Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
All documentation will be made available to qualified Buyers at a due diligence stage.
Are there up-to-date Management Accounts available?
Management Accounts to the end of the Feb. Financial year are on file. At a due diligence stage any updates will be supplied together with monthly revenue breakdowns (while for this Report the annual turnover is just averaged).
For the purposes of this report the Management Accounts were utilised and the Owner and his wife's withdrawals added back to the Net Profit. The wife would need to be replaced as she handles the admin of the business. The wife and Husband each withdraw R 360,000 p.a. as members withdrawals. The total add back however is only R 540,000 as R 180,000 has been left in the expenses to cover the salary of a replacement for the wife.
Depreciation has also been added back to the Net Profit, which is standard practice as it is only a book entry and not a cash flow item. The Net Profit shown is thus the Owners Discretionary earnings and will differ from the figure shown in the formal Financials.
What Balance Sheet and Income Statements are available?
All Financials will be made available to qualified Buyers at a due diligence stage.
What percentage of the business is cash/credit?
The business is almost entirely cash and operates on a 50% deposit on order with the balance paid on delivery. There is an extremely small debtors book of about R 250,000 on a Turnover of R 23.5 Million.
What is the age analysis of the debtors book?
30-60 days on the current Balance Sheet. Generally however the business is purely run on a cash basis and their is no Debtors Book.
How could the profitability of the business be improved?
The business could expand into more suburban areas by opening up new branches and reaching a wider range of Contractors/Shopfitters and Retail market.