Summary

Recently concluded long-term contracts for the transport of coal to 12 power stations. The business also has vendor numbers in place to procure and supply various engineering products for Eskom.

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Fully describe the business's activities?

This logistics business has recently concluded two lucrative, long-term contracts for the transport of coal to 12 of Eskom's power stations, as well as to train sidings around the mines. The contracting mines are based in the Mpumalanga coalfields and offloaded within a radius of 150km. The business currently has 4 trucks, however, the contracts provide for many more. The business also procures and supplies various engineering products for Eskom such as gearboxes, engines, generators, oil etc. There are currently purchase orders (on file with Aldes) valued at almost R1m which a new buyer would get the benefit of.

How does the business operate on a daily basis?

The business operates 24/7 and is managed by the owners from their home office.

What Advertising/Marketing is carried out?

There is no advertising or marketing carried out at all.

How could the profitability of the business be improved?

More trucks could be added, which the contracts allow for. Increased loads will improve profitability significantly.

How involved is the Owner in running the business?

The owners oversee the day to day operations and management of the business.

When does the current lease end?

The business is operated from the owners' home office.

What are the main assets of the business?

The assets comprise 4 trucks and 1 trailer. An additional 3 trailers are hired. Trucks are fitted with fleet cams and monitored via mobile devices.

Strengths?

Two lucrative, long-term contracts in place. Vendor number with Eskom for the procurement and supply of engineering products. Valid purchase orders which a new buyer could take over. Enormous scope for growth.