Sectors / Category

Annual turnover

|
  • Mandate: 32867
  • Added: 11 Mar 2019
  • AFS
  • 66

Manufacturer of jewellery, accessories and corporare gifts

Western Cape, Cape Town
66
Mandate 32867
Added 11 Mar 2019
R 1,400,000* ZAR
Stock: R 313,000
Assets: R 165,000
R 40,891 ZAR
Geoff Hatt
Aldes Atlantic
Western Cape
Western Cape
Summary

Design, manufacture, retail and wholesale of branded jewellery, accessories and corporate gifts, all locally produced.

Manufacturer of jewellery, accessories and corporare gifts
SELLING PRICE AFS
R 1,400,000* ZAR
Stock: R313,000
Assets: R165,000
R 40,891 ZAR
Summary

Design, manufacture, retail and wholesale of branded jewellery, accessories and corporate gifts, all locally produced.

To gain access to more business info
please supply us with your details below

Fully describe the business's activities?
Design, manufacturing, retail and wholesale of a unique range of branded jewellery, accessories and corporate gifts, all locally produced. Jewellery and accessories made with organically shaped tarnish free, non-allergenic cast metal alloy beads married to different materials such as Petersham ribbons, leather, hand painted silk and the bright Shweshwe fabric. All items are presented in an eye catching package with a striking pillow-box suitable for display in shops as well as online platforms.

How long has the business been established?
Since 2010

How long has the owner had the business?
Since inception

How does the business operate on a daily basis?
Orders are taken by various means, administrative functions are carried out to process the orders and to buy in raw materials and then production is carried out to satisfy the orders and to replenish stock.

How are the clients attracted to the business?
Direct : attending high end markets and social media Wholesale : tradeshows and agents Corporate : corporate gifting trade shows

What Advertising/Marketing is carried out?
Newsletters to 3 segments Trade Shows Social media

Does the business have any contract work?
No

What competition exists?
Other fashion jewellery brands, but none focusing on the 3 income groups

What are the seasonal trends?
Jewellery worn more during summer time. More tourists during summer time/high season.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All documentation on file for viewing

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
2014 to 2019

What percentage of the business is cash/credit?
95% Credit card/cash ; 5 % on credit ( 30 day accounts )

What is the age analysis of the debtors book?
Max 30 days

How could the profitability of the business be improved?
Business has a very lean set up, with overhead costs kept to a strict minimum. Extremely efficient set up. Only way to improve profitability is by increasing turnover.

Is Seller finance available and for what amount?
Ideally not, but maybe negotiable on stock.

What is the total staff complement?
1 Permanent staff member. The business operates with contract workers who understand the products, with manufacturing being outsourced to them.

Give a breakdown of staff/ functions/ length of service?
The permanent staff member and the owner are involved with : Quality control - ensuring that quality is maintained by the contract workers Production - issuing set quantities of raw materials to contract workers and monitoring that correct quantities of finished product are received. Preperation of orders/invoicing/ordering of raw materials. The staff member has been with the company for 5 years

Do any receive special perks or incentives?
No

Are they on contract?
The staff member is permanently employed while the contract workers are paid per quality unit. This is both financially beneficial and labour wise for the company and is a social act by the company by spreading the work in the community.

Do any have management potential?
No

How involved is the Owner in running the business?
Very involved but she has developed excellent procedure and reporting systems that are easy to take over.

When does the current lease end?
30 June 2019

Is there an option of renewal & what period?
Yes, month to month or a term agreement.

What is the annual escalation %?
7%

What are the trading hours?
Weekdays from 8am to 5pm. No Saturday work unless called for.

What is the square meters of the business?
30m2

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
One month deposit.

What are the main assets of the business?
A full asset list is on file

Are any items not included in the sale?
No

What is their overall condition?
Excellent

Do any require repairing?
No

How have they been valued ?
Fair market value

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Yes

Strengths?
Low overheads; high gross profit (77%); low investments; healthy payment system(90% of customers pay upon ordering);30 day credit with main suppliers; 3 unique selling points; excellent customer service with an easy ordering system; clear agents ordering procedures with signed contracts; organised and efficient all-in-one electronic management system; huge production capacity potential; extended and up to date database of customers and leads; strong brand identity; shop set up on Takealot and Amazon, fully functional ecommerce.com website with semi automated newsletter campaigns.

Weaknesses?
Limited marketing budget to boost ecommerce. Limited PR and media exposure. Challenge to keep Quality Standards at international level with certain local suppliers. B-BBEE only Level 4 contributor.

Opportunities?
Broader target ( gender, age, location ) Add other product types to the range. More export countries - favourable ZAR currency exchange Delegate external PR DTI funding for overseas tradeshows and missions. Huge potential for Ecommerce internationally. Open retail kiosks in selected key locations.

Threats?
Fluctuating currency exchange One market sector becoming too big Cheap competition

What is the reason for the sale?
Owner is emigrating.

Why is this a good business?
Good reputation Strong unique selling points High mark up Huge production capacity potential Favourable DTI funding - owner will discuss. Export favourable Clear procedures at each level Excellent integrated tracking system for orders, invoicing and stock Business not liked to the owner as a person.

What is the price plus stock and the net profit?
Selling price : R 1 400 000 including stock Stock : R313 000 Average monthly net profit : R 40 946

Other listings by Geoff
R 985KZAR
Added : 20 Mar 2019 4
Yearly profit : R441,426
Western Cape
R 960KZAR
Added : 18 Mar 2019 69
Yearly profit : R293,279
Western Cape
R 800KZAR
Added : 4 Feb 2019 239
Yearly profit : R359,482
Western Cape
FRANCHISE DETAILS

Aldes Atlantic

5 members
26 active mandates
Western Cape
33 Montague Drive
7441

Our experienced cross industry brokers are
waiting to assist and guide you…

Similar Businesses for sale

Discover similar, inspiring businesses for sale

R 985KZAR
Added : 20 Mar 2019 4
Yearly profit : R441,426
Western Cape
R 1.80MZAR
Added : 7 Jan 2019 266
Yearly profit : R725,683
Western Cape

Businesses in Gauteng

Annual Turnover Amount between R 500 thousand and R 6 million

R 1.00MZAR
Added : 20 Mar 2019 20
Yearly profit : R314,668
Gauteng
R 1.90MZAR
Added : 19 Mar 2019 35
Yearly profit : R618,151
Gauteng
R 1.50MZAR
Franchise
Added : 19 Mar 2019 38
Yearly profit : R561,670
Gauteng
R 550KZAR
Franchise
Added : 18 Mar 2019 86
Yearly profit : R-268,151
Gauteng
R 600KZAR
Added : 12 Mar 2019 127
Yearly profit : R407,160
Gauteng
R 690KZAR
Added : 11 Mar 2019 114
Yearly profit : R249,443
Gauteng
R 550KZAR
Added : 6 Mar 2019 198
Yearly profit : R291,988
Gauteng
R 1.70MZAR
Franchise
Added : 5 Mar 2019 225
Yearly profit : R452,093
Gauteng