Sectors / Category

Annual turnover

  • Mandate: 34873
  • Added: 30 Aug 2021
  • AFS
  • 660

Doggy day care and kennel facilities includes the collection and drop off of dogs

Gauteng, Johannesburg
Mandate 34873
Added 30 Aug 2021
R 1,400,000* ZAR
Stock: R 0
Assets: R 657,544
R 74,770 ZAR
Rudi White
Aldes Focus
Gauteng, Pretoria East
Gauteng, Pretoria East

Doggy day care and kennel (boarding) facilities. Includes the collection and drop off of dogs for all clients in the area

R 1,400,000* ZAR
Stock: R0
Assets: R657,544
R 74,770 ZAR

Doggy day care and kennel (boarding) facilities. Includes the collection and drop off of dogs for all clients in the area

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Fully describe the business's activities?
Doggy day care and kennel (boarding) facilities. Includes the collection and drop off of dogs for all clients

How long has the business been established?
Since 2014. Business registered in 2015

How long has the owner had the business?
Since inception

How does the business operate on a daily basis?
Dogs are collected by two drivers each morning and brought to the park. At the park they are separated into various sections and spend the day interacting as well as being walked. In the afternoon the drivers drop the dog s off at their homes again (there is a half day option to go home at 12h00)

How are the clients attracted to the business?
Via word of mouth, Facebook and Instagram pages

What Advertising/Marketing is carried out?
Via Facebook and Instagram pages

What competition exists?
There are many competitors in the Fourways and Dainfern area and surrounds however the demand is currently sufficient to sustain all the day cares operating currently

What are the seasonal trends?
The kennels occupancy is directly in line with major holidays (including school vacations). Additionally many of the clients are expats living in Dainfern estate who traditionally return home for 3-6 weeks each June/July (pre COVID)

How did the Covid-19 pandemic impact the business turnover / daily operations?
The business initially suffered during full lockdown however used the opportunity to consolidate its client base closer to the park and reduce operating costs as far as possible. During the 2021 there was additional demand from local clients for kennel facilities once travel was allowed, however overall the business has definitely felt the impact of COVID as people continue to work from home

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Operating costs have been reduced and prices were not increased in 2021 in order to ensure that clients did not feel an additional burden of increased costs.

Is the business VAT Registered?

Are there up-to-date Management Accounts available?

What Balance Sheet and Income Statements are available?
Reviewed AFS for 2018 Income statement and Balance sheets for each year from 2019 to 2021

What percentage of the business is cash/credit?
20% of clients pay a month in advance and the balance pays at month end. Payment terms are 7 days from invoice (invoicing is usually done around 23/25th)

How could the profitability of the business be improved?
Consolidated debtors as at 31 July 2021 120+ 90 60 30 Current 46% 8% 18% 0 28%

What is the total staff complement?
5 permanent staff

Give a breakdown of staff/ functions/ length of service?
Driver - collection and drop off of dogs - 2.5 years Driver - collection and drop off of dogs - 6.8 years Park assistant - general duties at the park - 7 years Kennel assistant - general duties around dog welfare for the kennels - two staff employed since Jan 2021

Do any receive special perks or incentives?
The drivers take the cars home with them so have transport to work and back as well as limited use on weekends. Occasionally the drivers are allowed to take the cars on leave (as an incentive/reward only)

Do any have management potential?
Yes, the longest serving driver and is already considered the park manager, responsible for collection and drop off scheduling

How involved is the Owner in running the business?
The owner is closely involved in the business and deals with clients daily (primary role). The owner also performs most of the invoicing and banking functions.

Any special arrangements for the staff related to the Covid-19 pandemic?
TERS payments during full lockdown and subsequently masks and sanitiser is provided to staff as well as time off work to obtain a vaccination

When does the current lease end?
The current lease is on 3 months notice from either party with no set termination date

What is the annual escalation %?
Last escalation was 2019

What are the trading hours?
07h00 - 17h00 Monday to Friday 07h00 - 12h00 Saturday

What is the square meters of the business?
1 Hectare

Is a copy of the lease available?

Do you require a licence?

What are the main assets of the business?
3 Vehicles and leasehold improvements (kennel structure)

What is their overall condition?
Mixture of fairly new to well used

Do any require repairing?
Due to the nature of the business there is constant maintenance and repair work required on both the vehicles and the leasehold improvements

How have they been valued ?
Leasehold improvements - book value Vehicles - market value

Which assets are on lease/HP and with whom?
Isuzu KB250 and 2 Nissan NP200 - financed through Wesbank

What are their settlement amounts?
KB250 - R60,000 NP200 - Brand new NP200 - Paid off

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

Are copies of agreements available?

Are they presently insured?

Due to zoning the land cannot currently be used for normal business / commercial use and cannot be developed, therefore the park is in a unique position of being the only business capable of operating on the premises, and paying rent to the landlord Collection and drop off of dogs (not all competitors offer this) Location - proximity to Dainfern Reputation - well established and regarded

Asthetics of the premises. Some competitors have a shinier look

Cost reduction through better management of vehicles Kennels are still new and haven’t had a full COVID free year to show their potential

Lease - although landlord is very happy with the current terms of the lease the 3 month notice period is a concern

What is the reason for the sale?
Owner relocating

Why is this a good business?
Dogs have become many peoples surrogate children. At the same time people are working more (generally both partners) and living in more secure homes with less garden space. There will be a sustained and growing need to reliable day care services

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