.6% 62.1% 60.4%
Other income 2,278 2,760 1,922 1,896 1,266
Selling expenses (37,266) (42,590) (36,244) (37,496) (35,096)
General and administration expenses (48,466) (43,066) (37,948) (28,424) (26,924)
Depreciation and amortisation (24,754) (25,316) (21,940) (18,902) (13,580)

EBIT 30,394 (8,096) 27,400 34,100 21,854

EBIT % 10.1% (3.9)% 14.3% 18.1% 13.7%
Finance cost (3,156) (3,516) (2,620) (3,012) (1,790)
NPAT 25,704 (11,816) 19,142 25,208 17,706
NPAT % 8.5% (5.7)% 10.0% 13.4% 11.1%
Total assets 314,006 319,874 318,816 325,850 263,608
Current liabilities 70,500 69,178 63,300 54,452 45,646
ROI 9.7% (2.5)% 8.6% 10.5% 8.3%
EVA 14,250 (23,342) 6,431 11,936 6,418

Te Anau Oct - Dec 2022 Jan - Mar 2023 Apr - Jun 2023 July - Sept 2023 Oct - Dec 2023
Revenue 137,172 102,880 107,778 101,900 77,118
Gross profit 71,966 87,600 95,316 76,992 41,594
Gross margin % 52.5% 85.1% 88.4% 75.6% 53.9%
Other income 1,862 1,380 1,084 1,026 614
Selling expenses (37,264) (21,294) (26,250) (22,498) (13,698)
General and administration expenses (23,302) (21,112) (21,968) (14,576) (13,928)
Depreciation and amortisation (17,328) (11,252) (13,504) (14,492) (5,432)

EBIT (4,066) 35,322 34,678 26,452 9,150

EBIT % (3.0)% 34.3% 32.2% 26.0% 11.9%
Finance cost (1,518) (1,724) (1,518) (1,544) (926)
NPAT (6,198) 33,462 30,020 21,646 7,142
NPAT % (4.5)% 32.5% 27.9% 21.2% 9.3%
Total assets 169,562 166,602 173,270 159,304 118,624
Current liabilities 32,046 34,590 35,708 29,434 22,088
ROI (2.4)% 21.2% 20.0% 16.6% 7.7%
EVA (12,931) 27,265 23,284 15,398 2,276

Apollo Bay Oct - Dec 2022 Jan - Mar 2023 Apr - Jun 2023 July - Sept 2023 Oct - Dec 2023
Revenue 109,738 61,728 88,182 106,994 149,094
Gross profit 55,974 37,544 52,588 46,194 62,392
Gross margin % 51.0% 60.8% 59.6% 43.2% 41.8%
Other Income - 1,380 1,922 2,204 2,206
Selling expenses (31,942) (21,294) (37,496) (46,246) (36,854)
General and administration expenses (21,436) (12,666) (18,974) (13,848) (25,996)
Depreciation and amortisation (7,426) (8,438) (8,438) (17,012) (15,390)

EBIT (4,830) (3,474) (10,398) (28,708) (13,642)

EBIT % (4.4)% (5.6)% (11.8)% (26.8)% (9.1)%
Finance cost (1,394) (1,034) (1,310) (1,468) (1,728)
NPAT (6,536) (4,590) (14,210) (33,754) (17,522)
NPAT % (6.0)% (7.4)% (16.1)% (31.5)% (11.8)%
Total assets 144,442 113,288 97,030 115,858 131,804
Current liabilities 25,636 20,752 29,216 30,906 42,702
ROI (3.3)% (3.1)% (10.7)% (24.8)% (10.4)%
EVA (12,270) (9,108) (16,969) (37,383) (21,140)

Online Repair Store Oct - Dec 2022 Jan - Mar 2023 Apr - Jun 2023 July - Sept 2023 Oct - Dec 2023
Revenue - 41,152 102,880 112,090 128,530
Gross profit - 25,028 59,160 67,752 59,792
Gross margin % - 60.8% 57.5% 60.4% 46.5%
Other Income - - - - -
Selling expenses - (21,294) (24,998) (18,748) (11,336)
General and administration expenses - (7,600) (20,972) (16,034) (25,996)
Depreciation and amortisation - (11,252) (12,376) (12,602) (10,864)

EBIT - (15,118) 814 20,368 11,596

EBIT % 0.0% (36.7)% 0.8% 18.2% 9.0%
Finance cost - (622) (1,448) (1,700) (1,728)
NPAT - (15,862) (3,632) 15,080 8,250
NPAT % - (38.5)% (3.5)% 13.5% 6.4%
Total assets - 66,640 103,962 123,098 144,984
Current liabilities - 13,836 34,086 32,378 36,812
ROI - (22.7)% 0.8% 16.5% 8.0%
EVA - (18,408) (6,377) 11,337 3,488

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 Split of revenue by product type - Oct - Dec 2023
Kaiteriteri Revenue Gross profit Gross margin %
Camping and Hiking 62,154 42,266 68.0%
Clothing 46,220 22,506 48.7%
Bags and Backpacks 23,906 12,046 50.4%
Tents 17,532 11,280 64.3%
Water Sports 9,562 8,090 84.6%
Total 159,374 96,188 60.4%

Split of revenue by product type - Oct - Dec 2023

Te Anau Revenue Gross profit Gross margin %
Camping and Hiking 26,220 16,790 64.0%
Clothing 24,678 10,244 41.5%
Bags and Backpacks 7,712 3,486 45.2%
Tents 9,254 5,792 62.6%
Water Sports 9,254 5,282 57.1%
Total 77,118 41,594 53.9%

Split of revenue by product type - Oct - Dec 2023

Apollo Bay Revenue Gross profit Gross margin %
Camping and Hiking 59,636 21,208 35.6%
Clothing 35,310 19,040 53.9%
Bags and Backpacks 17,892 9,920 55.4%
Tents 8,946 4,520 50.5%
Water Sports 27,310 7,704 28.2%
Total 149,094 62,392 41.8%

Split of revenue by product type - Q1 2022

Split of revenue by product type - Oct - Dec 2023
Online Repair Store Revenue Gross profit Gross margin %
Repairs 128,530 59,792 46.5%
Total 128,530 59,792 46.5%

© 2024 Chartered Accountants Australia and New Zealand ABN 50 084 642 571. All rights reserved.
 Favourable/
Kaiteriteri
(Unfavourable)

Oct - Dec 2023 Actuals Budget Variance

Revenue 159,374 177,800 (18,426)
Gross profit 96,188 104,620 (8,432)
Gross margin % 60.4% 58.8% 1.5%
Other income 1,266 900 366
Selling expenses (35,096) (25,246) (9,850)
General and administration expenses (26,924) (25,174) (1,750)
Depreciation and amortisation (13,580) (13,580) 0

EBIT 21,854 41,520 (19,666)

Te Anau

Oct - Dec 2023 Actuals Budget Variance

Revenue 77,118 85,000 (7,882)
Gross profit 41,594 42,400 (806)
Gross margin % 53.9% 49.9% 4.1%
Other income 614 - 614
Selling expenses (13,698) (12,500) (1,198)
General and administration expenses (13,928) (12,574) (1,354)
Depreciation and amortisation (5,432) (5,600) 168

EBIT 9,150 11,726 (2,576)

Apollo Bay
Oct - Dec 2023 Actuals Budget Variance
Revenue 149,094 127,780 21,314
Gross profit 62,392 65,480 (3,088)
Gross margin % 41.8% 51.2% (9.4)%
Other Income 2,206 2,200 6
Selling expenses (36,854) (21,000) (15,854)
General and administration expenses (25,996) (25,400) (596)
Depreciation and amortisation (15,390) (15,300) (90)

EBIT (13,642) 5,980 (19,622)

Online Repair Store

Oct - Dec 2023 Actuals Budget Variance

Revenue 128,530 105,120 23,410
Gross profit 59,792 37,000 22,792
Gross margin % 46.5% 35.2% 11.3%
Other Income - - 0
Selling expenses (11,336) (27,000) 15,664
General and administration expenses (25,996) (25,000) (996)
Depreciation and amortisation (10,864) (9,600) (1,264)

EBIT 11,596 (24,600) 36,196

 Total

Oct - Dec 2023 Actuals Budget Variance

Revenue 514,116 495,700 18,416
Gross profit 259,966 249,500 10,466
Gross margin % 50.6% 50.3% 0.2%
Other Income 4,086 3,100 986
Selling expenses (96,984) (85,746) (11,238)
General and administration expense (92,844) (88,148) (4,696)
Depreciation and amortisation (45,266) (44,080) (1,186)

EBIT 28,958 34,626 (5,668)

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 Apollo Bay Budget
FCS Total Company Budget
1/1/2024 to 31/12/2024
Description $ % of Revenue $ % of Revenue
Total Revenue 621,914 100% 2,021,284 100%
Categorised by:
Camping and Hiking 245,700 40%
Clothing 145,477 23%
Bags and Backpacks 73,715 12%
Tents 36,858 6%
Water Sports 120,164 19%
Online Repairs - 0%

Gross Profit 310,957 50% 1,212,770 60%

Other Income 9,650 - 20,643 -

Selling expenses (141,890) 23% (467,035) 23%

General and administration expenses (71,484) 11% (360,533) 18%
Depreciation and amortisation (49,278) 8% (227,414) 11%

EBIT 57,955 9% 178,431 9%

Budget Assumptions:
Apollo Bay revenue by category
Camping and Hiking Based on Apollo Bay Actual Q4 2023 plus 3% growth
Clothing Based on Apollo Bay Actual Q4 2023 plus 3% growth
Bags and Backpacks Based on Apollo Bay Actual Q4 2023 plus 3% growth
Tents Based on Apollo Bay Actual Q4 2023 plus 3% growth
Water Sports Based on Apollo Bay Actual Q4 2023 plus 10% growth
Apollo Bay Gross Margin 50% of Apollo Bay budgeted revenue
Apollo Bay Expenses by category Based on Apollo Bay Actual 2023
FCS Budget
Total FCS budgeted revenue Actual 2023 revenue plus 5% growth
 Total FCS budgeted gross margin 60% of FCS Bay budgeted revenue
FCS Budgeted expenses by category Actual 2023 expense plus 3% growth

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 Apollo Bay Key Performance Indicators (KPIs)
KPI objective KPI measure
1 Increase the investment in the digital platform Increase capital expenditure in digital platform to 10% of actual sales in the current year

2 Achieve strong margins Gross margin of 50% for the store

3 Increase customer satisfaction Reduce customer complaints by 25% each quarter

4 Achieve a positive variance to budget EBIT actual-to-budget variance to be positive each quarter

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