Ref. No - BFS937871

LocationSouth Africa, Western Cape

Ref. No - BFS937871

Sector - Manufacturing

Asking Price
R1,600,000
Monthly Profit
R20,158
Asset Value
R 1,100,000
Stock Value
R 1,500,000
Yearly Net Profit
R 241,894

Summary

Opportunity to acquire a well-established pole supply business with exclusive control of its own supply chain. Reliable customer base, excellent margins, and minimal owner involvement – ideal for investors or entrepreneurs looking for a turnkey operation in the construction sector.

Give me more information

Fully describe the business's activities?

This operation specialises in supplying high-quality wooden poles to the construction, fencing, infrastructure and agricultural sectors. The business sources, processes, and distributes a wide range of treated and untreated poles in various diameters and lengths. It offers a dependable end-to-end service – from stock selection and grading, to custom cutting, bundling, and delivery. Customers rely on the yard for consistent volumes, fast turnaround times, and reliable project fulfilment.
Over time, the business has become a trusted supplier to contractors who prioritise durability, competitive pricing, and predictable service. Its core strength lies in its ability to maintain strong supplier relationships and hold sufficient stock, ensuring continuity even during peak demand periods.

How does the business operate on a daily basis?

Daily operations follow a streamlined workflow designed around stock movement and customer fulfilment. The team begins with yard organisation, and preparation of incoming orders. Walk-in customers, construction firms, and repeat buyers are served promptly with assistance on product selection.

Telephonic and online enquiries are managed throughout the day, followed by invoicing, loading, and dispatching.

The yard crew handles cutting, bundling, treating requests, and forklift operations, ensuring safe and efficient stock flow. Management oversees supplier communication, purchasing cycles, logistics planning, customer relationships, and cash-flow monitoring.

The business runs on predictable systems, resulting in quick turnaround and minimal downtime, allowing it to consistently meet project-driven deadlines.

What Advertising/Marketing is carried out?

FaceBook about R3000 per month

What competition exists?

Their main competitor is a pole yard in Paarden Island, but this operation remains the price leader. It is the only business that trades exclusively in poles sourced directly from the bosbouers and then treated in-house. By owning the supply chain end to end, the business secures stronger margins and maintains superior control over quality and stock availability.

Competition includes regional pole yards, timber merchants, and large-format building supply stores that stock basic pole ranges. However, few competitors offer the same combination of volume, consistency, and specialised focus on poles for construction and infrastructure projects.

Many alternative suppliers rely on intermittent stock, slower turnaround, or a limited range of sizes. This operation differentiates itself through deeper industry relationships, better stock predictability, and personal service tailored to contractors who require reliability for tight project timelines.

How could the profitability of the business be improved?

Profitability can be enhanced by increasing direct supply agreements with contractors, expanding value-added services such as cutting, bundling, and delivery, and implementing modest price optimisation during peak building seasons.
Additional growth can come from diversifying into related timber products, expanding digital marketing, and improving stock management to reduce wastage and dead stock. Introducing a loyalty programme for repeat buyers could stabilise monthly revenue. Investing in light equipment upgrades may also improve yard efficiency, reducing labour time per order.

Give a breakdown of staff/ functions/ length of service?

Owner - Director
Office manager
Driver
General workers (6)
Most are in this business for more than 5 years

Do any have management potential?

Yes the office manager is managing the business

How involved is the Owner in running the business?

The owner is only required for 1–2 hours per day, and even this involvement can be replaced by appointing an on-site overseer. The current office manager can also be promoted into a General Manager role, ensuring smooth daily operations with minimal owner input.

When does the current lease end?

The lease is yet to be negotiated, with no current agreement in place, making it straightforward to secure a new lease. Estimated costs are R27 000 for the main yard and R8 000 for the treatment yard.

What are the trading hours?

07:30 - 16:30 Mon - Fri

What are the main assets of the business?

Machinery, cylinder machine
Debarking machine
Lathe / dropper machine
Saw machine
Drilling machine
Rounding machine (used to make pole ends round)
Nissan NP300 bakkie

Strengths?

Strong contractor relationships, consistent stock availability, fast turnaround, specialised product focus.

Weaknesses?

Exposure to construction sector fluctuations and weather-driven seasonality.

Opportunities?

Expand product ranges, strengthen delivery services, increase digital marketing, secure supply contracts.

Threats?

Competitors increasing stock levels, timber price volatility, and construction-industry slowdowns.

What is the reason for the sale?

The owner want to focus on his plumbing business
Location

Contact | Enquire

Elmo

Elmo Lombard

LocationSouth Africa, Western Cape

Preferred method of contact

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