How does the business operate on a daily basis?
Weekdays 08:00 am to 17:00
Saturdays and Public Holidays half day

How are the clients attracted to the business?
Advertising and word of mouth. Long standing business - many returning/ repeat customers.

What Advertising/Marketing is carried out?
Facebook and Newspaper

What competition exists?
Two other scrap yards in the area

What are the seasonal trends?
Easter and December increase sales in holiday seasons

How did the Covid pandemic impact the business turnover / daily operations?
We were allowed to continue to operate as essential services

Is the business VAT Registered?
No

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
AFS FY 2024

What percentage of the business is cash/credit?
Cash, EFT and Card transactions daily. No credit is offered

How could the profitability of the business be improved?
Purchasing more second-hand stock

What is the total staff complement?
Eight, excluding Three Directors

Give a breakdown of staff/ functions/ length of service?
Sales Director (Director) 13 years
CEO (Director) 18 years
Admin (Director) 7 years
Salesman 6 years
Domestic 7 years
Mechanic 7 years
Mechanic 1 year
Workshop 7 years
Workshop 4 years
Workshop 2 years
Workshop/Driver 3 years

Do any have management potential?
Yes

How involved is the Owner in running the business?
Day to day

Do they have signed employment contracts?
Yes

When does the current lease end?
31 May 2025

Is there an option of renewal & what period?
Yes, one year

What is the annual escalation %?
5%

What is the square meters of the business?
1800sqm

Is a copy of the lease available?
Yes

Do you require a licence?
Yes

What lease deposit and/or other surety is required?
None

What are the main assets of the business?
Tools, Spares, Shelving, New and used Stock

Are any items not included in the sale?
Yes 2017 U TOYOTA HILUX 2.4 GD A/C

What is their overall condition?
Good

How have they been valued ?
Market related

Which assets are on lease/HP and with whom?
Imani Group - Telephone System
Unity Fire - Part of telephone system
MFC - 2017 U TOYOTA HILUX 2.4 GD A/C
Tracker - Tracking for Bakkie

What are their settlement amounts?
Imani Telephone System R150,021.39
Unity Fire - R960 (60month contract)
MFC - R115,108.90
Tracker - R255.88 monthly

Will Seller settle or Buyer to take over?
Buyer to take over HP if bakkie is retained, as well as telephone system

Are copies of agreements available?
Yes

Are they presently insured?
Yes

Strengths?
Long standing and well established business
Unique and extensive product knowledge
Excellent customer service and efficiency

Weaknesses?
Tight marketing budget

Opportunities?
Franchise other branches using available resources to fulfill market needs. Expand social medica presence.

Threats?
Shifts in market/ supply chain

What is the reason for the sale?
Health issues

Why is this a good business?
Always a demand for spare parts for vehicles