Financial analysis

Within the framework of NFCS support (see NFCS project here), a business plan (including financial analysis) has been drawn up to identify the economic viability of PPO future scenarios and to find the most profitable one.

The analysis focuses on a period of 30 years to find an alternative that is viable in the longer term.

To carry out the analysis, three 30-year scenarios for the future, based on NEBA's past activities and future plans, were prepared as realistic as possible:

Scenario 0, a continuation of today's situation, that is, essentially nothing is done to improve the situation. The scenario is based on today's situation with minimal means, depreciation and, in some cases, emergency situations with the building and the continuation of activities to the minimum necessary. During the scenario, only emergency repairs will be made to continue operations;
scenario 1, reconstruction and extension of the building with the help of a loan. The building will be reconstructed with modern means and in compliance with modern requirements. In addition to reconstructing existing spaces, a plinth and roof floor will be introduced, which will allow for higher rental income and more events / activities. The use of additional floors will also allow the optimization of utilities (increase in energy efficiency);
scenario 2, reconstruction and extension of the building with support. The scenario is basically identical to scenario 1. The differences are that, instead of borrowing, the state and the local government will receive a one-off grant for the complete reconstruction of the building and the revenue side is expected to receive less annual ad hoc support (in the current amount of personal assistant service).
An analysis of PPY's 30-year business scenarios showed that:

it is neither economically viable nor feasible to continue today. The building needs renovation, high utility costs, and limited space for business revenue;
the reconstruction of the building could save on utility costs and increase the economic space that generates revenue. This could be done by borrowing, which, while in principle a PPO would be able to service for 30 years, the whole scenario would be extremely sensitive to changing factors and would require half the support;
if the aforementioned repairs could be done with one-off support from the state and local government, the association would be able to cope with half the subsidy (compared to the above scenario) and manage independently and relatively risk-free for the next 30 years to cope with life.