Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
VAT documentation will be made available during due diligence.
Are there up-to-date Management Accounts available?
The sellers provide monthly occupancy figures. We also have the monthly extra income figures which includes income for conference facilities, extra income on lunches and dinners and transport income.
What Balance Sheet and Income Statements are available?
Financial statements, prepared by the auditor for the period ending February 2016 are on file.
What is the age analysis of the debtors book?
90% of the bookings are with commercial clients and long standing companies only about 10% is leisure.
How could the income of the property be increased?
Owner operator could save on the manager salaries. This guest house pays R10,000 towards the in house management and a share of 25% towards the 2 drivers, office manager, office administration and gardener, shared by the four guest houses in the group (R7,800 per month), as included in the expenses.
What is the monthly rates and taxes payable to local authority?
Monthly rate and taxes are R790-67. Average water bill is R2,922, average electricity is R6,838 and Pikitup is at R269 per month. All these expenses are included in the monthly expenses under municipality charges.
What rental deposit has been secured from the tenants?
The bookings are paid by EFT or credit card machine. Only about 10% of the guest pay in cash (notes).