Sectors / Category

Annual turnover

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  • Mandate: 34804
  • Added: 19 Jul 2021
  • AFS
  • 58

A waterproofing and damp proofing business covering the greater Cape Town area.

Western Cape, Cape Town
58
Mandate 34804
Added 19 Jul 2021
R 4,815,000* ZAR
Stock: R 165,000
Assets: R 138,000
R 143,545 ZAR
Geoff Hatt
Aldes Impetus
Western Cape, Cape Town Atlantic Seaboard
Western Cape, Cape Town Atlantic Seaboard
Summary

The owner secured the Cape Agency in 2019 and is currently only operating in 2 out of 10 areas identified - huge potential for growth and expansion. Head office and manufacturing in Gauteng. All roofs,walls and floors are sealed and treated with their own Proudly South African manufactured rubber waterproofing paint that is formulated with elastomeric polymer blends giving their product its unsurpassed ability to expand and contract.

A waterproofing and damp proofing business covering the greater Cape Town area.
SELLING PRICE AFS
R 4,815,000* ZAR
Stock: R165,000
Assets: R138,000
R 143,545 ZAR
Summary

The owner secured the Cape Agency in 2019 and is currently only operating in 2 out of 10 areas identified - huge potential for growth and expansion. Head office and manufacturing in Gauteng. All roofs,walls and floors are sealed and treated with their own Proudly South African manufactured rubber waterproofing paint that is formulated with elastomeric polymer blends giving their product its unsurpassed ability to expand and contract.

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Fully describe the business's activities?
The business is a waterproofing and damp proofing expert, with a focus on quality workmanship in commercial, industrial and residential Waterproofing applications. All roofs, walls and floors are sealed and treated with their Proudly South African Manufactured rubber waterproofing paint that is formulated with elastomeric polymer blends, giving the product its unsurpassed ability to expand and contract. The product can withstand all weather conditions; it is a highly versatile, water-based, eco- friendly, elastomeric and UV resistant product. An eco- friendly alternative to bitumen. The product is manufactured at the head office/manufacturing facility in Gauteng.

How long has the business been established?
The business has been operating since 2012 in Gauteng where the head office and manufacturing facility is housed. . The Cape Town business has been operating since June 2019. WHAT IS FOR SALE: The Sellers own the Agency Rights for the Western Cape and the Western Cape Agency is for sale. Huge potential exists to sell further agencies within the Western Cape. More to be discussed with serious buyers.

How long has the owner had the business?
Since June 2019

How does the business operate on a daily basis?
They currently have 2 teams which operate from a rented warehouse facility, where the teams meet each morning. Paint, consumables, equipment and job cards are issued to each team leader, and from there they proceed to their allocated job sites. They return in the afternoon to book all stock back into the storeroom. All administrative functions are conducted at the owners home.

How are the clients attracted to the business?
There is no shortage of clients. For most people, the property they own is the most significant investment. Waterproofing is an essential service offered by their professional teams, to help the average person save their home, and, the business owner, to save their building. Waterproofing and damp proofing is an exceptionally reliable and profitable venture, costs are low and margins are high. Theye make use of the following mediums to advertise and attract clients:- ● Website ● Flyers ● Door to Door sales ● Direct mail ● Referrals ● Lawn Signs ● Networking ● Branded Vehicles ● Social Media Marketing and Advertising

What Advertising/Marketing is carried out?
As explained above they continually make use of all the marketing strategies available.

Does the business have any contract work?
The business is registered as a service provider with some food manufacturing business that use dams / water to manufacture / farm. They are also a registered service provider for some of our local Architects.

What competition exists?
Their is one competitor but providing an inferior product.

What are the seasonal trends?
The business does well all year round, but December and July are their two peak months.

Is the business VAT Registered?
Yes - The business is VAT registered.

What VAT documentation is on file?
Up to date VAT reports are on file. A tax clearance code can be supplied upon request.

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
They await Annual Financial Statements but have Income statements available.

What percentage of the business is cash/credit?
100% Cash - no Credit options.

How could the profitability of the business be improved?
The profitability can be improved by expansion. Currently they have two active teams with the demand being more that they can supply. The growth potential of the business is enormous. The owners have identified 8 areas in the greater Cape Town area that can be sold off as sub-agencies, if they choose not to work these areas themselves. They currently only work in two of these areas.

Is Seller finance available and for what amount?
No

What is the total staff complement?
2 x Team Leaders, each team has 3 roofers. They also have a list of casuals that are contacted when needed. In total 8 permanently employed employees.

Give a breakdown of staff/ functions/ length of service?
2 x Team Leaders (They are the leaders of each team as well as being the drivers, they are also trained as roof sprayers, and manage the airless spray guns. 6 x Roofers - They are our general workers that treat and seal the roofs, all with full training. Length of service all ranging from 2019 to current.

Do any receive special perks or incentives?
Yes - performance bonuses - target based, but not a condition of their contracts, this being at the discretion of management..

Are they on contract?
2 x Team Leaders are permanently employed. 6 x Roofers are on contract .

Do any have management potential?
Yes

How involved is the Owner in running the business?
Actively involved.

When does the current lease end?
The warehouse facility they rent is on a month to month basis. The admin side of the business is operated from the owners home.

Is there an option of renewal & what period?
The warehouse facility is renewable for a longer period of up to 3 years.

What is the annual escalation %?
8%

What are the trading hours?
07h30 to 17h00

What is the square meters of the business?
The warehouse is 80 square metres

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
1 Months rental.

What are the main assets of the business?
Specialised spray pumps, ladders, various tools, motor vehicles.

Are any items not included in the sale?
No

What is their overall condition?
Fair

Do any require repairing?
No

How have they been valued ?
Fair market value.

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Yes

Strengths?
The business is a South African Company that manufactures, supplies and applies a range of building maintenance products, providing systems and solutions for : a. Flat and Pitched Roofs b. Slate and Cement Tiles c. IBR and Corrugated Roof Sheets d. Asbestos e. Concrete Roof Slabs f. Concrete Floor Slabs g. Nutec Roofs h. Joint sealing and crack repair i. Retaining Walls j. Foundation Walls k. Balconies and patios l. Roof flashings and valleys m. Ponds and tanks n. Flower Boxes o. Parapet walls p. Showers and bathrooms q. Tanking 2. No one can afford a leaking home. Homeowners who might not be in the market to spend for cosmetic improvements to their homes will still need to maintain the basic structure of their investments 3. Ideal for Residential, Commercial and Industrial use. 4. You don’t have to know how to do the waterproofing yourself, you can employ reliable employees to do the work who have knowledge and experience. 5. A lucrative business, especially if you offer a variety of waterproofing services and an excellent product such as they have. 6. Although you will have to do advertising, much of your work will come from referrals. 7. The businesses products are all manufactured from the highest quality Environmentally Friendly raw materials that are available to us globally. Not only do we incorporate Environmentally friendly and Eco-Friendly raw materials into our products, but our manufacturing processes are also based on minimizing the use of our natural resources. 8. Stock Control is easy to manage. 9. The businesses Proudly South African manufactured product offers excellent durability, excellent flexibility, abrasion resistance, high chemical resistance, eco-friendly, water based, 100% lead free and is UV resistant.

Weaknesses?
1. Weather dependent, in the rainy season, careful planning must be done to work around the weather.

Opportunities?
Currently the business focuses on Waterproofing alone but there are multiple options for expanding the business, for example:- ● House Painting ● Commercial Painting ● Industrial Painting ● Boundary Wall Painting ● Roof Replacements (New Roofs) ● Roof Maintenance & Restoration ● Roof Inspections ● Gutter Installation and Repairs (Aluminum, PVC and Box Gutters ● Balconies Waterproofing Opportunity to grow in all areas, Residential, Commercial and Industrial. There has been a growing infrastructure demand in the South African development sector, which is related to the investment that is taking place in South Africa. While individual homeowners are a powerful source of income and word-of mouth advertising, homeowner associations, managing agents and commercial building owners, architects, and engineers provide continuous sources of income when they trust you and your brand. The opportunity exists for the creation of sub-agencies within the greater Cape Town area and selling these. The owner has already identified these areas and is at a fairly advanced stage in this opportunity.

Threats?
Working at heights is always a risk, regular training is essential.

What is the reason for the sale?
The owners are approaching retirement age and have decided to relocate back to Gauteng to be near family and where they have other unrelated business interests.

Why is this a good business?
The waterproofing industry is an exceptionally reliable and profitable industry, no shortage of clients, costs are low and margins are high.

What is the price plus stock and the profit?
Selling price : R 4 815 000 including stock Stock : R 165 000 Average Monthly profitt : R 148 279 ( for the period July 2020 to June 2021 )

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AGENCY DETAILS

Aldes Impetus

2 members
17 mandates
Western Cape , Cape Town Atlantic Seaboard
Cape Town, Western Cape
Cape Town Atlantic Seaboard

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