Sectors / Category

Annual turnover

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  • Mandate: 34997
  • Added: 20 Nov 2021
  • AFS
  • 102

Roofing waterproofing Durban. 67% of t/over is existing clients. MA's will show monthly variances

KwaZulu-Natal, Durban
102
Mandate 34997
Added 20 Nov 2021
R 8,900,000* ZAR
Stock: R 2,000,000
Assets: R 1,400,000
R 317,045 ZAR
Cliff Bell
(PRINCIPAL)
Aldes Exclusive
KwaZulu-Natal
KwaZulu-Natal
Summary

Long Established large roofing specialist that is on track to pre-COVID earnings. Knowledgeable staff with required vehicles & equipment.

Roofing waterproofing Durban. 67% of t/over is existing clients. MA's will show monthly variances
SELLING PRICE AFS
R 8,900,000* ZAR
Stock: R2,000,000
Assets: R1,400,000
R 317,045 ZAR
Summary

Long Established large roofing specialist that is on track to pre-COVID earnings. Knowledgeable staff with required vehicles & equipment.

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Fully describe the business's activities?
This 50 year old well known Durban business, focuses on the repair & maintenance of roofs, inclusive of waterproofing for the residential, commercial & industrial market. The owner oversees the quotations, technical issues & finances, with the 2nd tier managers actually handling such matters with qualified staff below them. Repeat clients, as well as, referred/new clients request quotes, which after an inspection are prepared & if accepted, scheduled & carried out, with the owner perhaps popping in to check thereon..

How long has the business been established?
50 odd years with the present owner

How are the clients attracted to the business?
No long term contracts are in place, but some 67% of turnover is from repeat/existing clients, while new business is either obtained through referrals 13% or the website 7%. Other business development & advertising brings in the remainder. Expenditure as per the AFS hereon is some R160 000 plus pa

What competition exists?
Numerous competitors exist, especially on the lower level, but this business has had no problem of holding it's own in the market with reasonably steady turnovers & profit margins.

What are the seasonal trends?
Dec/Jan construction shutdown & holiday periods are quieter, than the relatively stable other months The rainy season tends to yield more sales acceptance and enquiries than the dry months.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The 2020 COIVD reduced turnover from R35m to R27m, however present turnovers have risen to some R30m, while NP's are back at 2019 results at some R3.8m.

Is the business VAT Registered?
Yes, with all documents at hand

Are there up-to-date Management Accounts available?
Management figures are updated monthly, will show monthly variations, are extremely detailed, cross referenced by the external accountants to the AFS & contain only the owners salary benefits. This Report is from the Jan-Sept 2021 MA's (but annual vs monthly detail), with the previous months being extrapolations to obtain a full years analysis.

What Balance Sheet and Income Statements are available?
All past AFS which have no owner's income/expenses in, except for his salary, are readily available. Turnovers : Pre-COVID R35m, COVID R27m, & presently R30m, with NP's (including the owners income to obtain the True Discretionary Income for an owner) back to Pre-Covid levels of R3.8m.

What is the age analysis of the debtors book?
R1.3m /R150k at 30/60 to 90 days respectively

Give a breakdown of staff/ functions/ length of service?
The Owner, is supported by 34 managers & staff Admin: 1 x 2nd in charge with 4 staff; Operations : 3 managers & 26 staff. They are full time employees

How involved is the Owner in running the business?
The owner works a normal 5 day week, overseeing the quoting, technical & financial aspects of the business, which a new owner would need to do or employ a CEO to carry out (preferably with some technical knowledge) - but the Seller can provide consulting services if required by the Purchaser (or perhaps look at staying on as a Brand Ambassador, as per some of my other Sellers - a very successful formula)

Do you require a licence?
The Co is registered with : cidb, MBA, & NRCA (USA)

Premises Detail
The seller owns the properties, with a market related rental included within the AFS/Aldes report of some R1.3m pa. The purchase of the properties could be discussed.

What are the main assets of the business?
A full asset list is available, consisting of 24 vehicles (bakkies & trucks), various necessary tools of the trade, & office equipment. They are all in good working order, R1.4m on a 2nd hand basis.

Strengths?
Grown over 50 yrs & a well know/reputable name in the Industry Numerous repeat clients 67%, with new clients attracted by word-of-mouth & the good website Knowledgeable staff & structured management All the necessary vehicles & equipment (covered within the expenses)

Weaknesses?
Economic downturns as experienced during the COVID shutdowns hurt most business, BUT this business has bounced back again

Opportunities?
New ownership with it's new blood, marketing strategies & linkages will certainly bring further new clients to the table An expanded repairs & maintenance service offering (eg painting, shop fitting, etc) would provide for more income from the same clientele already on the books

Threats?
That other businesses also focus on quality workmanship That the COVID restrictions return to early 2020 levels, which is highly unlikley

What is the reason for the sale?
Owner is eventually retiring - but can provide consulting services if required by the Purchaser (or perhaps look at staying on as a Brand Ambassador, as per some of my other Sellers - a very successful formula)

What is the price plus stock and the profit?
The Sale Price is R8.9m, including some R2m stock. The Owners Discretionary Income is R3.8m pa off a 2021 turnover of R30m.

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AGENCY DETAILS

Aldes Exclusive

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

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