Financials and Management Accounts

for Cape Town Luxury Villas.com

By Nick Ray Ball 19th Feb 2016

This page presents Cape Town Luxury Villas 2015 financials and 2016 management accounts.

In 2015 Cape Town Luxury Villas recorded an income of $650,000, with Share Holder profit for 2 directors of $72,000. So far in 2016 figures are greater.

Cape Town Luxury Villas Team 1

Financials for Villa Secrets UK tax return in 2015

Click here to Download the Spreadsheet

Income: ZAR 9,155,291
Villa Owner Payments ZAR 7,720,760
Turnover: ZAR 1,434,531
Marketing & VAT: ZAR 415,680

Shareholder Profit*: ZAR 1,018,851 ($72,000) (£50,942)

Cape Town Luxury Villas Team 2

2016 Management Accounts

From 18th January 2016 to 1st March 2016

Click here to Download the Spreadsheet

After a long running dispute over marketing, in mid-December 2015, Villa Secrets changed the Cape Town Luxury Villas management, this transition took up to the 18th January 2016. At which point the we restarted the Google Ads campaigns and the management team from Cape Villas.com starting receiving the enquiries from Cape Town Luxury Villas.

This exercise proved very useful, as in February 2015, in their first full month the new team made double the average profit of the old team, showing to any potential new owner or franchisee, that the business model is a success and will show results immediately.

In its first full month, February 2016 the new team from CapeVillas.com made 140% more turnover than the old teams 2015 yearly average.

Income: ZAR 1,336,041
Villa Owner Payments ZAR 1,104,371
Turnover: ZAR 262,620
Marketing & VAT: ZAR 33,100
Balance: ZAR 203,396 (Shareholder Profit*)
Balance in USD: $12,780
Balance in GBP: £9,034

2016 Average Shareholder Profit so far = ZAR 2,440,748 (£112,274) ($159,000)

* A note on Shareholder profit

Williams and Co accountants, who create the Villa Secrets tax return valued the 2015 shareholder profit as seen above. If a like for like management structure, with a pair of directors contributing their full time to the venture, working from a home or pre-existing office. Or an existing travel company took over directorship.
However, in point 2 of Aldes Atlantics 10 Points on Selling a business it suggests one should calculate shareholder income on a single director. With manager replacement compensation for a second director. If so then 2015 shareholder profit would be about R300,000 less at R700,000.

However as the desired purchaser or franchise or Cape Town Luxury Villas would not be a single owner/director instead a partnership, in valuations, we have used the Williams and Co Shareholder profit.