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Highly Profitable Foundry In Durban For Sale

Durban, KwaZulu - Natal
Asking Price:
R23,800,000 Inventory / Stock included
Sales Revenue:
R64,000,000
Cash Flow:
R8,000,000

SOLD BY ALDES March 2015

Long established highly profitable foundry in Durban. An excellent Sale Price of R23.8m (incl +ve net current assets and incl stock of over R5m) with a NPBIT of approx R8m pa, on a turnover of some R64m, while the property is available at R19m.

Long established Foundry utilizes electric induction plant to produce various metallurgical castings (below 10tons) mainly using river sand/resin moulds derived from the main moulds that belong to the Foundry or the client. The clients cover all industries with the main contributors to turnover being Blue Chip Co's, with an order book generally between two-three months average turnover. Higher profits being achieved with movement up the value chain.

Clients orders are normally placed 1-2 months in advance and are planned for casting with similar casting orders, through a computer programme to ensure efficiencies. Moulds are made or drawn from stock and prepared in advance of casting. On the day of casting, management utiising the production planning programme set out the requirements and procedure to be followed by staff; inclusive of inputs of sand/resin, metals, etc.

Established profitable foundry with good systems, management and staff in place, generating cashflows that exceed NP after Tax, through enhanced technology and movement up the value chain.

The plant, which is in good working condition, obviously has a productive value, but has been depreciated within the Balance Sheets. The owner will engage a prospective buyer on the true value thereof and all other ancillary equipment/ office equipment.

Property information

Real Estate:

Real Property Included

Location:

Durban, KZN, South Africa

Premises Details:

The premises which are suited to the foundary have additional land for expansion if required and are owned by a sister company that wishes to sell the property as well, at a price of R19m.

Business Operation

Reasons for selling:

The main shareholder wishes to retire and the other shareholders are willing to sell to realise their investment and allow a new owner to take the Company forward

Trading hours:

40hr week

Employees:
114
Years established:
more than 50 yrs

Other Information

Support & training:

The Owner will assist in all regards, however with capable management (incl a CEO) and staff in place (main shareholder withdrew from active participation over the last few years) this business could even operate with a sleeping/institutional investor.

Financing available:

N/a

Inventory / Stock value:
R5,000,000 - included in the asking price

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