Filters
LocationSouth Africa, Gauteng

Sector - Food

Asking Price
R13,500,000
Monthly Profit
R 334,664
Asset Value
R 7,938,291
Stock Value
R 2,613,909
Yearly Net Profit
R 4,015,973

Summary

Large ice-cream cone manufacturer supplying multinationals

Give me more information

Fully describe the business's activities?

One of the owners started out as a baker, making cones manually. Through trial and error he honed the skills of baking wafers and making cones and in 1999 bought the first automatic machine for the business. The business has grown substantially from then and now in its current format is a manufacturer, wholesaler and distributor of wafers and cones, sweets and industry appliances. Its client base consist of Ice Cream Manufacturers, Wholesalers, Franchise Groups as well as the lower end market. The business currently boasts a strong market position and have just been contracted to manufacture cones for a large retail food group which will add to already impressive turnover figures.

How does the business operate on a daily basis?

The factory operates 24 hours a day, 5 days a week and the factory manager takes care of all the operations. The factory production is planned in advance to cater for the orders from clients. The business also does its own deliveries.The business manufactures plain cones and flat bottom cones. the last few years it also distributes ice-cream related products as well as sweets and snacks.

What Advertising/Marketing is carried out?

The business has its own website and one of the current partners fulfils the duties of sales manager. They are well known in the industry.

What competition exists?

On some of the product lines there is competition in the market. On other products the only alternative for clients is to import the products. This industry has sizable barriers of entry.

How could the profitability of the business be improved?

The owners have many great ideas on how to improve the profitability of the business and will discuss in person with a potential buyer / partner. Increase in sales and more products forms the basis of these plans.

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

All staff details and functions will be available to qualified buyer.

How involved is the Owner in running the business?

All purchases and payments are done by one of the partners. Two of the partners are actively involved in the business and have no other business interest.

What are the trading hours?

The factory operates 24 hours - 5 days a week (Two shifts)

What are the main assets of the business?

Assets include manufacturing machinery, delivery vehicles and general office equipment. All spares for the machines are kept on the premises to the value of approximately R500k. The business has just bought a new machine valued at R2 500 000-00. Full asset list will be made available to qualified buyer.

Strengths?

Well run business with focused management. Sizable investment into plant, machinery and equipment to automate the whole process of cone manufacturing. On some product lines the business is the only qualified company in South Africa that can deliver the required product. Unique products and plans to further diversify with more products. Supplies to a well spread range of customers.

Weaknesses?

The business does not have the desired presence in the Western Cape, plans to increase sales in this geographic area are on the table.

Opportunities?

Expansion of the factory. Introducing more products. With an increase in the production capacity of the factory, the business may even compete with direct imports on some products. Expansion into the Western Cape.

What is the reason for the sale?

The operating partners are looking to immigrate.

Location

Contact | Enquire

Peter

Peter Kind

LocationSouth Africa, Gauteng

Preferred method of contact

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