Ship Management Business 5-Year Financial Projection Model (Excel XLSX)

PURPOSE OF MODEL
Third-party ship management companies typically handle the management and operation of ships for the shipowner including, amongst others, the vessel's operation, maintenance, crewing, and regulatory compliance.
Our highly versatile and user-friendly Excel model allows for the preparation of a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing 3rd party ship management business handling the management and operation of various commercial ships.
The model allows the user to model the management for any number of vessels for up to 10 different types of ships each type with their own management rates, direct capital expenses, direct operating expenses and direct staff costs per vessel. Apart from revenue and direct costs, the model allows the user to model indirect staff costs, marketing costs, other operating costs, fixed assets, borrowings, sales tax, corporate tax and dividend distributions.
The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the projected cash flows.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across 5 years and summarised on an annual basis.
•  Dashboard with:
•  Summarised projected Income Statement and Balance Sheet;
•  Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
•  List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio;
•  Bar charts summarising income statement and balance sheet projections;
•  Number by ships and average revenue per ship type.
•  Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation and capital structure.
•  Discounted cash flow valuation using the projected cash flow output.
•  IRR and NPV
•  Breakeven analysis

KEY INPUTS
Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and month;
•  Naming for ship types, direct capital and operating expenses, (in)direct staff, marketing costs, other operating costs, fixed assets and borrowings;
•  Sales tax applicability for fuel, direct costs, other expenses and fixed assets.

Actuals Inputs:
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);

Projection Inputs:
•  Ship Management assumptions including number of ships, service rates per month per ship, average credit terms offered, direct capital expenses, direct operating expenses, direct staff costs per ships;
•  Non-direct staff cost inputs including staff numbers, average salary per full time position, average employer's social security percentage of salary, average annual bonus and bonus payment months.
•  Other costs inputs including marketing costs and other operating costs;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount (percentage of retained earnings) and frequency;
•  Fixed assets including addition amounts and useful life;
•  Borrowings including addition amounts, interest rate and maturity date;
•  Share capital additions;
•  Discount rate inputs (for valuation calculation).

MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard' and ‘o_DCF'.

KEY FEATURES
Other key features of this model include the following:
•  The model contains a flexible timeline that allows for a mix of actual and forecast periods across a 5-year period. This allows projections to be easily rolled forward as forecast periods become actual period;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  The model allows the user to model the management of any number of vessels for up to 10 different types of ships each with their own volumes, revenues and direct costs.
•  The model is not password protected and can be modified as required following download;
•  The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
•  Types of ships – 10 types;
•  Direct capital expenses – 5 categories;
•  Direct operating expenses – 10 categories;
•  Staff costs – 8 direct categories and 8 non-direct categories;
•  Marketing costs – 5 categories;
•  Other expenses – 15 categories;
•  Fixed assets – 5 categories;
•  Borrowings – 3 facilities
•  Apart from projecting revenue and costs the model includes the possibility to model fixed assets, borrowings (amortising), dividends and corporate tax;
•  Business name, currency, starting projection period are fully customisable;
•  Revenue, cost and fixed asset descriptions are fully customisable;
•  The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
•  The model includes instructions, line-item explanations, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.