Retail supplier of irrigational products based in the Eastern Cape

Asking Price

R2,300,000

Monthly Profit

R22,706

Asset Value

R 60,000

Stock Value

R 800,000

Yearly Net Profit

R 272,472

Summary

Supplier of irrigation, pumping, spraying, and water storage solutions for the agricultural, commercial, and residential sectors. They stock trusted brands, offering reliable products backed by expert advice and exceptional service. Their core focus is agricultural spraying and mechanization, supplying a comprehensive range of spray nozzles, rollover nozzles, SNDC disks, whirl plates, and spraying equipment. They also provide complete irrigation systems, pumps, water filtration solutions, tanks, fittings, valves, and accessories—giving our customers everything they need from a single trusted supplier. From water storage and irrigation to spraying and pumping, they deliver solutions that keep customers flowing.

Give me more information

Fully describe the business's activities?

Selling of Spray Nozzles and related items to Eastern Cape farmers.
Suppliers of irrigation equipment to contractors and home owners.
The business also has additional supplier distribution agreements within the region.

How long has the business been established?

The original registration date was October 2000

How does the business operate on a daily basis?

There are two staff members who manage the business on a daily basis
The Owner manages the payments to suppliers, discounts offered etc.

How are the clients attracted to the business?

There is a large amount of repeat business.
Word of Mouth endorsement.

What Advertising/Marketing is carried out?

The staff members do an element of Telemarketing and also interface with customers on a one to one basis.

Does the business have any contract work?

No set contracts but many regular clients.

What competition exists?

The business are agents for a number of irrigation related products and represent various brands within this sector.

What are the seasonal trends?

There is seasonality during the summer months when irrigation is required.
Also the spray season of July to November is busier.

Is the business VAT Registered?

Yes

Are there up-to-date Management Accounts available?

Yes, as and when required

How could the profitability of the business be improved?

The profitability can be increased by relocating the premises to a more reasonable rental premise.
A sales representative who goes out and interfaces with clients would improve the business sales significantly.

Is Seller finance available and for what amount?

This could be a consideration if the correct sureties and guarantees are in place.

What is the total staff complement?

2 Operational Staff on the premises.
The Owner also assists remotely but not operationally.

Do any receive special perks or incentives?

Staff earn commission on sales and one staff member makes use of the business vehicle to and from work.

Are they on contract?

Yes....Letters of appointment are on file.

How involved is the Owner in running the business?

Remotely, as and when required.

When does the current lease end?

May 2027

Is there an option of renewal & what period?

Yes, subject to negotiation

What are the trading hours?

Monday to Thursday: 07.30 to 5 pm
Fridays: 07.30 to 4.30 pm
Closed weekends

What is the square meters of the business?

300 square meters

Do you require a licence?

No, no specific license is required

What are the main assets of the business?

Stock
Office furniture and fittings, computer equipment etc
A vehicle is on finance and may be taken over if so desired.
Landlines are also on contract.

Strengths?

The business represents sought after products within the irrigation environment.
It does not necessarily require the Owners full time participation.
Strong opportunity to upscale the business by appointing a representative to interface with clients.

Weaknesses?

The current premises are not necessary for the success of the business and therefore the business could be relocated to reduce rental overheads.
Significant working capital by a Buyer is necessary.

Opportunities?

Relocate the business when the lease ends....this will make a significant rental saving.
An active business Owner would impact positively on the business performance.
Introduce a pump repair center for the business

Threats?

There are no significant threats if good business practices are maintained

What is the reason for the sale?

The Owner has other business interests and as such needs to focus on the opportunities that better fit his business profile.
He feels that it would be preferable to relinquish this business so as to focus on his others.

Why is this a good business?

The Buyer recently acquired the business but has since realised that it does not fit in with his business portfolio or long terms objectives.
The business was relocated to a high profile location which is not really necessary for a business of this nature since walk in clients are not significant.
If the business is relocated at the end of the lease in less than a year, a significant saving can be made.
In the long term this business is very scalable and a focused Owner with marketing initiatives will impact very positively.