Summary

The business utilises subbies to maintain / refurbish houses and businesses, especially in respect of : Painting; Roof Repairs; Building granny flats ; Renovations of Bathrooms & Kitchens; High Pressure Cleaning of driveways & roofs; All Tiling work inside & out; Pool Renovations. It was started 4 years ago by the seller & has a turnover of R1.2m pa, with a NP of some R360 000.

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Fully describe the business's activities?

The business focus is maintaining and refurbishing houses and businesses, especially in respect of the following projects: :
Painting; Roof Repairs; Building granny flats ; Renovations of Bathrooms & Kitchens; High Pressure Cleaning of driveways & roofs; All Tiling work inside & out; Pool Renovations.
It was started 4 years ago by the seller, building up to a turnover of R360 000 pa, but rapidly grew to a turnover of R1.2m, once he had sold his garden business 2 years ago and focused on this business - which would indicate that as the name & website gets better know, that the growth will continue organically.

How does the business operate on a daily basis?

The owner receives leads/calls, meets with the client, produces a quote, signs such & take a deposit, books the subbies, acquires raw materials, proceeds to site & commences work, whereafter final payment is received.
They have aligned the company with a local Architect in Pinetown if customers need plans drawn up.

How are the clients attracted to the business?

The business has a good website.
They use a company that supplies them with leads, which can be expanded for further growth of the business
They also obtain leads from local Estate Agents

Are there up-to-date Management Accounts available?

The figures in this Report are averaged over the year, while MA's will show all monthly variations.
Over the last year the turnover reached R1.2m (actually only 11 months). After COS 43% & all expenses (incl subcontractors at 12%), the Profit margin is around 30% at R360 000 for the year.
Only Management Accounts are available, with a list of all clients & work conducted for them.

What is the total staff complement?

Apart from the Owner - Staff are ALL on a Subcontract basis for each job so no permanent overheads to worry about.

How involved is the Owner in running the business?

The owner is involved with every aspect of the business - except the labour side which the subbies provide

Premises Detail

The seller operates from home, where the tools are stored within a single garage, when not on site. Raw materials are generally bought & taken to site.

What are the main assets of the business?

Various tools and equipment are in good condition with a value of +- R15 000 on a 2nd hand basis, & are included in the deal.
Spades and pike’s, wheelbarrows, drilling machines, cut-off saw , electric planner, air compressor, tool box, spanner sets, metal Tool box large filled with tools, rack for storage, work bench, long ladder, long step ladder, short step ladder etc.
However, the subcontractors often have their own tools to complete jobs, while additional items are hired & worked into the quote

Are any items not included in the sale?

Should the buyer of the business, wish to purchase the Sellers private Mahindra 2017 bakkie, with a two-year extended warranty, for R165 000, then such could be discussed.

What is the reason for the sale?

Seller is emigrating

Why is this a good business?

A small renovating business that is showing good growth, being an established base & name to grow further. It is at an excellent sale price of R250 000, off a turnover of R1.2m pa & a Net Profit of some R360 000 pa.