Sectors / Category

Annual turnover

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  • Mandate: 33145
  • Added: 06 Jun 2019
  • AFS
  • 152

Drop & Collect Skip Rental Service. Recurring (contractual) rental income.

Western Cape, Cape Town
152
Mandate 33145
Added 06 Jun 2019
R 2,450,000* ZAR
Stock: R 0
Assets: R 1,643,600
R 93,413 ZAR
Kutu Venter
(PRINCIPAL)
Aldes Alpha
Western Cape
Western Cape
Summary

The Business delivers and collects skips for transport and removal of commercial or household refuse, waste and building rubble.

Drop & Collect Skip Rental Service. Recurring (contractual) rental income.
SELLING PRICE AFS
R 2,450,000* ZAR
Stock: R0
Assets: R1,643,600
R 93,413 ZAR
Summary

The Business delivers and collects skips for transport and removal of commercial or household refuse, waste and building rubble.

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Fully describe the business's activities?
A business that transports and removes waste and that have and that predominantly has recurring (contractual) rental income.

How long has the business been established?
Since 2012.

How long has the owner had the business?
Since 2012.

How does the business operate on a daily basis?
The business offers a “Drop & Collect” Skip Rental Service for removal of commercial or household refuse, waste and building rubble. They have different sizes of skips suitable for once-off and/or smaller jobs to large skips and trucks for removal of waste/rubble from larger building projects and construction sites.

How are the clients attracted to the business?
Word of mouth and via the website/Google.

What Advertising/Marketing is carried out?
Google AdWords and Gumtree.

Does the business have any contract work?
Approximately 60-70% of monthly income is on a contract basis and approximately 30-40% is smaller 'on-call' type skip rentals.

What competition exists?
There are competitors around, but this business is fairly substantial by comparison.

What are the seasonal trends?
Business during the winter months is a little slower as 60% of business is derived from the construction industry. Also slower during December/January when the building industry closes.

How is income derived?
Renting of skips and removal of rubble and waste.

Is the business VAT Registered?
Yes. Up-to-date VAT documentation is on file and available on request.

Are there up-to-date Management Accounts available?
Yes. Up-to-date Management Accounts are available.

What Balance Sheet and Income Statements are available?
Annual Financial Statements are available up to and including the Financial Year-ended February 2019.

What percentage of the business is cash/credit?
60% Credit (approximately). 40% Cash (approximately).

What is the age analysis of the debtors book?
30 - 60 Days (approximately).

How could the profitability of the business be improved?
The business will benefit from an extensive advertising & marketing drive.

What is the total staff complement?
6 staff members (excluding the Owner).

Give a breakdown of staff/ functions/ length of service?
1 Operations Manager. 5 Drivers.

Do any receive special perks or incentives?
The Operations Manager has a company vehicle.

Are they on contract?
Yes.

Do any have management potential?
Yes – the Operations Manager.

How involved is the Owner in running the business?
Daily, but not an entire day/week (comes and goes, mainly just checking that everything is running smoothly).

When does the current lease end?
Ongoing lease agreement year-on-year.

Is there an option of renewal & what period?
Can be negotiated to suit the requirements of the new owner.

What is the annual escalation %?
9% per year.

What are the trading hours?
07:00 to 16:00, Monday to Friday, but can be changed as needed.

What is the square meters of the business?
250sqm under roof plus 100sqm yard and another 150sqm for skip storage.

Is a copy of the lease available?
Yes.

Do you require a licence?
Permits are required.

What lease deposit and/or other surety is required?
1 month’s rent (currently approximately R15,000 per month).

What are the main assets of the business?
Confidential. Will be disclosed post-NDA to a serious buyer.

Are any items not included in the sale?
No.

What is their overall condition?
Fair.

Do any require repairing?
Continuous maintenance.

How have they been valued ?
Accounting value.

Which assets are on lease/HP and with whom?
1 x UD85 3 x Isuzu KB 250

What are their settlement amounts?
Approximately R 350,000 for UD 85 Approximately R 40,000 for each Isuzu KB 250

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

Are copies of agreements available?
Yes.

Are they presently insured?
All assets are fully insured.

Strengths?
Relatively easy and simple business to run. Good demand in market. Recurring business. Contracts are in place.

Weaknesses?
Continuous maintenance on assets.

Opportunities?
More marketing & sales will improve the turnover of the business.

Threats?
Economic downturn.

What is the reason for the sale?
The Owner wishes to emigrate.

Why is this a good business?
The business is well established and profitable. The majority of the business' work is recurring contractual income. This is a Relatively easy and simple business to run. Increased efforts in marketing & sales can take this business to the next level.

What is the price plus stock and the net profit?
Asking price R2,450,000. Average net profit R R93,400 per month.

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FRANCHISE DETAILS

Aldes Alpha

2 members
15 active mandates
Western Cape
Galleon Beach, Pelican Parade
7530

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