Benoni Tourism Transport And Shuttle Services Business For Sale

Business description

History Background
Fully describe the business's activities? Transportation service for exclusive safari transport, servicing seven of South Africa's provinces. Exclusive transfers service offered to inbound tourism from around the world travelling in South Africa, providing day tours in Gauteng. Primary service offers transport to and from five star big five safari lodges. The business is situated in close proximity to O R Tambo International Airport.
How long has the business been established? The business was established by the owner in 1999.
Present Market
How does the business operate on a daily basis? The company has built a reputation on word of mouth and offering a reliable and professional service to the industry 100% of the time. There are a number of operators in the tourism transfer business, but very few offer consistency, loyalty and reliability.
How are the clients attracted to the business? Bookings are received from travel agents locally and internationally.
What are the seasonal trends? There is a slow down during winter months however the company has continued to grow during this period.
Financial
Are there up-to-date Management Accounts available? Yes, up to date accounts are available
What Balance Sheet and Income Statements are available? February 2009
Is the business VAT Registered? Exempt
Staffing
What is the total staff complement? An Operations Manager and a Reservations/ Accounts Manager. There are 6 full time and 6 contracting professional drivers with driving permits. Two maintenance and cleaning staff. There is also a pool of ad hoc drivers/tour guides.
Premises
What is the square meterage of the business? The property is 5 acres and has a three bedroomed house with fully equipped kitchen, three bathrooms, lounge and dining room which is used for office space at present. There is six staff rooms and one cottage(rented to drivers), storage shed, wash bay etc. The price of the property is R2,200,000. The business only makes use of half the property. The other half (2.5 acres undeveloped) could be sold off for about R1,000,000.
When does the current lease end? The property can form part of the sale or a lease could be negotiated, it would also be possible to relocate the business.
Assets
Will Seller settle or Buyer to take over? Buyer to take over.
Are they presently insured? Assets are insured
Are copies of agreements available? Yes, agreements are available
Is a full asset list on file? The asset list is on file. The fleet consists of five 14 seater buses, one 7 seater station wagon, four 5 seater sedans, one Mercedes Benz sedan and four luggage trailers.
Which assets are on lease/HP and with whom? Most of the vehicles are on lease.
S.W.O.T. Analysis
Strengths? Untarnished reputation with an excellent network.
Opportunities? Some of the opportunities that exist include the 2010 World Cup, Sun City Nedbank Challenge, A1 Motor GP, Corporate, Overland tours, Hunting Safaris etc. Franchising offers a huge opportunity.
Reason For Sale
What is the reason for the sale? Personal
Conclusion
Why is this a good business? Since the start of the company the turnover has exceeded the forecasts.
What is the price plus stock and the net profit? The price for the business is R3,850,000 and the property R2,200,000. The net income is over R140,000 per month

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R1,543,000 (included in the asking price)