Summary

GM run Garden services for residential & commercial clients, inclusive of landscaping, within the upper highway area of Durban. Rake in the money while the GM & staff rake in the leaves.

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Fully describe the business's activities?

Garden services for residential & commercial clients, inclusive of re-modeling rather than landscaping, as well as tree felling, cleaning gutters/drains, painting & paving.
90% of income & staff/assets, are aligned to the clients for scheduled garden services (weekly or bi-weekly); where contracts provide that in winter, clients have to give a 3 month notice period
The other 10% relates to a large team skilled in respect of the once-off projects.

How long has the business been established?

over 12 yrs - started by the present owner

How does the business operate on a daily basis?

Supervisors are given a monthly calendar with their scheduled services. They report at 7h30 to the GM to check for any changes to their schedule. They load their equipment and then leave site to begin their day. The supervisor remains on site for the duration of each job to ensure quality service for their client. They also assist in the gardens with light tasks. Schedules are consistent and rarely change thereby providing on time reliability.
The GM visits clients in a company vehicle to quote and inspect gardens. He prepares the quotes, while also controlling the daily schedules. He also controls the workshop mechanic and all vehicle and equipment services. Supervisors have a daily control and time sheet to complete every day. This is signed off by the GM daily and handed in for the admin staff member to collate for invoicing purposes as well as control over time spent at each property, fuel usage, vehicle inspection and staff attendance. The company also employs a half day bookkeeper who controls debtors and prepares MA's that will go to the Accountant for AFS preparations, VAT & Income submissions.

How are the clients attracted to the business?

The business uses social media such as Facebook, Instagram and WhatsApp groups, and has its own website. Adverts and articles in the local Highway Mail; signwriting on the vehicles; various google etc. listings.
Word-of-mouth recommendations from satisfied clients, as well as marketing boards outside clients’ properties whilst working there, all bring in business.

Does the business have any contract work?

The business has approximately 260 permanent clients bringing in some R630 000 per month, with the variances to monthly turnovers being derived from non-contract regulars & once-off projects.
Turnover is broken down as follows: Some 36% are residential, 24% complexes, 21% commercial, 8% other & 11% once-offs.

Are there up-to-date Management Accounts available?

3 years of MA's are available showing the breakdown of Income & Expenditure, with each month being available a week later.
All the Income in this Report is via eft to the Bank acc, which links to invoices.
An Owners Discretionary Net Profit of some R2.5m pa, is achieved off an annually improving turnover of some R8.4m (R8m 2024 & R7.1m 2023).
Monthly turnovers are evenly spread throughout the year (across the year whether summer or winter) between R620k & 860k.
Cost of Sales (COS) is averaged over the year in this Report, but can be detailed by the seller on a monthly basis. COS includes wages (R3.2m pa) & fuel (R0.8m pa); while salaries are indicated under expenses, as are other general vehicle expenses, plus all other applicable business expenses.

How could the profitability of the business be improved?

A sales person on the road would assist in getting into office parks and residential complexes. This person could also act as a Customer Service Liaison visiting sites where the teams are working and constantly advising clients and also upselling to them.

What is the total staff complement?

There are currently 49 staff members including:
A General Manager, 10 Supervisors, 36 workers, 2 admin ladies & 1 mechanic
The supervisors/staff are very knowledgeable & understand what the clients need and can apply this in their day-to-day functions.
No bonuses are paid.

How involved is the Owner in running the business?

The business is mostly operated by the GM, while the Owner merely controls the bank acc's/strategies/other businesses.

When does the current lease end?

The lease is currently month-to-month for an amount of R12 000 per month but is available for renewal.
The escalation rates is 7% per annum.
The rented area is a follows:
The parking and equipment storage area is 650m2 which includes storage containers, manager’s office and workshop.
The staff changing area is 75m2 with toilet, shower and lockers.
The admin office in the main building.

What are the trading hours?

Monday to Friday from 7.30 am to 5.00 pm

What are the main assets of the business?

There are 12 x bakkies in the business (2006-2018, reliable & valued on a 2nd hand basis at R1m).
The other main assets are lawn mowers, bushcutters/weedeaters, hedge trimmers, blowers, tree felling equipment, garden tools & various. They are in good order & valued on a 2nd hand basis at R150k.

What is the reason for the sale?

The seller is slowing down towards retirement, selling off one of the businesses

Why is this a good business?

GM operated business with an Owners Discretionary Net Profit of some R2.5m pa, off an annually improving turnover of some R8.4m (R8m 2024 & R7.1m 2023).