Ref. No - BFS938318

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS938318

Sector - Services

Asking Price
R19,000,000
Monthly Profit
R559,751
Asset Value
R 15,467,104
Stock Value
R 500,000
Yearly Net Profit
R 6,717,015

Summary

This profitable branding business provides screen printing, embroidery, corporate clothing, promotional products and digital branding solutions to a loyal customer base. With experienced management, staff and a strong reputation for quality and service, it offers an excellent platform for continued growth.

Give me more information

Fully describe the business's activities?

This is a successful textile and promotional branding company offering comprehensive visual branding solutions. The company performs screen printing, rotary printing, pad printing, heat transfers, sublimation, embroidery, digital printing and vinyl sticker applications. Products include branded corporate clothing, workwear, school apparel, sportswear, caps, bags, banners, gazebos, promotional merchandise and event branding products.
The business operates as a turnkey branding supplier, offering artwork preparation, logo digitizing, production, finishing and packaging services. Its ability to provide multiple branding methods under one roof differentiates it from many competitors in the regional market.

How does the business operate on a daily basis?

The business processes orders from a well-established national customer base. Orders are received, quoted, scheduled and allocated to production departments according to workload and deadlines. Artwork is prepared internally before production commences.
Production is managed through dedicated departments and supervisors, allowing the business to maintain efficient turnaround times and quality control. Repeat business forms a significant portion of revenue.

What Advertising/Marketing is carried out?

Advertising and customer acquisition are primarily generated through:
• Website
• Referrals
• Word-of-mouth
• Social media platforms
• Repeat customer relationships
The business has traditionally relied more on reputation and customer retention than via extensive advertising expenditure.

What competition exists?

The business competes against:
• Screen printing companies
• Embroidery businesses
• Promotional merchandise suppliers
• Digital printing businesses
• Corporate clothing suppliers
Despite the competitive market, the company's strength lies in its ability to offer a broad range of branding services under one roof together with fast turnaround times and established relationships.
In fact, the business has customers in Gauteng who prefer to send their orders to KZN, instead of sourcing locally. This is primarily due to their competitive pricing and turnaround times.

How could the profitability of the business be improved?

Potential opportunities include:
• Increased digital marketing
• Expansion into eCommerce and online merchandising
• National reseller partnerships
• Expanded corporate clothing supply relationships
• Further development of export markets

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

The business includes:
• Production staff
• Embroidery operators
• Sewing machinists
• Print operators
• Graphic design/artwork department
• Line managers
• Administration and accounts staff
• Sales and customer service personnel
Detailed staff schedules to be provided during due diligence, but it is worth noting that many are long-standing employees & all are South African citizens.

Do any have management potential?

Yes, the business already has established management and supervisory structures.

How involved is the Owner in running the business?

The owner has reduced involvement over the years and concentrates mainly on strategic and financial control. Two managers and key staff manage the business for most of the day. Production meetings are held every weekday afternoon to ensure that the business keeps running at optimal efficiency.

When does the current lease end?

To be discussed with the landlord, who also owns this business via a separate legal entity.
The property is available for sale as a separate option.

What are the trading hours?

Monday – Thursday: 08:00 – 16:30
Friday: 08:00 – 15:30
Weekends: Closed

What are the main assets of the business?

Key production assets include:
• Screen-printing equipment
• Rotary printing equipment
• Heat transfer equipment
• Pad-printing equipment
• Embroidery machines
• Sublimation equipment
• Artwork and design systems
• Production finishing equipment
• Delivery and operational assets

Strengths?

• Established since 2008
• Recognised branding specialist in KZN
• Broad service offering
• Strong base of repeat customers
• Diversified production methods
• National customer reach
• Experienced management team
• Turnkey branding solution
• Strong reputation and referral network
• Long trading history

Weaknesses?

• Reliance on repeat client retention
• Competitive industry environment
• Limited evidence of aggressive marketing

Opportunities?

• Expansion into eCommerce sales
• Corporate uniform supply contracts
• Online promotional products platform
• Increased digital print capability
• Export opportunities

Threats?

• Rising labour and input costs
• Aggressive online competitors

What is the reason for the sale?

Retirement planning.
Location

Contact | Enquire

Gary

Gary Gower

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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