This commercial cleaning and consumables/washroom supply business has an impressive (and growing) book of over 200 loyal customers across Auckland, Hamilton, and more recently in Christchurch. Customers pay on a regular monthly basis assuring excellent cash flow. Operating under a licensee model ensures the efficiency and commitment of an owner-operator while significantly reducing the overheads and compliance requirements incumbent with employed staff. This combined with effective and efficient business systems and processes allows the business to be operated remotely from a home office.
The business distinguishes itself through efficient and effective systems and processes including recruitment procedures that ensure the selection and successful induction of outstanding licensees and uncompromising quality control. This culminates in the delivery of exceptional service and licensees that are highly motivated to perform as well as a uniquely high level of client retention. As a result, the business has experienced strong and consistent sales and profit growth. From a turnover of $2.7 Million and EBIT of $428K in FY 2023 to a turnover expected to reach $3.6 Million with an EBIT of $ 540K this year. A high level of growth is expected to continue and next year is forecast to achieve a turnover of $4.76 Million and EBIT of over 965K.
The opportunity of converting certain strategic locations from a licensee model to sites serviced by in-house staff is being explored and early indications are that this will significantly increase profitability from that currently forecast.