Distribution Business

CODE	FP571
BUSINESS TYPE	Distribution/Imports
AREA	Sydney
BUSINESS ESTABLISHED	The business commenced in November 2005 and experience rapid growth until FY09, due to the global financial crisis when the AUD$ fell dramatically against the EURO and USD$. Huge improvement due to dollar and changes in the methods of purchasing. Supplier Terms Supplier 1 150 days Supplier 2 150 days Supplier 3 90 days Supplier 4 90 days
LEASE	MONTH TO MONTH BASIS - Due to the business relationship with the major tenant, any prospective purchaser would have the opportunity to either
RENT	FY10 N/C – FY11 $12,000PA Annual Outgoings: INCLUDED IN RENT
TRADING HOURS - WEEK DAYS	Due to the nature of the business there are no set operating days / hrs. This is one of the key benefits of the business you are not tied to it 24/7.
AVERAGE TURNOVER	Actual- 2007 2008 2009 2010* Sales 942,936 1,747,302 463,970 515,525 Yr 2010- part forecast- based on orders on hand and previous year sales. Stock on Hand as at September 2009; Stock- $ 56,600 Pre-Orders: As at 1/9/09 there are $218,530.13 orders scheduled for delivery by 1st November 2009
NUMBER OF STAFF	NUMBER OF STAFF - - No staff - Business managed by owners Director 1. 10hrs per week (working Director) Director 2. 0.5hrs (meeting) Director 3. 0.5hrs (meeting)
REASON FOR SELLING	Each of the Directors has other business that are requiring more of their time. They cannot commit the time required to sufficiently grow the business and their time is more valuable in other areas
GENERAL INFORMATION	The business imports wine from France and Chile (there is enormous potential to grow the supplier database) and sells it to local (state based) wine distributors who then on sell to Restaurants and liquor stores. The business commenced in November 2005 and experience rapid growth until FY09 due to the global financial crisis when the AUD$ fell dramatically against the EURO and USD$. The company has well established supplier contracts and customer base all who support the business growth. The business has exclusive Australian distribution rights to all the products it sells. Due to the strong Australian Dollar and the benefit of hindsight, all shipments are now covered by forward cover. Gross margins have increased considerably. Wine knowledge is not a requirement to run this business. The purchaser needs to have excellent organisational and people skills with an entrepreneurial flair. Consultancy services are provided to brands wanting to import into Australia ie, One company presently being represented on a consultancy basis. Others already are indicating representation. The consultancy area has huge potential. Companies wishing to sell into the Australian Market without spending huge amount of funds, pay a consultancy fee to have their products represented by a reputable company.
ASKING PRICE	$165,000 + stock