Summary

Well-positioned and compact production business has immediate growth potential. Fully operational with experienced on-site management and a stable client base relying on retained tooling, offering a clear low-cost route to increased turnover. The capacity to expand operations further enhances this opportunity.

Give me more information

Fully describe the business's activities?

Manufacturing of plastic moulded components for automotive, seating, lighting, point of sale and other local industries. The business uses vacuum forming machines to mould the plastic components.

How does the business operate on a daily basis?

The business services a core range of clients who draw off moulded components as required. In addition clients also reach our for development of new products as required.

What Advertising/Marketing is carried out?

Nothing outbound. There is a basic website.

What competition exists?

There is one other vacuum forming company in the area that services the local market. There are two companies that also service automotive clients.

How could the profitability of the business be improved?

Increase turnover, by actively marketing the services of the business to new clients. The current manufacturing facility is running at approximately 50% capacity.

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

1 Full time Office Manager; 1 Full time Factory Manager; 2 Full time Factory Staff; 6 Part time Factory Staff on zero hours basis

Do any have management potential?

Yes - Office manager and Factory manager who manage the day to day running of the business currently. Owner manages remotely.

How involved is the Owner in running the business?

2 – 4 hours per week of owners time.

When does the current lease end?

The business is currently occupying owned premises.

What are the trading hours?

7am to 4.30pm – 5 days a week. Longer hours are worked where required to meet client requirements.

What are the main assets of the business?

5 Vacuum forming machines; 2 Robots; Compressors; Collection of saws and cutting equipment, tooling, delivery van, forklift

Strengths?

Limited competition, high barrier to entry because of capital cost of machinery; Spare Vacuum forming capacity, and Robots add to capability to do more complex trimming; Competent management team; Central location

Weaknesses?

No staff dedicated to marketing / sales; Lack of owner presence (lives overseas)

Opportunities?

Opportunity to take market share in Point of Sale companies in Durban; Further expansion into Automotive sector – in and outside of Durban; Opportunities to diversify into other types of plastic moulding (e.g. injection moulding) serving the same client base.