Type: Business Sale
Sold Price: $299,000
Property Type: Transport/Distribution

Successful Transport Business in Snowy Mountains Region

This family business was originally established in 1967 in Cooma by the current owner's parents.

The business transports freight between Canberra and Cooma and then on to the Snowy Mountains region (Jindabyne, Thredbo, Perisher, Adaminaby) and Bombala/Delegate. The business operates Monday to Friday.

The business prides itself on customer service, safety and professionalism. The business specialises in understanding the needs of its primary clients, being TNT and Australia Post, and working with these clients to deliver exceptional customer service. The business transports freight from the Australian Capital Territory to many locations in South East New South Wales. Freight can range from an envelope to an item weighing 1,000 kilograms or more.

The two major clients of the business are TNT and Australia Post. TNT has been a client since 1967 and the current agency agreement ends in July 2017 with five additional one year terms that automatically occur. Australia Post has been a client since 1999 and the current contract ends in June 2019. It is anticipated both the TNT agency agreement and the Australia Post contract will be renewed again as and when they fall due. The contracted income from TNT an Australia Post represents 50% of the turnover of the business. The non contracted income comprises mixed freight services.

The facilities in Cooma are located at 44 Polo Flat Road and include an undercover warehouse depot area for unloading/loading trucks and storing freight, measuring 13.1 metres x 9.76 metres. The office measures 3.97 metres x 4.68 metres. There is also a mezzanine level with three large rooms, currently used for storage, staff amenities and a sick bay respectively. There is a large uncovered yard area (approximately 40 metres in length x 40 metres in width) that provides sufficient accommodation for the fleet of vehicles, safe vehicle movement and pallet storage. Staff and customer parking is located in a designated area outside of this zone. The facilities are leased at a yearly fee of approximately $5,000 per annum.

The business comprises five full time staff and one casual staff. All staff are professional and dedicated and have indicated their interest in continuing to work in the business under the new owner.

The 2012, 2013, 2014, 2015 and 2016 trading figures will be provided to any prospective purchaser upon signing a confidentiality agreement. The 2017 figures are currently being prepared by the Accountant.

A list of plant and equipment at April 2017.

2015 Mitsubishi Rigid Truck – 55,000km, GVM10,400
2013 Fuso Rigid Truck – 300,00km, GVM 16,000
2010 Ford Transit Van – 250,000km, GVM 3,600
2008 Hino Rigid Truck – 350,000km, GVM 23,000
2005 Mitsubishi Fuso Truck -500,000km, GVM 10,400
2004 Isuzu Rigid Truck – 300,000km, GVM 6,200
2008 Toyota Hilux Ute – 120,000km, GVM 2,700
2008 Toyota Hiace Van – 400,000km
2 x forklifts

Cooma is a town of 8,000 people located 100 kilometres south of Canberra. Cooma has a hospital, an airport, two supermarkets, a variety of restaurants and bars, a public swimming pool and a university campus. Cooma is located 70 kilometres east of Lake Jindabyne and 30 kilometres from Lake Eucumbene both lakes offering excellent trout fishing, recreational boating and swimming opportunities. Cooma is located 130 kilometres west of Tathra and other coastal towns on the far south coast of New South Wales. Cooma’s enjoys low house price

In March 2017 the Federal Government announced a $2bn plan to expand Cooma’s largest employer, Snowy Hydro. This will have positive flow on effects for the economy in the Cooma-Monaro region.

The business is offered for sale at a price of $299,000 for the plant, equipment and goodwill on a walk in walk out basis. The intellectual property attached to the Australia Post and TNT tender is included in this figure. A contract of sale will be prepared by the company’s solicitor once an offer has been accepted by the vendor.

The new business owner could operate the business and live in either Canberra, Cooma or the Snowy Mountains.