Summary

The seller is open to : 1. An outright purchase at R1.4m 2, A JV hopefully to allow the company to expand The seller wishes to retire within 3 years, but in the meantime can assist specifically on technical matters as required, while the buyer should have a metal/ fitter/ engineering background or a sales background & hire a techie.

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Fully describe the business's activities?

Line 1: Flexible silicone molds are vulcanised in-house, then utilised in a 3-stage centrifugal machine, to produce small to medium zinc / pewter castings, which are finished by hand or a multistage vibratory machine before out-house electroplating.
A laser machine, is used for engraving & profile cutting various non-metal materials, as well as, making the master samples for branded custom products before molding & production in zinc / pewter.

Line 2: Two 4-slide wire forming machines, that produces various products drawn off a reel, utilised either in tandem with the casting products or separately for a clients own usage. The volume capabilities are +- 5000 pieces per hour, with several existing dies sets which make an extensive range of wire components.
Support equipment includes a Japac Centre lathe, universal Milling Machine, portable gantry to load the wire coils, fly press & die sets for roller buckle assembly.

How does the business operate on a daily basis?

Established clients / agents or new clients, call / email in for quotes, which if accepted become orders, converted to a production schedule, for the owner to produce a mould or the two production staff to manufacture the order.
Finished products are Invoiced & dispatched, with new clients paying on delivery vs established clients paying within 30-60 days.
The present markets are related to the apparel, building, & vehicle industries, with other opportunities available.

How are the clients attracted to the business?

There is a small main client base, as well as, intermittent clients, with new orders/clients arising through two agents, referrals & facebook.
Two distinct opportunities have been identified but the owner hasn't the inclination to push the marketing, sales, production process; noting that the machinery is utilised at some 30-50% of its 8hr daily capacity. which could bring in some R1-2m turnover.

What Advertising/Marketing is carried out?

Nothing

What competition exists?

Very few in the main specific market but more in the general market.

Purchaser Options

The seller is open to :
1. An outright purchase at R.1.4m.
2, A JV hopefully to allow the company to expand
The seller wishes to retire within 3 years, but in the meantime can assist specifically on technical matters as required, while the buyer should have a metal/ fitter/ engineering background or a sales background & hire a techie.

Are there up-to-date Management Accounts available?

yes monthly in arrears, which would show monthly variations
The ALDES Report includes projections to be discussed with the Broker - Cliff Bell

What Balance Sheet and Income Statements are available?

AFS are available

How involved is the Owner in running the business?

The owner is fully involved

Premises details

Situated within a secure industrial complex in an Outer-West Industrial area, the 224m2 factory incl offices, storerooms & toilets, with the landlord open to any lease length at some R17k pm (excl E, W S), with the escalation clause to be negotiated.

What are the main assets of the business?

The general assets are covered within the preliminary part of the report, while a full list is available,
They are more than adequate for the business, in working condition, would cost over some R1 to 1.4m to buy 2nd hand, while some 2-3 times more if purchased new. The seller has apportioned a price of 1m to the assets.
Main items:
1. Centrifugal spin casting 3 stage Italian machine, used with their own 6 and 12 inch silicone molds with special frames.to presently manufacture 1 500 different trims, buckles, medals & Keyrings

2, Three - four slide wire forming machines have auto feeding variable speeds & once set can manufacture up
too 5000 pieces per hour, capable of making the following:
D-rings in various sizes and wire thicknesses 12mm/14/16/20/25/32/40/50mm
Rectangles for sliders and roller buckles 20mm/25/32/38mm
V-trims & other wire components
Loops10mm/25/32/40/50mm
Prongs 5 styles different wire thicknesses

3, Welded D-rings:
sizes: 20mm to 50mm
Thicknesses: 2.5mm - 3.55mm

4, Laser Pro machine Bed size 965 mm x 610 mm, with front and rear pass through.
None metals such as wood, plastic, fabrics. Used for master making, profile cutting,
name plates and trims, laser cutting fabrics, engraving leather bags etc

5, Milling machine Lathe & bandsaw used for machine maintenance & new die making