Fully describe the business's activities?
The business do daily production of ice cubes and ice blocks with a comprehensive stock holding of ice in backup to support their valued customers with stock right through the year and over peak season when they need it the most. The various ice products are supplied to a number of big name Retail Outlets as well as all fine Forecourts, Garages, Food- and Liquor stores as well as Restaurants, Pubs and Venues.
How long has the business been established?
The business was established in 2015.
How long has the owner had the business?
How does the business operate on a daily basis?
The business start daily 7:00 am by producing ice and deliver orders.
How are the clients attracted to the business?
Word-of-mouth over the period of 3 years. Their customer service attracts clients and ensures the current clients stay on board.
What Advertising/Marketing is carried out?
Although the business has a website, there is great potential for further advertising and marketing. All the delivery vehicles is branded. Telephone marketing can be more active.
Does the business have any contract work?
No contracts exists but they have constant repeat orders from their existing client base.
What competition exists?
There are other ice manufacturers and suppliers operating in Gauteng and surrounding areas, but service and stock availability is the attraction to this business and definitely a competitive edge.
What are the seasonal trends?
The high peak months of this business is September to March.
Is the business VAT Registered?
The business is not VAT Registered.
Are there up-to-date Management Accounts available?
Up-to-date Management Financials for Feb 2018 and up to September 2018 is on file.
What Balance Sheet and Income Statements are available?
Balance sheet and Income Statements from Auditor will be made available to serious Buyers.
What percentage of the business is cash/credit?
50% of the business is cash and 50% EFT (70% 7 days and 30% in 30 days)
What is the age analysis of the debtors book?
The age analysis of the debtors book is EFT payments up to 30 days arrangements.
How could the profitability of the business be improved?
The profitability of the business can be improve by more ice machines and an extra shifts.
Is Seller finance available and for what amount?
No vendor finance is offered by the Seller.
What is the total staff complement?
The total staff complement is ten plus the two owners.
Give a breakdown of staff/ functions/ length of service?
1 x Driver 3 years 1 x Driver 2 years 1 x Driver 1 year 7 x Packers plus average of 4 casual packers when needed.
Do any receive special perks or incentives?
None other then their monthly/weekly wages.
Are they on contract?
Permanent staff are on contracts.
How involved is the Owner in running the business?
The owner is 100% involved in the management of the business.
When does the current lease end?
The Seller is also the owner of the property. The Seller is willing to sign an 3 or 5 year lease.
Is there an option of renewal & what period?
There is an option for a new lease for 3 or 5 year period.
What is the annual escalation %?
The annual escalation is recommended at 8%
What are the trading hours?
Trading hours is Monday to Sunday 7:00 am to 4:00 pm.
What is the square meters of the business?
The square meters of the business is 333mÂ².
Who is the Owner/Landlord?
The Seller is the owner .
Is a copy of the lease available?
To b negotiated with Seller.
Do you require a licence?
The business has have a consent from the local Municipality to operate the factory.
What lease deposit and/or other surety is required?
To be negotiated with Seller.
What are the main assets of the business?
The main assets of the business is the Ice manufacturing machines and the the cold rooms.
Are any items not included in the sale?
All items as listed on the asset list are included in the sale.
What is their overall condition?
The overall condition is very good and well maintained.
Do any require repairing?
None of the assets require repairing.
How have they been valued ?
The assets have been valued by the owner at current market value.
Which assets are on lease/HP and with whom?
All movable assets forming part of the sale of the business is unencumbered.
Are they presently insured?
All assets are comprehensively insured.
- Well established factory - The daily production of good quality ice with same day delivery. - Always having stock available. - A good customer base.
- Due to the nature of the product, seasonality results in low and high earning periods.
- There is a demand for more ice products and it can be achieve with more ice machines .
- As with all businesses the current economy is a threat although it is a low cost product in South Africa were consumers are using ice in large volumes especially in the summer season. is
What is the reason for the sale?
The Seller, after a long stance in variousbusinesses wants to scale down and pursue other less demanding opportunities.
Why is this a good business?
The business is well organised, have a well planned and equipped factory, with a strong customer base.
What is the price plus stock and the net profit?
The selling price of the business is R 4,140 000 plus stock of R 360 000 with a net profit of R 150,849 pm plus, before owner's drawings, depreciation, interest and tax.
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