Fully describe the business's activities?
The business has the best quality stainless steel machinery, filters and purifies the water, then bottled and distributed to customers throughout the Nelson Mandela Metropole. The bottling is done in 330ml, 500ml, 1 lt. and, 5 lt and 20 liters fitted to a dispenser. The business consists of the following phases: a) Filtration of water b) Bottling of Water c) Screen Printing of labels on bottles for own use and for other bottling companies. d) distribution of bottled water. e0 Rental of Water Dispensers.
How long has the business been established?
The business was establisherd in 2005
How long has the owner had the business?
The owner started the business in 2005
What steps are in place to solve 'load shedding' problems?
To combat load shedding the business stocks up on printed/branded bottles. The business also ensures they have enough 20lt dispenser bottles filled for the day. Small bottles can be manually filled from a 25 lt bottle if required. Only telephone and internet are down during load shedding and most communication with clients is done by cell phone.
How does the business operate on a daily basis?
The official working time is Monday to Fridays 8:00 am to 5:00 pm The water filtration system runs into storage containers and bottling is done as required. Each line of bottling (330ml, 500 ml, 1 lt, 5 lt, and 20 lt) has a stock level to ensure stock is available for delivery. Many clients have their own branded bottles which is labeled inhouse.
How are the clients attracted to the business?
The business has an excellent reputation for good quality and timeous delivery. Clients are attracted to the business via word of mouth advertising.
What Advertising/Marketing is carried out?
At present advertising is only done on word of mouth basis.
Does the business have any contract work?
As the Bottling company prints customised bottles for each client, they remained the prefered supplier for all customers.
What competition exists?
Numerous other bottling companies, but very few deliver the customised bottles and labels resulting in repeat business.
What are the seasonal trends?
Bottled water sales always higher in summer with a peak in December and January and a managed decline in winter months.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid 19 has had a devastating effect on the business. during the Stage 5 lockdown, no production, sales or delivery was allowed. The business was classified as an Essential Service Provider but many clients were closed and resulted in a drop of sales.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
As the lock down eases, more and more businesses are open again but at limited capacity. All clients have been informed that bottled water would be available as requested.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
The bi-monthly returns as requested by SARS.
Are there up-to-date Management Accounts available?
Yes, up to date Management Accounts available.
What Balance Sheet and Income Statements are available?
Annual Financial Statements for the year ending 28 february 2019
What percentage of the business is cash/credit?
10% Cash, 90% on 30 days from statement Invoice.
What is the age analysis of the debtors book?
The debtor's book is well managed resulting in minimal bad debts. clients who or order on a credit basis are required to provide surety in a corporate and private capacity.
How could the profitability of the business be improved?
The profitability of the business will increase if turnover is increased. The appointment of a marketing agent should be considered. a web site, pamphlets and flyers could also increase sales. Supermarkets can also be approached especially with customised bottles and ;abels.
Is Seller finance available and for what amount?
Seller Finance not available.
What is the total staff complement?
Besides the owner and his wife ( part time basis)at present only one staff member is employed.
Give a breakdown of staff/ functions/ length of service?
The staff member can multi-task. He operates the purification process, bottling process and does deliveries. The owner and wife assist where assistance is required.
Are they on contract?
Staff member is on Permanent Employment Contract.
How involved is the Owner in running the business?
The owner is 90% involved with the operations of the business.
Any special arrangements for the staff related to the Covid-19 pandemic?
The staff member has signed an undertaking to follow the protocol, and has his temperature measured every day, washes his hands regulary and wears a mask at all times as prescribed.
When does the current lease end?
The current Lease end 30 June 2022.
Is there an option of renewal & what period?
There is a renewal option for a 3 year period.
What is the annual escalation %?
The present escalation is 8%
What are the trading hours?
The production plant operated Monday to Fridays: 8:00am -5:00pm Urgent deliveries is done on Saturdays if rquired.
What is the square meters of the business?
TO BE ADVISED
Is a copy of the lease available?
Yes, a copy of the Lease Agreement is on file
Do you require a licence?
No licence is required.,
What lease deposit and/or other surety is required?
One months rental deposit is required.
What are the main assets of the business?
The main asset of the business is the loyal customer base with repeat orders. a full list of Assets is on file and will be made available to qualified buyers.
Are any items not included in the sale?
All items on the list is included in the sale.
What is their overall condition?
All equipment is well maintained and in excellent working condition.
Do any require repairing?
No repairs required at this stage
How have they been valued ?
The Assets have been valued at a mark related realistic value.
Which assets are on lease/HP and with whom?
Ont.ly the Tata delivery vehicle which will be settled by the seller.
Will Seller settle or Buyer to take over?
Seller will settle the amount outstanding on the hired vehicle.
Are they presently insured?
All assets are comprehensively insured.
This business is well established and has been in operation for +/-16 years. The owners have cultivated a reputable image of high quality and timeous delivery. The equipment used is of the best quality available, well maintained and will last an indefinate period.
the products are of a competitive nature with numerous other producers alse marketing similar products.
This business offers huge opportunity for expanding. a) A more aggressive marketing strategy must be deployed. b) Product range can be expanded eg. flavoured waters or waters with added supplements. c)Sales can be expanded by approaching supermarkets or outlets in high foot traffic areas.
this business is considered an Essential Services Provider and the future of purified water is considered to be well secured. All HASAP requirements and business zoning is in place thus do not consider any threats for the business.
What is the reason for the sale?
The owner wishes to explore other options.
Why is this a good business?
This is an excellent business as its well established, profitable with excellent growth potential.
What is the price plus stock and the profit?
TO BE ADVISED
Annual Turnover Amount between R 500 thousand and R 6 million