Recession-proof Essential products. Ref No. PB9448

Business Summary

Net Profit: $328,767
Price: $995,000
Industry: Service, Retail/Service

Pumping water is essential for human survival; for cooking and drinking and showering and bathing; for filling swimming pools and spa baths both public and private; and for agriculture and many different types of businesses. The pumping industry is one of the largest industries in the world and this business has an edge over its competitors.

Key Features

  • Widespread growing repeat client base
  • Low risk – key customer retention features
  • Preferred supplier status
  • Long established
  • Low staff
  • No reliance on sales staff
  • Semi-monopoly in the market place
  • Travel opportunities
  • Recent capture of new customers
  • Current year to date sales are up
  • Excellent cash flow
  • Most popular sea change town in Australia

Business Overview

Test Click to enlarge image

This Business is very diverse in its operations, giving it a real advantage over similar businesses.  The client base is approximately 70 percent commercial and 30 percent domestic. The majority of the work comes from onsite maintenance and repair work, along with sales of new products and parts. The onsite works can be on anything from basic domestic to large commercial industrial water supplies
There is considerable scope for this business to grow, particularly as over the past five years the owners have focused it increasingly on the commercial sector, knowing that no matter what the prevailing economic situation may be, businesses from all sectors will still need to operate by maintaining and servicing existing plant.

The pumping industry is one of the largest industries in the world. Pumping systems are critically important for any process or manufacturing plants to operate efficiently. Industrial pumps are used for various industrial applications such as power and petrochemical plants, which directly support generation and production processes, and usually work for extended durations.
 
The business has a strong presence, especially in the north west, where it specifically targets mine work. It generally places advertisements targeting domestic work once a year and these are quite specific, promoting just one product at a time.
 
According to the Peel Development Commission Stop press!
The Peel Food Zone will stretch from the edge of the Perth metropolitan region in the north to Waroona in the south, and has been identified as an area of strategic importance for long term sustainable development. The area contains essential ecosystem services and is important for the alternative energy and water resources that can be developed and the food that can be produced.
 This business stands to gain immensely from these sorts of developments across the state and possibly interstate.
 
The key feature list is endless.
 
High Gross Profit margin 60%
Self-propelled sales and a high Gross Profit margin of 60 percent is indicative of a business which is both solid and in a strong growth phase.
 
Historical ongoing growth -  no matter what the state of the economy
The business has continued to record increases in sales and gross profits from inception, and on this basis the owners see no reason why this trend will not continue, especially given the ongoing demand from local government and commercial clients, and the multiple opportunities available for expansion.

Essential products
The growing Western Australian population will require this business's products. It is well documented that Australia is warming due to the greenhouse effect, and  this alone will create an increased need for pumped water as farms and domestic properties dry up.

Low risk
Low overheads, automatic growth.

Customer contracts
Several tenders with local authorities, giving a degree of security of revenue.
 
Low hours per week by owner
Cross-trained staff make it easy for the owner to oversee the business operations. The current owners work a low 40 hours a week on average.

Widespread growing repeat client base
The growing list of customers currently numbers approximately 500.

Low risk – key customer retention features
The business has accumulated a large volume of customers. Repeat customers account for around 65 percent of annual sales.

Preferred supplier status
The business is in the enviable position of being a preferred supplier to several major customers.

Long established
12 years of trading history.

Low staff
Currently, the business employs only six full time staff.

No reliance on sales staff
The vast majority of sales are simply self-propelled, which means that the current owner does not have the overhead of running a sales force.
 
Exceptional barriers to market entry
Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would lack established clientele, have no contracted works to underpin its revenues, no previous works to cite in seeking new business, and no reputation on which to build.

Travel opportunities
The owners have the opportunity to visit interstate and even international destinations on buying trips and to look at expansion opportunities.

Very low bad debtors
Just 2 in 12 years.

Most popular sea change town in Australia
Heaven!
 
If you’re looking at the economic and political indicators and wondering what is a secure industry with a solid business model: this is the business for you.

But because it’s suited to so many different types of people, this will go fast.

Contact us today to receive a detailed business profile – the first step to your securing this exciting opportunity.

Register your interest now – report will be available in approximately 2 weeks!

Email Me now and I will give you along with other registered buyers a 7 day lead time prior to the business being shifted to “Available Now” section of our website.

Important: Recent analysis of our business sales reflected over 75% of businesses sold were to buyers who registered interest against the business before the report was finalised, which eliminated the need to advertise the business for sale in the media.

Financial Analysis

graph Click to enlarge image

Profit $327,767

Plant $100,000

Stock $60,000

Goodwill $835,000

Total Price $995,000