Summary

General repair and design for working parts of Industrial and manufacturing customer base. CNC machines utilized to activate operational requirements

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Fully describe the business's activities?

General Engineering work for large Industrial companies, who require replacement parts to be machined and installed. Many large companies such as Transnet, Sugar mills or large engineering outlets that require specific designs and repairs to be manufactured by this workshop. Open 5 and half days a week

How does the business operate on a daily basis?

Business starts at 0700 hrs and closes at 1600 hrs Monday to Thursday. Fridays close is at 1300 hrs. Business receives orders from established customers once a quotation is completed and accepted. Tenders are quoted on and over the past 2 years this has opened up new markets. Job cards are issued to the operators and once the task is completed, delivery takes place (or collected) and if necessary installed.

What Advertising/Marketing is carried out?

Word of mouth and development of new clients that the owners have brought in. Website has been re-designed and the response has been positive.

What competition exists?

There are other similar smaller opposition companies who try and undercut prices, but they are often too small to sustain regular orders from the larger industrial companies.

How could the profitability of the business be improved?

The new website is starting to generate positive growth in new clients, looking for an engineering and machining company with sophisticated CNC lathes to cope with intricate work. This company has the skills and the machines to add value with quality workmanship.

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

Owner often works on the machines and assists the operators when there is a heavy work load. Most of the staff have been in the company for 4-8 years.

Do any have management potential?

There is a manager already in place

How involved is the Owner in running the business?

The owner is capable of working on the machines and also develops new markets.

When does the current lease end?

30 November 2023

What are the trading hours?

0700 to 1600 hrs Mon-Thurs. Friday 0700 to 1300 hrs. Saturday work is tasked when required.

What are the main assets of the business?

Machines such as CNC lathes, presses, mills etc. There is a delivery truck, recently purchased. Assets excluding stock is in excess of R2,000,000.00

Strengths?

Quality work is produced by competent and trained staff, which ensures that there is solid monthly revenue. The business is showing good growth during the past few years, which is a positive sign considering the current economic state the country is experiencing.

Weaknesses?

Not enough development and marketing is done. There is a need for the company's skills to cope with a higher work load.

Opportunities?

Create new markets. The owner has recently joined a forum of engineers who meet on a monthly basis which allows new contacts to be made and the opportunity to work together to grow their various businesses.