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This business was established in 2013 and is a logistics/transport business undertaking refrigerated transport across the Melbourne Metro area to both residential and commercial sites.
The business operates 7 vehicles. 4 of these are vans, which are owned by the business. The 5th is a leased pallet truck which is used to undertake commercial deliveries to cafes and petrol stations, on its own accounting for 30% of business revenue. There are 2 smaller vans which are used for their agility and convenience in completing deliveries across residential areas.
The business is operated by a part time owner, working for approx 10 hours per week from a home office set up. This is a business that can be operated from any location as long as there is access to the internet. All deliveries are handled by a team of approx 20 contracted delivery drivers. All contractor management is handled by Certica who specialise in payroll, reporting and tax compliance. The owner works to manage rostering, schedule all vehicle maintenance and send weekly timesheet information to Certica.
The business has a key agreement with a large company that holds the contracts for well-known meal box and fresh meal deliveries across Melbourne. Revenue is spread across two major revenue streams – commercial deliveries (cafes, petrol stations) and residential deliveries. Residential deliveries account for approx 30% of the total sales income. The business has good profitability and continues to maintain solid revenue growth. FY20 YTD figures suggests sales to exceed $1,000,000, an increase of 25% on FY19. Return to the owner on revenue is approx 25% and there are opportunities to reduce costs by purchasing a truck to replace the leased vehicle.
The business has not marketed itself since inception and this would be the perfect time for a new owner to instigate a marketing strategy to bring in new business and grow the brand across the greater Melbourne area. There is potentially scope to grow with the existing fleet, or add additional leased vehicles in the short term to manage rapid growth. Barriers to entry are high in this industry which means you have a great opportunity to find yourself in a secure and difficult industry for new entrants to make their mark.
This is an ideal business for an owner who may not have industry experience but who has experience in running a business and can take a young business and grow its reach and client base.
ABC Logistics is listed for sale for offers in the region of $1m, which will include the fleet of 7 vehicles (unencumbered).