Fully describe the business's activities?
SHOP SERVICES Services such as high-speed black and white and colour copies and digital printing, from one-off, 's to bulk qualities, from A5 to A0 posters, and plan to print. With our modern equipment, digital printing ensures the extra quality that makes the difference that you rely on. We offer the full range of finishing services such as laminating, perfect (book) binding, ring binding, collating, inserting documents into files, etc. LITHO Should we not be able to do the work in the shop we have our factory in Pretoria that can do all things Litho. The modern Heidelberg Litho and Indigo printers, plus a host of other printers and finishing equipment guarantee you a one-stop-shop. FINISHING We offer the full range of in-house finishing services to complement our printing: â¢ Foiling â¢ Embossing â¢ Folding â¢ Die-cutting â¢ Scoring (creasing) â¢ Overall and spot UV varnishing â¢ Thermal Laminating, matt and gloss â¢ Encapsulating matt and gloss â¢ Saddle stitching â¢ Perfect Binding â¢ Case Binding â¢ Ring binding â¢ Wire Binding PRODUCT RANGE Our Motto says it all, we print it. No job is too big or too small, we print everything from Business cards to A0 High gloss full colour posters and plan copies. If you are looking for a quality print supplier, look no further. We specialize in high-quality colour work such as: â¢ Annual Reports â¢ Brochures â¢ Magazines â¢ Posters â¢ Invoice Books â¢ Business Cards â¢ Letterheads â¢ Labels on a roll cut to shape NO DESIGN? NO PROBLEM LET OUR GRAPHIC DESIGNERS HELP YOU We have in-house graphic designers, with a minimum of a 4-year diploma and loads of experience, qualified to help you get started on your printing projects or take your existing designs to the next level. They have the experience to give you the advice and guidance that you need to achieve your goals. Our emphasis is to first understand the exact needs of the client before setting out on a solution. You can either supply your own artwork that maybe needs just a little bit of tweaking, or come in and work with us to create the ultimate fruition of your ideas.
How long has the business been established?
20 years +
How long has the owner had the business?
The owner bought the store from the franchisor when it was already 2 years in operation.
How does the business operate on a daily basis?
Walk-in clients come in to have copies made, business cards, or flyers printed. The companies who have been dealing with the business for many years email or phone in their order. The staff member does the quotations and emails them to the clients. The owner is doing the quotations for Litho printing. The factory in Pretoria does the Litho printing.
How are the clients attracted to the business?
Regular clients Website Word of mouth The business has signage and located in a busy street
What Advertising/Marketing is carried out?
A website where the business spends money on Google Adwords.
Does the business have any contract work?
The business has a number of business clients who enjoy a 30 day account. The age analysis of the customers are good with 38,2% current, 53,9% 30 days. This is a reflection of good credit control.
What competition exists?
There are many printing businesses around.
What are the seasonal trends?
April and December seems to be slower months.
How did the Covid-19 pandemic impact the business turnover / daily operations?
As with most businesses Covid-19 had an impact on this business. Sales for the year ended 2020 was R2,7m, reduced to 1,5m in 2021 and steadily increased to R1,9m in2022.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Covid protocol has been followed.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
We have the last 12 months VAT documentation on file. It will be made available during due diligence.
Are there up-to-date Management Accounts available?
We have the management accounts up to February 2022 on file.
What percentage of the business is cash/credit?
50% of the sales are on credit (weekly or 30 day accounts)
What is the age analysis of the debtors book?
Well maintained debtors book with 38% current, 53% on 30 days.
How could the profitability of the business be improved?
An energetic owner could get more involved in the running of the business and do marketing to increase sales.
Is Seller finance available and for what amount?
The seller will look at reasonable offers.
What is the total staff complement?
The total staff compliment is 3.
Give a breakdown of staff/ functions/ length of service?
One of the staff members has been with the business for 20 years. She runs the back office and is able to operate the machines. One staff member works half day and has been with the business for 3 years. The other staff member joined the business a year ago and has management potential,
Do any receive special perks or incentives?
The one staff member who has 20 years of service gets a pension.
Are they on contract?
Normal employment contracts on all staff members are in place.
Do any have management potential?
The staff are able to operate the business in the absence of the owner, who is working from home.
How involved is the Owner in running the business?
The owner fell ill two years ago and is now working from home. He does the invoicing, debtors and creditors and do the quotations for the Litho work.
When does the current lease end?
The current lease expires in August 2022.
Is there an option of renewal & what period?
A new lease for a further 3 year period will be negotiated.
What is the annual escalation %?
The owner has negotiated a reduced rent to R100 m2 where there will be a saving in rent of R4,000 per month.
What are the trading hours?
Monday to Friday 8am to 4.30pm.
What is the square meters of the business?
180 m2 where the business sub-let 60m2 at an amount of R9,300 per month. This amount is reflected in the income statement.
Is a copy of the lease available?
A copy of the lease will be made available during due diligence. We have the latest rental statement on file.
What lease deposit and/or other surety is required?
The lease deposit will be negotiated with the landlord.
What are the main assets of the business?
Mainly printers, binders, guillotines, laminators, a generator and office furniture. We have a full asset list on file with a value of R1,232,750.
Are any items not included in the sale?
All items as seen on the asset list are included in the sale. A few machines are on rental and the details are discussed below.
What is their overall condition?
The machines are in good working condition.
Do any require repairing?
Regular maintenance were needed.
How have they been valued ?
The owner valued the assets at cost.
Which assets are on lease/HP and with whom?
B1100 @ R2,684 per month, lease expires in February 2023 B950 @ R500 per month, lease expires in October 2022 C1060 @ R7,448 per month, lease expires in October 2024 C558 @ R908 per month, lease expires in May 2023
What are their settlement amounts?
The settlement amounts will be made available should a buyer not wish to take over the leases.
Will Seller settle or Buyer to take over?
The seller is looking at selling his shares in the (Pty) Ltd which will make it easy for a new owner to operate with the same VAT number and banking details.
Are copies of agreements available?
Copies of the agreements will be made available during due diligence.
Are they presently insured?
The business and its assets are comprehensively insured.
Long standing relationships with clients Business in operation for 20 years Well trained and loyal staff
The owner does not spend adequate time in the business and works from home.
A new owner could improve sales by doing marketing.
Less people print nowadays Strong competition
What is the reason for the sale?
The owner is 73 years old and due to ill health wants to retire.
What is the price plus stock and the profit?
The price of the business is R780,000 and includes stock of R50,000.
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