Fully describe the business's activities?
The business manufactures ice and distributes it to over 300 customers namely Garages, Supermarkets, Liquor stores, restaurants, venues, and other establishments. The premises has 4 x BOREHOLES with 35,000 litres of storage capacity installed.
The product range of sizes on the Ice cubes 1kg ,1.8kg, 3kg ,6kg,10kg, gourmet Ice 3kg,
Ice Blocks 6kg and 10kg.
The business sells on average 70,000 bags per month.
How long has the business been established?
The Business started in 2015 and acquired a second company in 2021.
How long has the owner had the business?
The owner has had the business from the start.
What steps are in place to solve 'load shedding' problems?
There are two generators installed which will be part of the lease agreement.
How are the clients attracted to the business?
New customers are gained by advertising on a website, branded vehicles and by referrals.
What are the seasonal trends?
High demand months being August to May and the low season is June and July.
Is the business VAT Registered?
There are 2 Business 1 is VAT registered and the other is not VAT Registered.
Are there up-to-date Management Accounts available?
Yes, will be disclosed during due diligence.
What percentage of the business is cash/credit?
What is the total staff complement?
Are they on contract?
Do any have management potential?
Yes, there is a manager in place
How involved is the Owner in running the business?
When does the current lease end?
The current business owners own the premises, a 5-year lease with an option to renew will be included.
Is there an option of renewal & what period?
Yes, 5 years
What is the annual escalation %?
What are the trading hours?
Monday - Sunday 7:00 - 16:00
What are the main assets of the business?
What is their overall condition?
Good working condition
Are they presently insured?
Ice is a basic necessity in various industries, including food service, healthcare, events, and more. Its consistent demand provides a reliable customer base.
A well-organized distribution network ensures timely delivery to customers, enhancing customer satisfaction.
Seasonal Demand: Demand for ice may vary significantly due to changing weather conditions, impacting revenue stability.
Energy Consumption: Ice production requires significant energy, which can be a major operational cost.
Online Presence: Creating an online platform for orders and deliveries could tap into the convenience trend and reach a wider customer base.
Partnerships: Collaborating with event organizers, restaurants, and other businesses can lead to long-term contracts and steady demand
Competition: The ice industry can be highly competitive, with other local suppliers and even larger corporations vying for market share.
Weather Dependence: Unexpected weather changes can impact demand and disrupt supply chains.
What is the reason for the sale?
Owner is retiring.
Why is this a good business?
Established client base of over 300 retailers,
The property has 4 boreholes which supplies all the water for the Ice manufacturing.