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ID: 87 Arrow GARDEN ROUTE - PLASTICTS MANUFACTURER- MARKET LEADER - 4 SALE
Hot Offer!!
Financial Information
Price:  R 7,200,000  
Total Annual Sales:  R 11,000,000
Profit Before Tax:  R 630,000
Stock:  R 500,000
Assets:  R 5,300,000
ROI - Return on Investment:  22 %
Payback:  54 months
Category: Manufacturing
Province: The Western Cape
Total viewings : 1301
Description
Business in operation for 12 years. Present owner since February 2007, improving process, systems & management, increasing the efficiency resulting in a strong cash flow for the owner. Well grounded and profitable plastic film & bag manufacturing. Strengths: 1. Outstanding reputation. 2. Existing contracts & infrastructure. 3. Business growing. Well maintained Machinery with capacity for expasion. Weaknesses:1. Business subject to fuel price fluctuation. 2. Raw material obtained from third party. 3. Labour and capital intensive. Opportunities: 1. Establishing own recycling division. 2. Commercial market not exploited to its full potential. Threats: 1. Escalation of energy cost. 2. World economic recession. Previous plant capacity of 90 mt per 5 days working week has ben incresed to 150mt. Capex of arounf R1m has been added for this purpose. Office 8h00 to 17h00; Extrusion staff; 2 shifts 07:00 18:00 and 18:00 to 07:00 for 5 days a week. Other production staff 07:00 to 18:00. No supervision for night shift.
Business History
Form of Ownership
Private Company

Year Established
1999

Year of Acquisition
2007

Business Operations
Full Time Employees
21

Reason for Sale
Owner has been in the plastics industry for 32 years and would like to do something else.
Growth Opportunities
1. Owner has formed a new BEE company (Outeniqua Plastic Refuse Bay Manufacturing (Pty) Ltd.) with inclusion of a well-connected black business lady in Eastern Cape. This has good growth prospects. 2. In process of setting up new plastic recycling plant to ensure reliable supply of better quality of recycled waste plastic available for plastic factory. Land adjacent to the factory has been secured for the new recycling plant.This will ensure that Cost of Sales are reduced and improve market competitiveness.
Business Location
Area
Cape Garden Route
 
Province
Western Cape
 
Country
South Africa
 
 
Business Premises
Retail Space
 100 m²

Industrial Space
 2,900 m²

Rental Amount
R  20,000

Other Important Details
VAT Registered
:Yes

Financials up to date
:Yes

Employee Contracts
:Yes

Internet Connection
:Yes

Telephone Lines
:Yes

Liquor license
:Yes

Parking Lot
:Yes

All assets on file
:Yes

Alternative power
:Yes

Security
:Yes

In Industrial Area
:Yes

Training /Support
:Yes

Technical Skills
:Yes

Marketing Skills
:Yes

Business Broker Contact Details
Name
Kenneth Anthony Maade
Phone: 044 382 3496
Mobile:  082 377 1825
Fax: 086 519 1854
http://www.africabrokers.com
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