INFORMATION MEMORANDUM. Committed to loyalty and excellence

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Stewart Bradley
5 years ago
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1 INFORMATION MEMORANDUM Committed to loyalty and excellence

2 CONTENT Executive Summary 3 Company Products and Services 6 Marketing Strategy and Website 7 Backup Security Customers and Services Provided 8 Financial Projections 9 Notes 10 Plant and Equipment list include in the sale 11

Executive Summary THE PURCHASER TO MAKE HIS/HER OWN INVESTIGATIONS AND ENQUIRIES IN RELATION TO THE BUSINESS AND NOT TO RELY UPON WARRANTY OR STATEMENT MADE BY THE VENDOR OR BY ANYONE ON HIS/HER

The business provides a professional, reliable and affordable security solutions that you can count on 24 hours a day, 7 days a week.

3 Executive Summary THE PURCHASER TO MAKE HIS/HER OWN INVESTIGATIONS AND ENQUIRIES IN RELATION TO THE BUSINESS AND NOT TO RELY UPON WARRANTY OR STATEMENT MADE BY THE VENDOR OR BY ANYONE ON HIS/HER BEHALF. Established in 2000, Guard Security operates in the protection of persons and property with a location focus on regional Victoria, and along the borders of NSW as well as the Alpine regions. The business provides a professional, reliable and affordable security solutions that you can count on 24 hours a day, 7 days a week. Annual Average Sales Normalized Profit $1,595, Above $300,000 EBIDTA 3 The business has annual average sales over the last three years of $1,595,223 approx, and normalized profit projected for the 2017 year to be over $300,000 EBITDA. The business has a formidable reputation with clients, staff, suppliers, contractors, Law enforcement agencies, Registered Training authorities and Security Industry associates. The current owners are willing to participate in an extended handover period to ensure the new owners maintain existing customer relationships. This is a turnkey profitable business ready that has great opportunities to grow further.

4 Clients and Contracts The business has major long term clients and contracts within the following sectors: Government (Federal and State) Banking sectors Factory outlets Private residences Wineries Universities & Schools Local Councils & Corporate s Transport Companies Hospitals and medical centers Manufacturing businesses Large and small retail stores National parks Finance & Insurance Companies Major Clubs, Pubs & Restaurants Charities, Retail & More 4

5 Company History Trading Hours Employees Years Established Real Estate Services are offered by the business 24 hours a day, 7 days a week. Valuable Enterprise Bargaining Agreement in Place, 50 Perm / Part Time and 30 Casual Employees 15 Years Lease The business currently operates from a office in Albury, no lease exists and it s is month to month, the landlord is open to negation with a prospective purchaser. Purchase Price $700,000 The Company adheres to the Security Providers (Security Firm Code of Practice) Regulation 2008, which requires that we maintain: Consumer and community confidence; Safety of the community and particular persons engaged by our security firm; and Ethical and professional conduct. 5

6 Company Products and Services The business has focused on its local geographic market offering Consumer and community confidence; Safety of the community and particular persons engaged by our security firm; and Ethical and professional conduct. Security Officers Customer service Officers Employees Guard house personal Years Established Security transport Real Estate Alarm response Our business is Security, our service is protection of persons and property operating throughout North east Victoria as well as South east NSW with clients along the borders. The business has undertaking some security and event management prestigious special events in Sydney, Melbourne and Perth. Since the incorporation the owners have built Guard Security to be a great brand with excellent goodwill within the locations they operate. The companies personal are an excellent asset and the current owners have spent many weeks and years training their staff. Systems of operation have been developed, with: Policy s and procedures, Safe method work statements, Risk management systems, OH&S policies, 6 Payroll procedures and calculation software.

7 Marketing Strategy and Website The business has and continues to run traditional advertising campaigns that have worked well since incorporation. The business has excellent exposure in Albury having great visibility of signage day and night. The business has undertaken Free no obligation risk assessment as a valuable way to entice clients to get in contact for the owners to them close them to paying customers. An opportunity exists for new owners of the business to further expand and grow the company via digital marketing and media with a new and improved website and paid online advertising. The business has not undertaking any SEO or SEM marketing previously. This low hanging fruit is an excellent way to grow the business further. 7

10 Universities & Schools 50 Finance & Insurance Companies 5 Crowd control 40 Universities & Schools 10% Government (State and Local Council, Court and

8 Guard Security Customers and Services Provided. The business has major long term clients & contracts within the following sectors: Business Sector % Government (State and Local Council, Court and Hospitals) 10 Universities & Schools 50 Finance & Insurance Companies 5 Crowd control 40 Universities & Schools 10% Government (State and Local Council, Court and Hospitals) 10% Charities, Retail & More 10% Finance & Insurance Companies 5% Crowd control 40% Clubs 20 Residential and business 5 Corporate and Construction industries 5 Charities, Retail & More 10 Corporate and Construction industries 10% Residential and business 5% Clubs 20% 8

9 Financial Adjustments 2017 (July-March) Profit (Loss) as per Financial Statements 664,226 93,823 32,849 Add-back Adjustments - Motor Vehicle Expenses (Fuel) 22,760 20,108 24,502 - Motor Vehicle Expenses (Registration & Insurance) 6,087 9,891 6,938 - Motor Vehicle Expenses (Repairs & Maintenance) 3,974 2,896 11,043 - Directors Fees 40,000 - Accounting Fees 4,591 13,136 16,116 - Electricity 10,147 4,929 4,975 -Staff training & Welfare/Staff Amenities 6,200 9,424 -Legal Costs 1,502 2,362 8,360 - Rent 53,227 51,885 14,226 -Wages 135,731 -Super 12,717 -Payroll Tax 3,051 -WorkCover 5,768 - Payroll Tax Penalties 5,071 - Payroll Tax Interest 903 5,928 - HP/CM Interest Expense 13,864 16,657 - ATO Interest 6,265 10,831 - Interest Paid 7,132 14,127 11,007 - Donations 73 - Fines ,610 - Borrowing Costs 2,132 1,969 -Depreciation 40,226 54,913 9 Less: - AKDU Income 699,883 - Interest Received 2 - Profit from Sale of Assets Adjusted Net Profit before Interest, Tax & Depreciation 237, , ,419

10 Notes Normalized addbacks apply include the following: Directors Fees Accounting Fees Adjusted as total fee include all entities in the group and other advice. We expect compliance in relation to the Guard Security Pty Ltd would be estimated at $6,000. MOTOR VEHICLE EXPENSES Registration & Insurance has been adjusted to remove non essential vehicles. Fuel has been adjusted for non business related vehicles. Repairs & Maintenance has been adjusted to remove non essential vehicles. DEPRECIATION Electricity & Gas Staff training and welfare /Staff amenities Legal Fees Rent Adjusted to remove non business related electricity costs Adjusted to remove non business related costs Adjusted down to zero in the 2013 & 2014 & 2015 year as client advised these were not business related Rent has been adjusted as the client runs the business from a premises that they own Income and wages from a related entity Interest 10 Donations

11 Notes ASSET QTY Kia Rio 2017 Hyundai i Great Wall 2016 (all cars full wrap signage) Security 2 way radios approx. 20 Security large fencing signs x2 Fencing signage Company branded Stickers Patrol electronic systems and software Uniguard Patrol car camera systems with GPS tracking Promotional items with the company branding Company Uniforms with company branding Administration systems, policy procedure documents, OH&S statements 11

Guard Security Pty Ltd Business License No. 730-125-40S Master License No. 408852236 ACN.

12 Guard Security Pty Ltd Business License No S Master License No ACN Head office Web

JUNE 2017 NEWSLETTER. The 2017 financial year has seen the raft of changes, first introduced in the 2016 budget, legislated into law.

JUNE 2017 NEWSLETTER. The 2017 financial year has seen the raft of changes, first introduced in the 2016 budget, legislated into law. JUNE 2017 NEWSLETTER The 2017 financial year has seen the raft of changes, first introduced in the 2016 budget, legislated into law. Fortunately the 2017 budget did not announce any further large reform