Fully describe the business's activities?
Manufacturer and wholesaler of individually handmade resin products including Pool Copings, Pebbles & Stones, Mosaics, Trims & Skirtings, Bullnose Steptiles, Bullnose Flatbacks, Roundies, Listellos etc. All designs are protected by current South African copyright law.
How long has the business been established?
The business was established in 2002.
How long has the owner had the business?
How does the business operate on a daily basis?
Manufacture and wholesale of quality, individually handcrafted resin products. They supply well-branded tile retail outlets. They produce to order at the factory. Production cycle: Clients place orders directly with HO. Production is planned according to orders received and the available stock in the factory and estimated delivery dates are determined, usually within 7 days. Job cards and recipes are produced and allocated to a production team. Finished goods are packaged and prepared to distribution and the client is invoiced. Products are distributed by courier to various outlying locations within South Africa, Namibia and Zimbabwe. Tiles are currently supplied to 3 group which account for approximately 30% of sales. More than 100 other clients are supplied with tiles, of which Tiletoria is the largest.
How are the clients attracted to the business?
Website. Catalogues. Training representatives at the retail stores. Displays in stores. Representatives actively promotes the product to customers.
What Advertising/Marketing is carried out?
Direct marketing is performed on a national basis. Customers are visited on a regluar basis and training is offered regularly. Regular Email marketing is done.
Does the business have any contract work?
Ad hoc contracts / specifications.
What competition exists?
This business is the only company producing products of this nature in South Africa.
What are the seasonal trends?
Turnover is less during the building industry closure season (December/January).
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
VAT returns are on file and will be made available during due diligence.
Are there up-to-date Management Accounts available?
Up-to-date Management Accounts are on file and available on request.
What Balance Sheet and Income Statements are available?
FYE Feb 2019
Is Seller finance available and for what amount?
Seller wishes to conclude a cash transaction.
What is the total staff complement?
The company currently employs 34 permanent employees. Cape Town (HO): 30 27 Production 1 Factory/Production Manager 1 Admin staff 1 Sales Gauteng Branch: 4 1 Regional Manager 1 Sales Consultant 1 Driver 1 Storeman
Give a breakdown of staff/ functions/ length of service?
Average length of service is 9 years.
Are they on contract?
They employ the services of a Labour Consultant. Permanent staff members are on contract. Casual staff employed during busy times on short term contract.
Do any have management potential?
The Production Manager is capable of managing the operation.
How involved is the Owner in running the business?
The owner spends approximately 50% of his time in the business.
When does the current lease end?
The property is owned by the seller. A new lease will be entered into with a new owner.
Is there an option of renewal & what period?
To be negotiated.
What is the annual escalation %?
To be negotiated
What are the trading hours?
07:30 - 17:00 Monday to Friday.
What is the square meters of the business?
What lease deposit and/or other surety is required?
Will be negotiated.
What are the main assets of the business?
Main assets of the business are the moulds and intellectual property (manufacturing processes).
Are any items not included in the sale?
All items are included in the sale except the owners personal vehicle.
What is their overall condition?
All items are well maintained. Moulds need replacing from time to time.
Do any require repairing?
All items are in good working order.
How have they been valued ?
Compromise between owners estimate and depreciated values.
Which assets are on lease/HP and with whom?
Two of the vehicles are leased, but the seller will settle outstanding balances from the proceeds of the sale.
Will Seller settle or Buyer to take over?
The Seller will settle.
Are they presently insured?
All assets are fully insured.
High quality, high value product. Competitively priced. Unique product. Recognizable brand. Stable, long service work force. Well trained. Loyal. Handmade - commitment to using labour as opposed to expensive automated production systems. Manufacture to order - no need for high value stock holding and/or costly storage facilities (except for the decorative tiles). Relatively short production/delivery cycle.
Small, unique product range. Even though the products are relatively straightforward to manufacture, skills development remains a challenge. General apathy and lack of awareness of the brand product range in the market place.
Large/established customer base. Product range can be expanded. Opportunities to continue reducing wastage through improved manufacturing processes. Opportunity to create new ranges of tiles in line with changing interior decor styles (The business drives styles and trends)
They are currently the only supplier of these type of products in South Africa - which makes them vulnerable to competitors entering the market. Barriers to entry is high however. Limited supplier base for resin and sand which limits opportunity to negotiate better pricing structures.
What is the reason for the sale?
The seller wants to spend more time and focus on his other business interests. He is not under pressure to sell, and is looking for a suitable buyer. The future success of the business is important to him.
Why is this a good business?
The business is well established and profitable. Great reputation for quality product and excellent service with both customers and suppliers.
What is the price plus stock and the profit?
Asking price R8,600,000 PLUS stock +- R800,000.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million