Filters
LocationSouth Africa, Western Cape

Sector - Sales & Services

Asking Price
R15,874,726
Monthly Profit
R 277,626
Asset Value
R 4,874,575
Stock Value
R 0
Yearly Net Profit
R 3,331,514

Summary

This is a unique opportunity to acquire a well- established Courier business based in the Breedevalley. This highly successfully courier business, operating for over 23 years, provide comprehensive courier services that generates turnover of R 22m annually with netto profit of R3.3 m utilizing a reliable fleet of 32 vehicles with a depreciated value of R 4.8 mil.

Give me more information

Fully describe the business's activities?

Customers will book a courier service with one of the 9 office staff. The courier will collect the parcel that is booked either from a specific address - that could be your place of work or your home - or from a drop-off location.
From there, the courier will take the parcel (along with hundreds of others collected that same day) to the nearest depot.
At the depot the parcel is sorted with others that are addressed to a similar area.
Parcels will often be sent to another depot closer to the delivery location, where it will be assigned to a driver based on their area of coverage.
The next driver takes the parcel from the depot and delivers it to the recipient on his or her next delivery.

How does the business operate on a daily basis?

Being a structured and disciplined person the owner, over the years adopted a service company synonymous with delivering excellent service. The adoption of this service orientated culture was fundamental to the long term success of "the business" as a service organization with established loyal customers.
Th Business also has a good and mutual beneficial working relationship with competitors in the courier industry. When making use of the services of a competitor it is referred to as "sub-contracting" of services. It allows the business to extend its service to a market which is not economical viable to service on its own.
The company's extensive market coverage and domination of the Breërivier geographical courier market, which cannot easily be duplicated, is what makes the business such a valuable and sought-after asset.

Running the day to day operations of the business is a self-sufficient management team who consists of a manager and 9 (nine) competent office staff.

The business collect and deliver in the following areas/routes:
Worcester and surrounding towns;
Bonnievale, Ashton, Robertson
Touwsrivier, Lainsburg, Sutherland
De Doorns, Rawsonville
Ceres, Tulbach, Wolsely
Paarl, Wellington
Cape Town district (Southern- en Northen suburbs)

By making use of sub-contractors the following areas are also serviced;
Stellenbosch, Strand, Somerset-Wes, Gansbaai, Bettysbaai, Kleinmond, Grabouw, Caledon, Onrus, Hermanus,
Moorreesburg, Malmesbury, Porterville, Riebeeck-wes, Riebeeck Kasteel, Eendekuil,
Bredasdorp, Hopefield, Napier,
Piketberg, Swellendam, Darling, Riviersonderend, Laaiplek,
Velddrif, Vredenburg, Saldanha,
Mosselbaai, George, Heidelberg, Knysna, Struisbaai, Stilbaai, Plettenbergbaai, Oudtshoorn, Barrydale, Ladismith,
Springbok, Bitterfontein, Beaufort-Wes, Calvinia, Carnarvon, Victoria-Wes, Kenhardt, Keimoes, Kakamas, Upington, De Aar, Hanover, Stanford, Citrusdal, Graafwater, Gouda, Hermon, Lambertsbaai, Clanwilliam, Klawer, Lutzville, Vredendal, Trawal, Riversdal, Albertinia.

The company has its overnight distribution depot in the Breederivier district where parcels/ goods, delivered at the depot before 16H30, will be delivered to
Springbok / Plettenbergbaai / Oudtshoorn / Upington etc, the very next morning.

What Advertising/Marketing is carried out?

* All vehicles is branded with company logo's and services offered by the company.
* The company's website is not too long, have a user friendly design and contains all
essential information about the company and its services.
* The company is active on facebook.
* The company sponsor the Mega Oval Kleinplasie stock car hosted in Worcester. Visible
branding at the venue, participating cars and Mega Oval Kleinplasie website.
* The company is a yearly sponsor of the golf day in aid of Pioneer School for the
visually impaired situated in Worcester.
* The company is greatful to be priveleged to participate in the annual Pioneer Rally

What Advertising/Marketing is carried out?

* All vehicles are branded with company logo's and services offered by the company.
* The company's website is not too long, have a user friendly design and contains all
essential information about the company and its services.
* The company is active on facebook.
* The company sponsors the Mega Oval Kleinplasie stock car hosted in Worcester. Visible
branding at the venue, participating cars and Mega Oval Kleinplasie website.
* The company sponsors the yearly golf day in aid of Pioneer School for the
visually impaired situated in Worcester.
* The company is privileged to participate in the annual Pioneer Rally, to raise funds for the visually impaired, as a sponsor and host at proceedings.
* Proud sponsor of school sports teams at HTS Drostdy high school in Worcester.
* Addressing the company's social responsibility by contributing and participating in
the efforts of Nonprofit organizations (NPO,s)

Do any have management potential?

The business is currently manager driven. The owner is still involved in management. Proper "checks and balances" developed over the years allows the owner to be semi-retired whilst still having control over the day to day running of the business. The current manager indicated the he/she will stay on with the company after a sale.

When does the current lease end?

The company rents two premises, in the Breede Valley ( head-office) and a depot in Parow.
Breede valley offices;
*R27 000.00 per month
*Deposit R23 000.00
*523 square meters
*Contract indefinite, 60 day cancellation notice period
Parow Depot;
*R33 793.00 per month
*Deposito R23 000.00
*750 square meters
*Expires 30 June 2021. Option to renew contract.
Storage in Paarl;
*R1250.00 per month
*Deposito R0
*Month to month basis

What are the trading hours?

Trading hours; Monday to Friday 07H30 to 17H00

What are the main assets of the business?

The main assets consist of office equipment and a well-maintained fleet of vehicles and trailers valued at a depreciated value of R4 874 575 ( 2020 financial statements) . All vehicles are bought out of the business's cashflow. No lease or HP's.
The overall condition of the vehicles are good. Vehicles under factory warranty are serviced at the appropriate dealer. Vehicle out of warranty is serviced at a service-center.
Coming from a disciplined working career the owner believes in a robust program
to carefully maintain and manage the vehicle fleet in order to avoid unforeseen and expensive downtime as well as disruptions in service levels.

Strengths?

* Strong and effective management team attending to the day to day running of the
business
* Effective and happy employees
*The business culture is about delivering exceptional service to its customers.
* The latest vehicle tracking and monitoring devises are used in daily operations.
* During the past 21 years the business established a good name and reputation,
associated with reliability and service excellence, in the market.
* Visible branding of vehicles. The professionally designed logo with its black and
orange colours is very effective.
* New clients are referred to the company by "word of mouth"
* Mutual beneficial working relationship with other courier companies. This
relationship enables the company to deliver a service to almost the whole of South
Africa.

Opportunities?

More potential can be unlocked be expanding / developing the working relationship with other bigger courier companies.

Threats?

Competition in the market is intense.
The local and international economies pose a threat business.

What is the reason for the sale?

The owner is thinking of retirement

Location

Contact | Enquire

Walter

Walter Schonborn

LocationSouth Africa, Western Cape

Preferred method of contact

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