Sectors / Category

Annual turnover

  • Mandate: 32784
  • Added: 13 Feb 2020
  • AFS
  • 1163

Uniform manufacturer to Hospitality

Gauteng, Johannesburg
Mandate 32784
Added 13 Feb 2020
R 3,800,000* ZAR
Stock: R 1,400,000
Assets: R 560,000
R 188,021 ZAR
Frank Schrempel
Aldes Orion
Gauteng, Pretoria East
Gauteng, Pretoria East

Exceptionally well established manufacturer supplying blue chip local and international hospitality clients with made to size uniforms, suits, pants etc.

R 3,800,000* ZAR
Stock: R1,400,000
Assets: R560,000
R 188,021 ZAR

Exceptionally well established manufacturer supplying blue chip local and international hospitality clients with made to size uniforms, suits, pants etc.

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Fully describe the business's activities?
The business manufactures and supplies corporate wear. The business controls the entire garment production process. A comprehensive customised range is offered, which is "made to fit". There is some off the shelf products that are offered which are sourced from trusted and well reputed specialist partners. This allows the client to have a unique and distinctive uniform with uniforms made for each employee. The business has built up a solid reputation for quality and offers a "warranty" of 12-18 months provided that the wash care and wear programme is followed. A client can design their own product. There is a large catalogue which forms the basis of garment selection. The business therefore offers a turnkey solution to all uniform requirements.

How long has the business been established?
The business started in 2009 supplying corporate wear to predominantly to the hospitality, gaming and food & beverage industries.

How long has the owner had the business?
Current owners have owned the business since October 2014.

How are the clients attracted to the business?
One of the owners is responsible for generating new client sales by way of face to face meetings with new potential clients. New business from existing clients is generated via a dedicated relationship manager who secures sales from existing clients by regular client visits. New clients are also generated through the website which has enhanced SEO as well as from various Adword campaigns and trade show exhibitions. Referrals from existing clients also feature prominently in generating new sales.

What Advertising/Marketing is carried out?
Advertising in the industry related publications but on a limited basis only. The majority of the advertising spend is on Adword campaigns.

Does the business have any contract work?
No, but the business has long standing relationships with a number of blue chip, multinational entities.

What competition exists?
There are about 8-10 other prominent players across the country. Few however offer the bespoke and "made to fit" per employee offering that the business does.

What are the seasonal trends?
August to December is the busiest time of the year.

Is the business VAT Registered?

Are there up-to-date Management Accounts available?

What Balance Sheet and Income Statements are available?

What percentage of the business is cash/credit?
With the exception of a few larger clients, the majority of clients pay a 60% deposit on order with the remaining 40% payable upon delivery.

What is the age analysis of the debtors book?
Mostly 30 days for the larger clients.

How could the profitability of the business be improved?
The appointment of more sales staff and increased adverting in industry related publications.

What is the total staff complement?
2 owners, 4 office staff, 12 factory staff (of which 5 machinists are employed as in-house service providers).

Are they on contract?
All permanent staff have employment contracts.

How involved is the Owner in running the business?
The 2 owners are actively involved in running the business. One owner is sales focused and the other is operationally focused.

When does the current lease end?
A one year extension to the lease was signed in December 2018. The lease will mature in December 2019. There is however an option in the current lease to renew the lease beyond December 2019.

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

What is the annual escalation %?

What are the trading hours?
Monday to Thursday: 07:30 – 16.30 and Friday: 07:30 – 13:30

What is the square meters of the business?
332 sqm plus an additional 97 sqm of common area that is used for loading and dispatching

Do you require a licence?
Yes, an importers licence.

What lease deposit and/or other surety is required?
1 month of rental.

What are the main assets of the business?
Stock & equipment

Are any items not included in the sale?
Yes, owners personal computer equipment and personal portable air conditioner.

What is their overall condition?

Do any require repairing?

How have they been valued ?
Replacement value

Which assets are on lease/HP and with whom?
No assets on lease or HP

Are they presently insured?

• Solid infrastructure • Well established brand and reputation and high barriers to entry for competitors to enter the market • Staff members are professional, experienced and technically equipped to ensure a match to the high expectations of their clients • High quality product range • High ethical values • High quality, online and printed uniform catalogue • A good website • The business is a preferred supplier to blue chip, multinational companies • The business has grown organically into a profitable organization • Strong client-centricity ethos

• Performance may drop when management are away

• Whilst a sales function does currently exist, there is significant room to enhance it • Increase marketing activities in order to increase the client base and turnover • Diversify product offering further and service additional market segments • Set-up branches in other provinces • Increase activity in Sub-Saharan Africa • Improved global competitiveness due to a weaker currency • Increase exposure by promotions, trade shows, incentives to existing clients, etc

• Increasingly restrictive labour laws and collective bargaining • Inflationary pressures as a result of potential increased electricity costs

What is the reason for the sale?
Owner has another opportunity in a family business

Why is this a good business?
Very well establish and well know company. Well trained staff. Services local and international clients. Staff well trained. lots of growth still.

What is the price plus stock and the profit?
R3,800,000 inc stock

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Aldes Orion

2 members
9 active mandates
Gauteng , Pretoria East
108 Lynburn Rd, Lynnwood Manor
Pretoria East

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