Detailed financials available on request
The business operates from their own premises in Johannesburg CBD with branches in three other major cities. They have over 3500 active clients, supplying a wide range of auto electricians, spare-shops, general workshop and transporters. In addition they supply some of the country's biggest franchised auto spares retailers, one alone which spends about R500k per month with them. They also carry a trademarked product which is exclusively distributed through another franchised battery, exhaust and tyre retailer. They also have several trade registered brand names, which gives them sole distributorship on these products for Sub-Saharan Africa. The Johannesburg branch have huge passing trade, especially Sub-Saharan nationals who come and buy in bulk to export to their countries. The business carries an extensive stock-holding, valued in the region of R35m, to ensure they are always in a position to supply all client requirements. The business has strong management which is heavily incentivised to produce sales. They have excellent control and management systems in place, and hardly have any discrepancies during quarterly stock takes. The business has excellent growth potential by opening of branches in provinces where they are not represented, or franchising to these areas. The business has shown consistent growth year on year, and the owners expect to achieve at least 15% growth in the coming year. Sellers Discretionary Earnings 2018 - R12,223,577.00 Project SDE 2019 - R 17,000,000.00 Return on Investment - 25%/3.96 Payback - 47 months Price excludes VAT and Stock valued at cost. Transaction can be zero rated for VAT purposes depending on purchasers VAT status and conditions of purchase. Please contact listing broker for more information.