Sectors / Category

Annual turnover

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  • Mandate: 32847
  • Added: 12 Mar 2021
  • AFS
  • 949

Chemical Manufacturing Business

Gauteng, Pretoria
949
Mandate 32847
Added 12 Mar 2021
R 980,000* ZAR
Stock: R 30,000
Assets: R 246,800
R 73,103 ZAR
Johan Mouton
Aldes Focus
Gauteng, Pretoria East
Gauteng, Pretoria East
Summary

This business provides cleaning materials to several companies. This business is operational from anywhere in South Africa. Low overheads with a good client base!

Chemical Manufacturing Business
SELLING PRICE AFS
R 980,000* ZAR
Stock: R30,000
Assets: R246,800
R 73,103 ZAR
Summary

This business provides cleaning materials to several companies. This business is operational from anywhere in South Africa. Low overheads with a good client base!

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Fully describe the business's activities?
This manufacturer supplies and services numerous industrial cleaning as well as hospitality industries. They manufacture high-quality cleaning products. Distribution grid - general households, corporate clients as well as industrial = 90% to car washes/trucking companies. They manufacture a broad range of chemicals; general cleaners, floor care products, degreasers & disinfectants, car care products and personal care products.

How long has the business been established?
The company was established in 2014.

How long has the owner had the business?
2014.

What steps are in place to solve 'load shedding' problems?
Load shedding does not affect business operations.

How does the business operate on a daily basis?
Clients place their orders - orders are mixed and placed into respective containers. Driver delivers most orders - some clients opt to collect theirs in person.

How are the clients attracted to the business?
This small manufacturing company has a positive reputation in the industry. Their products can be seen on shelving in stores. Marketing is mostly via word of mouth, internet searches or new clients requesting a price list.

What Advertising/Marketing is carried out?
Not much marketing has been done. Each container has a company sticker which is visible to others to see. Prices are very competitive.

Does the business have any contract work?
No, the company has a large database and a good relationship with it's clients. Good quality products and great customer service keeps clients happy and returning for business.

What competition exists?
There are competitors in the market. The company shows positive growth & income generation over the years - they are small but competitive & stable.

What are the seasonal trends?
During December the company continues working showing an increase in sales. This is due to other suppliers closing for the festive season.

How did the Covid-19 pandemic impact the business turnover / daily operations?
Business operated as normal.

Is the business VAT Registered?
No - Not VAT registered.

Are there up-to-date Management Accounts available?
Annual Financial Statements are available up until 2021.

What percentage of the business is cash/credit?
30% Cash business. 70% EFT.

What is the age analysis of the debtors book?
30 Days.

How could the profitability of the business be improved?
Online marketing will boost the client base.

Is Seller finance available and for what amount?
No.

What is the total staff complement?
There are 4 permanent employees. (Excluding the Owner)

Give a breakdown of staff/ functions/ length of service?
1 Mixer. 1 Cleaner. 1 Cashier/Front Office/Manager. (Owners Son) 1 Driver/Technician.

Do any receive special perks or incentives?
No.

Are they on contract?
Yes - all permanent employees.

How involved is the Owner in running the business?
The Owner resides in Mossel Bay and works telephonically with the Manager.

Any special arrangements for the staff related to the Covid-19 pandemic?
All necessary PPE is in place for the employees.

When does the current lease end?
Renewal is only due in March 2023 - The landlord is quite accommodating.

Is there an option of renewal & what period?
Yes - 3 year renewal period.

What are the trading hours?
Monday's to Friday's: 08:00 - 16:30. Saturday's: 08:00 - 14:00.

Do you require a licence?
No

What are the main assets of the business?
Various chemicals. Mixing stand & mixer. Nissan MP300 TDI. Stock on hand. High pressure washers. Storage barrels. Value R262 000

Are any items not included in the sale?
No - everything is included.

What is their overall condition?
All equipment is in good condition - maintenance upkeep is done.

Do any require repairing?
No - all equipment is working 100%.

How have they been valued ?
The insurance company valued all of the equipment on hand.

Which assets are on lease/HP and with whom?
None - all equipment is fully paid.

Are they presently insured?
Yes - all assets are fully insured.

Strengths?
This business does not require a lot of hands on work or attention. The quality of the products ensure a constant and satisfied client base. This business can be managed from anywhere in South Africa.

Weaknesses?
Not much attention to marketing has been done. A good marketing plan should be put in place.

Opportunities?
Expansion to other industries will ensure positive growth. Fixed-term contracts as well as further expansion in the client database.

Threats?
Covid does not have an effect on business operations.

What is the reason for the sale?
The Owner runs another factory in Mossel Bay which requires his full attention.

Why is this a good business?
Any business minded individual, who can operate a business online/from home can make this business an even greater success. The employees are trustworthy and reliable - you will not have to be at the warehouse.

What is the price plus stock and the profit?
R 30 000 Stock R950 000 Selling Price R 72 174 Profit

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FRANCHISE DETAILS

Aldes Focus

6 members
55 active mandates
Gauteng , Pretoria East
Menlyn Corporate Park - 4th Floor, Suite H2 175 Corobay Avenue Waterkloof Glen Pretoria , Pretoria East , Gauteng
Pretoria East
0081

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