SAMPLE BUDGET
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SAMPLE THREE YEAR BUDGET FOR A WOOD RECYCLING ENTERPRISE  - February 2010
BUDGET: YEAR 1
INCOME Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 %
Collection fees 800 1500 2000 2500 2500 3000 3000 3500 3500 4500 4500 5000  £    36,300 66%
Pallet sales     50 50 50 50 100 100 100 100 150  £         750 1%
Retail Income     200 300 500 800 1000 1500 2000 2500 3000 3000  £    14,800 27%
Products           100 150 200 250 250 275 275  £      1,500 3%
Firewood 100 200 200             200 400 400  £      1,500 3%
Trainee fees                          £            -   0%
                           £            -   0%
TOTAL 900 1700 2400 2850 3050 3950 4200 5300 5850 7550 8275 8825  £    54,850 100%
                         
EXPENDITURE M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Truck [1] 6000                        £      6,000 7%
Tools/equip' 2500                        £      2,500 3%
IT/office 800                        £         800 1%
Insurance  2200                        £      2,200 3%
Other 500                        £         500 1%
TOTAL 12000 0 0 0 0 0 0 0 0 0 0 0  £    12,000
Rent/rates 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200  £    14,400 18%
Wages [2] 3600 3600 3600 3600 3600 3600 3600 3600 3600 4400 4400 4400  £    45,600 56%
Motor-fuel 100 100 100 125 125 150 150 175 175 225 225 250  £      1,900 2%
Motor-maintain 20 20 20 20 50 50 50 50 50 50 50 50  £         480 1%
Grade 3 [3] 40 75 100 125 125 150 150 175 175 225 225 250  £      1,815 2%
Marketing 500 100 100 100 100 100 100 100 100 100 100 100  £      1,600 2%
Office/utilities 100 100 100 100 100 100 100 100 100 100 100 100  £      1,200 1%
Other 200 200 200 200 200 200 200 300 300 300 300 300  £      2,900 4%
Overdraft interest (4)                          £            -   0%
TOTAL 17760 5395 5420 5470 5500 5550 5550 5700 5700 6600 6600 6650  £    81,895 100%
   
Profit/loss -16860 -3695 -3020 -2620 -2450 -1600 -1350 -400 150 950 1675 2175 -£    27,045
Cumulative p/l -16860 -20555 -23575 -26195 -28645 -30245 -31595 -31995 -31845 -30895 -29220 -27045
BUDGET: YEAR 2
INCOME Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01
Collection fees 5000 5000 5000 5500 5500 5500 5500 5500 6000 6000 6000 6000  £    66,500 55%
Pallet sales 150 150 150 150 150 200 200 200 250 250 250 250  £      2,350 2%
Retail Income 3000 3000 3000 3500 3500 3500 3500 3500 4000 4000 4000 4000  £    42,500 35%
Products 500 500 500 500 500 500 500 500 500 500 500 500  £      6,000 5%
Firewood 800 800 600             200 600 800  £      3,800 3%
Trainee fees                          £            -   0%
TOTAL 9450 9450 9250 9650 9650 9700 9700 9700 10750 10950 11350 11550  £  121,150 100%
                         
EXPENDITURE M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24
Truck           6000              £      6,000 6%
Tools/equip' 1000                        £      1,000 1%
IT/office                          £            -   0%
Insurance  1700         500              £      2,200 2%
TOTAL 2700 0 0 0 0 6500 0 0 0 0 0 0  £      9,200
Rent/rates 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200  £    14,400 14%
Wages 4400 4400 4400 5200 5200 6000 6000 6000 6000 6000 6000 6000  £    65,600 63%
Motor-fuel 250 250 250 275 275 275 275 275 300 300 300 300  £      3,325 3%
Motor-maintain. 60 60 60 60 60 100 100 100 100 100 100 100  £      1,000 1%
Grade 3 250 250 250 275 275 275 275 275 300 300 300 300  £      3,325 3%
Marketing 100 100 100 100 100 100 100 100 100 100 100 100  £      1,200 1%
Office/utilities 100 120 120 120 120 120 120 120 120 120 120 120  £      1,420 1%
Other 300 300 300 300 300 350 350 350 350 350 400 400  £      4,050 4%
overdraft interest                          £            -   0%
TOTAL 9360 6680 6680 7530 7530 14920 8420 8420 8470 8470 8520 8520  £  103,520 100%
   
Profit/loss 90 2770 2570 2120 2120 -5220 1280 1280 2280 2480 2830 3030  £    17,630
Cumulative p/l -26955 -24185 -21615 -19495 -17375 -22595 -21315 -20035 -17755 -15275 -12445 -9415
BUDGET: YEAR 3
INCOME Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02
Collection fees 6000 6000 6000 6500 6500 6500 6500 6500 6500 6500 7000 7000  £    77,500 53%
Pallet sales 250 250 250 250 300 300 300 300 300 300 300 300  £      3,400 2%
Retail Income 4000 4000 4000 4250 4250 4250 4250 4250 4500 4500 4500 4500  £    51,250 35%
Products 600 600 600 600 600 800 800 800 800 800 800 800  £      8,600 6%
Firewood 1000 1000 600   400 200         400 800  £      4,400 3%
Trainee fees                          £            -   0%
TOTAL 11850 11850 11450 11600 12050 12050 11850 11850 12100 12100 13000 13400  £  145,150 100%
                         
EXPENDITURE M25 M26 M27 M28 M29 M30 M31 M32 M33 M34 M35 M36
Truck                          £            -   0%
Tools/equip' 1000       2000                £      3,000 3%
IT/office                          £            -   0%
Insurance  2000                        £      2,000 2%
TOTAL 3000 0 0 0 2000 0 0 0 0 0 0 0  £      5,000
Rent/rates 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500  £    18,000 15%
Wages 6000 6000 6000 6000 6600 6600 6600 6600 6600 6600 6600 6600  £    76,800 65%
Motor-fuel 300 300 300 325 325 325 325 325 325 325 350 350  £      3,875 3%
Motor-maintain. 100 100 100 100 100 100 100 120 120 120 120 120  £      1,300 1%
Grade 3 300 300 300 325 325 325 325 325 325 325 350 350  £      3,875 3%
Marketing 100 100 100 100 100 100 150 150 150 150 150 150  £      1,500 1%
Office/utilities 120 120 120 120 150 150 150 150 150 150 150 150  £      1,680 1%
Other 400 400 400 400 450 450 450 450 450 500 500 500  £      5,350 5%
overdraft interest                          £            -   0%
TOTAL 11820 8820 8820 8870 11550 9550 9600 9620 9620 9670 9720 9720  £  117,380 100%
   
Profit/loss 30 3030 2630 2730 500 2500 2250 2230 2480 2430 3280 3680  £    27,770
Cumulative p/l -9385 -6355 -3725 -995 -495 2005 4255 6485 8965 11395 14675 18355
Notes to budget
[1] To date enteprises have spent significantly less on their first vehicle.
[2] Wages figure based on one full-time worker on c.£26,000 p.a. and one part-time on c.£13,000.
(3)Cost of disposal of Grade 3 will depend on what local arrangements can be negotiated but have been budgetted at 5% of the total collection fee.
(4) No interest is included because it is assumed that a grant willbe obtained to cover working capital required. No contribution form NCWRP referrals.
Budget observations/assumptions
Business grows steadily with little advertising spend. Collection income target is challenging but has been achieved by existing enterprises.
No NCWRP-referred collections included.
Enterprise has a working capital requirement of £31,995.
Return on capital is 5.72%.
Enterprise needs 3-5 volunteers per day to carry out necessary activities in line with this budget.
Enterprises open Saturdays to achieve retail income targets.
Enterprise is debt-free in 5th month of year three.
P&L summary
year1
year2
year3
 ROCE
cumulative -£27,045 £17630 £27770 £18355
net profit % -49% 15% 19% 5.72%

 

  
 
     
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