Businesses for Sale - Western Australia - CUNDERDIN
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Businesses for Sale - Western Australia - CUNDERDIN Property ID 3095393
COUNTRY TRADER AND WHOLE SALER
BUSINESS BRIEF
BUSINESS NAME: WA Consolidated Grain Products
BUSINESS TYPE: Wholesaler of Grain & Retailer of Concrete, Gases, Farm requisites, Fuel and Cartge carriers.
LOCATION: Cunderdin
LEASE DETAILS: The property consists of 2.1425 hectares. There is no lease in place as the business is operating from premises owned by the vendor. This freehold Property is included in the business sale.
LEASE SCHEDULE: Is not available as this property is to be sold conjunctively with the operating business.
LEASE EXPIRY: Not applicable
LEASE OPTION: None, the vendor wishes to sell the business and the land concurrently in one parcel lot.
LESSOR/AGENT DETAILS: Not applicable.
ANNUAL TURNOVER: Available by contacting Broker direct.
TAX P & L YEARS: All details are available within the Business Profile,Please contact Broker for details.
RENT: Nil
OUTGOINGS: Rates and taxes to 30/06/2007, $5,061 per annum
PLANT & EQUIPMENT:
Fixed $
Moveable $
Total $ 543,000
TRADING HOURS: 7 am. Till 5 pm. 5 days (and when required)
STAFF REQUIREMENTS:
Permanent : 5 ( 3 full time + 1 apprentice + 1 office Clerk )
Part time
Casual
OWNERS’ INVOLVEMENT:1 Owner Fulltime ,1 part time for approximately20 hours per week.
STAFF WAGES: $ 2760 per week. (Taken from wages schedule)
OWNERS WAGES: Drawn from Profit
BUSINESS BRIEF cont
GOODWILL: $ 100,000
PLANT & EQUIP: $ 543,000
SUB TOTAL: $ 643,000
PLUS EST. STOCK: $ 150,000
ASKING PRICE: $ 793,000
PLUS: FREE HOLD: $ 450,000
TOTAL OVERALL PRICE: $ 1,243,000
COMMENTS
This business has been successfully operating by the same owners for over 25 years. It commenced 1983 as Mac’s Agencies and in 1995, WA Consolidated Grain Products was added on and over the years WA Consolidated Grain Products the main part of the business.
An excellent working relationship was established with the surrounding businesses and farming communities in and around the area. Based on excellent service, Macs Agencies are constantly working to assist and supply businesses and farmers with goods when and where required.
The business is located in the town of Cunderdin in the heart of the wheat belt east of Perth; although rural it is only 150 km. from the metropolitan area.
TYPE OF BUSINESS AND OPERATION
The business is operating as two identities. The original MACS AGENCIES is still the main supplier for the farming communities that distributes and sells the following:-
• Industrial & house hold gases.
Oil & greases.
Stock feed retail.
Farm requisites.
BGC cement incorporating sand & blue metal,
General cartage through back loading from city to farmers in the area.
Fuel agents.
Agents for steel products which includes commercial sheds & stables and country kit homes
This business has the ability to change, modify and vary its operations in order to achieve the best results with reduced overheads and stock holding. This is best demonstrated by the fuel distribution and concrete sale, the business no longer stocks and distributes fuel to its customers, instead it acts as an agent and operates on a commission basis, while the supply of concrete is on the increase. These are well documented in the profit/loss statements.
The second identity is W.A.CONSOLIDATED GRAIN PRODUCTS. Its activities have been developed to become the main core of the business, its main activities are:-
Buying and selling whole sale grain.
Clean, bag and sell to the produce stores, dairy farmers for stock feed, grain processors, and seed for planting and crushed & dehulled grain.
MARKETING OPPORTUNITIES:
Both identities of the business are well established and well known in the area; usually a chat with a farmer develops into a business transaction, like buying grain or selling fence wire etc…The new owner will easily be able to develop and build on the existing relationship by maintaining or even improving on the level of service currently offered. The business advertises in the local newspaper for grain buying on a regular basis.
An enthusiastic buyer will be able to take this business to another level. The farming communities and the ever increasing businesses in the area are extremely active, with crops expected to be on the increase and fetch record prices, thus creating an excellent opportunity for supplying exporters with grain as AWB is no longer a monopoly.
Many other opportunities exist to increase the business activity and profitability. 19 silos and a holding capacity of approximately 1250 tonnes of grain will enable the new comer to diversify by adding new lines such as mixed birds seeds and grain pallets(to feed cattle, chicken ,horses and sheep) to supply to the feed stock stores.
The location of the business is a definite advantage. The current owner will assist and help in a smooth transition for a period of approximately 3 months.
STOCK:
The current stock level is estimated to be in the vicinity of $150,000; however it fluctuates from month to month. During harvest the business takes advantage of the large quantities of grain available and buys as much as possible at favourable rates.
On average, the turnover of the combined business is over $45,500 per week.
PLANT AND EQUIPMENT:
Perhaps the continued success and the improved margins of this business are attributed to the utilisation of the plant and equipment. There are 19 silos of various sizes that hold about 1250 tonnes of grain with various size Augers ,Grain cleaner, Roller Mill, Ripple Mill ,different types of trailers, bagging & sewing supported by 50 tonnes and 25 tonnes Iveco trucks, a 16 tonnes truck to carry pre mixed cement & concrete and a 20 tonnes truck for general distribution. The Manitou hoist tractor with its various attachments supported by two forklifts makes loading, unloading and material handling a breeze.
As the proprietor is a motor mechanic, all the trucks and equipment are serviced regularly on the premises. The 25 tonne Iveco truck being under warranty is serviced by General Motors in accordance with the manufacturer specification. Log book service history for this truck is available.
Obtaining and or having an MC Driving license is essential for the prospective buyer, or one of his employees, in order to be able to drive the 50 tonnes Iveco truck.
STAFFING AND OPERATING HOURS:
The business currently employs three fulltime employees, an apprentice and a fulltime office clerk. One owner works full time while the other owner works approximately 20 hours a week.
The business hours are from 7 am. To 5 pm.Monday to Friday (or when needed)
COMPETITION:
There is no competition in the immediate proximity or the regional areas. However there are two competitors operate from the metropolitan area, the closest one is about 130 km. away.
Being in the heart of the wheat belt, an added advantage exists over its competitors.
The swift service coupled with the core business activities (such as supplying concrete, gases and many small items) are met within a small time frame. Due to the distance, its competitors are unable to offer this service.
PROPERTY DETAILS:
Property Address: 9 West Main Street, Cunderdin, Western Australia 6407.
Title Description: Estate in fee simple in portion of Avon Location 2189 in the town of Cunderdin being lot 28 the subject of diagram 99029, Certificate of Title Volume 2194 Folio 134.
Local Government Area: Shire of Cunderdin.
Land Area: Overall size is 21425 M2.With 135.2 metres frontage & 148.48 long in a rectangular shape.
Encumbrances on Title: Nil
Topography: Flat with a slight slope from south to north.
Buildings, Description and Size: There are two buildings on the premises, one building of 180 M2 that houses the front office, two back offices, staff amenities and showroom all connected to a 300 M2 ware house with 1.5 metres of veranda at the front of the building. The other ware house is 200 M2.The site has a large concreted area that holds all the silos and to cater for outside activities. The silos are located in a narrow line along the eastern boundary, while the concrete facility is located in the North West. The site is large enough to have extra buildings and or ware houses built on it, without affecting the functionality or the efficiency of the existing operations.
The rest of the land is used to house the Trucks, Trailers, Fuel, Gases and Other goods.
Services: Services that are available to the site include electric power, scheme water, telephone and internet.
PROPERTY OVER VIEW:
With the land size advantage, the prospective buyer will be able to diversify and increase the business activities with ease.
A purchaser with similar styled operation can move to the heart of the wheat belt by amalgamating the two businesses under the one roof, thus reducing the overheads and the cost of rent and or real estate in the metro area.
REASON FOR SELLING:
After 25 years the present vendors wish to retire. The new owner(s) with enthusiasm will be able to take advantage of this successful business and build on it. The future for this industry has never been any better; freeing the wheat export from monopoly combined with record grain prices will help the new owner(s) to reap the benefits. The size of the property as mentioned before will play a major part in the ability to further expand and diversify.
CONTACT: SAM ZURUB
PHONE: 9457 6995
MOBILE: 0411 430 476
EMAIL: businessbrokerswa@elders.com.au
Elders Real Estate Business Broking - Willetton
4 Glenarber WayWILLETTON 6155
