History and Overview Of The Business
|
| Fully describe the business's activities |
This is fuel distributor that stores a small amount of fuel on site, limiting significant stock to be carried but supplies directly in most cases from supplier depots to the end user. The service under contract the smaller service stations of a well know oil company on a distribution contract. So Retail are one leg. With the large volume of agriculture in the area that forms another leg. Then with a strong mining sector they have a third leg to supply. They have 3 tanks on site above ground, 1 x 23,000 litre Diesel (500ppm) and 1 x 4500 litre Diesel (50ppm) tank.
|
| When was the business established? |
1980 |
| How long has the owner had the business? |
Owned by the family for two generations since inception |
How Does The Business Operate
|
| How does the business operate on a daily basis |
Owner operated in a control and overseeing capacity. Orders placed by clients are ordered from the suppliers, client invoiced and on payment delivered to the end customer.
|
| How are the clients attracted to the business? |
Word of mouth, telesales to various clients and some advertising. Some clients have contracts in place.
|
| What Advertising/Marketing is carried out? |
Telesales and advertising
|
| Does the business have any contract work? |
Some clients have contracts in place. Will be discussed with approved buyers. |
| What competition exists? |
Normal
|
| Seasonal Trends? |
Mining and Retail is rather fixed, agriculture is more seasonal |
Financial Information
|
| Vat Registered? |
Yes
|
| Vat Documentation on File? |
All Current and up to date |
| Management Accounts? |
12 months up to Feb 2016 |
| Audited Financials? |
Feb 2016 |
| What as Cash/Credit Split? |
5% on Account, 95% EFT payment up front, pre delivery
|
| Debtors Book Age Analysis |
30 days |
| How can you improve the profitability? |
More volumes, and better margin due to the very large turnover will be significant to the bottom line. |
| Is Seller Finance available and if so what is it? |
No cash sale |
Staffing Of the Business
|
| What is the total number of Staff? |
16 Staff members and the Owner. |
| Staff Breakdown |
Will be provided to buyers |
| Staff Special Perks and Bonuses? |
Yes, drivers do get on performance |
| Are the staff on Contract? |
Yes |
| Does any of the staff have management potential? |
No |
| How involved is the Owner in running the business? |
Hands on, owner operated |
Premises Of the Business
|
| When Does the Current Lease ends? |
Month to month but can be extended long term as the owner of the property would like. |
| Is there an option to renew? |
Yes, 5 years or more. Owners would prefer a long term agreement |
| What is the annual escalation % |
5% |
| What are the Trading Hours? |
Mon – Fri 07:00-17:00 Sat 07:00 – 11:00 Sun Closed |
| What is the square meters? |
|
| Is a copy of the lease available? |
Yes |
| Do You require a license? |
Yes from the DME, also a supply agreement from the Oil Company.
|
Assets Of The Business
|
| Full Asset List available? |
Yes, owner will provide.
|
| Anything not included in the sale? |
Only personal vehicles and small personal items
|
| What is condition of the assets |
Good, none needs repairing |
| Any Assets on Lease/HP that Buyer needs to take over? |
Will be settled |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
|
| STRENGHTS |
Good service
Well established
Supplier in the area for a major oil company.
Barrier of entry
|
| WEAKNESSES |
Might be spread a bit thin without backup fuel on site
|
| OPPORTUNITIES |
The supply agreement of the oil company and the distribution on their behalf opens more doors.
Various clients still to supply in the area
|
| THREATS |
None perceived apart from potential clients loss secured by split payment and the client warranty
|
Summary
|
| Why is this a good business |
Well established business that has been around for 36 years with constant growth and a good reputation. With a strong hand and some financial muscle it will grow faster and increase profits
|
| Why is the owner selling it? |
One owner emigrating, the other wants to do something else
|