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LocationSouth Africa, Gauteng

Sector - Manufacturing

Asking Price
R70,000,000
Monthly Profit
R 1,219,177
Asset Value
R 62,870,236
Stock Value
R 0
Yearly Net Profit
R 14,630,128

Summary

A full service plastic recycling business offering high end services across the country as well as into sub-saharan Africa. It Specialises in post consumer and post industrial waste while making use of state of the art technology & equipment.

Give me more information

Fully describe the business's activities?

A full service plastic recycler which offers nationwide and sub-saharan Africa . specialists in post consumer and post industrial plastic waste. Recycling of L.D.P.E., L.L.D.P.E., P.P and H.D.P.E. processed with state of the art equipment and technology.

How does the business operate on a daily basis?

The operation has 2 shifts, day and evening

What Advertising/Marketing is carried out?

Website
Word of Mouth

What competition exists?

There is currently an over supply of product and competition at this level does not impact on the business as a result of this.

How could the profitability of the business be improved?

The shift pattern can be increased to Sunday which would generate another R 1 200k per month is revenue.

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

The manager has been employed for over 3 years
Staff compliments vary across the following disciplines;
a) Fitter & Turner
b) Fork Lift Drivers
c) Granualtors
d) Cleaning Staff
e) Extruders
f) Truck Assistants
g) General Workers
h) Truck Drivers

Employment periods range between year and 17 years

Do any have management potential?

Yes.
Richard Steenkamp is currently employed as the manager and has been with the business for 3 years and 3 months.

How involved is the Owner in running the business?

100%

When does the current lease end?

There are no current formal leases in place as the property is owned in another entity by the owner.

What are the trading hours?

Monday to Saturday evening
Capacity for an additional Sunday shift exists

Is there a formal valuation of the building? If so, what is the market value?

Yes. Current Valuations completed in 2020 and value set at R15,000,000

What are the main assets of the business?

Manufacturing and production plant & equipment

Strengths?

Established
Strong Debtors Book
Owner participation
Skilled Labour operating & maintaining machinery
Property located on main production grid and therefore not affected by load-shedding

Weaknesses?

Limitations on plastic waste and introduction of more stringent controls by governments across the globe

Opportunities?

Additional Shift patterns available
Plastic is not going away - opportunities to enter other markets and even produce road surfacing material

Threats?

Possibility that more competitors will enter into the market however industry leaders will remain in a domiant position

What is the reason for the sale?

The owner has had the business for 17 years and is approaching retirement. No family members have shown any interest in getting involved in the operation as a result of different professional fields they currently operate in.

Most certainly no urgency in the sale and will wait for the right buyer at the right price who understands the business and who would have the ability to interact passionately with all involved.

The business requires a street wise ethical, like minded, proactive individual to take it over.

Location

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Gregory

Gregory Grose

LocationSouth Africa, Gauteng

Preferred method of contact

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