Fully describe the business's activities?
Family owned and managed Courier & Freight Service business based in KZN Inland. It is well situated in a farming and tourist destination and office/depot in Pietermaritzburg with easy access to many rural areas covered on their routes.Currently the main office is in rural area but potential to move to or open offices in main city centres, eg Pmb/ Kokstad/Howick/Richmond. The potential to grow this business is enormous with the current online buying trend which has increased in need due to COVID.
How long has the business been established?
The current owners have had the business since 1988.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Classified as an Essential Service.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Temporarily reduced number of days servicing quieter routes. Reduced Fleet.
Is the business VAT Registered?
The business is VAT registered and VAT documentation is available to pre-qualified buyers.
What Balance Sheet and Income Statements are available?
The FY2021 Annual Financial Statements are available to pre-qualified buyers.
How could the profitability of the business be improved?
Marketing. Huge potential to increase routes.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
There are 16 staff..
How involved is the Owner in running the business?
The owner is involved in the day to day running of the business.
When does the current lease end?
The business is operated from Offices on owned property.
What are the main assets of the business?
The main assets are vehicles plus office equipment and furniture.
Are any items not included in the sale?
There is a personal vehicle not included in the sale.
What is their overall condition?
Overall vehicle condition is fine, serviced at required intervals of mileage etc.
Which assets are on lease/HP and with whom?
There is financing on the vehicles, which will be settled by the Seller.
Unique situation, 2 trips/day t major centre. Personal service. 21 Years same owner.
Insufficient Marketing (no website).
Marketing. Extending Routes.
Competition. Riots/protests/road closures.
What is the reason for the sale?
The owners are retiring.
Why is this a good business?
This is an Essential Service, 21 years the same owners and potential to expand.
What is the price plus stock and the profit?
The selling price is R2.7 million (with all vehicle finance settled). The average annual adjusted cash pre-tax profit for FY2021, FY2020 and FY2019 is R915k.Stock is minimal.
Annual Turnover Amount between R 500 thousand and R 6 million