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2009Executive Summary
FG Developers Limited (FGL) is a plan medium-sized commercial construction company with office in Taifa North Estate - Kwabenya. FGL has been fortunate to get land (1/4) acres near the office location and to start it initial sizable projects of 2 bedroom five floor apartment blocks of (200 two bedroom flats) among its two locations at the same locations. Local contacts and competitive pricing will propelled rapid growth of this new company. FGL when get the green light, unlike a typical gets housing company in Ghana: We would offer exceptional choices and unique forum of accommodations with brand of low medium and high cost accommodations. This business plan called FG Habitat agenda 2009 to provide quality apartment housing – mid rise building to house all people regardless of the size of their pocket (Income) to live in decent housing accommodation- emphasis on squatters or slam eliminations and continue to be responsible in housing provision for people who need accommodation in Accra – Tema metropolis and the country a whole towards sustainable development such as industry and commercial. Our goals is to provide the communities with social, economic, durable and affordable housing nation wide in long term in the atmosphere of creating natural environments and all pockets develop for both commercially and residentially apartments bringing a breath of fresh air into Accra – Tema metropolises
From FGL perspective, since colonial time, housing planning and development of low rise building has put pressure on land, making housing cost high and couple with lack of modernizations, the process of speculative demand and supply by private developers and loop holes in the planning, as well as land and design approval systems are major factors which contribute to the issues of non availability of low medium cost housing needs with estimated demand and shortfall of 250,000 annual demand. Source GIPC - (Ghana Investment Promotion Centre) official web site; for more you can contact the web sit for details and the business feasibility study report available at business office. The business plan outline strategy to fulfill both objectives of meeting the housing needs as required by the population in four ways,
a. Residential; 1,2,- 5 bed room condominium apartment blocks with five star amenities (short term).
b. Commercial development: Office complex – business centers, stores for who sale and retails shops, church premises- space, schools, shopping malls in long term – hotels and guest houses.( medium term)
c. Industrial development; Long term.
d. Recreational and civic or cultural property development which is virtually non –existence
Applications are to be accepted upon preliminary financial approval, applicants are to be invited to sign a priority wait list deposit and FGL exciting new development identifies that housing needs are central important to the Ghanaians, which private developers fails to provide the balance situation between demand and price. FGL has focused on low medium cost apartment housing – low tower apartment blocks or above floors building apartment condominium and we are the answer to the increasing demand. The public wants are:
1. Access to modernized architectural design and facilities.
2. Access to the methods of housing and volumes of housing units in Accra – Tema metros.
3. Access to a cost they can afford and such a way that they aren’t socially, economically or politically isolated.
In terms of the importance of the elements of effective demand (affordability and household willingness to pay for housing), housing choice (choice by housing tenure, dwelling type, form of housing and method of new homes to be developed) and the market criteria (housing market, preference in terms of price, location, type of housing, etc), the research will justify the possibility of incorporating this market mechanisms in the preparation of development plans and the operational housing approval activities at the local planning authority level.
By recognizing this elements in the housing planning process, its not only attempts to solve the issues of
demand, over shortages and under supply of housing, but will significantly contribute to change and to strengthen the planning fundamentals, policy and the nature of the planning system which conventionally merely focuses on meeting the housing needs of the market by FGL.
The construction and revitalization in the current location of building 200 Units or 20 blocks, eight story apartment homes. The resident and the foreigners and the business in the area of the city are looking forward to the new residential developments. Universal Developers and other housing agents are those among them welcoming the changes.
Mr.Sika-Nku, a housing agent who occasionally filled in at the business office ‘says’ ‘This section of Kwabenya south will experience renaissance to the area.

1 Mission
FGL Construction aims to provide high quality craftsmanship in the commercial construction industry at a very competitive cost. It is the goal of the company to achieve a greater reputation for quality and on-time delivery than the current competitors in the Accra – Tema metros. FGL is committed to delivering on-time completion. FGL maintains high integrity on all promised timelines and quality assurances. Our mission is also to provide clients across Ghana with structural engineering and Housing services for all types of apartment buildings, from concept planning through to completion, with a highly skilled professional team working together, using common sense and practical experience.
1.2 Keys to Success
FGL’s keys to success are comprised of the following factors:
• Many relationships among the commercial real estate community.
• Impeccable and unique workmanship.
• Retaining high-quality, on-site management.
• Ensuring estimates on price and completion dates are as accurate as possible.
• Track the progress of each construction project to insure the scope cost and schedule of each is maintained.
• Provide professional quality services on time and on budget.
• Develop a follow-up strategy to gauge performance with all clients.
• Implement and maintain a quality control and assurance policy
Company Summary
FGL Construction is a start-up to be managed by Frank Agyemang and looking for a partners who have years of combined experience in the commercial construction business or non to be partners or can carry on a loan if the he get a loan for the projects. With the extensive contacts that are being made to contact the partners to invest in the commercial real estate business, it is estimated that the company will have a significant number of projects site within the first three years to four years. The company will be seeking a $ 4600,000 loan to cover the purchase of long-term assets, office setup, and cash requirements.
2.1 Company Ownership
FGL Construction will exist as an equal partnership between the principles of two or as sole proprietorship: As one of the company’s goals is to focus on high quality workmanship, retaining as much talent as possible is crucial. Therefore, the company plans to add more partners to the firm as opportunities arise. The promoter is administrative Manager with years of experience in the built environment. The talents and skills quality of the of FGL employees would be exceptional and the original assets

2.2 Company Background
Frank Agyemang has begun working in the construction business immediately out of high school, and has proved himself as a equipment operator, construction foreman, and project manager at the Universal Developers Limited. And also a general manager and financial analyst at UDL. Over the years, as an individuals realized that the Accra – Tema lacked a commercial construction company that could consistently provide high quality work and on-time delivery despite the existence private providers like regimanuel Manet Housing etc. With this in mind, and wishing to capitalize on this opportunity, I have formed FGL Construction and looking for investors to partner up.

2.3 Start-up Summary

Start-up

Requirements

Start-up Expenses
Legal $5,000
Office Setup and Administrations $39,020
Rent $1,200
Insurance $5,000
Utilities $1,200
Other $1,000
Total Start-up Expenses $52,420

Start-up Assets
Cash Required $150,000
Other Current Assets $10,000
Long-term Assets $250,000
Total Assets $410,000

Total Requirements $462,420

Start-up Funding
Start-up Expenses to Fund $52,420
Start-up Assets to Fund $410,000
Total Funding Required $462,420

Assets
Non-cash Assets from Start-up $260,000
Cash Requirements from Start-up $150,000
Additional Cash Raised $0
Cash Balance on Starting Date $150,000
Total Assets $410,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $423,320
Accounts Payable (Outstanding Bills) $100
Other Current Liabilities (interest-free) $0
Total Liabilities $423,420

Capital

Planned Investment
Loan $36,000
Loan $3,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $39,000

Loss at Start-up (Start-up Expenses) ($52,420)
Total Capital ($13,420)

Total Capital and Liabilities $410,000

Total Funding $462,420
Under these the projects, residential units including High rise apartment blocks, Independent row houses & Bungalows are proposed to be taken up for construction as per the quality norms of FGL. The Taifa North project is a part of FGL Homes, a chain of townships proposed to be developed across 20 cities across by 2030. 54 Crores worth contract includes structural construction of one Great four crown (2 bedroom/2 Bedroom+ Terrace/Penthouse units) and 4 gorgeous (2 Bedroom/2 Bedroom + Study/3 Bedroom/Penthouse units) blocks. The work is proposed to commence by the end of this quarter i.e. by April 2009.FGL provides commercial and residential apartment construction, with a primary focus on large urban structure development. This includes the following types of construction: The business focus is to earn a position in housing with three mix price system – low medium and high cost, committed to excellent in enhancing accommodations with terrific comfort to:
• Office buildings
• Strip malls
• Commercial parking lots and garages
• Apartment complexes
• Restaurants
• Schools and Hostler
• Government contracts
• Church buildings and NGO’s
• Other private contracts
• Individuals
• Public and Civil servant
• Ghanaian abroad
• Hotels and Motels
FGL will provide the installation of all required business/operation systems such as electrical, lighting, refrigeration, heating, data information systems, etc. FGL will also provide wrecking services as a part of building re-construction projects. FGL will be receiving a few government and private contracts due its inception and hopes to increase this market segment.
Market Analysis Summary
Construction of residential houses (low cost housing, high rise quality apartments, retirement villages); Industrial houses (light industrial parks, warehousing facilities) and Commercial houses (regional and local shopping centers/malls, office accommodation, storage etc.) as well as provision of construction equipment and building materials.
Ghana’s property market is dominated by residential and commercial development. The residential market is the most active, registering an estimated 85,000 transactions per annum over the past decade. Commercial property is the second largest segment in the market and includes office accommodations and retail space. The industrial segment is significantly smaller in size than the commercial market, while recreational and civic/cultural property development is virtually non-existent.
The total market demand in the Ghana, commercial construction industry sector is huge. It is estimated that the total demand was $24 billion for fiscal year 2008. For the Accra, and Tema area, the total demand is $18.6 billion. Even with FGL’s expected large-scale growth due to its contacts and reputation, the market is so large that, by the end of 2009, FGL’s projected market share for the Tema – Accra Metropolis will only be one quarter of one percent.
FGL has a focus on meeting the development demand for urban located properties. FGL also will hope to bid on government and other private projects as resources permit. The Market Analysis chart and table show the estimated total number of potential customers in the three states FGL will be operating in. The majority of the company’s revenue lies on commercial contracts. This market sector provides significant growth and ample projects will extended in the future.

Market Analysis
2004 2005 2006 2007 2008
Potential Customers Growth CAGR
Residential Buildings 9% 12,000 13,080 14,257 15,540 16,939 9.00%
Commercial Building 5% 5,500 5,775 6,064 6,367 6,685 5.00%
Other 0% 2,000 3,000 4,000 5,000 6,000 10.00%
Total 7.79% 19,500 21,855 24,321 26,907 29,624 7.79%

Marketing Goals: SALES 2009 2010 2011
Total Supply Units% 200 250 300
Residential Building Customers
Public and Civil Servants 30% 60 75 90
Security Force 10% 20 25 30
Corporate Employees 35 70 88 105
Sole Proprietors 10 20 25 30
Ghanaian Abroad 5 10 12 15
Foreigners 5 10 12 15
Others 5% 10 12 15
Commercial Building Customers 100% 2009 2010 2011
Business Organizations 35% 5 18
Churches and NGO’s 10 2 5
Shopping Malls and Stores 25 3 12
Schools and Hostels 10 5
Government Agencies 5 3
Hotels and Motels 10 5
Others 5% 2
Total 10 50
Background
Ghana’s property market is dominated by residential and commercial development. The residential market is the most active, registering an estimated 85,000 transactions per annum over the past decade. Commercial property is the second largest segment in the market and includes office accommodations and retail space. The industrial segment is significantly smaller in size than the commercial market, while recreational and civic/cultural property development is virtually non-existent.
The residential and commercial markets are dominated by private companies, which control over 90% of property holdings. Although statistics are not readily available, industry representatives suggest that strong potential exists in both residential and commercial development, areas which in recent years have not received adequate attention from investors.

Trends
Residential property
Ghana’s residential market has enjoyed the greatest demand of any property segment. Demand has been generated by high population growth rates and urbanization pressures, especially within the Accra-Tema metropolis. The development of new housing estates was spearheaded by the Ghana Real Estate Developers Association (GREDA), an umbrella organization of loosely associated private real estate developers. The top five
GREDA companies that account for roughly 75% of the group’s residential property development are Regimanuel Gray, Parakuo Estates, NTHC Properties Ltd, ACP Estates Ltd and Manet Housing Company Ltd.
While official statistics are not available, it has been estimated that demand for residential property in the Accra-Tema metropolis will be 133,000 units per annum from now up to the year 2008. Industry sources indicate that Ghana's current residential property demand is 90,000 units per annum, with an accumulated shortfall of 250,000 housing units. Current production of residential properties averages only 70,000 units per annum, implying a significant annual demand gap.
Commercial property demand is driven in large part by the growing presence of foreign and multinational companies in Ghana. Between 1990 and 1999, an average of 40 international firms established operations in Ghana each year, and this trend is expected to continue.
In recent years, commercial lessees have begun to demand higher quality design and workmanship. As a result, more purpose-built properties have been developed to meet their needs.
Opportunities
Opportunities currently exist in the following areas of the industry:
RESIDENTIAL PROPERTY
While the housing supply rate has increased since 1990, current estimates point to a notable production shortfall of new residences in Accra – Tema metros.
Other opportunities include construction and renovation/rehabilitation of properties for office leasing, retail, shipping, storage and other enterprises in the greater Accra area.
Advantages. Source (Ghana Investment Promotion Centre).

Frank Blejumah Agyemang
Liver Pool street/ Avenue
Taifa North, Accra.
Post Office Box 12807
Accra – North.
Cell: (233) 271220526
[email removed]

4.1 Market Segmentation
FGL will focus on two market sub-segments of the commercial and residential construction industry segment. The first will be the urban projects segment and the second will be the local, and government contracts segments.
Urban Projects – Municipal Areas
FGL focuses on construction and wreckage/re-construction projects within urban locations. Large residential and commercial buildings make up a majority of these projects. FGL desires to establish and maintain long-term relationships with clients to develop a referral network and future repeated business. Recent industry trends seem to suggest that this segment will retain a relatively high growth rate for the foreseeable future.

Residential apartment Projects
The residential projects development make up approximately 100% of revenues in short term – agenda 2009-2012. High visibility and competitive price are critical to capture this segment of the market. One of the reasons why this segment is attractive is its relative stability. Projects from these sources are not dependent on the current market conditions and will provide revenue even during an economic downturn.
4.2 Target Market Segment Strategy
FGL will focus on its target market, the large new urban areas, by maintaining and increasing its relationship base with commercial real estate clientele. By offering a unique and impeccable level of workmanship along with competitive costs, FGL will be able to procure and maintain a healthy level of market share.
4.3 Market Needs
As companies located in urban areas are continually modernizing and growing, the demand for commercial construction services has steadily increased over the past 10 years. Housing needs:
• Industry sources estimate Ghana’s accumulated housing shortfall at 250,000units.
Construction costs:
• It is estimated that construction cost of an average residential property in Ghana’s split between 70% material cost and30% labour cost currently this growth stands at nine percent. The need for uniquely-savvy commercial construction services is significant, as companies seek to maintain a professional image.
4.4 Service Business Analysis
The construction industry is a capital-intensive field that requires large investments in long-term assets such as bulldozers, cranes, cement mixers, etc. In addition, variable material costs such as I-beams, roofing tiles, paint, etc., are also very high. This means that for the residential and commercial construction segment, which focuses on large scope projects, that entry/exit into the industry is quite difficult. The industry is fragmented with a vast number of very small companies. Most do not employ more than 40 individuals. FGL will be employing a significantly larger number beyond its first year in operation, and will therefore have the ability to provide Housing projects and to able to access loan and also bid for the largest and most profitable contracts.
Due to such large number of companies and the intense competition, margins are relatively low for the construction business as a whole. For the commercial segment, the margins are somewhat higher due to the high cost of construction.
Because each building is a unique product, the costs are very high relative to other assets, and the clients need such assets at a specific time, FGL the company's reputation in quality, on-time delivery, and cost are the crucial elements used in assessing a contractor.
The construction business is also seasonal, with the largest number of sales arising in the spring and summer. The number starts to decrease in the early fall, and the drop continues through the winter months of December through February, which are the low point during any year.
In the Kwabenya, the major competitors in the commercial segment are Regimanuel Gray, Parakuo Estates . Each of these companies focuses on the same type of client and customers as FGL. However, FGL offers more Housing Products and services, such Low Medium and High cost Housing with a price ranging from $ 20,000 and above. With the exception of FGL, set a price above these at a price of $50, 0000 to 80,000 two bed room flat and each of these competitors has such a broad range of customers that a more focused company, such as; we will be able to defeat the competition through more attention to client needs.
4.5 Competition and Buying Patterns
There are over 550residential and commercial contractors and 50 private developers along side the Land Lords/Ladies nationwide. FGL will primarily compete on the basis of its level of workmanship and relationships among the commercial real estate community.
Large competitors are providers of services to a broad range of commercial, industrial, utility, and institutional customers, typically through principal operating subsidiaries and joint ventures. The specialties of our competitors are:
• Residential and Commercial properties
• Design, installation, integration, start-up, operation, and maintenance of distribution systems for electrical power.
• Lighting systems.
• Low-voltage systems, such as fire alarm, security, communications and process control systems.
• Voice and data communications systems.
• Heating, ventilation, air conditioning, refrigeration and clean-room process ventilation systems.
• Plumbing, process, and high-purity piping systems.
Some competitors also provide services needed to support the operation of customers' facilities. These services include:
• Site-based operations and maintenance.
• Mobile maintenance and service.
• Mall modification and retrofit projects.
• Consulting, program development, and management for energy systems and the maintenance of facilities.
Facilities services are being provided to a wide range of residential and commercial, industrial, utility, and institutional facilities, often including those at which construction services have been provided, and others at which construction services were provided by other contractors. Facilities services are frequently combined to provide integrated service packages, which include mechanical and electrical services.
Mechanical and electrical construction services and facilities services are typically offered directly to corporations, municipalities, and other governmental entities, owners/developers and tenants of buildings. Companies are also providing these services indirectly by acting as subcontractors to construction managers, general contractors, systems suppliers and other subcontractors. While the facilities services business is also highly fragmented, a number of large corporations are engaged in this field, and there are other companies seeking to consolidate facilities services businesses. But we are our own contractor and provide service that needed to achieve our goals but we are ready to offer our service to other organizations that need them.
Strategy and Implementation Summary
FGL will succeed by providing high quality craftsmanship at a competitive cost – Low Medium cost, within initially promised timelines. To implement this strategy, FGL will seek to create a highly efficient, rapidly responsive project implementation and tracking department within each office. By forming close, long-term ties with its suppliers, this will create sourcing efficiencies that will minimize supply delays. It is planned that each of the four offices will be provided with equipment, maintenance, design, and infrastructure so as to make them each self sufficient profit centers. A bonus and profit sharing system, with the benefits clearly defined for everyone, will be used to promote the company's goals at all levels. Finally, the company will seek to institute an ongoing training program to promote the most promising people in the company and to retain a standard of excellence in workmanship.
5.1 Competitive Edge
FGL's competitive edges are its book of contacts which make up a healthy referral network, and its competitive cost on projects.

5.2 Sales Strategy
As the table shows, FGL plans to deliver Housing and contract revenue of approximately $4.0 million in the first year, $5.1 million in the second year, and $6.5 million in the third year of the plan.

Sales Forecast
2009 2010 2011
Unit Sales
Commercial Buildings 0 10 50
Residential Buildings 200 250 300
Other 0 0 0
Total Unit Sales 203 260 350

Unit Prices 2009 2010 2011
Commercial Buildings $.00 $12,700.00 $11,090.0
Residential Buildings $20,000.00 $20,000.00 $20,000.00
Other $0.00 $0.00 $0.00

Sales
Commercial Buildings $0 $38,50,000 $ 544,500.0
Residential Buildings $4,053,476.3 $4,741,822.5 $5,998,405.4
Other $0 $0 $0
Total Sales $4,053,476.3 $5,126,822.5 $6,542,905.4

Direct Unit Costs 2009 2010 2011
Commercial Buildings $00.00 $9,500.00 $992,250.00
Residential Buildings $ 9,196.715 $18,967.29 $275,625.00
Other $0.00 $0.00 $0.00

Direct Cost of Sales
Commercial Buildings $0 $95,000 $24,594,702
Residential Buildings $ 1,839,343 $1,837,500 $2,480,625
Other $0 $0 $0
Subtotal Direct Cost of Sales $1,839,343 $2,220,578.3 $2,707,532.7
Management Summary
Frank Blejumah Agyemang , president, and Francis and Emmanuel Foremen, Eric Konu, Facilities Manager and CFO others have 30 combined years of experience at all levels within the residential and commercial construction industry as shown in the table. Both have extensive experience as Lead Foreman, and have been participants in many major commercial projects of varying types. The rest are treated Vacancies and will be fill as soon we get the financial resources.
Appendix;
FGL would be a home of talents and have to run a training program for all employees to create energetic civil atmosphere. FGL is like a football team and the field to play talents. FGL believe firmly that each worker devoting his or her intelligence to the business is vital to the business development. The top hierarchies are coaches, facilitators, and teachers to the rest of the employees and for light for the business. The progress of each worker is the future and social wealth.
Name Proposed Designation Present Date

1.Frank B.A. President / CEO Admin Manger-UDL 2004 Present
2.Eric Konu
3.Francis
4.Emmanuel Facilities Manger Foreman
Foreman Fore Reg.Gray Estate
Fore Reg.Gray Estate
Fore Reg.Gray Estate 2006
2002
2004 Present
Present
Present

5.Mr.Asare Projects Manger Amal Bank (Banker) 2005 Present
6.Eric Allotey Management Accountant Charted Accountant (ACCA)- Consultant 2003 Present
7.Gifty Baoteng Executive Front Desk M. Secratary 2007 Present

FGL HUMAN RESOURCE CHART
Customers

6.1 Personnel Plan
As the personnel plan shows, FGL expects to make gradual investments in construction crew personnel. We intend to grow gradually, to reduce the chance of becoming too large too quick. The company will expand the crew as contracts require.
The crew of FG Developers Construction is formulated of individuals with a talent for craftsmanship. The company prides itself on only hiring experienced tradespersons for its crews. The quality assurance guarantees are provided, not only by the company, but by each individual working on the project.

Personnel Plan
2001 2002 2003
Owners $12,000 $12,600 $13,230.0
Office personnel $139,980.0 $146,979.0 $154,328.0
Foremen $24,000 $25,200.0 $26,4600
Crew Workers $180,000 $189,000 $198,450.0
Other $0 $0 $0
Total People 100 113 127

Total Payroll $355,980.0 $373,779.0 $392,468.0
Cost Analysis
Financial Plan
FGL expects to raise $39,000 as its own capital, and to borrow $.42 million guaranteed by the Done well Insurance as a Five-year loan. This provides the bulk of the current financing required for company growth.
7.1 Break-even Analysis
FGL's break-even analysis is based on the average of the first-year figures for total sales by project, and by operating expenses. These are presented as per-project revenue, per-project cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk.

Break-even Analysis

Monthly Units Break-even 1
Monthly Revenue Break-even $196,672.1

Assumptions:
Average Per-Unit Revenue $16,213..91
Average Per-Unit Variable Cost $73,572.56
Estimated Monthly Fixed Cost $107,429.8
7.2 Projected Balance Sheet
FGL's projected balance sheet follows.

Pro Forma Balance Sheet
2009 2010 2011
Assets

Current Assets
Cash $681,7122 $182,930.84 $335,613.91
Other Current Assets $10,000 $10,000 $10,000
Total Current Assets $691,712.2 $183,930.84 $336,613.91

Long-term Assets
Long-term Assets $460,000.0 $820,000.0 $135,000.00
Accumulated Depreciation $300,000.0 $140,000.0 $300,000.0
Total Long-term Assets $430,000.0 $6,800,000 $10,500,000
Total Assets $1,1217,122 $2,519,308.4 $4,416,139.1

Liabilities and Capital 2009 2010 2011

Current Liabilities
Accounts Payable $116,715.9 $276,602.8 $336,448.1
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $116,715.9 $276,602.8 $336,448.1

Long-term Liabilities $423,320.0 $383,320.0 $323,320.0
Total Liabilities $540,035.9 $659,922.8 $659,768.1

Paid-in Capital $39,000 $39,000 $39,000
Retained Earnings ($119,328.4) $542.,676.3 $1,820,385.5
Earnings $662,004.7 $1,277,709.2 $1,896,985.4
Total Capital $581,676.3 $1,859,385,5 $3,756,371.0
Total Liabilities and Capital $1,121,712.2 $2,519,308.4 $4,416,139.1

Net Worth $581,676.3 $1,859,385.5 $3,756,371.0
7.3 Projected Profit and Loss
As the Highlights chart shows below, FGL's sales are expected to increase by $1,000,000 each year, with a net gain of $1,600,000 per year. The following Profit and Loss table demonstrates FGL's expectation of continuing steady growth over the next three years of operation.

Pro Forma Profit and Loss
2009 2010 2011
Sales $4,053,476.3 $5,126,822,5 $6,542,905,4
Direct Cost of Sales $1,839,314.3 $2,220,578.3 $2,707,532.7
Other $0 $0 $0
Total Cost of Sales $1,839,314.3 $2,220,578.3 $2,707,532.7

Gross Margin $2,214,161.9 $2,906,244.2 $3,835,372.8
Gross Margin % 54.62% 56.69% 58.62%

Expenses
Payroll $355,980.0 $373,779.0 $392,468.0
Sales and Marketing and Other Expenses $848,9400 $621,572.0 $658,462.6
Depreciation $300,000 $110,000.0 $160,000.0
Utilities $840.0 $882.0 $926.1
Payroll Taxes $53,397.0 $56,066.9 $58,870.2
Other $0 $0 $0

Total Operating Expenses $1,289,157.0 $1,162,299.9 $1,270,726.8

Profit Before Interest and Taxes $925,004.9 $1,743,944.3 $2,564,645.9
EBITDA $9,550,049 $18,539,443 $2,724,645,9
Interest Expense $42,332.0 $40,332.0 $35,332.0
Taxes Incurred $220,668.2 $425,903.1 $632,328.5

Net Profit $662,004.7 $1,277,709.2 $1,896,985.4
Net Profit/Sales 16.33% 24.92% 28.99%
7.4 Projected Cash Flow
The cash flow projection shows that provisions for ongoing expenses are adequate to meet FGL's needs as the business generates sufficient cash flow to support operations. As the Housing and construction business is seasonal, the company will build up cash reserves during the busy summer months to cover cash flow decreases during the slower winter months.
It is estimated that the company will aggressively seek to pay off it's loan sooner than the required 5-year period. This is reflected in the higher principle payments in year 2009-20014.

Pro Forma Cash Flow
2009 2010 2011
Cash Received

Cash from Operations
Cash Sales $4,053,476.3 $5,126,822.5 $6,542,905.4
Subtotal Cash from Operations $4,053,476.3 $5,126,822.5 $6,542,905.4

Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $4,053,476.3 $5,126,822.5 $6,542,905.4

Expenditures 2009 2010 2011

Expenditures from Operations
Cash Spending $355,980.0 $373,779.0 $392,468.0
Bill Payments $2,888,875.7 $3,205,447.3 $4,03,3606.7
Subtotal Spent on Operations $3,244,855.7 $3,579,226.3 $4,426,074.7

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $40,000 $60,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $2,100,000 $360,000.0 $530,000.0
Dividends $669,084 $0 $0
Subtotal Cash Spent $3,521,764.1 $3,979,226.3 $5,016,074.7

Net Cash Flow $531,712.2 $1,147,596.2 $1,526,830.7
Cash Balance $681,712.2 $1,829,308.4 $3,356,139.1
7.5 Business Ratios
The following table presents important ratios from the construction industry, as determined by the Standard Industry Classification (SIC) Index #1542,-Residential and commercial Construction.

Ratio Analysis
2001 2002 2003 Industry Profile
Sales Growth 0.00% 26.48% 27.62% 2.30%

Percent of Total Assets
Other Current Assets 0.89% 0.40% 0.23% 37.80%
Total Current Assets 61.67% 73.01% 76.22% 86.20%
Long-term Assets 38.33% 26.99% 23.78% 13.80%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 10.41% 10.98% 7.62% 47.40%
Long-term Liabilities 37.74% 15.22% 7.32% 12.90%
Total Liabilities 48.14% 26.19% 14.94% 60.30%
Net Worth 51.86% 73.81% 85.06% 39.70%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 54.62% 56.69% 58.62% 16.30%
Selling, General & Administrative Expenses 38.29% 31.76% 29.63% 8.80%
Advertising Expenses 0.15% 0.20% 0.20% 0.30%
Profit Before Interest and Taxes 22.82% 34.02% 39.20% 1.50%

Main Ratios
Current 5.93 6.65 10.00 1.83
Quick 5.93 6.65 10.00 0.92
Total Debt to Total Assets 48.14% 26.19% 14.94% 60.30%
Pre-tax Return on Net Worth 151.75% 91.62% 67.33% 3.20%
Pre-tax Return on Assets 78.69% 67.62% 57.27% 8.10%

Additional Ratios 2001 2002 2003
Net Profit Margin 16.33% 24.92% 28.99% n.a
Return on Equity 113.81% 68.72% 50.50% n.a

Activity Ratios
Accounts Payable Turnover 25.75 12.17 12.17 n.a
Payment Days 27 21 27 n.a
Total Asset Turnover 3.61 2.04 1.48 n.a

Debt Ratios
Debt to Net Worth 0.93 0.35 0.18 n.a
Current Liab. to Liab. 0.22 0.42 0.51 n.a

Liquidity Ratios
Net Working Capital $5,749,963 $15,627,055 $30,296,910 n.a
Interest Coverage 21.85 43.24 72.59 n.a

Additional Ratios
Assets to Sales 0.28 0.49 0.67 n.a
Current Debt/Total Assets 10% 11% 8% n.a
Acid Test 5.93 6.65 10.00 n.a
Sales/Net Worth 6.97 2.76 1.74 n.a
Dividend Payout 0.10 0.00 0.00 n.a

Frank Blejumah agyeman 11 Mag 2009, 03:32 - Denuncia