Bs Sample Report

Prepared by: Your Company Name

Your Client’s Company name- 2013 – Industry Name

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Benchmark Report & Analysis

Client Company - 2013

Prepared by: Vincent Keogh

Company: Benchmarking.com.au

Phone: 02-9262 5564

Email: [email protected]



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Contents

Industry Statistics

Sector Overview 5

Industry Statistics 5

Employment Data 6

Benchmark Comparison

Income 9

Less Overheads as %'s of Total Income: 9

Net Profit (bos*) per.... 9

Total Income per.... 9

Gross Profit (Income less Materials and Payments to Sub Contractors) per.... 10

Non Personnel Related Overheads per.... 10

Personnel (fte personnel numbers) 10

KPI Feedback

Personnel Productivity & Profit 12

Margins 12

Major Overheads as a % of Total Income 12

Graphs

Key Performance Indicator Graphs 15

Action List

Increase Revenue 18

Control Overheads and Increase Net Profit 18

Control Liquidity 19

Business Value

Business Parameters 21

Business Valuation 21

Financial Data Entry

Profit and Loss 23

Balance Sheet 25

Valuation Questionnaire

Profit and Loss 27

Balance Sheet 27

Industry Benchmark - 2013



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Sector Overview

Industry Statistics

Employment Data

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Industry Statistics



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Sector Overview This data is provided by the Australian Bureau of Statistics (ABS) as at November 2012.

The ABS reports that employment numbers for the Sample sector as at 2011 - 2012 was 995,300. This employment figure changed by 3.3% over the past 5 years. Forecasted growth for the sector over the next five years is 10.1% or 100,200.

The percentage of employees for the sector outside of state capital cities was 40% and 35% of all sector employees were aged 45 years or older.

Industry Statistics The number of sample employees nationwide was reported at 46,100 as at November 2012. The industry has shown an average growth rate of -19.6% over the past five years. Forecasted growth for the industry is strong (between 8.5 to 13.1% per annum) over the next five years.



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Employment Data - The following employment data is sourced from the Australian Bureau of Statistics (ABS), dated November 2012.

- Weekly income for Sample Employees (earnings before tax - EBT) is around $1,000 per week.

- Weekly income for Sample Employees 2 (earnings before tax - EBT) is around $1,538 per week.



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- The highest percentage of sample 1 employees lies within the 25 - 34 age bracket, while the median age is 32.

- The highest percentage of sample 2 employees lies within the 45 - 54 age bracket, while the median age is 43.



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Income

Less Overheads as %'s of Total Income:

Net Profit (bos*) per....

Total Income per....

Gross Profit (Income less Materials and Payments to Sub Contractors) per....

Non Personnel Related Overheads per....

Personnel (fte personnel numbers)

Other Information

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Benchmark Comparison



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Your Business: 2013

Turnover: All Firms Average

Net Profit per Owner: $70,000 to $99,999

Turnover: $1,000,000 to $1,999,999

Income Total Income $1,462,500 $1,193,692 $1,063,463 $1,449,884

Less Materials Used 32.82% 32.94% 25.78% 38.51%

Less Sub Contractors 32.48% 19.33% 24.92% 31.64%

Equals Gross Profit 34.70% 47.72% 49.30% 29.86%

Less Overheads as %'s of Total Income: Advertising & Promotion 0.82% 0.63% 1.04% 0.68%

Accounting & Legal Fees 0.16% 1.01% 0.69% 0.58%

All Insurance 0.31% 1.72% 1.92% 1.22%

Interest Bank Charges etc 0.10% 1.42% 0.71% 0.93%

Licences, Permits and Subscriptions 0.02% 0.36% 0.25% 0.31%

All Occupancy Costs 0.39% 0.68% 0.81% 0.82%

Other Depreciation, Lease and HP 1.71% 1.37% 1.86% 1.35%

Repairs & Maintenance 0.82% 0.90% 0.67% 0.54%

Staff On Costs 0.07% 1.10% 1.63% 1.11%

Telephone & Fax 0.08% 0.95% 0.77% 0.51%

Employees' Wages & Salaries 13.68% 8.04% 12.30% 7.42%

Internal Sub Contractors 3.42% 3.01% 2.99% 2.47%

Vehicle Operating Costs 1.03% 4.82% 3.43% 2.02%

All Other Expenses 0.00% 1.64% 1.10% 1.23%

Total Overheads 22.61% 27.67% 30.17% 21.19%

Net Profit (bos*) 12.09% 20.10% 19.13% 8.67%

Net Profit (bos*) per.... Working Owner $176,820 $81,327 $82,440 $90,353

Owner Workhour $73.68 $44.95 $44.21 $44.40

Total Income per.... $ of Wages # & Contractor Payments $1.89 $2.59 $2.24 $2.47



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Your Business: 2013

Turnover: All Firms Average

Net Profit per Owner: $70,000 to $99,999

Turnover: $1,000,000 to $1,999,999

Gross Profit (Income less Materials and Payments to Sub Contractors) per.... Person $92,273 $91,734 $111,731 $107,939

$ of Wages # & Contractor Payments $0.66 $1.17 $1.15 $0.80

Non Personnel Related Overheads per.... Person $14,487 $32,029 $35,941 $42,304

$ of Wages # & Contractor Payments $0.10 $0.39 $0.32 $0.27

Personnel (fte personnel numbers) Working Owners 1.00 1.32 1.29 1.45

Qualified Staff 4.00 1.56 1.63 2.16

Industry Specific Staff 0.50 1.30 1.26 0.99

Total Personnel 5.50 4.18 4.19 4.60

Hours Worked per Owner per Year 2,400 1,896 1,752 2,041

Other Information Owners' Equity as % of Total Assets 29.72% 28.92% 21.81% 1.90%

Asset Turnover $3.37 $4.88 $4.69 $6.16

Days' Debtors 4 33 33 27

% Revenue drops before Losses Start 34.84% 37.01% 40.37% 30.35%

Growth Capacity 11.89% 15.87% 18.16% 6.40%

Current ratio 1.01 2.53 1.04 1.59

Acid test 0.13 2.76 1.10 1.69

Stock and WIP turnover 3.80 53.74 27.57 148.89

Liability turnover $4.80 $11.45 $-3.22 $9.96

Interest cover: business 117.88 165.47 70.96 44.26

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* bos - before owners' salaries and benefits

# including owners' notional wage of $20 per hour



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Personnel Productivity & Profit

Margins

Major Overheads as a % of Total Income

Asset Levels

3 KPI Feedback



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Personnel Productivity & Profit Ratio Your business Feedback

Income per Dollar Spent on Wages and Sub-Contractors

$1.89 Your result is at the lower end of the range - not an especially good result. Very low figures may indicate that you aren't putting a high enough markup on costs, or your hourly rates are too low, or you have too much downtime.

Gross Profit per Dollar Spent on Wages and Sub-Contractors

$0.66 Low gross profit productivity can be fixed (eg) by: lifting hourly rates; improved purchasing and stock control to minimise materials costs; improved site security to reduce losses; more productive hours being worked.

Net Profit per Owner $176,820 High net profit per owner reflects a number of strengths in your firm. Your result here puts you in the top 20% of our sample, so well done! Don't rest on your laurels, though, as a business which doesn't move forward each year is in fact slipping back.

Margins Ratio Your business Feedback

Materials used as % of total income

32.82% Your result for materials is around mid-range. Review your purchasing policies to make sure you get materials at the right price; minimise wastage and 're-work' too, which increase your total outlay.

Sub-contractors as % of total income

32.48% Very high cost for sub-contractors reflects your approach to the operation of the firm. It gives plenty of flexibility in handling larger projects, if required.

Total Overheads 22.61% This is an excellent result. However, don't starve the business with too tight a control on the 'investment' costs such as promotion, equipment etc.

Net Profit (*bos) 12.09% Low net profit margin leaves little scope to absorb any 'surprises' (eg sudden lift in costs, or drop in new contracts). Work on either the gross profit margin or the overheads, to lift your result.

Major Overheads as a % of Total Income Ratio Your business Feedback

Vehicle operating costs 1.03% A low vehicle cost helps keep your total overheads low, too.

Employees' Wages & Salaries (excludes the owners' wages)

13.68% Your result is at the upper end of the range. Check your personnel productivity to make sure you have the right number of people; check your local market to see that you are paying competitive wages.

Interest, Bank Charges etc 0.10% Your low result reflects low levels of interest-bearing debt.



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Other Depreciation, Lease, Hire-Purchase etc

1.71% Make sure you have a suitable range of equipment - that will determine whether your result is satisfactory, or out of balance.

Asset Levels Ratio Your business Feedback

Asset Turnover $3.37 Your asset turnover is much lower than the average, suggesting that you use far more assets than is usual. Look at the entire asset base to see if it can be reduced without compromising on the quality of your work.



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Key Performance Indicator Graphs

4 Graphs



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Key Performance Indicator Graphs



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Increase Revenue

Control Overheads and Increase Net Profit

Control Liquidity

5 Action List



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Increase Revenue Strategy - Review Hourly Charge Rates:

Review existing charge rates;

Find out what other firms charge, if possible, so that your charges don't get too high;

Implement policy of quarterly reviews;

Improve standard of service - quick response times; leave customers' premises in clean and tidy condition.

Strategy - Improve Your 'Merchandising' Skills, To Minimise the Cost Of Materials

Trace the materials you use on each job and charge the customer a suitable fee to cover the cost including ordering, handling and so on;

Minimise the loss of stock through theft, obsolescence, etc;

Minimise damage to stock items while they are in storage awaiting use or on site;

Only pay for the goods you actually receive - check quantities ordered vs quantities delivered; check the prices paid for items; return damaged or incorrect items for a credit;

Negotiate a preferred rate from a small number of suppliers (consolidate your purchases through a few suppliers, to get discounts for volume, rather than buying 'anywhere').

Strategy - Improve Staff Productivity:

Minimise lost time travelling between jobs, or going to buy materials for the job;

Monitor progress of a job so that your people aren't idle while waiting to be able to do their work.

Strategy - Increase Average Revenue Per Customer:

Prepare a customer register / database (to record work done, and other details about the customer);

If applicable for some services, institute periodic reminders about the need for regular maintenance;

Use a mix of marketing aids to keep your name in front of your existing customers.

Strategy - Attract New Customers:

Improve firm's reputation;

Develop networks with relevant referrers of business (eg other trades, real estate agents, etc);

Utilise your current customers as a source of referrals.

Control Overheads and Increase Net Profit Strategy - Improve The Firm's Efficiency:

Review each individual expense item;

Call quotes or tenders to ensure cost prices are as low as possible, consistent with required quality / standards;

Maximise effectiveness of growth-based expenses (eg marketing and training);

Continually investigate and implement more efficient or less costly ways of operating the firm;

Ask 'what would happen if we didn't buy / spend this?' to focus attention on incidental expenditures;

Adopt the 'green theme': reduce, re-use, and recycle consumable items.



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Control Liquidity Strategy - Minimise Work-In-Progress:

Bill jobs immediately on completion or at key stages;

Constantly review job schedule list;

Improve throughput of small jobs.

Strategy - Minimise Debtors:

Set clear policy for debtors follow-up;

Produce monthly aged debtors list;

Chase late payers (over 30 days) immediately by phone;

Delegate follow-up to one individual - and make sure they have time to do it!;

Routinely identify bad debts and write-offs (not just at year-end);

Institute legal action where the debt is big enough to justify it.



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Business Parameters

Business Valuation

6 Business Value



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Business Parameters Enter specific metrics in relation to the business being valued:

Investment Payback Period (in years) 3

Tax rate (currently 30%) - (enter as a whole number i.e. 30) 0

Cost of funds (normally 10%) - (enter as a whole number i.e. 10) 12

Discount for Minority Share Holding (enter as a whole number i.e. 15) 0

Business Valuation The purpose of a valuation is to determine the Fair Market Value of a business. Fair Market Value is ordinarily attributed to the well recognised willing but not anxious purchaser and vendor analogy where there is equitable value to both parties involved in a transaction according to the particular circumstances surrounding the transaction.

There are three business valuation methods that are currently generally accepted:

i. Asset Valuation Method - calculates the value of tangible and intangible assets available to be transferred on the sale of the business

ii. Discounted Cash Flow Analysis - determines the present value of future opportunities or cash flow

iii. Capitalisation of Profits - multiplies a business s adjusted earnings before interest and tax (EBIT) by a capitalisation factor, which is specific to each business and the particular point in time

This Business Valuation adopts the Capitalisation of Profits method and values the business as a going concern.

The capitalisation rate has been calculated based on the weighted adjusted EBIT and Business Valuation Parameters. The capitalisation rate is unique to this business and will provide sufficient return to a purchaser to allow them to recoup their investment with post tax funds over the investment payback period.

The capitalisation rate for this business is: 2.54

The business valuation is determined by multiplying the weighted adjusted EBIT by the capitalisation rate. The value of this business is calculated as follows:

Weighted adjusted EBIT $153,667 Capitalisation Rate 2.54 Business Value $390,767 These pages should form part of your working papers in relation to the valuation. To complete the valuation and present it appropriately we recommend you download the Valuation Report Template and insert the relevant information.



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Business Details

Profit and Loss

Balance Sheet

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Financial Data Entry



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Business Details Location

State (please select from the dropdown menu) NSW

Region (please select from the dropdown menu) Suburb of Capital City or Major Provincial City (pop. >100,000)

Location (please select from the dropdown menu) Other

Personnel

Note: FTE stands for Full Time Equivalent (NOT headcount). Some people in your business may have only worked for part of the year or are part time. In these cases, the full time equivalent is less than 1.

For example, if a person worked 500 hours in the 12 months ending June of the applicable year and for that position type, 1800 hours is expected to be full time, then the FTE is 500/1800 = 0.28 FTE. Another way to determine the FTE is based on how many days a week a person works. If an employee works 3 full days per week, the FTE is 3 working days / 5 weekdays= 0.6 FTE.

FTE Total Salary Total Super, FBT and other staff-on costs

Average hourly rate

Total fees billed

Check average salary makes sense

How many Owners actively work in the business - in full time equivalents

1.00 85,000 8,500 $93,500

Of these, how many are Qualified Sample Employees

1.00

No. of Sample 2 Employees

No. of Sample 3 Employees including internal contractors

4.00 95

No. of Sample 4 Employees

No. of all Other Employees 0.50 $0

TOTAL 5.50 $85,000 $8,500 $0

Other Details

Hours Worked by all Owners in year 2,400

Check - Average Owner Hours in range 1700 - 3500. (check owner FTE and hours) 2,400

Number of Separate Jobs completed in the year. 485

Profit and Loss Income

Total Earnings 1,450,000

All Other Income (Wage Subsidies, Insurance Recoveries, Interest etc). Any buying group dividends/rebates, or goods taken for own use belong at item 15. Any profit on disposal of fixed assets should be applied to reduce the depreciation cost, below. Staff contributions towards the cost of (eg) motor vehicles should be offset against the cost, below. Enter the total to the right and list all major

12,500



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components below.

sale

Total Income $1,462,500

Less Expenses

Cost of Materials Used or Sold (including freight and minor items used in performing work for customers)

480,000

Internal Contractors including PAYG contractors in same trade (essentially contracting just labour to client's firm and fte's include at item 9)

50,000

Independent External Contractor Payments (other trade contractors and payments to related professionals, eg, architects, surveyors etc)

475,000

Total Cost of Goods Sold $1,005,000

Equals Gross Profit $457,500

Overheads

Advertising & Promotion (ads, brochures etc) 12,000

Accounting & Legal Fees 2,400

All Insurance ( including any Keyman or Life Insurance for the Owners) 4,580

Interest paid to external lenders on Overdrafts, Term Loans, Mortgages etc (interest on Leases and Hire Purchase belongs at items 28 or 33 as appropriate) and Bank Charges etc (credit cards, FID/BAD tax, account or transaction fees, write-off of borrowing costs etc)

1,500

Licences/Permits and fees to government bodies 250

Rent of Premises (if part of the premises are sub-let, reduce the total rent expense by the sub-let income)

4,500

Other Occupancy Costs (eg, power, gas, rates & taxes, cleaning etc) 1,250

All Non-Vehicle Deprn, Lease, Equipment Amortisation and Hire-purchase. Include profit/loss on disposal and HP interest.

25,000

Repairs & Maintenance and including security, guard dog expenses, waste disposals, tool replacements, equipment fuel & oil, plant regos, minor hire of equipment etc.

12,000

Other Staff Benefits and On Costs & all non-salary benefits paid to owners (payroll tax, all FBT, staff amenities, recruitment, training, uniforms, all superannuation, directors &/or management fees paid to owners etc)

9,500

Check - Super equals figure entered in salary matrix above error

Telephone & Fax (include mobiles, 2-way etc) 1,200

PAYG Wages & Salaries for all personnel (incl. owners), Bonuses, Commissions, & payments to Contract Personnel not included at item 16

285,000

Check - Wages equals figure entered in salary matrix above error

Vehicle Operating Costs (including fuel, repairs, rego, vehicle allowances, lease, HP, deprn, and any Profit/Loss on sale) Ignore employee contributions

15,000

Less: True private use component % (enter as a whole number i.e. 25) 0

Net Vehicle Costs: $15,000

Any Other Expense Not listed Above (Enter the total to the right and list all major components below) 0

Total Overheads $374,180

equals Net Profit after owners' salaries and benefits $83,320



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If Net Profit is low, please give some explanation.

n/a

Balance Sheet Exclude any investments not related to the business and also exclude liabilities related to those investments.

Assets

Cash on hand and at Bank 17,000

Trade Debtors 15,000

Stock of Goods &/or Materials 250,000

Work-in-progress, completed projects awaiting sale. 1,000

Other Current Assets incl GST Clearing A/c

Equipment, Fixtures and Fittings, Vehicles (Written down value) 150,000

Land & Buildings used by this business (no rental investments) 0

Goodwill

Loans to Owners, related entities, trusts etc. 15,000

Other Non-Current Assets 1,000

Total Assets $449,000

Liabilities

Bank Overdraft 30,000

Trade Creditors 250,000

Other Current Liabilities incl GST Clearing A/c

Term Loans etc

Lease and HP Liabilities 15,000

Loans from Owners, related entities, trusts etc. 150,000

Other Non-Current Liabilities (include LSL Provisions here) 10,000

Total Liabilities $455,000

Owners' Equity $-6,000



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Profit and Loss

Balance Sheet

8

Valuation Questionnaire



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Profit and Loss The valuation requires you to enter information from the Profit and Loss Account, the Balance Sheet as well as some business specific parameters. Where possible we recommend you enter three years worth of data, though only include a financial year if the business performance of that year was representative of the current business model.

Current Financial Year Last Financial Year Fin Year Before Last

Total Sales/Fees 1,462,500 1,225,000 1,050,000

Net Profit before tax (as reported) 80,000 110,000 95,000

Add Profit Adjustments:

The accounts of the business need to be normalised to reflect the operations of the business. The overriding principal is to identify the profitability of the business that could be achieved if an independent third party were operating it in its current form. Add back any items that understate the profit, such as: Owners cars, phone bills, salaries to non working spouses, etc.

Principal salary 150,000 130,000 100,000

Principal superannuation 15,000 13,000 10,000

Abnormal or private expenses 25,000

Interest paid 12,000 8,000 5,000

Other: Private 35,000 15,000 0

Other: Custom 123

Other:

Subtotal: $212,000 $191,000 $115,000

Subtract Profit Adjustments:

The accounts of the business need to be normalised to reflect the operations of the business. The overriding principal is to identify the profitability of the business that could be achieved if an independent third party were operating it in its current form. Subtract any items that overstate the profit, such as: Reasonable market salary for working owners.

Principal notional salary 110,000 100,000 90,000

Principal superannuation 11,000 10,000 9,000

Interest received

Other: Sale 28,000

Other:

Other:

Subtotal: $149,000 $110,000 $99,000

Adjusted EBIT: $143,000 $191,000 $111,000

Select Weighting: 3 2 1

Weighted EBIT: 429,000 382,000 111,000

Balance Sheet Current Financial Year Last Financial Year Fin Year Before Last

WIP / Stock / Inventory 75,000 50,000 25,000



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9

Sample Industry Benchmark - 2013



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Average Results for businesses grouped as indicated

All Turnover: Turnover: Turnover: Turnover: Firms Less than $500,000 to $1,000,000 to $2,000,000 Average $500,000 $999,999 $1,999,999 or more Income

Total Income $1,193,692 $204,694 $736,554 $1,449,884 $3,601,171 Less Materials Used 32.94% 25.36% 40.47% 38.51% 38.33% Less Sub Contractors 19.33% 8.81% 17.48% 31.64% 34.01% Equals Gross Profit 47.72% 65.83% 42.04% 29.86% 27.66% Less Overheads as %'s of Total Income:

Advertising & Promotion 0.63% 0.65% 0.54% 0.68% 0.64% Accounting & Legal Fees 1.01% 1.49% 0.63% 0.58% 0.63% All Insurance 1.72% 2.25% 1.85% 1.22% 0.86% Interest Bank Charges etc 1.42% 2.18% 0.75% 0.93% 0.76% Licences, Permits and Subscriptions 0.36% 0.31% 0.65% 0.31% 0.23% All Occupancy Costs 0.68% 0.45% 0.73% 0.82% 1.02% Other Depreciation, Lease and HP 1.37% 1.90% 0.70% 1.35% 0.82% Repairs & Maintenance 0.90% 1.16% 1.09% 0.54% 0.46% Staff On Costs 1.10% 0.91% 1.44% 1.11% 1.24% Telephone & Fax 0.95% 1.51% 0.55% 0.51% 0.44% Employees' Wages & Salaries 8.04% 6.72% 13.84% 7.42% 6.28% Internal Sub Contractors 3.01% 2.87% 2.74% 2.47% 4.05%

Vehicle Operating Costs 4.82% 8.33% 2.77% 2.02% 1.24% All Other Expenses 1.64% 1.99% 1.79% 1.23% 1.08% Total Overheads 27.67% 32.71% 30.06% 21.19% 19.76% Net Profit (bos*) 20.10% 33.12% 12.20% 8.67% 7.90% Net Profit (bos*) per....

Working Owner $81,327 $43,768 $66,687 $90,353 $174,641 Owner Workhour $44.95 $22.29 $33.44 $44.40 $110.05 Total Income per....

$ of Wages # & Contractor Payments $2.59 $2.30 $3.07 $2.47 $2.91 Gross Profit (Income less Materials and Payments to Sub Contractors) per....

Person $91,734 $68,811 $76,019 $107,939 $147,974 $ of Wages # & Contractor Payments $1.17 $1.44 $1.28 $0.80 $0.80 Non Personnel Related Overheads per....

Person $32,029 $24,927 $23,801 $42,304 $47,656 $ of Wages # & Contractor Payments $0.39 $0.49 $0.38 $0.27 $0.25 Personnel (fte personnel numbers)

Working Owners 1.32 1.12 1.28 1.45 1.70 Qualified Staff 1.56 0.26 1.84 2.16 3.71 Other Staff 1.30 0.42 1.35 0.98 3.51 Total Personnel 4.18 1.80 4.48 4.60 8.88 Hours Worked per Owner per Year 1,896 1,948 1,693 2,041 1,828 Other Information

Owners' Equity as % of Total Assets 28.92% 41.85% 35.60% 1.90% 19.39%

Asset Turnover $4.88 $4.55 $5.24 $6.16 $3.99 Days' Debtors 33 35 31 27 38 % Revenue drops before Losses Start 37.01% 44.64% 32.61% 30.35% 29.63% Growth Capacity 15.87% 29.07% 7.82% 6.40% 1.74% Current ratio 2.53 3.48 2.25 1.59 1.70 Acid test 2.76 3.92 2.25 1.69 1.90 Stock and WIP turnover 53.74 33.41 21.68 148.89 10.04 Liability turnover $11.45 $15.75 $9.54 $9.96 $5.71 Interest cover: business 165.47 295.49 88.08 44.26 81.87 -





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All Net Profit per Net Profit per Net Profit per Net Profit per Firms Owner: Owner: Owner: Owner: Average Less than $50,000 to $70,000 to $100,000 $50,000 $69,999 $99,999 or more Income

Total Income $1,193,692 $520,118 $595,058 $1,063,463 $2,877,336 Less Materials Used 32.94% 35.02% 28.39% 25.78% 36.16% Less Sub Contractors 19.33% 15.41% 12.58% 24.92% 28.56% Equals Gross Profit 47.72% 49.57% 59.03% 49.30% 35.28% Less Overheads as %'s of Total Income:

Advertising & Promotion 0.63% 0.66% 0.11% 1.04% 0.68% Accounting & Legal Fees 1.01% 1.17% 1.41% 0.69% 0.48% All Insurance 1.72% 1.83% 2.24% 1.92% 1.06% Interest Bank Charges etc 1.42% 2.52% 0.59% 0.71% 0.81% Licences, Permits and Subscriptions 0.36% 0.48% 0.41% 0.25% 0.17% All Occupancy Costs 0.68% 0.59% 0.38% 0.81% 0.86% Other Depreciation, Lease and HP 1.37% 1.73% 0.51% 1.86% 1.14% Repairs & Maintenance 0.90% 1.28% 0.72% 0.67% 0.57% Staff On Costs 1.10% 0.85% 0.83% 1.63% 1.38% Telephone & Fax 0.95% 1.27% 1.09% 0.77% 0.44% Employees' Wages & Salaries 8.04% 6.59% 6.53% 12.30% 8.28% Internal Sub Contractors 3.01% 1.49% 4.66% 2.99% 4.18%

Vehicle Operating Costs 4.82% 7.15% 5.37% 3.43% 1.61% All Other Expenses 1.64% 2.36% 1.14% 1.10% 1.25% Total Overheads 27.67% 29.98% 25.99% 30.17% 22.90% Net Profit (bos*) 20.10% 19.68% 33.04% 19.13% 12.38% Net Profit (bos*) per....

Working Owner $81,327 $28,489 $60,513 $82,440 $187,187 Owner Workhour $44.95 $14.34 $30.45 $44.21 $110.73 Total Income per....

$ of Wages # & Contractor Payments $2.59 $2.28 $2.66 $2.24 $2.94 Gross Profit (Income less Materials and Payments to Sub Contractors) per....

Person $91,734 $61,039 $80,559 $111,731 $139,164 $ of Wages # & Contractor Payments $1.17 $1.07 $1.40 $1.15 $1.01 Non Personnel Related Overheads per....

Person $32,029 $28,843 $24,924 $35,941 $40,345 $ of Wages # & Contractor Payments $0.39 $0.46 $0.36 $0.32 $0.27 Personnel (fte personnel numbers)

Working Owners 1.32 1.26 1.20 1.29 1.67 Staff 1.56 0.66 0.68 1.63 3.87 Other Staff 1.30 0.65 0.82 1.26 2.95 Total Personnel 4.18 2.57 2.70 4.19 8.45 Hours Worked per Owner per Year 1,896 1,921 2,018 1,752 1,873 Other Information

Owners' Equity as % of Total Assets 28.92% 34.17% 41.00% 21.81% 16.43%

Asset Turnover $4.88 $4.76 $4.53 $4.69 $4.84 Days' Debtors 33 37 20 33 39 % Revenue drops before Losses Start 37.01% 31.23% 50.93% 40.37% 35.69% Growth Capacity 15.87% 14.41% 30.06% 18.16% 5.44% Current ratio 2.53 4.17 1.36 1.04 2.77 Acid test 2.76 3.40 3.36 1.10 3.14 Stock and WIP turnover 53.74 18.66 239.92 27.57 16.90 Liability turnover $11.45 $19.00 $16.13 $-3.22 $8.87 Interest cover: business 165.47 260.04 141.01 70.96 106.46 -





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Location: Location: Location: Other: Other: Other: Capital City Large Small Primary High Use Low Use CBD Regional Regional Owner of Subbies of Subbies Centres Centres Labour Income

Total Income $1,178,295 $1,081,734 $1,267,011 $307,776 $1,470,541 $676,383 Less Materials Used 47.26% 28.37% 42.27% 32.24% 33.16% 33.61% Less Sub Contractors 10.46% 21.20% 18.15% 1.59% 24.88% 3.80% Equals Gross Profit 42.28% 50.43% 39.58% 66.17% 41.96% 62.59% Less Overheads as %'s of Total Income:

Advertising & Promotion 0.16% 1.39% 0.49% 0.57% 0.65% 0.71% Accounting & Legal Fees 1.47% 0.81% 0.54% 1.89% 0.73% 1.33% All Insurance 1.31% 2.38% 1.38% 1.73% 1.72% 1.99% Interest Bank Charges etc 1.08% 1.90% 1.10% 2.50% 1.09% 1.75% Licences, Permits and Subscriptions 0.68% 0.53% 0.39% 0.27% 0.38% 0.32% All Occupancy Costs 0.22% 0.99% 0.74% 0.42% 0.76% 0.58% Other Depreciation, Lease and HP 0.31% 1.64% 1.57% 2.23% 1.10% 1.70% Repairs & Maintenance 1.10% 0.86% 1.01% 1.61% 0.68% 1.07% Staff On Costs 0.23% 1.03% 1.24% 0.65% 1.25% 1.31% Telephone & Fax 0.95% 0.99% 0.62% 1.41% 0.81% 1.19% Employees' Wages & Salaries 4.34% 8.34% 10.11% 3.49% 9.46% 10.05% Internal Sub Contractors 4.75% 5.72% 0.77% 0.00% 3.96% 4.35%

Vehicle Operating Costs 2.76% 4.79% 3.16% 9.62% 3.33% 6.65% All Other Expenses 2.24% 1.90% 0.85% 2.15% 1.48% 2.00% Total Overheads 21.61% 33.26% 23.99% 28.54% 27.39% 34.99% Net Profit (bos*) 20.67% 17.33% 15.59% 37.63% 14.62% 27.60% Net Profit (bos*) per....

Working Owner $164,623 $74,568 $70,756 $43,373 $92,857 $71,647 Owner Workhour $145.45 $40.64 $34.38 $22.09 $51.87 $42.10 Total Income per....

$ of Wages # & Contractor Payments $3.77 $2.17 $2.78 $3.29 $2.39 $3.07 Gross Profit (Income less Materials and Payments to Sub Contractors) per....

Person $136,693 $81,504 $75,348 $96,534 $90,257 $90,500 $ of Wages # & Contractor Payments $1.52 $1.11 $1.07 $1.78 $0.98 $1.64 Non Personnel Related Overheads per....

Person $28,043 $32,715 $23,473 $38,379 $30,075 $28,922 $ of Wages # & Contractor Payments $0.42 $0.41 $0.34 $0.67 $0.30 $0.52 Personnel (fte personnel numbers)

Working Owners 1.70 1.33 1.43 0.98 1.43 1.18 Staff 1.40 2.24 1.54 0.04 2.04 1.47 Other Staff 0.24 1.70 1.77 0.22 1.64 0.78 Total Personnel 3.34 5.27 4.74 1.24 5.10 3.43 Hours Worked per Owner per Year 2,012 1,888 2,068 1,913 1,891 1,880 Other Information

Owners' Equity as % of Total Assets 46.93% 28.37% 39.66% 54.25% 20.60% 33.01%

Asset Turnover $1.87 $4.70 $5.07 $4.65 $4.95 $4.73 Days' Debtors 33 48 26 22 34 39 % Revenue drops before Losses Start 49.58% 30.70% 36.60% 49.93% 32.97% 38.33% Growth Capacity 10.48% 9.73% 13.35% 36.80% 9.33% 26.00% Current ratio 1.75 3.22 1.43 4.13 2.03 2.71 Acid test 9.45 2.18 1.74 5.67 1.85 3.45 Stock and WIP turnover 10.04 22.32 153.09 22.64 57.73 86.47 Liability turnover $3.67 $11.50 $10.21 $32.73 $4.58 $12.80 Interest cover: business 70.91 62.56 353.58 440.16 81.23 229.54 -



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