Sectors / Category

Annual turnover

  • Mandate: 32940
  • Added: 03 Apr 2019
  • AFS
  • 975

Establishes, profitable and Easily managed Water Processing business

Eastern Cape, Eastern Cape and other areas
Mandate 32940
Added 03 Apr 2019
R 1,950,000* ZAR
Stock: R 50,000
Assets: R 476,620
R 43,079 ZAR
Willem Smuts
Aldes Algoa
Eastern Cape
Eastern Cape

Established, very profitable and easily managed!! This business is situated in the entrance to a big shopping complex with plenty foot traffic. Netting in excess of R 370 000 over last twelve months and yielding a 32% return on asking price of R1 350 000.

Establishes, profitable and Easily managed Water Processing business
R 1,950,000* ZAR
Stock: R50,000
Assets: R476,620
R 43,079 ZAR

Established, very profitable and easily managed!! This business is situated in the entrance to a big shopping complex with plenty foot traffic. Netting in excess of R 370 000 over last twelve months and yielding a 32% return on asking price of R1 350 000.

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Fully describe the business's activities?
The business retails in bottled water which specializes in mineral and vitamin additives essential for ones health. A variety of 100% fruit juices ( with no sugar) is also added to enlarge the choice for consumers. The latest addition is domestic and industrial water purifiers, installation, service and maintenance thereof as required.

How long has the business been established?
The business was established in 2017.

How long has the owner had the business?
The owner started the business.

How does the business operate on a daily basis?
Open Monday to Friday 9 am to 5 pm. Saturdays 9 am to 1 pm

How are the clients attracted to the business?
Highly visable. In entrance to huge shopping mall. Effective web site and word of mouth advertising.

What Advertising/Marketing is carried out?
Website, pamphlets, word of mouth and huge visibility at entrance to shopping mall.

What competition exists?
Numerous other water bottling businesses in the area, but non that offer the variety and convenience of this shop. This shop is unique in its offering of a wide variety, refill options and additives of your choice.

What are the seasonal trends?
Huge upturn in sales over the summer months.

Is the business VAT Registered?
No, the business is not VAT registered.

Are there up-to-date Management Accounts available?
Management Accounts up to February 2019 available.

What percentage of the business is cash/credit?
90% cash and 10 % on credit.

What is the age analysis of the debtors book?
Strictly 30 days from Statement. follow up on debtors is done if exceeds credit limit.

How could the profitability of the business be improved?
The sky is the limit!! Great opportunity to add deli products to the range offering.

Is Seller finance available and for what amount?
Not available.

What is the total staff complement?
Two staff members

Give a breakdown of staff/ functions/ length of service?
Both staff members have been with the business since inception. They multi function is all aspects of the work, from opening, bottling, labeling, merchandising, selling to cashing up!!

Do any receive special perks or incentives?
Each staff member entitled to a off Saturday per month

Are they on contract?
On Permanent Employment Contract.

Do any have management potential?
One staff member displays excellent managerial skills.

How involved is the Owner in running the business?
The owner is 50 % involved in running the business.

What are the main assets of the business?
The main asset of the business is the goodwill. The staff are friendly and helpful, and a pleasant atmosphere prevails in the shop.

Are any items not included in the sale?
All items on the Asset list are included in the sale. ( Excluding 2 x CO2 bottles belonging to Afrox( on Rental system)

What is their overall condition?
Excellent working condition.

Do any require repairing?
No repairs required at this stage.

How have they been valued ?
Valued at a realistic market related price.

Which assets are on lease/HP and with whom?
2x CO2 bottles on rental of R200 per month each

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

Are copies of agreements available?
Yes copies are available

The concept in its current form is unique and has great potential to grow and be franchised. This business is profitable and its main opposition is closing down.

No weaknesses, will always be a demand for good, healthy drinking water. since the current offering is unique, other water bottling companies is nort considered competitors.

Great opportunity to: a) add more services b)Add more products c)Expand on water purification machine installation, service and filter replacement d)Extend current distribution network e) Franchising the business

Other water bottling companies are competitive in price but lack on range and variety of service. Owner presence is also important .

What is the reason for the sale?
Owner is a foreigner and wishes to return to original country.

Why is this a good business?
This business is established and well situated at he entrance to a huge shopping complex. Its sales is growing in leaps and the potential to expand the business is enormous. This business is ideal for a friendly , computer literate and sales orientated person.

What is the price plus stock and the profit?
The asking price is R 1 950 00000 000 and the business made a profit before owners benefit of R380 000 for the period 1 March 2018 to 28 February 2019. The average stock holding is considered to be +/-R40 000.

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Aldes Algoa

1 members
19 active mandates
Eastern Cape
16 Frykenhuis Street, Summerstrand

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