Profits
and Lifestyle
This business is a long
established company based in a small rural Central Otago
township.
The business services the
Maniototo and surrounding farming districts, being an area which
is predominantly sheep farming.
It’s main activity is stock
cartage to different processing plants between Canterbury and
Southland, with back loads of store stock quite common.
Fertiliser cartage, spreading and seed sowing are significant
contributors to the business’ turnover, followed by the cartage
of hay, sileage, barley and oats. Other activities include wool
and the cartage of local stone to Dunedin with backloads of
super.
The business has two facilities
where it stores super on consignment for 'Ravensdown’ and ‘Ballance’.
Staff
No1.Depot:
1 manager/owner, 1 office
administrator, 8 drivers
Workshop: 1
diesel mechanic, 1 engineer
Service Station: 1
mechanic/manager
No2. Depot: 3
drivers and 1 manager/driver
The workshop at No1 depot has
the facilities, the staff and the skills to carry out all
repairs from everyday maintenance to major engine overhauls.
All staff are full-time and most
are long-term employees. The newest staff addition started two
years ago and the longest serving member started thirty-two
years ago.
Summary
The owner is selling as it is
time for him to retire, having been part of the company for over
forty-two years, initially as a driver then on to manager and
finally, owner. During his years of ownership, he has built the
business up and increased its property investments, being now
one of the major rural transport companies in Central Otago.
Five years ago, he acquired
another transport company expanding their scope of operations
into the adjoining valley. Two years ago a new workshop was
built at No1 depot which is now the operations base of the
company.
This business still utilises the
original depot (now being run as a service station with a
mechanic/manager in charge) as a parking area for the vehicles.
The bulk fertiliser store and seed stores are also on this
property, as well as an in-ground weigh bridge.
The business’ clients are
predominantly sheep and cattle farmers - land use is unlikely to
change in the forseeable future. There is however considerable
potential for farm development, which will significantly benefit
the business in future years.
The company fully reviewed and
increased its charges in early 2008 to cover escalating fuel
costs and has kept them in place, despite fuel prices decreasing
substantially since then. These factors will have a positive
effect on the future turnover and profit.
The sale of this transport
business presents an opportunity for someone keen to enter the
rural transport industry or as an add-on to an existing business
wanting to expand.
It enjoys a major competitive
advantage due to its geographical location.
The effect of this is that there is greatly reduced competition
from other transport companies, particularly in relation to
price cutting practices.
Profits
Average earnings for the past 3
years are in excess of $800,000 pa (not allowing for rent as they
own the freehold) Allowing for a reasonable rental return would
still show average earnings in excess of $600,000pa
Price
TANGIBLE
ASSETS
Trucks &
Vehicles $1,831,940.00
Trailers $477,700.00
Stock
Crates $563,500.00
Loaders,
etc $262,500.00
Workshop
Equipment
$50,000.00 (subject to valuation)
New
Tyres $40,000.00
(subject to stock-take)
Subtotal $3,225,640.00
INTANGIBLE
ASSETS $200,000.00
(BUSINESS) $3,425,640.00
(The Freehold is available)
Contact
Ted Box
03 379 0379 , 021 507 980
Ref: 30102
