Summary

Manufacture of spearfishing equipment and related products to order

Give me more information

Fully describe the business's activities?

This business is a well-known and respected international speargun fishing manufacturer, delivering a high quality and well-priced range of products.
Other high quality products manufactured include: wishbones in braided steel, reels, slip tips, spear tips, float lines, floats, Fish Attracting Devices, fish stringers, weight belts and weights, wishbone insertion tools, diving flags, barbs (floppers), gear bags, gun bags, cray bags, bungie's, gun shock absorbers, bulk rubber, fiberglass blades, cray loops, crooks, and many more.
They also manufacture outdoor products such as storm pegs and straps, tubbers, umbrella spikes and various other outdoor equipment. Their outdoor products are marketed under a separate division but included under the same legal entity.

How does the business operate on a daily basis?

Manufacture and exporter of spearfishing equipment and related products to order.
Also has an onsite retail shop for walk-in customers.

What Advertising/Marketing is carried out?

Website, not much advertising is done as the brand is regarded as a leader in spearfishing products, technology and innovation and is well established here and around the world.

What competition exists?

Not much local competition exists – only one other in KZN that focuses mainly on local customers.

How could the profitability of the business be improved?

Expansion into outdoor and adventure sports, which is a growing trend worldwide.

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

A staff organogram and function per employee breakdown is available to qualified buyers.
Staff are split into various departments:
1 x Office Manager
10 x Engineering department
2 x Zinc Plating department
8 x Accessories/Assembly department
1 x Dispatch

Do any have management potential?

The office manager is able to run the entire business, in conjunction with the three department supervisors.

How involved is the Owner in running the business?

The majority shareholder is involved in some of the day-to-day operations, whilst the other shareholder is not involved at all.

When does the current lease end?

The business currently operates out of two industrial units, of which one is being rented by the business and the other one is company owned. The owner rents a third unit for their personal use.
The company owned unit is large enough to accommodate the entire business operation. It measures around 400m² and includes a mezzanine office section. The unit is a double volume unit so there is space for the new owner to add another mezzanine for storage purposes.
This unit is available for rental at around R50/m² for an initial period of 2 years. Rent equates to R20 000 per month.
The unit is also available for sale at around R2.5m.
The other rented unit measures around 200m² at R50/m².

What are the trading hours?

Monday to Thursday: 07:00 to 16:00
Friday: 07:30 to 13:00
Closed on weekends and Public Holidays.

What are the main assets of the business?

An extensive Asset Register is available to qualified buyers. The current market value of assets is R1 743 650 – owner’s valuation. Included in the assets is a zinc plating system, which is a crucial part of the business.

Strengths?

• Global footprint through exports
• Strong brand recognition
• Reputation for quality, known for producing one of the largest and toughest ranges of spearfishing spears worldwide
• Market knowledge
• High-quality yet well-priced products give them an edge against premium competitors.
• Based in KwaZulu-Natal, they benefit from South Africa’s strong spearfishing culture and ocean access

Weaknesses?

• Niche market, dependence on very specific markets
• Brand visibility
• Limited retail presence
• Dependence on niche market

Opportunities?

• Expansion into outdoor and adventure sports which are growing globally - could tap into international demand
• Direct-to-consumer online sales
• Growing global market
• Local expansion