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Annual turnover

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  • Mandate: 34937
  • Added: 21 Sep 2021
  • AFS
  • 116

Bakery with Secured Contract

Windhoek & Central, Khomas
116
Mandate 34937
Added 21 Sep 2021
N$ 2,500,000* NAD
Stock: N$ 100,000
Assets: N$ 1,861,400
N$ 50,410 NAD
Ursula Gollwitzer
Aldes Namibia
Windhoek, Kleine Kuppe
Windhoek, Kleine Kuppe
Summary

Full Bakery currently baking bread and brotchens with the capacity to move into confectionary

Bakery with Secured Contract
SELLING PRICE AFS
N$ 2,500,000* NAD
Stock: N$100,000
Assets: N$1,861,400
N$ 50,410 NAD
Summary

Full Bakery currently baking bread and brotchens with the capacity to move into confectionary

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Fully describe the business's activities?
Established for almost 10 years, baking and selling bread loaves & brotchens. Orders are supplied to schools, government ministries, commercial and corporate clients. They sell to the general public from their small shop in front of the bakery's kitchen.

How long has the business been established?
This business was established in 2012.

How does the business operate on a daily basis?
The manager unlocks the bakery at 4h00am, Monday to Friday. Daily orders are received by email and telephone and thereafter delivered or collected by the clients. Standing orders are handled as per the clients request.

How are the clients attracted to the business?
Considering the years in operation and the current footprint, the regular clients are satisfied with the product and service and remain loyal to their supplier.

What Advertising/Marketing is carried out?
No advertising and marketing strategy has been carried out besides their branded vehicles. The new owner has the opportunity to explore this.

Does the business have any contract work?
Yes, this business has a contract to run over the next 2 years, for a total value of N$ 2,8 million.

What are the seasonal trends?
December is a slow month when considering the closing of universities, schools and holiday makers leaving town.

How did the Covid-19 pandemic impact the business turnover / daily operations?
This business was impacted by the Covid-19 pandemic as the restaurants and hotels were not allowed to operate during lockdown.

Is the business VAT Registered?
Yes, this business is VAT registered.

What VAT documentation is on file?
All Vat documentation is available to a pre-approved buyer.

Are there up-to-date Management Accounts available?
Yes, there is up-to-date management accounts.

What Balance Sheet and Income Statements are available?
The past 5 years of Annual Financial Statements are available to pre-approved buyers.

What percentage of the business is cash/credit?
15% of the business is cash and the remaining 85% is credit.

How could the profitability of the business be improved?
Profitability could be improved by adding confectionary, gluten free products and wheat based pastries to increase turnover. Applying for government tenders to supply prisons, schools, hospitals and resorts.

What is the total staff complement?
There are a total of 14 employees currently.

Give a breakdown of staff/ functions/ length of service?
• 1 x manager (in service for the past 6 years) • 4 x female bakers (in service for the past 5 years) • 2 x male bakers (in service for the past 2 years) • 2 x drivers (in service for the past 2 years) • 2 x co-drivers (in service for the past 1 year)

Do any have management potential?
There is a management structure already in place.

How involved is the Owner in running the business?
The owner is involved on a day to day basis and currently acts on behalf of a second manager on weekends.

When does the current lease end?
The current lease ends 28th February 2022. The seller of this business owns the property.

Is there an option of renewal & what period?
Yes, there is an option to renew for a 2 year period.

What is the annual escalation %?
The annual escalation is 5,5%, however this can be negotiated with the owner.

What are the trading hours?
Monday to Friday - opening 4am for 8 hours a day Saturdays and Sundays - opened for 3 to 4 hours each day.

What is the square meters of the business?
The total building size of the business is 189 square meters.

Is a copy of the lease available?
Yes, a copy is available to approved buyers.

Do you require a licence?
The only license required is the Municipal business registration.

What are the main assets of the business?
The main assets of the business is the bakery equipment and ovens used to produce the breads.

Are any items not included in the sale?
The building is not included in the sale of the business.

Do any require repairing?
All equipment is serviced annually and currently all in working order.

How have they been valued ?
The assets have been valued at business value.

Strengths?
• Excellent customer service. • Large market share. • Personal relationships with customers. • High integrity.

Weaknesses?
• Major retail stores have their own in house bakeries.

Opportunities?
• Whether you offer breads, rolls, the major strength of a bakery is the consistency and quality of its products. Setting their products apart from the competition gives this business an edge. • Existing 8 year relationships with most of their clients.

Threats?
• Competition from competitors offering similar products. • Change in price of raw materials.

What is the reason for the sale?
The owner has ventured into a new business which requires most of his attention.

Why is this a good business?
Bread is considered an essential product, need we say more !

What is the price plus stock and the profit?
The selling price of the business is N$ 2,400,000.00, which excludes an average monthly stock holding of N$ 100,000.00. The net profit per annum is N$ 604,920.00 before tax.

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AGENCY DETAILS

Aldes Namibia

4 members
28 mandates
Windhoek , Kleine Kuppe
4th Floor 1@Steps C/O Grove and Chasie street , Kleine Kuppe , Windhoek

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