Major Earthmoving Opportunity With Repeat, Long-term, Blue-chip Clients

AN EARTHMOVING JEWEL-IN-THE-SOUTH WEST

Net Profit $850,000 2022/23

TEN POINT CHECKLIST
1. Loyal blue-chip, repeat client base
2. Major portion of the purchase price made up of plant & equipment
3. Constant growth with strong year-in-year-out net profits
4. Immediate entry into the industry with an established brand and client base, and reputation
5. The region has a solid demand for ongoing construction, mining, infrastructure, and land development
6. The business has a skilled and experienced workforce
7. Diversified range of services not reliant on any one specific industry
8. Long established nearly 40 years
9. Long term growth over many years
10. Could be run under semi-management

The business specialises in earthworks and cartage contracting, serving both commercial and residential clients. Its expertise allows it to successfully undertake a wide range of earthmoving projects, including excavation, site preparation, land clearing, and levelling.

Equipped with skilled operators and reliable equipment, it ensures efficient and effective completion of every task.
In addition to earthmoving services, also specialising in cartage, particularly the transportation of asphalt and quarry materials.

Through strong relationships with various corporate clients in the region, the business has established itself as a reliable provider of earthmoving, site preparation, and transportation services. Its commitment to prompt and dependable services has made it the preferred partner for companies involved in construction, infrastructure development, and road maintenance.

With annual sales surpassing the $2.5 million mark and boasting a 60 percent gross profit margin, this company’s financial performance consistently delivers solid net profits of around $850,000. This combination of strong revenue generation and efficient cost management makes this business well-positioned to thrive in the competitive market and drive further growth.

The customer base consists of approximately 120 clients, representing a diverse range of industries and sectors. What sets it apart from most competitors is the significant proportion of repeat order clients, accounting for approximately 70 percent of total sales per annum.

With efficient systems and processes in place, the business can be effectively managed by a single owner / operator, ensuring smooth day-to-day operations. The current owner opts to work 40 hours a week, but much of this is supervision of the work of staff, which could easily be left to the senior and experienced employees if a new owner wished to commit fewer hours.

The business is noted for the loyalty and longevity of its dedicated team of employees – eight full time and one casual – who have been with it for between 8 and 23 years.

Civil earthworks in the southwest region of Western Australia presents tremendous potential as it is poised for significant growth. As the region continues to develop with economic growth, urban development, and infrastructure projects, earthworks will play a crucial role in shaping the landscape and supporting various industries. The increasing demand for construction, mining, and resource-related activities will flow through to the earthworks sector.

The South West region’s current population, now at 182,500, is set to reach 230,000 by 2031 and by 2050 possibly as many as 500,000 (South West Development Commission, 2019).

As the south west population continues to grow, there is a need for new residential developments, commercial buildings, and infrastructure projects, such as roads, utilities, and public facilities. The business is well positioned to meet this demand by offering comprehensive earthworks services, including site preparation, land clearing, excavation, and drainage solutions.