Sectors / Category

Annual turnover

  • Mandate: 31920
  • Added: 19 Mar 2018
  • AFS
  • 581

Established and Profitable Hardware Store ( Franchised)

Eastern Cape, Port Elizabeth
Mandate 31920
Added 19 Mar 2018
R 2,900,000* ZAR
Stock: R 1,000,000
Assets: R 275,200
R 75,342 ZAR
Willem Smuts
Aldes Algoa
Eastern Cape
Eastern Cape

Established since approximately 2003, profitable and well situated in a busy shopping center. Netting RXXX on average per month for the period 1 March 2017 to 28 February 2018. This business is growing in sales from year to year and priced to sell.

R 2,900,000* ZAR
Stock: R1,000,000
Assets: R275,200
R 75,342 ZAR

Established since approximately 2003, profitable and well situated in a busy shopping center. Netting RXXX on average per month for the period 1 March 2017 to 28 February 2018. This business is growing in sales from year to year and priced to sell.

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Fully describe the business's activities?
A franchised hardware shop stocking all goods associated with a hardware shop, from building materials to motor vehicle accessorizes. The hardware store also delivers building material such a cement, sand, grid, bricks and re-enforcing steal. This is a one stop shop for he for the "Do it Yourself" builder.

How long has the business been established?
It is estimated that the business has been operational since 2003.

How long has the owner had the business?
The present owner has had the business since 2013

How does the business operate on a daily basis?
Open at eight in the morning, do stocktaking of fast moving stock and place orders if necessary. A delivery route for deliveries is confirmed with driver and remaining staff merchandise deliveries, assist customers and do general cleaning.

How are the clients attracted to the business?
Clients are attracted by visible signage and branding, branded clothing for staff, branded delivery truck. The Franchise provides monthly specials by means of brochures, pamphlets and flyers. Word of mouth advertising also visible as owner and staff know their products and freely advise customers on products.

What Advertising/Marketing is carried out?
Web site, flyers and brochures from the Franchise. Branded clothing, vehicles and friendly service from staff members.

Does the business have any contract work?
No contract work but preferred supplier to many nearby businesses and the public. This is the only Hardware Store in the area and its massive growth is mainly because of the Coega Harbor development.

What competition exists?
No competition in immediate area. The known competitors are all in excess of 11 km away.

What are the seasonal trends?
Small spike in Summer months of October to January but generally constant sales throughout the year.

Is the business VAT Registered?
Yes, the business is VAR Registered.

What VAT documentation is on file?
Bi -monthly VAT returns for the last 12 months.

Are there up-to-date Management Accounts available?
Updated management Accounts are available.

What Balance Sheet and Income Statements are available?
AFS for year ending February 2017 and Management Accounts for period to January 2018.

What percentage of the business is cash/credit?
90% of sales is Cash.

What is the age analysis of the debtors book?
Strictly 30 days from Statement. After 30 days customers are contacted and further action taken if required.

How could the profitability of the business be improved?
The business can expand in various ways. This can be discussed with potential buyers.

Is Seller finance available and for what amount?
Not available

What is the payback period?
36 month payback period

What is the ROI?
35 % return on Investment

Who is the bookkeeper/Accountant?
Van der Watt Accountants Uitenhage

What is the total staff complement?
6 Staff Members

Give a breakdown of staff/ functions/ length of service?
1 Driver 1 Shop assistant 1 General worker 1 Cashier 1 Receiving clerk 1 General Worker

Do any receive special perks or incentives?
No, but are remunerated according to Sectoral Determination Act.

Are they on contract?
All on Contract except the Driver who is employed on a casual basis.

Do any have management potential?
The cashier has excellent managerial skills.

How involved is the Owner in running the business?
90% involved

When does the current lease end?
31 July 2019

Is there an option of renewal & what period?
A renewal option for 5 years

What is the annual escalation %?
8% Escalation compounded every year.

What are the trading hours?
Trading hours Mondays to Thursdays: 7:30am to 5:30 pm. Fridays 7:30 am to 5:00pm Saterdays 8.00am to 2:00pm Sundays 9:00 to 12:pm

What is the square meters of the business?
342 M2.

Who is the Owner/Landlord?
Dazim Investments (Pty) Ltd.

Is a copy of the lease available?
Yes, a copy of the lease is on file.

Do you require a licence?
No licence is required.

What lease deposit and/or other surety is required?
One months rental Lease deposit

What are the main assets of the business?
The main Assets of the business (excluding stock) is the goodwill of the income generating business. A comprehensive list of the Assets is on file.

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.

How have they been valued ?
Been valued at a realistic market related value.

Which assets are on lease/HP and with whom?
The Panasonic Printer is on Lease from Panasonic. A container is hired from Container Trust for cement bulk storage.

What are their settlement amounts?
The Panasonic is on a five year lease scheme and will then be replaced with a new machine and lease contract. The container is on a rental lease .

Will Seller settle or Buyer to take over?
Buyer to take over.

Are copies of agreements available?
Copies are on file.

Are they presently insured?
All assets and equipment are insured

A well known brand, established and profitable shop. no competition within 10 km radius.

A competitor could open in the neighborhood, although very unlikely.

Grear oppotunity to aquire a well established and profitable hardware store

The shopping center is correctly zoned and the shop does not produce any harmful waste which could be a threat to the neighborhood and the continued existence of the shop.

What is the reason for the sale?
The current owner wishes to explore a manufacturing venture.

Why is this a good business?
This is an established and profitable business which is priced to sell.

What is the price plus stock and the net profit?
The price of the shop is R 2 200 00 plus stock which ranges from R 800 000 to R 1000 000. This business has reflected a proceeds from operations ( before owners remuneration, perks and Non-Operational Expenses) of R 904 100 for the period 1 March 2017 to 28 February 2018

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