Fully describe the business's activities?
Distribution of a wide range of cold and dry food and packaging products, primarily into the hospitality industry.
How long has the business been established?
Established in 2007.
How long has the owner had the business?
How does the business operate on a daily basis?
The business operates from a warehouse with distribution through a fleet of temperature controlled vehicles. Customers can also purchase directly from the warehouse.
How are the clients attracted to the business?
Well established client base and the solid reputation built up over the years.
What Advertising/Marketing is carried out?
There is a comprehensive website; social media platforms; regional radio.
What competition exists?
There are two other distributors operating in the region.
What are the seasonal trends?
Follows the tourist seasons.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was affected during the first lock-down period due to the impact on the hospitality industry. The business is however an essential service provider and sales have now recovered to beyond previous levels, with an exceptionally good December 2020.
Is the business VAT Registered?
Yes. All VAT documentation is available.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Annual financial statements to February 2020.
What percentage of the business is cash/credit?
70% credit, 30% cash/EFT.
What is the age analysis of the debtors book?
Varies between 30 days and 90 days.
What is the total staff complement?
16 including the two owners.
Give a breakdown of staff/ functions/ length of service?
Full details of the staff compliment, conditions of service etc will be made available to qualified buyers.
Do any have management potential?
How involved is the Owner in running the business?
Full time. There is a manager who runs the day-to-day operations.
When does the current lease end?
The business owners also own the premises which are for sale at R4.3m. The premises comprise of two warehouses with refrigeration, freezer and office space.
What are the trading hours?
Monday to Friday, 08h00 to 17h00. Saturday 08h00 to 12h00.
What are the main assets of the business?
Vehicles, furniture & fittings, computer equipment, office equipment.
What is their overall condition?
How have they been valued ?
Which assets are on lease/HP and with whom?
Details of vehicle instalment sale agreements will be made available.
Will Seller settle or Buyer to take over?
Buyer to take over.
Are copies of agreements available?
Are they presently insured?
Main distributor in the region. Established client base. Good reputation for quality products and reliable service. Good financial systems and controls.
In high season the warehouse is not large enough, requiring additional space to be hired.
Utilise the vehicle fleet for other transport services during low seasons e.g. removals, other deliveries, courier services.
Impact on the hospitality industry from Covid-19 is difficult to predict.
What is the reason for the sale?
One of the owners has serious health issues and can no longer be active in the business.
Why is this a good business?
A well established business with a good track record, large customer base, good location and experienced staff.
What is the price plus stock and the profit?
The selling price is R7.5 million excluding stock of R2.5 million. The premises are for sale at R4.3 million. The profit, per management accounts, for the year to February 2021 was R2.5 million.
Annual Turnover Amount between R 500 thousand and R 6 million