Roodepoort Manufacturer & Supplier Of Ice Cubes And Blocks For Sale

Business description

History Background
Fully describe the business's activities? The ideal business for South Africa with 8-9 months of summer and still profitable in winter, supplying ice cubes and blocks to restaurants, food wholesalers, clubs, bars, liquor stores and is listed with 3 major national retail chains. They have recently introduced anti bacterial ice which is used for keeping food and fish fresher and are the only suppliers in the country. The owner is prepared to warrant a minimum net profit of R750 000 between September 2009 and February 2010 . PLEASE NOTE the figures shown are projections from September 2009, the owner expects to easily achieve these figures as they have increased storage and manufacturing capacity by over 50% during the winter.
How long has the business been established? Business has been for 2 Years
How long has the owner had the business? Since inception
What steps are in place to solve "load shedding" problems? None, not necessary as if there is a power failure they package ice blocks
Present Market
How does the business operate on a daily basis? The business manufactures ice cubes and blocks of ice, the owner is fully involved in the running of the business but he does have a manageress. They deliver to all areas of Johannesburg and offer delivery 7 days a week
How are the clients attracted to the business? Initially the owner did sales but now it is not critical as new business comes from referrals and their website
What Advertising/Marketing is carried out? Website
Does the business have any contract work? They are listed with 3 major retail chains and have approximately 50 chest deep freezers at customers premises which are replenished as required
What competition exists? There are other suppliers
What are the seasonal trends? Busiest from Spetember to April each year with May to August is quieter, depending on the weather, but they still break even in winter
Financial
Is the business VAT Registered? Yes, business is vat registered
What VAT documentation is on file.? Will be available to interested parties
Are there up-to-date Management Accounts available? Yes, management accounts are available
What Balance Sheet and Income Statements are available? Accountant is currently preparing them
What percentage of of the business is cash/credit? 95% cash/cod/eft 5% on account (maximum R10 000 debtors book)
What is the age analyse of the debtors book? Current
How could the profitability of the business be improved? The owner is looking at put in more storage to enable them to store more finished product as that is the secret of improving profitability as if you have stock it will sell
Is Seller finance available and for what amount? The seller may be amenable to looking at a 60% deposit and the balance over the next 6 months to a year provided the potential buyer can supply some guarantees
Staffing
What is the total staff complement? Besides the owner there is a manageress, 3 permanent staff and 4 - 6 packers plus casuals as required in summer
Do any have management potential? Manageress can operate to a certain extent on her own
How involved is the Owner in running the business? Fully involved
Premises
When does the current lease end? The seller owns the property, this is available for sale at R1.2 million or can be rented from the owner at approximately R10 000pm
Is there an option of renewal & what period? Seller is flexible
What are the trading hours? 7-5 plus drivers do deliveries after hours and weekends
What is the square meterage of the business? 274 Square metres with 4 parking bays
Do you require a licence? No licence required
Assets
Is a full asset list on file? Yes, full list is on file
Are any items not included in the sale? All operating equipment included
What is their overall condition? Good working order
Do any require repairing? Normal maintenance
How have they been valued. ? Owners valuation/cost
Which assets are on lease/HP and with whom? 2 delivery vans on HP purchaser to take over payments, the property currently has a bond of R800 000
What are their settlement amounts? There is approximately R100 000 outstanding on the vehicles
Will Seller settle or Buyer to take over? Buyer to take over
Are copies of agreements available? Yes, copies are available
Are they presently insured? Assets are insured
S.W.O.T. Analysis
Strengths? Good client base and new national retail listings together with new anti bacterial ice product should ensure continued growth
Weaknesses? None
Opportunities? Increase storage facilities further for increased production and leverage off the national reatil listings they have received
Threats? None known (global warming should improve this business)
Reason For Sale
What is the reason for the sale? The seller and his father in law want to take up an opportunity in Greece
Conclusion
Why is this a good business? Excellent business with plenty of growth potential
What is the price plus stock and the net profit? Selling at R1 800 000 plus stock of approximately R200 000

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R1,500,000 (included in the asking price)

Inventory / Stock value:

R200,000 (included in the asking price)