Ref. No - BFS937855

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS937855

Sector - Manufacturing

Asking Price
R18,500,000
Monthly Profit
R691,190
Asset Value
R 3,136,133
Stock Value
R 0
Yearly Net Profit
R 8,294,277

Summary

An established industrial engineering business providing design, manufacture, installation and commissioning of bespoke materials‑handling and mechanical conveying systems. Capability includes silos, belt and screw conveyors, bucket elevators, feeders, screw compactors and dust extraction plants, with selected contracts delivered on a full turnkey basis. With a 37‑year trading history, the business enjoys a strong reputation among large industrial clients and operates an integrated, end‑to‑end model from enquiry and quotation through in‑house design, fabrication, delivery and on‑site installation. Ongoing repeat and referral work underpins a steady workflow, supported by secured contracts and a healthy quotation pipeline. The business owns substantial freehold, insured plant and equipment. An appropriate handover period is available to ensure continuity.

Give me more information

Fully describe the business's activities?

Design, manufacture, install & commission, consulting & fault finding. Projects such as Mechanical Conveying Systems such as Silo’s, Belt Conveyors, Bucket Elevators, Screw Conveyors, Feeders, Screw Compactors & Dust Extraction Plants. Some of the above contracts requiring a complete Turnkey Project.

How does the business operate on a daily basis?

The business operates through a streamlined process designed to ensure efficiency and quality:

• Client Enquiries: Large industrial customers typically initiate contact via email or telephone.
• Quotations: The sales and technical team prepares detailed quotations, which are then sent to clients for approval.
• Order Confirmation: Once quotations are accepted, formal orders are received.
• Design Phase: The in-house design team develops technical drawings and specifications tailored to the client’s requirements.
• Manufacturing: The production team fabricates the specialized equipment according to the approved designs.
• Delivery & Installation: Completed equipment is transported to the client’s site, where the installation crew ensures proper setup and integration into factory operations.
This end-to-end process ensures that each project is customized, precise, and delivered to meet client expectations.

What Advertising/Marketing is carried out?

The business maintains a corporate website to provide basic information and contact details. Beyond the website, minimal formal marketing is undertaken, as the business relies primarily on reputation, referrals, and repeat clients.

What competition exists?

Competitors include larger manufacturing companies, but these are often more expensive and less attractive to customers seeking cost-effective solutions. Some competitors have recently exited the market, reducing competitive pressure and strengthening this business' position.

How could the profitability of the business be improved?

The business offers significant opportunities for growth. The introduction of a Rep to canvas for more business would increase turnover, while a diversification of products would increase the offerings the company makes to its clients. The owners are however reluctant to change the current formula which has served them well

Give a breakdown of staff/ functions/ length of service?

Management Staff:
• Design and Drawing Team (responsible for technical plans and specifications).
• Workshop Supervisor (oversees fabrication and production).
• Site Supervisor (manages installation crews and on-site operations).

Support Staff:
• Receptionist and administrative personnel.
• Skilled workshop technicians and site installation crew.

Length of Service:
• Several employees have long-standing service histories, reflecting stability and loyalty.
• The company benefits from a mix of experienced staff and newer recruits, ensuring continuity and fresh expertise.

Do any have management potential?

There is an identified individual within the company who demonstrates management potential and could be trained to assume a leadership role in the future.

How involved is the Owner in running the business?

The owners are fully involved in daily operations, particularly in:
• Preparing quotations.
• Overseeing procurement and purchasing of raw materials.

Their hands-on approach ensures quality control and strong client relationships.

When does the current lease end?

The current premises are owned by the owners of the business. Lease is renewable every 5 years.

What are the trading hours?

The company operates Monday to Friday 7:15 - 16:15 with an early close at 13:15 on a Fridays.
Closed on weekends and public holidays.

What are the main assets of the business?

The business owns substantial engineering equipment in the workshop. A full asset list is available to prospective buyers.

Strengths?

The business dominates in a niche where it is able to offer its products with little competition at its price offering. Coupled with the reputation the business has for providing the solutions that customers seek, should offer a healthy outlook for work into the future. The business currently supplies 60% of its products to locations outside of South Africa (although through South African companies) and so is less exposed to the South African economic climate.

Weaknesses?

The owners have run this business in its niche very successfully and are reluctant to look for new opportunities to grow or expand.

Opportunities?

More aggressive marketing will increase turnover. More face-to-face marketing with their clients will provide opportunities to produce products outside of their niche market and so leverage, with the same clients, off their reputation.

Threats?

The company is exposed to a particular industry for 40% of its turnover and threats to that industry would influence this share of the turnover.

What is the reason for the sale?

The owners wish to emigrate in the medium term to be closer to their extended families. They would however be available for an extended handover period before leaving and wish to make themselves available to help electronically thereafter.
Location

Contact | Enquire

Gary

Gary Gower

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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