Transport, Distribution and Storage
St Leonards TAS

Price: $980,000

Market Leader Positioned For Ongoing Growth For Sale

Summary

  • Unique opportunity to acquire an established, profitable transport, warehousing and distribution business. 
  • Excellent continued growth potential. 
  • Employs 15 people. 
  • Located in Launceston, servicing Northern Tasmania
  • Transition support is available for purchaser

Location Details

  • The business is based in St Leonards, a semi-rural residential suburb of Launceston. Launceston is Tasmania's second largest city and the freight, service and retail hub for Northern Tasmania. 
  • Delivery runs cover the Northern Tasmania region
  • Tasmania has fast become one of the most desirable regions to work, live and invest in Australia.

Potential

  • Significant growth opportunities.
  • The business has grown in all economic conditions, including during COVID-19. Demand for parcel delivery, warehousing and distribution services are expected to continue to grow as Tasmanian's continue to rely on online shopping and imports to supply demand.
  • Strong internal systems, people and market reputation position the business well to take advantage of the positive local economy and market conditions, presenting exciting opportunities for the future owner.

Employees

  • Employs 15 people, including the two owners
  • The business is managed by the owners. Administration takes approx. 20 hours per week and can be performed remotely. Daily operations are managed full-time onsite, and include getting drivers on the road, organising afternoon delivery runs, manning phones for deliveries, pickups, picking, and packing.
  • A strong culture has enabled Scottsdale Express to attract experienced and reliable people. Staff turnover is well below industry averages, resulting in a team who have a deep knowledge of the industry, business practices and procedures.

Hours

  • 4.00 a.m. to 5.30 p.m. Monday to Friday

Reason for Sale

  • Now selling due to the current owners' retirement plans and family circumstances.

About the Business
The business has grown from humble beginnings as a single-truck operation in 1999, to become a major player in the Northern Tasmanian freight industry.

A significant portion of turnover is from air freight, including retail and consumer goods. In addition to the core business of freight delivery, operations include warehousing and distribution.

  • 7 trucks, 4 vans and 2 forklifts
  • B2C and B2B delivery runs
  • Best parcel-freight coverage in Northern Tasmania, resulting in secure arrangements with several larger freight providers
  • 2 warehouses rented in St Leonards
  • B2B warehousing and distribution services, including a major Australian retail company and leading building industry supplier.

Tasmania has reinvented itself in recent years to become a coveted destination to work, live and invest. Tasmania is now Australia's best performing economy, ranked first on relative population growth, relative unemployment, equipment investment and retail trade. Launceston is the major administrative and retail centre for Northern Tasmania and generates substantial retail demand. Several state-wide distribution centres are located in the region, including those for major supermarkets, beverage, building supplies, household, and electrical goods companies. Retail turnover in Tasmania has grown significantly since mid-2014; in January 2020 Tasmania recorded the highest annual increase in retail turnover in the nation.

While COVID-19 has hit some industries hard, Northern Tasmania has experienced an unprecedented increase in freight movements, which is predicted to stay at high levels. The significant growth in demand provides exciting opportunities for expansion for the future owner.

The vendor will be available to the new owner for training and support for a transition period. The buyer may be able to take advantage of taxation instant asset write-offs and low interest rates currently available.

History
The current owners purchased the business in 1999 as a single truck, delivering air and general freight between Scottsdale and Launceston. Between 2005-2012 they grew delivery runs to include North East Tasmania, Northern Midlands, East Tamar, West Tamar and local Launceston deliveries.

Today, Scottsdale Express is the only freight company servicing all of these areas, providing the best parcel-freight coverage in Northern Tasmania.

Success in growing the delivery side of the business was complemented by the addition of warehousing and distribution in 2009.

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Price: $980,000
Client No: W1743046720
Seller prefers initial contact via email
    Private sale, no contact by agents or marketers please.

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