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Established Technical Training Business In Durban For Sale

Durban, KwaZulu - Natal, South Africa
Asking Price:
R4,500,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
R7,600,000
Cash Flow:
R2,500,000

SOLD by ALDES

This well established technical training provider services Durban, South Africa & Africa with its array of training interventions & affiliated services - accredited with various SETA's. The client base consists of many blue chip companies, with some contracts in place. Service delivery, expertise, a unique footprint in the training market and growth have ensured its success & future. An excellent Sale Price of R4.5m on increasing Turnovers & Net Profits of R7.6m and R2.5m pa (R3.3m incl an abnormal aspect that occurs evry 1-3 years) respectively (Management Accounts 2017). Figures for 2017/18 should realise some R8-10m and R2.7-2.9m pa respectively, (based on contracts in place already). Training includes: pneumatics, electronics, mechanical, welding, millwright, etc.

About 80% of the business is obtained on a contract basis that would normally last about 1-3 years, depending on what contract/training intervention it is. These clients normally then re-enter into such contracts for further similar periods. Normal training even if not "contract " based lasts between 2 - 6 weeks on average.

Property Information

Real Estate:

Lease

Lease Terms:

695m2 (consisting of 2 portions) @ R30 000pm, which expires in mid 2018, which may be extended for between 2-5 years, at an escalation rate of 8%pa,

Leasehold Rent:

R360,000 per annum

Location:

A very functional unit within a complex in Outer West Durban, South Africa

Premises Details:

695m2 (consisting of 2 portions) @ R30 000pm, which expires in mid 2018, which may be extended for between 2-5 years, at an escalation rate of 8%pa,

Size in square feet:
695m2
Planning Consent:

n/a - but safety & occupational legislation is important

Business Operation

Expansion Potential:

Build relationships with more middle to top companies that have not yet experienced their ability to deliver. Employ further new staff where required, when new clients are developed.

Competition / Market:

There are various competitors across SA, but few that have "got it right", in regards to processes, manuals, staff, and work space. Further - a niche methodology used in training delivery, together with the other supporting services that are offered to its clients.

Reasons for selling:

Owner emmigrating

Trading hours:

Training Centre opens at 7:30am. Training starts at 8am.
Training ends at 3:30pm and centre closes at 4pm, except on Friday where it closes at between 2:30 and 3pm.
Admin office hours are between 8:30 to 4:00pm daily Mon-Fri

Employees:
11 excluding owner
Years established:
12 years ago by the owner

Other Information

Support & training:

Owner will assist in all regards especially in respect of introductions to clients - although management & staff are capable of performing without the owners intervention

Furniture / Fixtures value:
R775,000 - included in the asking price
Relocatable:
This business can be relocated.