Fully describe the business's activities?
This manufacturing steel works business specializes in modifications to truck & trailer bodies. They build professional over-lander and game viewer conversions, truck bodies, rails, hunting rails etc. They can customize your 4 x 4 to your desired specification and are extremely neat and professional in their work. Adding further variance and creativeness to their business, they can cut your metal artwork or building signage in their CNC cutting department. They have begun adding new product lines and entering a new market to reignite growth. The aim is to open up new markets and new customer groups, thus improving this company's performance.
How long has the business been established?
This business was established by the current owner in 2013.
How does the business operate on a daily basis?
The owner and his wife run the business together with their existing staff. Jobs are opened and completed per vehicle, truck & trailer. Jobs can take up to a few months to complete although all run on a completion deadline date.
How are the clients attracted to the business?
Clients are attracted to the business through word of mouth, social media and simply put the product that is out there selling itself to the public and tourism industry.
What Advertising/Marketing is carried out?
Only social media is currently carried out.
Does the business have any contract work?
No, this business has no contract work, however they are currently working on securing a contract with a well-known car dealer. They are an accredited approved vehicle body manufacturer with two top vehicle dealers in Namibia .
What competition exists?
There are 4 other businesses in Namibia whom are in similar fields.
What are the seasonal trends?
Their seasonal trends vary throughout the year, depending on what product line they are manufacturing and what demand there is for each product.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
All VAT documentation is available on request.
Are there up-to-date Management Accounts available?
Yes, up to date management accounts are available.
What Balance Sheet and Income Statements are available?
All the Annual Financial Statements are available on request.
What percentage of the business is cash/credit?
70% of the business is cash and the remaining 30 % is credit.
What is the age analysis of the debtors book?
The ageing runs 30 days
How could the profitability of the business be improved?
The business owner feels that if he managed it more effectively he could increase the profit margins.
What is the total staff complement?
There is a total of 22 employees and 1 manager in place.
Give a breakdown of staff/ functions/ length of service?
Over 60% of the staff have been employed from 1 year up to 5 years. Their positions vary from mechanics, fabricators, rubberizes, painters, designers, electrical fitters and general workers.
Do any receive special perks or incentives?
No, the employees do not receive special perks or incentives.
Are they on contract?
Yes all employees have a employment contract.
Do any have management potential?
There is one manager that is currently employed for N$ 600,000.00 per annum.
How involved is the Owner in running the business?
The owner is involved daily in this business.
When does the current lease end?
The current lease ends in 10 years
Is there an option of renewal & what period?
Yes there is an option to renew
What is the annual escalation %?
The escalation is set at 8%
What are the trading hours?
The trading hours are Monday to Friday 07h30 - 17h00
What is the square meters of the business?
The total square meters are 1600 m2
Is a copy of the lease available?
Yes there is a copy available.
Do you require a licence?
No licence is required.
What lease deposit and/or other surety is required?
One months rental deposit is required.
What are the main assets of the business?
The main assets are the plant & machinery equipment
What is their overall condition?
All assets are in good condition.
Do any require repairing?
None require repairing.
How have they been valued ?
All assets are calculated at business value: between the replacement value and the new value, depending on the conditions and repairs required.
Which assets are on lease/HP and with whom?
There are no HP's
Are they presently insured?
All assets are insured
There is endless opportunity in the steel manufacturing business. This business is able to diversify in the market and change its manufacturing product line to achieve better business results and reap more profit.
This business requires constant management making sure that the jobs are completed on time.
There is an opportunity to start exporting this businesses's products. Adding new product lines, or entering a new market is one way to reignite growth. The aim is to open up new markets and new customer groups, thus improving this company's performance
What is the reason for the sale?
The current owner needs a change and has other business opportunities which will not allow enough time to manage this business effectively.
Why is this a good business?
This business has a well-established client base. They have a reputable name with returning clientele.
What is the price plus stock and the profit?
The selling price of this business is N$ 5,995,000.00, with an average monthly profit of N$ 145,668.00