Pre-Primary School in Johannesburg

Johannesburg North
Price : R 2,400,000
Listing Type : Preschool
Location : Johannesburg
Ref No. : 2942
Year Established : 1980
No. of employees : 14
Trading Hours : 06:30 - 17:30
Turnover : R 330 000 pm
Expenses : R 139 833 pm
Net Profit : R 140 166 pm
Asset Value : R 500 000

Please note that the property is also for sale at an additional R7 400 000.

A profitable pre-primary school operated from its own large and well-maintained property. The school is registered, and fully compliant with capacity for 170 children, from infants of three months to Grade R (6- to 7-year-olds). The school has 14 qualified and experienced employees including a school principal and general manager, teaching staff, teacher assistants, a cook, cleaner and gardener. Many of the employees are part time (half day) which enables the business to keep its payroll overheads down. The business strives to ensure the safety, happiness, and security of each individual child and is recognised for quality in al that they do. The schools’ classes are divided into age-appropriate groups, each of which have their own corresponding play areas. The daily programme is aimed at learning through direct play, encouraging the development of self-discipline, while leading the children towards the maturity necessary for formal school. Each child is given an opportunity to develop and explore their potential in a relaxed, happy, and child-orientated environment.

The school offers extra mural activities such as swimming, play ball and ballet which are currently outsourced (and are revenue generating) but can be offered inhouse to increase profitability. As with all private education institutions, the business was affected by the pandemic where many parents had chosen to take on the difficult task of home school to try and save, however the business is starting to pick up now as the economy recovers. The business currently has 80 children with an excellent opportunity for growth through available capacity and through which will unlock its true potential. The business is ideally suited for an experience pre-primary school owner and operator, looking to acquire a well-established business, and or to grow their portfolio of schools. The current owner has been in the education industry for over 45 years, and now wishes to retire.

The business is valued at R2 400 000, and the property is valued at R7 400 000, making the total asking price of R9 800 000 for a combined sale. The school generates an average monthly turnover of R330 000 with average monthly expenses of R139 833 and an average monthly net profit of R140 167 before the owner’s drawings.

Due Diligence