Northern Suburbs Nursery School. Excellent Upmarket Catchment Area. 34 years of History. Profits!! Under Offer

1208

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Asking Price

R7,200,000

Monthly Profit

R86,473

Asset Value

R 5,320,119

Stock Value

R 0

Yearly Net Profit

R 1,037,672

Summary

Asking Price R7.2 million: Business Operations @ R2.5 million PLUS 2 x Purpose-Renovated Properties @ R4.7 million. This well-established Nursery School is sought after by parents in this upmarket Northern Suburbs area. The school has further capacity for growth.

Give me more information

Fully describe the business's activities?

Nursery School in upmarket Northern Suburbs. Superb catchment area. Caters for 18 months to Grade R. Feeder school to top schools in the area. Principal/Manager run. Owner is not involved on a daily basis. The property is also a part of the sale.

How long has the business been established?

The business has been operating for 34 years since 1991.

How long has the owner had the business?

The owner started the business in 1991.

How does the business operate on a daily basis?

There is a Principal in place who runs the day-to-day operations of the school, including interacting with the parents. The Secretary manages the maintenance and repairs of the physical buildings under the guidance of the Principal. All teachers are in place.

How are the clients attracted to the business?

Mostly word-of-mouth with generations of families returning, website, social media, advertising board in the area.

What are the seasonal trends?

Normal school holidays apply with the close for half of December and at least one week into January.

Is the business VAT Registered?

No, the business does not need to be VAT registered.

Are there up-to-date Management Accounts available?

Yes, these are available to qualified buyers.

What Balance Sheet and Income Statements are available?

Currently February 2024.

What percentage of the business is cash/credit?

Mostly EFT.

How could the profitability of the business be improved?

Better social media exposure to drive more traffic to the website at registration times.

Give a breakdown of staff/ functions/ length of service?

1 x Principal (who also teaches)
1 x Secretary
4 x Teachers
3 x Teachers Assistants
1 x Chef
1 x Cleaner

Do any receive special perks or incentives?

A bonus may be given at the end of the year at owners discretion.

Do any have management potential?

Yes, Principal already in place who manages day-today operations.

How involved is the Owner in running the business?

Th owners is involved less than 20% of the time and normally only assists with music.

When does the current lease end?

The 2 x premises/properties are owned by the school and have been valued at R4.7 million. The owner wishes to sell the 2 x properties together with the operations of the school. The operations have an asking price of R2.5 million. Together with the properties this comes to a total R7.2 million asking price.

What are the trading hours?

Monday to Friday: 7.15 am to 5.00 pm

What is the square meters of the business?

There are 1492 square meters from which the school operates.

Do you require a licence?

All permissions are in place.

What are the main assets of the business?

2 x purpose-renovated Properties, School Desks and Chairs, IT Equipment, Playground Equipment, Kitchen Equipment, Garden Equipment. A full Assets list is available to qualified buyers.

Are they presently insured?

Yes, the business is comprehensively insured.

Strengths?

Excellent history of 34 years. Loyal and committed staff. Excellent upmarket catchment area. Strong music school.

Weaknesses?

The school has always worked on a 1 x month notice period. Most schools work on a 1 x Term notice period. New registrations should maybe be considered to be done on this basis.

Opportunities?

More and better social media advertising and presence. The school can accommodate up to 130 children.

Threats?

None really. Normal economic conditions - but after 34 years this school has weathered any threats very well.

What is the reason for the sale?

The sole reason for the sale is that the owner wishes to retire.

Why is this a good business?

Minimal owner involvement. After a history of 34 years this school is still sought after by parents. Excellent upmarket area in the Northern Suburbs. Feeds excellent more senior schools around it.

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