Top Action Bar with Slots in the Northern Cape

1208

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Asking Price

R6,800,000

Monthly Profit

R92,897

Asset Value

R 195,000

Stock Value

R 100,000

Yearly Net Profit

R 1,114,760

Summary

Business with liquor and gambling licenses Stable income - even in the current sosio-economic climate The ONLY decent bar / lounge in town !

Give me more information

Fully describe the business's activities?

* This is the best and foremost sports pub in the Northern Cape.
Feathering a bar with a large variety of liquor and seating for customers at the bar counter. Own bathrooms for
male and female.
* A separate area with 20 Crazy-Slots gambling machines with own bathrooms for male and female.
* Additionally there are seating available in the dancing area.
* More activities like darts, 3 pool tables and a foozeball table.
* The business is located in the main street with ample parking.

How long has the owner had the business?

Since 30 April 2014

How does the business operate on a daily basis?

The management team open the business at 8h30
Staff are cleaning / stocktaking / balancing financials
Staff responsible for the Slots are loading the machines and manage the winnings and takings
Cash are loaded into the mini ATM on site

Doors to the public is opening at 10 am

The bar is served by a team of 3 or 5 working in 2 shifts
On Thursdays / Friday / Saturday the business is charging door fees (cash income )
The reason is for access control and to ensure a hi level of service , safety and enjoyment for guests

The business closes doors at 2h30
Security is on hand when staff are ending the shift

Does the business have any contract work?

The business does not have any contract work - but the Business is the preferred bar to cater at functions like at festivals , functions , sporting events and parties

What competition exists?

There are 2 alternative bars in town - catering for a different market
None is known for such good house rules & alternative activities like dancing and gambling

What are the seasonal trends?

This bar is not influenced by any seasonal trends

Does the bar offer Restaurant food ?

Food can be ordered at the Bar from a menu from the neighboring restaurant
Waiters will serve the take-a-way meals to patronages within the Bar area
Snacks are available over the Bar counter

Is the business VAT Registered?

The holding company is VAT registered - and comply with all SARS requirements

Are there up-to-date Management Accounts available?

The business uses Odyssey Software - up to date info is available

What Balance Sheet and Income Statements are available?

This business is part of a holding company
Financial statements are available - and accurate management accounts are kept

What percentage of the business is cash/credit?

The business operate on a "'cash-only "" basis

Is Seller finance available and for what amount?

The seller will not offer any finance

It is important to take note of the benefits of buying the shares in the holding company .
The holding PTY also owns a commercial building in the main street of town - encompassing 10 x bachelor flats and 2 x retails shops - there is an additional liquor and gambling license registered on this second premise
- separate listing

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

3 x Security
1 x Cleaner
3 x Bar area
2 x Gambling area
1 x Multi task

Some tasks are rotated between staff

Do any have management potential?

There are 4 staff members that are taking up management responsibilities on an ad-hoc basis
Security / Bar / Gambling / Admin
This staff members are receiving bonusses as / when applicable

How involved is the Owner in running the business?

The owner oversee the running of the business -- although not full time involved
Management available ensure a degree of flexibility

When does the current lease end?

The business has a very good relationship with the landlord
The current lease is still valid for 10 years

What is the annual escalation %?

The current escalation is 8% - but with the extended lease term , this will be negotiable

What is the square meters of the business?

a Total of 325 m2

What are the main assets of the business?

The bar is fully equipped - seating provided for between 50 and 60 people in different areas
Fridges and certain equipment are on a loan basis from liquor suppliers
Sound system and disco lights
There is a water tank in the building as backup as well as a generator

The Slots are owned and managed by agreement with an 3rd party

What is their overall condition?

All the assets are is a good conditions and the new owner would not have any expenses over the short term

Which assets are on lease/HP and with whom?

The Slots are leased form a 3rd party - copies of the lease and profit sharing agreements are available

Will Seller settle or Buyer to take over?

It is expected that the buyer will continue with current service agreements in the name of the holding company

Strengths?

This bar is well established , with a good reputation and a loyal customer base
Friends enjoy the atmosphere , the drinks , music , dancing , games and to try their luck at the Slots
Food can be ordered from a menu , and be delivered by the waiters from the restaurant next door
Door fees / Slots / Pool tables and games ensure a good cash inflow
Socioeconomic challenges has a lesser effect in this industry

Weaknesses?

This is a business where effective control measures are essential

Opportunities?

Effective marketing can even further elevate the profile of the Bar as an upper-class establishment
Catering as a cash Bar at functions and events is an additional & profitable income opportunity

Interested buyers should consider the commercial building too - rental income / liquor & gambling licenses / earmarked as a Pizza Lounge with cocktail bar and V-Slots ( sold separately )

Threats?

No mayor threats were identified -- strict rules within is important to maintain order and the high standard

What is the reason for the sale?

The seller is relocating

Why is this a good business?

This is a sough after business - well established , loyal client base and a diverse income stream

Please take note of the following :

Proof of funds is a specific requirement as set out in the mandate with the seller
Aldes reserve the right not to engage with buyers without proof of funding