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Annual turnover

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  • Mandate: 25428
  • Added: 03 Aug 2017
  • 1949

Applicator of Thermal Heat Barrier Coatings

KwaZulu-Natal, Durban
1949
Mandate 25428
Added 03 Aug 2017
R 1,570,000* ZAR
Stock: R 10,000
Assets: R 410,000
R 67,506 ZAR
Mike Boustred
Aldes Supreme
KwaZulu-Natal
KwaZulu-Natal
Summary

This Company is well known as the specialist supplier for roofing and interior Heat Reduction applications to large Blue Chip industrial buildings. Established in 1998 S.P. R1760000 N.P. R800000 p.a.

Applicator of Thermal Heat Barrier Coatings
SELLING PRICE
R 1,570,000* ZAR
Stock: R10,000
Assets: R410,000
R 67,506 ZAR
Summary

This Company is well known as the specialist supplier for roofing and interior Heat Reduction applications to large Blue Chip industrial buildings. Established in 1998 S.P. R1760000 N.P. R800000 p.a.

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Fully describe the business's activities?
The business is the supplier and applicator of Thermal Heat Barrier coatings to roofing for Industrial and Commercial buildings.It facilitates refurbishing and waterproofing of roofs and Concrete structures. The application of the products prevents corrosion and erosion to the structures.

How long has the business been established?
The business has been established since 1998 by the current owner.

How long has the owner had the business?
Since 1998

How does the business operate on a daily basis?
The teams are assembled and taken to site on a 5 day week where the operational work is activated. All staff are trained and managed by supervisors who project manage the task.The company is known as the Thermal Heat Barrier Specialists throughout the KZN Province.

How are the clients attracted to the business?
Word of mouth attracts new business from referrals of existing clients. Blue Chip corporates are targeted by physically calling on the large industrialists. A new web site has been launched and responses are followed up by the owner, and admin staff.

What Advertising/Marketing is carried out?
Web site and cold calling on Blue Chip Companies

Does the business have any contract work?
The company has various contracts for current work and new contracts are being obtained as older contracts are completed.

What competition exists?
Normal roofing contractors are opposition but do not really get involved in the larger Industrial work, and are mainly focused on the domestic market. Larger corporates require safety files and procedures that are beyond the scope of smaller contractors.

What are the seasonal trends?
The only down time is during "builders holiday" in December

Is the business VAT Registered?
Yes

What VAT documentation is on file?
For as many years as is required at due diligence stage

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
The accountant has all updated AFS 's and management accounts

What percentage of the business is cash/credit?
All payments are made via EFT or Cheque deposits There are no cash payments.

What is the age analysis of the debtors book?
None

How could the profitability of the business be improved?
Extend the operations to cater for the smaller commercial clients (smaller applications as opposed to the large Industrialists)

Is Seller finance available and for what amount?
No

What is the payback period?
30 months

What is the ROI?
40%

What is the total staff complement?
Owner plus 2 x Site supervisors and 10 x assistants who are long serving contracted labour. These are the operational staff members. The office is run by two administrators.

Do any receive special perks or incentives?
The owner pays bonuses on successful projects that have been concluded.

Are they on contract?
Yes

Do any have management potential?
There are two supervisors already in place.

How involved is the Owner in running the business?
The owner handles all technical queries and all tenders, quotes and client relations. The supervisors project manage the operations that have been awarded.

Give a breakdown of staff/functions/length of service?
All staff have been in the business for many years.

When does the current lease end?
March 2013

Is there an option of renewal & what period?
Yes there in an option to renew.

What is the annual escalation %?
10%

What are the trading hours?
0715-1615 hrs Monday- Friday

What is the square meters of the business?
Land is 250 square meters with a building of 70 square meters. Parking for 4 vehicles.

Is a copy of the lease available?
With the owner.

Do you require a licence?
No

What lease deposit and/or other surety is required?
Unknown

Are any items not included in the sale?
No

What is their overall condition?
Very well looked after

Do any require repairing?
No

How have they been valued ?
At replacement value

Which assets are on lease/HP and with whom?
Nil

What are their settlement amounts?
n/a

Will Seller settle or Buyer to take over?
n/a

Are copies of agreements available?
n/a

Are they presently insured?
Yes

Is a full asset list on file?
Yes

Strengths?
Very well known for quality service and for technical expertise.Client base is mainly Blue Chip Industrial Companies.

Weaknesses?
None perceived

Opportunities?
The business can be taken to the next level by increasing penetration into the commercial markets such as smaller factories.

Threats?
While the business does not suffer from a lack of BBEEE credentials, large corporates would like to increase their BBEEE score. If a new competitor were to emerge with BBEEE credentials this would be a threat to the business.

What is the reason for the sale?
The owner is ready to retire and do some traveling.

Why is this a good business?
Well known with a high profile of Corporate Blue Chip companies

What is the price plus stock and the net profit?
The Price is R1,760,000 with a stock holding of approximately R10000. The business produces a Net Profit in excess of R800000 p.a.

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FRANCHISE DETAILS

Aldes Supreme

2 members
18 active mandates
KwaZulu-Natal
19 Village Brittany, Le Domaine Estate
3626

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