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Gravity Action, a Queenstown-based activity business, is being sold as a going concern through Stephen McElrea, of Link Business Broking, for $320,000 plus GST and stock at valuation.

The tourism-based business was established in 1993 and is the oldest mountain biking company in New Zealand.

"The business has changed hands twice," says McElrea.

The summer business has two major arms in the form of guided mountain biking and guided trekking.

Gravity Action's summer business comprises a selection of activities based around guided downhill mountain biking in Central Otago's famous and scenic Skippers Canyon.

"Gravity Action has sole rights to use Skippers Canyon `Pack Track' with a Department of Conservation concession and leases from two landowners," says McElrea.

"There is a choice of tracks depending upon the abilities of the participants and options of exiting the canyon by helicopter, white-water raft or by four-wheel drive vehicle."

Gravity Action offers its clients full suspension mountain bikes with disc brakes, helmets and gloves with tours ranging from $109 to $295.

The company also has Crown permits and sole rights to operate guided walks from the saddle between Walter Peak and Cecil Peak down the valley to Walter Peak high country farm.

A helicopter provides the transport to Cecil Peak and the journey back to Queenstown is undertaken on the historic steamer TSS Earnslaw.

Guided walks can also be offered through Skippers Canyon, with transport out by helicopter or four-wheel-drive vehicles, although this option was not exercised by the company last season.

The winter business constitutes a ski and snowboard retail and rental business, with Gravity Action carrying a large stock of winter sports rental equipment and clothing.

Gravity Action has a long-term lease expiring in March 2015 on a 144 sq m street level shop at 19 Shotover St in the heart of Queenstown's shopping district.

McElrea says the asking price for the business includes tangible assets comprising plant, equipment and vehicles with a net book value of $106,000.

The intangible assets include the lease on the shop building, DoC concessions and leases, Crown sole permits and the business branding.

The business produced a net average income over the last two years of $146,000.

McElrea says the two current owners alternate the role of driver and shop administrator, and employ a guide on an as-needed basis.

"Gravity Action offers an outdoor orientated entrepreneur the opportunity to buy a well-established and profitable business within the heart of New Zealand's tourism capital," says McElrea.

"The business has the benefit of both a summer and a winter component spreading the risks of seasonality and ensuring an even cash flow. Fresh talent injected into the business would see it grow and expand while the new owners would enjoy living and working in one of the world's most beautiful locations."

The owners would consider the sale of the summer component only of the business for $150,000 plus GST plus stock at valuation.

This would include the plant, equipment and vehicles associated with the mountain biking and trekking, along with the associated concessions and leases and the lease on the building. A condition of sale would be a commitment to sublease the shop back to the vendors each winter, from June to September inclusive, for the remainder of the lease term.