LHPMetals & Glass
6

Finance overview

Cash, results and the road to break-even for the factory while it ramps up to the 1 Nov launch.

Emirates NBD ••7710Joseph Mathew, AccountantAs at Fri 2 Oct, 10:30 AM
Pre-launch loss is shrinking: −41,200 in August, −28,100 in September. Fixed costs run at about AED 78,000 a month. At a 48% contribution the factory breaks even at roughly AED 160,000 of sales a month — September was 98,900, so external orders must grow after the 1 Nov launch.

Sales vs expenses

First two months of production · and what break-even looks like
Details
SalesExpensesBreak-even month (target)
180k135k90k45k0
Aug
Sep
Break-even
AEDAugSepAug + Sep
Sales26,20098,900125,100
Expenses67,400127,000194,400
Result−41,200−28,100−69,300

Losses are part of the plan — and getting smaller

The start-up loss so far is AED 69,300, covered by the partners' capital. Sales almost quadrupled in September while costs rose 88%; October already has AED 129,800 of orders in hand.

Cash for the next 30 days

Bank balance less what is already committed
Cash in bank today184,500
Supplier & job-work bills−56,700
October salaries (WPS, 1 Nov)−48,100
Licence & government fees−9,000
Electricity & water−6,800
Free cash63,900
Expected in the same 30 days · AED 126,285
  • LHP Technical Services
    INV-MG-26-0031 · 12 Oct
    42,000
  • Blue Wave Contracting
    INV-MG-26-0034 · 30 Oct
    33,390
  • Cedar · paid on delivery
    SO-MG-26-022 · 5 Oct
    30,135
  • Cedar Interiors
    INV-MG-26-0032 · 16 Oct
    20,760
If all arrive, cash on 1 Nov ≈ AED 190,185Invoices

Break-even after launch

Fixed costs ÷ contribution margin = sales needed each month
Launch 1 Nov 2026
Fixed costs a month
AED 78,000
Salaries (14 staff, from Oct)48,100
Factory rent, Plot 2712,500
Electricity & water6,800
Licences & government fees4,850
Truck, forklift & machine upkeep4,300
Office, telecom & misc.1,450
Contribution margin
48%

What is left of each AED 100 of sales after glass, aluminium, hardware, tempering, coating, consumables and delivery — at the standard price list.

Materials 42Outsourcing 7Consumables & delivery 3Contribution 48

September came in at 45.5% — two remakes and a first-month price for Blue Wave.

Sales needed a month
AED 162,500

78,000 ÷ 48% · about AED 160k, or 6,250 a working day (Mon – Sat).

61%
September 98,900 · gap AED 63,600 a month
  • TS orders already booked for Oct
    SO-021, 023 · + SO-025 if approved
    87,650
  • Target: 2 regular trade customers
    Horizon, Al Reem · ≈ 20k each a month
    40,000

Who the factory sells to

September · AED 98,900 excl. VAT
Customers
40%to LHP TS
LHP Technical Services40,000
Blue Wave Contracting31,800
Cedar Interiors22,600
Trade & walk-in4,500

LHP TS is the anchor customer

Inter-company sales are priced at list less 8% and drop out of the group accounts. Aim for under 30% of sales after launch so the factory stands on its own.

Partners' capital & runway

Cash injected into Emirates NBD ••7710
Group finance
July 200,000August 150,000September 100,000
Capital in450,000Jul – Sep
Cash today184,50041% of capital
Fixed-cost runway2.4 mo184,500 ÷ 78,000
At Sept loss rate6.6 mo184,500 ÷ 28,100

Tax & filings

  • VAT registered since 1 Sep 2026
    TRN 100 7788 1234 5003 · Sept output VAT 4,945
  • Industrial licence fees · AED 9,000
    Due at issue, target 28 Oct · in the 30-day cash plan
  • E-invoicing (PINT-AE)
    Appoint a service provider by 31 Mar 2027 · live 1 Jul 2027