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Durban:W/Sale & Distribution of Security Products
About this business for saleDurban:W/Sale & Distribution of Security Products
This predominantly Wholesale Durban North based business has been operating for the past 19 years having first been established in 1994.
The core business is in the supply and distribution of security related products to the trade throughout KwaZulu-Natal. The primary customer is the installers of gate and garage automation, CCTV Equipment, intercom systems and Electric fencing.
In the first year of operation, the businesses income was +/- R650 000.00. Current annual turnovers are nearing R4.0 million which is indicative of the growth, future potential growth and demand for products of the nature traded here.
The business has huge potential for growth by expanding the product range to include alarm panels, tasers, air rifles, pepper sprays etc. and this, direct to the retailer. Growth can be further enhanced if a Purchaser was to consider taking on one or two sales/marketing Representatives.
The business recently relocated from its past location (a concessionaire within a branded Hardware retailer) to a popular shopping centre just a short distance away and by all accounts, this move is destined to impact positively on the businesses profitability with increased exposure and foot traffic.
The business is predominantly wholesale (+/- 90% of income) and the remainder is retail and it is this component of the business which will benefit most from the relocation of the business.
The company is long established and over time, client relationships of loyalty have developed rendering it unlikely that relocation or change in ownership would negatively impact on the businesses performance.
The Seller will happily remain on for an agreed period of time to ensure a smooth transition in ownership.
The business is priced at R1.5 million excluding +/- R200 000 in stock at cost. With monthly profits (before interest and tax) of > R43 809, this represents a R.O.I. of 30% and/or a payback of 38 months.
Assets are valued at +/- R75 000 and include a Ford Bantam bakkie which is unencumbered.