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LocationSouth Africa, Western Cape

Sector - Manufacturing

Asking Price
R11,000,000
Monthly Profit
R 216,240
Asset Value
R 2,700,000
Stock Value
R 65,000
Yearly Net Profit
R 2,594,875

Summary

Manufacturers, suppliers & exporters of quality civil engineering products that are used daily on construction sites everywhere.

Give me more information

Fully describe the business's activities?

Manufacture and distribution of SABS approved products used in construction daily.

How does the business operate on a daily basis?

The sales division call customers, prepare quotes, follow up on orders, and promote their products. Production line involve planning, schedule manufacturings, cleaning and despatch of product. Although they deliver, and some orders are collected, they mostly use couriers to deliver to customers.

What competition exists?

There are only a few other SABS approved manufacturers of similar products in South Africa.

How could the profitability of the business be improved?

They have worked with a local supplier of raw materials and developed a new raw material which will mean substantial savings without affecting the quality of the product. Their current supplier is not local, so the cost of transport will decrease. They are constantly looking for ways to save costs in line with their internal efficiencies improvements policy.

Do any have management potential?

Yes.

How involved is the Owner in running the business?

The owner is involved in the day-to-day running of the business full-time. However, staff has been trained to work independently.

When does the current lease end?

The seller owns the building and a lease will be negotiated with a new owner. The property is however for sale at an asking price of R6m. The purchaser has first refusal.

What are the trading hours?

08h00-17h00 Monday - Friday

What are the main assets of the business?

Building (Buyer has first refusal. Asking price R6m.)
Machines/Equipment

Strengths?

The business well established with both suppliers and customers.
SABS approved products.
The business is very profitable with unlimited potential.
Employees are skilled and loyal.

Weaknesses?

No apparent weaknesses.

Opportunities?

The business is the smallest of the a few companies that manufacture SABS approved products. Great opportunity for growth.
There is a huge, untapped market in ancilliary products, e.g. pipes and valves.
They have designed a calibrated testing bench for R&D to ensure consistency, measure and analyse the product, which gives them huge credibility in the market.

Threats?

Low quality imports from China and India

What is the reason for the sale?

The Seller has other business interests and feels he needs a change after 12 years.

Location

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Tienie

Tienie du Preez

LocationSouth Africa, Gauteng

Preferred method of contact

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