A 200-person manufacturing company in Coventry with £12M revenue. The Finance Director is building a 3-year capital expenditure plan for board approval. The company needs to invest in new production equipment, warehouse expansion, and IT infrastructure to support the growth plan.
Example data
FY2026 includes a major CNC machine purchase (£280k) and tooling upgrades (£140k). The machine enables a new product line expected to generate £500k annual revenue by FY2028.
One-off £350k investment to add 2,000 sq ft of warehouse space. This is a leasehold improvement depreciated over the remaining 25-year lease term.
Depreciation increases from £182k to £282k over three years, which reduces EBITDA-to-operating-profit conversion. Important to model for P&L impact and tax planning.
Formulas
Depreciation = Capex / Useful Life (Straight-Line)Each asset is depreciated on a straight-line basis over its useful life. The £420k production equipment creates £42k annual depreciation over 10 years.
Cumulative Depreciation = Prior Year + New Asset DepreciationAs new assets are added each year, total depreciation rises. By FY2028, the company carries £282k of annual depreciation from assets purchased across all three years.
Net Book Value = Original Cost - Accumulated DepreciationTrack NBV for each asset category to understand when replacement capex will be needed and for balance sheet reporting.
Analysis
Customisation
Add a "maintenance vs growth" classification for each capex item
Include the business case (expected ROI) for each major investment
Add a cash flow timeline showing when payments are due
Model the tax benefit of capital allowances (Annual Investment Allowance)
Include a leasing vs buying analysis for major equipment decisions
Keep exploring
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View exampleFAQ
An item is typically capitalised (treated as capex) if it has a useful life of more than one year and exceeds your capitalisation threshold (commonly £1,000-5,000). Revenue expenditure (repairs, maintenance) is expensed immediately on the P&L.
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