Filters
LocationSouth Africa, Eastern Cape

Sector - Manufacturing

Asking Price
R1,800,000
Monthly Profit
R 23,531
Asset Value
R 805,477
Stock Value
R 0
Yearly Net Profit
R 188,247

Summary

Well established Engineering factory

Give me more information

Fully describe the business's activities?

General Engineering, Welding and Fabrication Workshop based in King Williams Town, the second largest town in the Buffalo Metro region. The business manufactures a range of products, with its main focus being surrounding industry and farming community.

How does the business operate on a daily basis?

The business manufactures products on demand from customer base in the region.

What Advertising/Marketing is carried out?

Established clients in region continued business as well as word of mouth

Area Development

The King William’s Town (KWT) area and surrounds is a spatially fragmented area with King William’s Town being the main urban area. The other urban areas are situated on the outlying areas and include Bhisho, Ginsberg, Zwelitsha, Phakamisa, Breidbach, litha and Dimbaza. - King William’s Town serves as a secondary node in the Buffalo City region. King William’s Town functions as a Regional Service Centre and together with Bhisho, is the Provincial Administrative Hub and contains the seat of the Provincial Government of the Eastern Cape Province. - Buffalo City Metro currently has major developments under consideration in three areas of strategic priority, identified due to the need to address infrastructure and service backlogs, which have hindered development. The priority areas and respective projects are as follows:
• The central urban core (East London and Mdantsane): Projects in this sector focus on the redevelopment of the inner-city and the Amalinda Junction Precinct. The municipality will implement a sewer tunnel project which will allow for the development of residential units. This will aid in the densification in the city over time.
• West Bank area: These projects entail augmenting bulk water and wastewater treatment infrastructure to ensure sufficient capacity to accommodate forecasted industrial and commercial investments. The successful completion of the projects will also provide the infrastructure required for IDZ to function optimally.
• King William’s Town (“KWT”) and Bhisho: The construction of a corridor between Bhisho and KWT will support the initiatives to consolidate Bhisho as the provincial administrative capital.

How could the profitability of the business be improved?

Fresh outlook, prefabricated products and visible marketing in region would yield positive results on revenues of the business.

Do any have management potential?

Yes

How involved is the Owner in running the business?

The owner is hands-on and actively involved in the business.

When does the current lease end?

The new owners would be able to continue the lease of the premises.

What are the trading hours?

Monday to Thursday 8 to 17:00 and Friday 08:00 to 15:00

What are the main assets of the business?

Engineering Machinery, such as Lathes, Milling Machines, Drill press, Welders, Guillotines, Pipe Rollers and Benders, Profile Cutters, Grinders, Hydraulic Press, Block and tackle, Pipe Threaders and Dies, Belt Sander, including Isuzu Bakkie

Strengths?

This business history is over 5 decades, with well established customer base

Weaknesses?

The current owner focus is on new ventures, therefore the business development side is currently receiving diluted attention.

Opportunities?

There are a number of developments planned by local government as part of the overall planning to further develop the region as a logistical hub, by having a fresh approach to the business, combined with BEE ownership structure the business could secure additional business outside of its current established customer base.

Threats?

Failure to pursue additional revenue streams in business could stagnate the growth of the business.

What is the reason for the sale?

The owner will be moving and pursueing farming.

Location

Contact | Enquire

Frans

Frans Joubert

LocationSouth Africa, North West

Preferred method of contact

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