History and Overview Of The Business
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| Fully describe the business's activities |
Manufacturer and importer of specialized glass containers used in the pharmaceutical and cosmetic industries. The company also prints on glass containers for clients and packages and fills the containers for some clients with the clients products. |
| When was the business established? |
The business has been established since 2010 and was established by the owner. |
How Does The Business Operate
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| How does the business operate on a daily basis |
Manager/machine setter opens and closes the business on a daily basis. He also ensures all machines are up and running for the day. Owner signs of all purchases and operates at a strategic level. Orders from clients are processed by sales dept and there is a resident bookkeeper in place. |
| How are the clients attracted to the business? |
There is 1 x Sales Rep on the road plus the website attracts business. Google Adwords are also used to ensure attraction to the website. |
| Does the business have any contract work? |
The industry in which they operate does not work on a contract basis but does work on a "preferred supplier" basis. Customers include "blue chip" pharmaceutical companies and cosmetic companies. They do not change suppliers easily and this is a barrier to entry to new competition. This company is also the only local manufacturer of certain glassware used by the pharmaceutical, healthcare and cosmetics industries. |
| What competition exists? |
None really on the local manufacturing side. The company also imports certain items |
| Seasonal Trends? |
June and July is very busy. Rest is constant. They close for 3 weeks in December/early January. |
Financial Information
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| Vat Registered? |
Yes, the business is VAT registered. |
| Vat Documentation on File? |
Normal VAT returns and documentation is on file. |
| Audited Financials? |
February 2019. |
| What as Cash/Credit Split? |
he big corporates pay by EFT. There is an element of cash from some other clients. |
| Debtors Book Age Analysis |
Mostly 30 days |
| How can you improve the profitability? |
If the new owners are interested - government work could be very large. The owners have not really pursued this revenue stream. |
Staffing Of the Business
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| What is the total number of Staff? |
16 x Factory Floor Workers; 7 x Office Staff (including owner) ; 1 X Sales; 1 x Bookkeeper; 1 x Buyer/Dispatch; 1 x Machinery Maintenance; 1 x Factory Supervisor; 1 x Quality Control, 1 x Receptionist |
| Staff Special Perks and Bonuses? |
Bonuses at year-end are only paid at management's discretion. Staff have medical aid and pension fund. |
| Are the staff on Contract? |
Yes, staff have letters of appointment. |
| Does any of the staff have management potential? |
Yes, the bookkeeper and the dispatch person have definite management potential. |
| How involved is the Owner in running the business? |
The owner is involved in the business everyday however frequent breaks are taken. |
Premises Of the Business
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| When Does the Current Lease ends? |
The current lease end in February 2022. |
| Is there an option to renew? |
Yes, there is an option for renewal which is normally for 3 years. |
| What is the annual escalation % |
At the moment there is no escalation. |
| What are the Trading Hours? |
Monday to Thursday: 7.30 am to 4.30 pm. Friday: 7.30 am to 1.30 pm. |
| What is the square meters? |
The factory, warehouse and offices combined are 1 800 square meters. |
| Is a copy of the lease available? |
Yes, copy of the lease is available. |
| Do You require a license? |
No special licence is required to run this business. |
Assets Of The Business
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| Full Asset List available? |
Glass vessel manufacturing machines; labeling machines; filling machines; glass cutting machines; test tube machines; "dropper" machines; bagging machine; assembly machines for teats and caps; plastic wrapper machine; 1 x 8 Tonner Truck; 1 x bakkie; office furniture and equipment; computer equipment. |
| What is condition of the assets |
Good to excellent. There is a full time maintenance man on site. |
| Any Assets on Lease/HP that Buyer needs to take over? |
All assets are fully paid for. |
| Are they insured at the moment? |
Yes, all are comprehensively insured. |
SWOT Of The Business
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| STRENGTHS |
Nicely profitable. Corporate clients. No local manufacturing competition. Product knowledge of all the staff. Excellent Service skills of the staff. |
| WEAKNESSES |
Normal economic conditions. However their products are always needed. |
| OPPORTUNITIES |
Government work could be huge growth for this company. More reps on the road will also make a difference to top and bottom line. |
| THREATS |
Imports can sometimes affect pricing in the market but the company has moved into doing certiam imports itself to negate this threat. |
Summary
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| Why is this a good business |
Good profitability. Corporate blue chip clients. Nice lifestyle for owner. No real competition in SA on the local manufacturing side. |
| Why is the owner selling it? |
The owner wishes to retire. |