Fully describe the business's activities?
Logistics company with a fleet of 10 trucks providing cross border transport for Shoprite to Mozambique, Zambia, Malawi and Namibia. The business is provided by the head lodgistics company for shoprite and outsorced to the business. Loads are collected at the Shoprite warehouse and transports cross border.
How long has the business been established?
How long has the owner had the business?
The business was established by the owner in 2014.
How does the business operate on a daily basis?
Loads are collected from the Shoprite DC and brought back the the premises. The trucks and drivers are prepped for transport and dispatched.
How are the clients attracted to the business?
The business only has one client, Shoprite. Service and reliability are most important to maintaining ongoing business.
What Advertising/Marketing is carried out?
Does the business have any contract work?
No formal contracts, however agreement in place with the main lodgistics company appointed by Shoprite.
What competition exists?
No direct competition.
What are the seasonal trends?
The business is pretty much stable all year round, however does see a bit of a downturn in Feb and Easter period.
Is the business VAT Registered?
What VAT documentation is on file?
Vat returns for 12 months.
Are there up-to-date Management Accounts available?
Trial balance can be made available from March 2017 to July 2017.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
What is the age analysis of the debtors book?
15 days from POD.
How could the profitability of the business be improved?
Aquiring a more trucked and horses.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Owner- General Manager Owner - Financial Manager Admin assistantant (Mother) 2 x workshop mechanics 10 x drivers
Are they on contract?
How involved is the Owner in running the business?
When does the current lease end?
The business operates on a month to month basis. However the new owner can negotiate a long term lease.
Is there an option of renewal & what period?
Yes, can be negotiated with the landlord.
What is the annual escalation %?
No esculation at present.
What are the trading hours?
The office hourse are from 8am - 5pm, however dependent on the load, may operate after hours and weekends.
What is the square meters of the business?
The offices spaces is estimaed at around 80 m2. Large truck yard (TBC) Uncover workshop area (TBC) Rental is charged around R4000 per month for the office space and R1000 per truck monthly (R10k)
Do you require a licence?
Cross border permits.
What lease deposit and/or other surety is required?
What are the main assets of the business?
8 x 2009 Freightliner Argosy 90 CAT trucks 2 x 2008 Freightliner Argosy 90 CAT trucks 1 x 2010 Toyota Hilux 2.0 VVTI P/U S/C 1 x2007 Hendred Fruehauf Platform UL FR Link 1 x 2007 Hendred Fruehauf Platform UL R Link 1 x 2007 Afrit Linkmaster 1 x 1997 Hendred Fruehauf 4x 2001 Flatdeck 1 x 2001 Tautliner 5 x 2005 Tautliner 2 x 2005 Afrit Linkmaster 2 x 1995 Superlink Flat Deck 1 x 2001 Superlink Flat Deck 1 x 1997 Tri-Axle Skeleton
Are any items not included in the sale?
Items included will be as per asset list.
What is their overall condition?
Do any require repairing?
No, assets are well maintained and in good condition.
How have they been valued ?
Currently market value as per insured amount.
Which assets are on lease/HP and with whom?
2 personal vehicles are still currenly on instalment sale with a bank, however option to inlclude or exclude from the sale. All other assets will be unencumbered after sale of business.
Are they presently insured?
Well established and reliable lodgistics company with only one client, Shoprite. Loads are requested direcly from "Head" lodgistics partner for Shoprite and payment within 15 days of delivery. Low rental and business has mechanics team. No need for warehousing, as loads are collected of DC and dispatched.
Business may require some after hour involvment due to the industry and load requirments. In order to expand, will need to increase the fleet.
Opportunity to grow the fleet. This business is very much running at capacity.Could explore bringing on a new client.
Normal threats related to cross border transportation.
What is the reason for the sale?
The owner has aquired ownership of a business outisde logistics.
Why is this a good business?
Good annual growth. Only one major client. Low rental and assets will be unencumbered at purchase.
What is the price plus stock and the net profit?
R10 million with net profit around R300K.
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