Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Financial statements for the period March to May 2017 is pending.
What Balance Sheet and Income Statements are available?
Annual financial statements for the 2017 financial year has been provided.
The business has started the process of restructuring the business early in 2017 and has succeeded in increasing margins, improving cash flow and also dramatically reducing overhead costs. The profit monthly as reflected in the profile is based on historic revenue and margins but indicating realistic and sustainable overhead costs. Current pfofits are substantially higher.
What percentage of the business is cash/credit?
The majority of customers pay 50% deposit and the balance on installation and pay either EFT or make card payments.
Large projects and large customers get some terms.
What is the age analysis of the debtors book?
The business had a debtors book of approximately R1,0m on the 28th of February 2017 but is in the process of tightening up terms dramatically.
How could the profitability of the business be improved?
- The business could potentially benefit opening a sales store in for example Sandton and closer to the area where most of the competitors are operating from.
- Price optimisation is a possibility with most competitors offering higher prices.
- Exhibiting at trade shows such as Decorex could increase enquiries and resultant revenue stream.
- Diversification of the in-house manufactured range.