Mpumalanga Highveld - Witbank Area. Well-established Security. Business. Great Profits.

Asking Price

R8,400,000

Monthly Profit

R222,753

Asset Value

R 3,499,139

Stock Value

R 107,000

Yearly Net Profit

R 2,673,032

Summary

This Security Reaction business, with a Guarding component on certain sites, operates in various towns in the Mpumalanga Highveld region of Witbank and Middelburg. The business operates from a Head Office as well as satellite offices with over 60 personnel.

Give me more information

How long has the business been established?

The business was established in 2011 and has been operating successfully for 15 years.

How does the business operate on a daily basis?

There is a Risk and Operational Manager in place as well as a Financial/Administrative Manager who oversees the office and all administrative affairs. With the Supervisors already in the business they ensure day-today operations run smoothly

What Advertising/Marketing is carried out?

Advertising is done mostly via Facebook. Flyers are also very successful in attracting new clients as well as referrals throughout the area of operations.

Does the business have any contract work?

Yes, The initial sign-ups are for 12 months as a time.

What competition exists?

There are others in the area but they cannot compete from a vehicle coverage and personnel coverage perspective. They tend to be much smaller.

What are the seasonal trends?

They are always busy but tend to get very busy before December holidays with alarm installations.

Is the business VAT Registered?

Yes. the business is VAT registered.

What VAT documentation is on file?

Normal VAT returns and reconciliations are on file.

What percentage of the business is cash/credit?

Most customers pay by debit order and there is a small amount of cash (10%) and some EFT payments.

What is the age analysis of the debtors book?

Those that are not on debit order payment pay either on the 1st or the 15th of the month.

How could the profitability of the business be improved?

The business can be scaled easily with additional teams to cover more areas. This would take some initial capital input.

What is the total staff complement?

• Control Room Operators: 6
• Reaction Officers: 25
• Guards: 17
• Technicians: 4
• Risk / Operational Manager: 1
• Financial Manager: 1
• HR Manager: 1
• Admin Personnel (Debtors / Creditors / General Admin): 3
• Cleaners: 3

Total number of Employees: 61

Are they on contract?

Yes, the staff have letters of appointment.

Do any have management potential?

Managers are in place.

How involved is the Owner in running the business?

The owner is involved in the business but there are managers and supervisors in place.

When does the current lease end?

The Head Office premises are owned by the owners of the business and they would consider a lease for a new owner. There are two further satellite offices in the field of operations in nearby towns.

Is there an option of renewal & what period?

Yes, there is option for renewal to be discussed with the Head Office owners as well as the landlords of the satellite offices.

Do you require a licence?

The business is registered with all the relevant and necessary authorities.

What are the main assets of the business?

The main assets of the business are reaction vehicles, firearms, office equipment and IT equipment.

What is their overall condition?

The assets are well looked after.

Which assets are on lease/HP and with whom?

There are some vehicles on Instalment Sale.

What are their settlement amounts?

The total amount owing is approximately R1.3 million.

Will Seller settle or Buyer to take over?

The Buyer would need to take these over as it is vital and essential to the operations of the business in order to earn revenue.

Are copies of agreements available?

Yes, copes are available via a due diligence.

Are they presently insured?

Yes, all insured.

Strengths?

This well-established business which works very closely with the CPF's in the area. The Company is used in many ‘operations’, because of its reputation and trustworthy personnel. Part of many neighbourhood - and CPF WhatsApp-groups where they assist with crime related matters. This also gives the Company a lot of positive ‘visibility’ and good credibility. They are also included in monthly Police- and CPF meetings where they are kept updated and involved in Community matters where their assistance is needed and informed of crime-related matters.