Plastic Injection Moulding Factory With Innovative Products For Sale

Description

Business type: specialised engineering and manufacturing

Location: approximately 50 km east of Pretoria

Established: 1973

Current status: operating business

Background

Original business activity: tool and die-making

Original market: plastics industry

Current activity: specialised component manufacturing

Customer sectors

• Mining
• Construction
• Agriculture
• Retail

Quality and compliance

ISO9001 compliance: in place

Major mining house client: existing

Supplier award: received from major mining client

Client quality audits: annual

Financial information

Peak annual turnover: approximately R12 million

Current annual turnover: approximately R5 million

Current financial position: close to breakeven

Owner remuneration: approximately R400,000 per annum

Breakeven calculation: owner remuneration excluded

Recent trading position

Turnover trend: reduced from historical peak

Import competition: increased

Market transformation pressures: stated as a contributing factor

Long-standing clients: retained

Proprietary products

Proprietary products developed: 3

Products included in the sale: 3

Products assigned to a client: 2

Worldwide manufacturing rights received: 2 assigned products

Additional product information: available to qualified buyers

Property and premises

Industrial buildings: 2

Building condition: well maintained

Location type: industrial area

Property: available as part of the transaction

Property ownership: separate property company

Recent property valuation: R14 million

Property asking price: R11 million

Assets

Second-hand replacement value of assets: approximately R14 million

Stated discount to asset value: approximately R3 million

Business asking price: R11 million

Asset-only transaction: may be negotiated

Transaction structure

Sale basis: going concern

Going concern VAT rate: 0%

Business and property: both available for sale

Offers: negotiable

Growth options

Identified growth opportunities: 3

Historical turnover reference: approximately R12 million per annum

Buyer requirements

IDC funding: not suitable

NEF funding: not suitable

SEFA funding: not suitable

Audited financial statements for funding applications: not available