Summary

Offers engineering, machining, fabrication, presswork, jigs, tool and die making to clients in the manufacturing sector.

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Fully describe the business's activities?

Precision machining, presswork, jig manufacture, tool and die making, engineering and fabrication of parts and equipment for clients.

How does the business operate on a daily basis?

Drawings are received, quoted and orders placed prior to execution.

What Advertising/Marketing is carried out?

Limited - mostly word of mouth - high % of repeat business.

What competition exists?

Two engineering shops are located in the area - providing in-house design and manufacture remains a key competitive advantage. In addition the installed asset base offers a 1-stop solution to most engineering requests.

How could the profitability of the business be improved?

The owner is the manager and is on the floor daily, prepares quotes, drawings and engages with the clients. A second manager with an engineering background would free up time to secure additional work. Previous managers have been headhunted.

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

Bookkeeper - 9 years
Foreman - 13 years
4 skilled artisans - 17, 13, 12 and 10 years respectively.

Do any have management potential?

The Foreman can manage day to day aspects of the business in the absence of the Owner but not complex issues nor drawings and quotes.

How involved is the Owner in running the business?

He is very involved in the business - works on the floor, in the office and meets with clients.

When does the current lease end?

The premises are owned by the business owner. Negotiations are in progress to sell the 4 units currently occupied by the business. If sold the new owners will offer an 18 month lease.

What are the trading hours?

Monday to Friday 06.45 - 16.15 plus Saturdays if urgent work needs to be done.

What are the main assets of the business?

3 x CNC milling machines
1 x CNC lathe
1 x Guillotine
1 x Bendbreak
1 x 250 t press
1 x 160 t press
1 x 55 t press
1 x 35 t press

Strengths?

Have been accorded preferred supplier status by large strategic manufacturer - current order book + R 4.0M
Provide a manufactured product to a euro based client - 19 years and ongoing.
Strong asset base to offer engineering solutions
Commercially cost competitive