Endless Day Trading
| Business Location: | Rural |
| Province | KwaZulu-Natal |
| Branch: | Durban |
| Business Start Date: | |
| Busniess Type: | Company |
Business Dynamics and Challenges
Business Activities:
Specialising in the supply of high-quality tyres and related automotive services such as wheel alignment, wheel balancing, tyre fitting, and tyre repair.
Challenges/Needs:
An assessment conducted by Sedfa revealed that the business was facing working capital constraints due to the high cost of tyre stock. The business operates in a capital-intensive environment where tyres represent high-value inventory, which limited its ability to consistently maintain sufficient stock levels. As a result, the business sometimes struggled to meet customer demand and maximise sales opportunities, which affected revenue growth and operational efficiency.
Intervention Insights and Results
Intervention Details:
To address the working capital and stock constraints identified, Sedfa implemented targeted financial support interventions. The business received assistance through the Asset Assist Programme, which provided 100% grant funding to the value of R249,147.00. The funding was utilised to acquire essential equipment, machinery, and trading stock. This intervention enabled the business to improve productivity and operational effectiveness, while reducing upfront stock costs. As a result, the business was able to increase sales volumes, improve cash flow, and strengthen overall financial performance without incurring immediate cost of sales on tyre inventory.
Outcome Details:
The intervention has delivered significant measurable results for Tyre Solutions, strengthening both its financial performance and social impact in the community:
• Turnover Growth: Revenue increased from R1,282,924.00 to R1,485,291.00, representing an increase of R202,367.00, equivalent to approximately 15.77% growth. This improvement is directly linked to the acquisition of grant-funded equipment, machinery and trading stock.
• Job Creation: Employment increased from 6 to 7 employees, resulting in the creation of 1 new job (17%) to support expanded operations.
• Profitability: The business recorded a significant improvement in profitability, moving from a net profit of R221,199.00 to a net profit of R414,933.50. This reflects an improvement of R193,734.50, equivalent to approximately 87.58%, demonstrating enhanced financial resilience following the intervention.
• Turnover Growth: Revenue increased from R1,282,924.00 to R1,485,291.00, representing an increase of R202,367.00, equivalent to approximately 15.77% growth. This improvement is directly linked to the acquisition of grant-funded equipment, machinery and trading stock.
• Job Creation: Employment increased from 6 to 7 employees, resulting in the creation of 1 new job (17%) to support expanded operations.
• Profitability: The business recorded a significant improvement in profitability, moving from a net profit of R221,199.00 to a net profit of R414,933.50. This reflects an improvement of R193,734.50, equivalent to approximately 87.58%, demonstrating enhanced financial resilience following the intervention.
Client Feedback
Client Comments:
Thank you so much Sedfa for this amazing support.”
