Business For Sale. Steel - Limpopo (lp)

The owner started the business in October 2000. The business is situated in an industrial area and hosted in a factory of 600 sqm roofed with 100 sqm unroofed space. Three phase electricity with 100 A per phase in use.

Current usage is at 85% of available capacity.

With crime at levels as it is in SA, the demand for palisade fencing is still growing. The company manufactures palisade sections of various configurations for supply to the major steel merchants in Limpopo.

These merchants serve as distributors for the products. Private customers for palisades and burglar proofing are serviced as well. Basic mild steel products like angle iron, round bar and square bar is cut, formed and twisted into the building blocks of neat, high quality palisade fences.

Security gates and burglar proofing for the residential customer is made on request, but is not currently a normal product line.

Stock levels are kept low as the suppliers are nearby and delivery quick and reliable. A good relationship between suppliers and this business is exists as the suppliers are also major clients of the company.

Private customers for palisades and burglar proofing make out a minor part of the current business. Most of the products are supplied to steel merchants that act as distributors throughout Limpopo.

Turnover, gross profit as well as net profit shows a steady tendency upwards since 2005 financial year up to Nov 2007 (the last official statements available).

Averaging a monthly turnover of approx R1.180k pm and netting in the vicinity of R90k pm. GP is 16,6% and net profit is 8% .

The market for this products is ever growing. Demand for installations of palisades as well as security gates, building of support walls for palisades, and electric fencing on palisades, are all well in demand. The owner does not want to expand his business to these levels as his future plans are in something else.

The range of products, i.e. wider range of palisade profiles, should be expanded. The business has got the potential of two to three full divisions that should be managed as independent cost centres under one name.

The following should be considered: manufacturing of palisades for the merchants and upper market households, palisades for the lower end of the market, installation and maintenance of electric fences and gates, building support walls for palisade fences.

Some of these services were rendered in the past, but were dropped when manufacturing for the merchants demanded more man hours and the owner didn't want to expand his workforce.

A very profitable business with ample room for growth. The price is in all aspects very reasonable. For the practical man that wants a business to involve his family, this business is for you. If you like to manage people and projects, bring your expertise and creativity to the table in partnership with this well established, profitable business and you will never look back.

This business has it all: the right product at the right time in the right market with so much possibilities for expansion, you should not miss the opportunity!!!