Fully describe the business's activities?
Profitable, owner run business retailing in precast panels, poles, walling, lintels , road kerbs and a large variety of quality precast concrete products. The business sells to a dealer network, contractors, builders, farmers, municipalities, local government and individuals nation -wide.
How long has the business been established?
The business was established in 2015.
How does the business operate on a daily basis?
- Start of day - Management meeting with staff and instructions for the dayâs production / delivery - Casting of material / demoulding of product rotation - Administration of material order, sales, staff etc - Cash client liaison - Receipt of orders from Dealer groups, processing onto system - Checking of stock figures vs orders in hand etc. Check systems are in place. - All products are itemized with weight. - Invoices lined up with delivery notes and transported to clients - Copy of invoice emailed to client as well
How are the clients attracted to the business?
Site visibility â alongside major highway with signage on boundary wall.
What Advertising/Marketing is carried out?
This business has a website however their is opportunity for more intense marketing
What competition exists?
There are around 9 other businesses manufacturing concrete precast products, however this business is one of the largest in its field.
What are the seasonal trends?
The business's busiest production times are from March to November months.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
All Vat documentation is available on file.
Are there up-to-date Management Accounts available?
Yes there are up-to-date Management accounts available on file.
What Balance Sheet and Income Statements are available?
All Annual Financial Statements are available from 2015.
What percentage of the business is cash/credit?
Cash clients range from 20 to 50% of sales in the current trading environment
What is the age analysis of the debtors book?
The ageing averages 30 days from invoice date and rarely runs to 60 days as most sales are COD.
How could the profitability of the business be improved?
Further moulds can be purchased increasing the product range. Profitability can be greatly increased with emphasis on sales generation â better marketing. In terms of production the facility has the capacity to double production with minimal infrastructure changes
What is the total staff complement?
There are a total of 23 staff members.
Give a breakdown of staff/ functions/ length of service?
A break down of staff, functions and length of service is available to interested buyers. The two active owners of the business are involved in the day to day running of the business, together with managers in each department of the business.
Are they on contract?
All employees are in contract.
Do any have management potential?
There are a number of managers for each department in place.
When does the current lease end?
The current lease ends May 2021, however the seller is the owner of the property and will renew the contract at the same rental amount to the new buyer for the first year. Thereafter there will be a annual rental increase of 10%. The period of the lease agreement can be secured for a minimal period of 5 years or more, optional to the buyers requirements. The property is set up to cater for manufacturing purposes, therefore should alternative premises be sourced it would cost around 3 million to move the business. The property includes a concrete cilo and screw conveyor which are the property of a Cement supplier. Rent, electricity, water and security total +/- 32000 including VAT / month.
What are the trading hours?
Monday to Friday - 07h00 to 16h30
Is a copy of the lease available?
Yes a copy of the lease agreement is available.
What lease deposit and/or other surety is required?
One months rental is applicable as a deposit.
What are the main assets of the business?
The main assets of the business are the moulds and trucks.
Are any items not included in the sale?
All items mentioned on the asset list are included in the sale of the business.
What is their overall condition?
All assets are in good condition and are maintained regularly.
How have they been valued ?
The assets have been valued at business value.
Which assets are on lease/HP and with whom?
There are no assets on HP or lease.
This business supplies major dealer networks, municipalities, government contracts and all contractors and individuals through out Namibia. It is owner run therefore strong secure systems are in place and in turn gives a quality customer service to all its clientele. There is an agility to increase capacity.
The building industry has declined in Namibia over the last three years.
Further molds can be purchased which would then expand the product line.
A further decrease in the Namibian Economy.
What is the reason for the sale?
The current owners have around 3 other business ventures which they are apart of. They are looking to streamline their work load.
Why is this a good business?
This business is in manufacturing which offers a great return on investment for an owner in this sector.
What is the price plus stock and the profit?
The selling price of this business is N$13,950,000.00 including an average stock amount of N$ 180,000.00. The annual net profit before tax is N$ 2,100,000.00.