Fully describe the business's activities?
The retail of petrol, diesel and associated products with a full convenience store and car wash.
How long has the business been established?
Established in 1991
How long has the owner had the business?
Since March 2003
How does the business operate on a daily basis?
The business operates 24/7 basis. The managers and supervisors replace each other at end of shift with proper hand over procedures (cash up and dipstick tests.) Fuel Jockeys are also scheduled to be sufficiently present at peak and normal times
How are the clients attracted to the business?
High presence of management on forecourt and convenience. By word of mouth networking of customers for friendly and efficient service. This fuel station is on a very busy interlinking road.
What Advertising/Marketing is carried out?
Advertising and marketing by oil franchise, brand presence, flyers and banners. Owners sometimes hand out rewards such as free car wash for buying full tank customers.
Does the business have any contract work?
No contract work.
What competition exists?
A competitive industry.All other big brands present in the nearby vicinity.
What are the seasonal trends?
Consistent turnover during year with a 20% spike in december months.
What is the monthly litres?
The Literage is +/-200 000 litres per month. The convenience delivers a high turnover and the Car Wash is very busy.
Is the business VAT Registered?
Yes, the business is VAT Registered.
What VAT documentation is on file?
Bi -monthly Vat returns as requested by SARS.
Are there up-to-date Management Accounts available?
Yes, to date management accounts available.
What Balance Sheet and Income Statements are available?
AFS's up to February 2014 available to qualified buyers.
What percentage of the business is cash/credit?
The business is 100 % cash.
What is the age analysis of the debtors book?
No debtors book. All customers strictly cash.
How could the profitability of the business be improved?
A revamp was completed in late 2014 and expectations are that this will have a positive effect on sales. The city is also expanding towards the western suburbs and that the traffic count in this area will grow.
Is Seller finance available and for what amount?
What is the total staff complement?
26 Staff members
Give a breakdown of staff/ functions/ length of service?
12 Fuel attendants (which includes a supervisor and assistent supervisor) 7 cashiers 5 Car wash cleaners
Do any receive special perks or incentives?
Two pensioners act as shift managers and are on commission basis.
Are they on contract?
All staff members are on contract.
Do any have management potential?
All managers have excellent managerial skills.
How involved is the Owner in running the business?
50 % involved.
When does the current lease end?
To be advised.
Is there an option of renewal & what period?
A new contract will be negotiated with the franchisor and are usually of a continues nature.
What is the annual escalation %?
A new contract will be negotiated with the franchisor and an escalation will be discussed.
What are the trading hours?
This fuel station is open 24/7.
What is the square meters of the business?
The premises are huge, but will enquire as to the actual square meterage.
Is a copy of the lease available?
Yes, a copy of the lease is available.
Do you require a licence?
A retail license is required from the Department of Mineral and Energy Affairs. a site license from your local municipality will be in place as this is an existing site.
What lease deposit and/or other surety is required?
A fuel delivery guarantee is required which which can be done via short-term insurance.
Are any items not included in the sale?
All items on the list are included in the sale.
What is their overall condition?
Excellent working condition.
Do any require repairing?
No repairs required at this stage.
How have they been valued ?
Most Fixtures and Fittings belong to the oil company. The equipment which does belong to the owner has been valued at a realistic market related value.
Which assets are on lease/HP and with whom?
The digital safe is on lease from the bank.
What are their settlement amounts?
all asets and equipment
Are copies of agreements available?
Copy of the agreement is on file
Are they presently insured?
Yes, they are Insured.
Is a full asset list on file?
A full list of assets and equipment is available
A well established international franchise will well known Brand trading in a vibrant community. There is huge growth in the area which will benefit the fuel station and a major revamp has just been completed.
Competition from other fuel stations in the area. The margins on fuel sales is small and need to be well managed.
The fuel station is generating an excellent cash flow and is priced to sell. This is an excellent opportunity to enter the fuel retail arena and to capitalize on the strong market share already captured.
The business is properly Zoned and in possession of Municipal site licence and retail licence from the franchise.The business is also HASAP compliant and therfore no threats facing the business.
What is the reason for the sale?
The owner wishes to retire.
Why is this a good business?
This Fuel station is highly profitable, just completed a revamp and priced correctly. Profit from operations is +/- R130 000 per month.
What is the price plus stock and the net profit?
This business is generating a proceeds from operations of R133 000 per month on average for 12 month period to 28 February 2018 The business is priced at R4 500 000 and the estimated dry stock ( average month end) is valued at R300 000.
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