Sectors / Category

Annual turnover

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  • Mandate: 34402
  • Added: 08 Jan 2021
  • AFS
  • 354

Truck emergency repairs & maintenance on the road. Dbn / KZN

KwaZulu-Natal, Durban
354
Mandate 34402
Added 08 Jan 2021
R 5,400,000* ZAR
Stock: R 800,000
Assets: R 1,700,000
R 215,573 ZAR
Cliff Bell
(PRINCIPAL)
Aldes Exclusive
KwaZulu-Natal
KwaZulu-Natal
Summary

2020/21 looks to reaching an EBITDA of some R3m off R15.5m turnover. 24/7 roadside assistance to the trucking industry, in respect of any problem - across KZN, but H/off in Durban (West). Manager run, but replace strategy/ business development owner. Some 410 contributing clients: top cumulative 5/10/20 being 15/26/36% of turnover respectively.

Truck emergency repairs & maintenance on the road. Dbn / KZN
SELLING PRICE AFS
R 5,400,000* ZAR
Stock: R800,000
Assets: R1,700,000
R 215,573 ZAR
Summary

2020/21 looks to reaching an EBITDA of some R3m off R15.5m turnover. 24/7 roadside assistance to the trucking industry, in respect of any problem - across KZN, but H/off in Durban (West). Manager run, but replace strategy/ business development owner. Some 410 contributing clients: top cumulative 5/10/20 being 15/26/36% of turnover respectively.

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Fully describe the business's activities?
2020/21 looks to reach an EBITDA of some R3m off R15.5m turnover. 24/7 roadside assistance to the trucking industry, in respect of any problem within KZN, is provided by geographically well placed teams of generalist mechanics in their fully kitted service vehicles. The manager takes calls & sends out first responder, while admin staff (H/off Durban - west) issue quotes/invoices …. Stock resides in two main centres, with additional' s acquired as & when necessary; noting that some R800 000 of stock is held by the business, in addition to R700 000 of consignment stock related to the annual service provider contract for a specific truck supplier (within their service warranty sales contracts). Manager run, but a purchaser should replace the strategy/ business development owner. Some 410 contributing clients: top cumulative 5/10/20 being 15/26/36% of turnover respectively. Only the above "annual contract " exists (which should continue to be renewed into the future). Income is based on parts plus markup, callout, then labour p.hour rates, & travel costs.

How long has the business been established?
10 by the owner who has built it up from scratch

How did the Covid-19 pandemic impact the business turnover / daily operations?
No real effect - with turnover & net profit growth experienced during COVID !

Is the business VAT Registered?
Yes, with all Vat doc's on file

Are there up-to-date Management Accounts available?
Yes within a month thereafter, which would show monthly variations. This Report is based on AFS 2020 with an EBITDA of some R2.6m pa (incl owners benefits). 2020/21 MA's up to Oct 2020 then projected, would show an EBITDA of some R3m inclusive of the owners benefits, from a turnover of some R15.5m (unaffected by COVID in respect of turnover/NP).

What Balance Sheet and Income Statements are available?
Past AFS are available.

What is the age analysis of the debtors book?
Nearly all clients pay by eft, with most paying within 30 days from Invoice, & less than 10% going to 60 days

What is the total staff complement?
Dbn H/off: Manager (+3 yrs: non-working hours manning of phone & then normal M-F), 2 admin ( <1 yr each: M-F: calls, schedules, ordering, invoices, accounting up to but not incl AFS - which the external accountant provides) 5 mechanics - all rounders (1-2 yrs: 2 qualified & 3 just experience) N3 Route base: 2 mechanics - all rounders (3 just experienced & 7 yrs qualified )

How involved is the Owner in running the business?
The owner has reduced his involvement in the last year with the manager taking over most aspects, except strategy, business development & financial.

When does the current lease end?
The present Dbn premises have been sold, so the Purchaser may decide where to place the business. However, presently and allocated within the expenses Report at R421 000 pa: Durban: The main Admin office, including the Owner’s office, requires some 3 work stations totalling 30m2, in addition to a storage area of equal size for stock, and some 40m2 as a workshop. N3 base (covering up to Jhb) doesn’t require offices but a storage area of 50m2.

What are the main assets of the business?
7 fully fitted service vehicles (2017-2020) & the managers one - varying from the top one that has absolutely everything that could be required on the road, down through to a light van focusing more on the electrical side. Repayments are some R800k pa (excl the owners vehicle which is not included), & with 20 months left from Jan 2021. They cost some R2.8m & would be worth some R1.4m if sold. In addition, there is : Equipment in each vehicle & workshop costing some R350K & worth some R100k on a 2nd hand sale basis Computer equipment (2015-20) & furniture costing some R500k & probably worth some R200k 2nd hand, at least.

Strengths?
10 yrs of success & growth. Established manager & staff (new owner to take strategy, fin & business development tasks over from seller) Excellent specialised vehicles & tools for roadside assistance Established & well spread client base

Weaknesses?
None - not even affected by COVID

Opportunities?
Push harder on business development to grow the client base Go National

Threats?
That others start to deliver their level of response / service

What is the reason for the sale?
Owner is emigrating

What is the price plus stock and the profit?
The Sale Price is R4.6m, excluding stock of R800 000, on an AFS 2020 EBITDA of R2.6m, derived from a turnover of R13m; noting that 2020/21 is on track for some R15.5m turnover & R3m EBITDA.

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FRANCHISE DETAILS

Aldes Exclusive

2 members
12 active mandates
KwaZulu-Natal
11A Coghill Avenue, Kloof
4000

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