Quality Concrete Bricks,Paving and Block Manufacturing Business

Description

This well-established concrete products manufacturer is strategically positioned within a high-growth regional construction corridor, operating at a critical point in the building materials supply chain. The business generates annual revenue of approximately R21 million, supported by consistent demand from residential, commercial, and infrastructure developments. A recently secured contract is expected to contribute an additional ±R10 million in turnover over the next 12 months, providing strong forward revenue visibility.Reported profitability is currently understated due to the classification of certain production-related costs as operating expenses rather than cost of sales, resulting in a distorted view of margins and operating performance. After normalising these accounting treatments and adjusting for discretionary owner-related expenses, the business generates approximately R3.0 million in EBITDA on an owner-operator basis, offering a clearer representation of its underlying earnings potential.Key investment highlights include:* Established annual revenue base of approximately R21 million* Secured additional contract revenue of ±R10 million over the next 12 months* Normalised EBITDA of approximately R3.0 million per annum* Proven production capacity and established operational infrastructure* Strong exposure to a demand-driven construction market* Clear opportunities for further value creation through cost optimisation and improved working capital managementThis acquisition presents a compelling opportunity to acquire a fundamentally sound industrial operation with confirmed market demand, identifiable earnings, and a clear pathway for near-term growth and operational improvement.