Sectors / Category

Annual turnover

|
  • Mandate: 33188
  • Added: 16 Jul 2019
  • AFS
  • 685

Ducting manufacturer

KwaZulu-Natal, Durban
685
Mandate 33188
Added 16 Jul 2019
R 7,200,000* ZAR
Stock: R 200,000
Assets: R 2,000,000
R 180,486 ZAR
Ian Reich
(PRINCIPAL)
Aldes Supreme
KwaZulu-Natal
KwaZulu-Natal
Summary

Ducting manufacturer
SELLING PRICE AFS
R 7,200,000* ZAR
Stock: R200,000
Assets: R2,000,000
R 180,486 ZAR
Summary

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

Fully describe the business's activities?
This business was started in 2017 mainly to supply a large well established Air Conditioning company that is owned by the same owner. It manufactures ducting for large developments such as shopping malls hospitals and blocks of flats etc. It has recently started supplying other customers in the area who do not have the manufacturing capability.

How long has the business been established?
2 years

How long has the owner had the business?
2 years

What steps are in place to solve 'load shedding' problems?
There is a generator at the factory site.

What is the average KW usage?
N/A

How does the business operate on a daily basis?
The business receives orders from contracts that the air conditioning supplier has secured. The plans for the construction development are assessed and staff are tasked with manufacturing the ducting products to the orders generated. The ducting products are then packaged and sent to site for a team of installation staff to install

How are the clients attracted to the business?
Large contarctors utilize the air conditioning company, as a preferred supplier and as a sub contactor to supply the air conditioning and ducting for the development. Smaller clients in the air conditioning business also place orders with the manufacturing company to supply ducting products for their projects.

What Advertising/Marketing is carried out?
There is a web site that is utilized, but the majority of the work comes from the large projects that the major contrators are awarded, and who in turn sub-contract this company to supply the ducting requirements.

Does the business have any contract work?
Yes. The majotity of the work tasked is on a contract basis with the large contractors who are busy with large deveopments.

What competition exists?
There are a few smaller suppliers, but these do not have the capacity to get involved in large developmenrt requirements, so they place smaller orders for smaller construction requirements.

What are the seasonal trends?
The projects from the large developers are normally for 12 to 24 months in advance, which means that the supply of ducting is continuous for years in advance.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
It is administered by the accountant.

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

What Balance Sheet and Income Statements are available?
February 2019

What percentage of the business is cash/credit?
All business is paid via eft payments

What is the age analysis of the debtors book?
Nil

How could the profitability of the business be improved?
Growth in the construction environment would require larger orders for the manufacturing of ducting productsto be supplied. Marketing to other smaller suppliers of Air conditioning developments is an ongoing process of new business development.

Is Seller finance available and for what amount?
No

What is the total staff complement?
1 X Manager and 12 semi skilled operators.

Give a breakdown of staff/ functions/ length of service?
Each phase of the duscting manufacture has a skilled operator who fits ino a "supply chain" process for the duscting products. Once completed the unit is packaged and transported on to site of the development by the Air Conditioning contractor.

Do any receive special perks or incentives?
No

Are they on contract?
Yes

Do any have management potential?
There is a supervisory structure in the production cycle.

How involved is the Owner in running the business?
The owner visits the factory site on a daily basis.

When does the current lease end?
2020

Is there an option of renewal & what period?
Yes for a further 3 years

What is the annual escalation %?
8%

What are the trading hours?
0730 hrs to 1630 hrs Monday to Friday

What is the square meters of the business?
400 square meters

Who is the Owner/Landlord?
Growth Point

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
Double month's rent as a deposit is required.

What are the main assets of the business?
A variety of manufacturing machinery is already in place and are fully functional, as well as welding, packaging and hoisting equipment . All assets are unencumbered and form part of the selling price.

Are any items not included in the sale?
No

What is their overall condition?
Very good as the machinery is only two years old.

Do any require repairing?
No

How have they been valued ?
By the insurance company at replacement value.

Which assets are on lease/HP and with whom?
The copier is on a lease

What are their settlement amounts?
N/A

Will Seller settle or Buyer to take over?
This will be decided when a potential buyer completes his due diligence, and purchases the assets of the business.

Are copies of agreements available?
Yes

Are they presently insured?
Yes

Strengths?
Very well known for quality ducting products and is the major supplier to the large construction development companies, as a preferred supplier

Weaknesses?
Due to the growth in orders the business will require to be relocated into larger premises when the lease expires in 2020

Opportunities?
Once in larger premises the growth in the business will be able to be focussed on, and due to the track record of this company there is capacity for expansion, as many other developers require ducting products.

Threats?
There is no real threatr perceived. A BEE owner would experience a massive growth in new business.

What is the reason for the sale?
The owner is very involved in the Air Conditioning aspect of his main business and would like a BEE buyer to assist in the manufacturing of the duscting supply.

Why is this a good business?
Very well known for quality products and for good service delivery to the large construction sites. There is scope to grow this business into a much larger enterprise.

What is the price plus stock and the profit?
Priced at R7 million with a Net Profit of close to R3 million and growing on a monthly basis. Stock of R400000 to R600000.

Other listings by Ian
R 6.75MZAR
Added : 11 Sep 2019 541
Yearly profit : R807,036
KwaZulu-Natal
R 2.20MZAR
Added : 27 Aug 2019 550
Yearly profit : R0
KwaZulu-Natal
R 4.55MZAR
Added : 16 Jul 2019 524
Yearly profit : R854,504
KwaZulu-Natal
FRANCHISE DETAILS

Aldes Supreme

2 members
20 active mandates
KwaZulu-Natal
19 Reims Village, Le Domaine Estate
3626

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

Similar Businesses for sale

Discover similar, inspiring businesses for sale

R 3.75MZAR
Added : 15 Oct 2019 733
Yearly profit : R1,624,858
Gauteng
R 5.50MZAR
Added : 26 Aug 2019 342
Yearly profit : R830,846
Gauteng
R 9.40MZAR
Added : 24 Jun 2019 449
Yearly profit : R3,316,635
Western Cape
R 5.95MZAR
Added : 21 May 2019 595
Yearly profit : R2,576,900
Western Cape
R 4.98MZAR
Added : 7 Feb 2019 1057
Yearly profit : R2,256,250
Gauteng
R 6.90MZAR
Added : 16 Apr 2018 1931
Yearly profit : R1,154,605
Western Cape
R 4.00MZAR
Added : 21 Jan 2018 3824
Yearly profit : R1,601,182
Gauteng

Businesses in Gauteng

Annual Turnover Amount between R 500 thousand and R 6 million

R 1.43MZAR
Franchise
Added : 3 Dec 2019 51
Yearly profit : R780,000
Gauteng
R 1.50MZAR
Added : 21 Nov 2019 428
Yearly profit : R720,736
Gauteng
R 1.70MZAR
Added : 20 Nov 2019 207
Yearly profit : R846,114
Gauteng
R 680KZAR
Franchise
Added : 20 Nov 2019 177
Yearly profit : R290,761
Gauteng
R 1.40MZAR
Franchise
Added : 18 Nov 2019 309
Yearly profit : R486,277
Gauteng
R 1.05MZAR
Franchise
Added : 15 Nov 2019 251
Yearly profit : R588,000
Gauteng