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Annual turnover

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  • Mandate: 36257
  • Added: 06 Feb 2024
  • AFS
  • 1263

Manufacturer of natural stone memorials

KwaZulu-Natal, Durban
1263
Mandate 36257
Added 06 Feb 2024
R 3,500,000* ZAR
Stock: R 500,000
Assets: R 3,852,000
R 86,291 ZAR
Nic Nortje
(PRINCIPAL)
Aldes Prestige
KwaZulu-Natal, Hillcrest
KwaZulu-Natal, Hillcrest
Summary

Manufacturing facility producing a range of tombstones since 1989!

Manufacturer of natural stone memorials
SELLING PRICE AFS
R 3,500,000* ZAR
Stock: R500,000
Assets: R3,852,000
R 86,291 ZAR
Summary

Manufacturing facility producing a range of tombstones since 1989!

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Fully describe the business's activities?
Manufacturing of natural stone memorials and monuments.

How long has the business been established?
34 years (1989)

How long has the owner had the business?
8 years

What steps are in place to solve 'load shedding' problems?
100Kva back-up generator – runs factory and office. Still new – less than 100 hours.

How does the business operate on a daily basis?
• Customers make enquiries via telephone, Whatsapp, social media or website and sales staff respond with quotes, OR
• Customers walk-in for quotes.
• Manufactured tombstones are either dispatched for installation in cemeteries or customers come and collect from us.

How are the clients attracted to the business?
Strong trusted brand. Quality products and service.

What Advertising/Marketing is carried out?
Mainly social media with occasional print advertisement

Does the business have any contract work?
Yes. Sole supplier to Jewish Cemetery.

What competition exists?
Mostly smaller manufacturers

What are the seasonal trends?
Winter months and year-end

Is the business VAT Registered?
Yes

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
AFS completed every year

What percentage of the business is cash/credit?
90% cash - 10% credit

What is the age analysis of the debtors book?
Negligible. Tombstone industry is cash positive. Retail customers pay in advance before their order is put into production.

How could the profitability of the business be improved?
Re-open a network of retail branches around KZN.

Is Seller finance available and for what amount?
Yes. A R2.5m deposit upon signature of sale agreement and R100k/ month for 25 consecutive months.

What is the total staff complement?
15

Give a breakdown of staff/ functions/ length of service?
Key factory staff have 10 years plus service each. Finance and Admin employee has 25 years’ service.

Do any receive special perks or incentives?
Year end bonus depending on Company financial performance.

Are they on contract?
Yes

Do any have management potential?
Finance and Admin lady can be a Finance Manager. Two in factory can be promoted to a Factory Supervisor.

How involved is the Owner in running the business?
General supervision of all aspects of the business to ensure optimal running although all staff know their roles and business does run on its own.

When does the current lease end?
July 2027

What is the annual escalation %?
8

What are the trading hours?
Mon to Thu (7:15 to 16:30); Fri (7:15 to 15:30)

What is the square meters of the business?
200sqm premium offices + 260sqm other rooms (pottery studio, storerooms and change rooms) + 1800sqm factory space.

Is a copy of the lease available?
Yes

What lease deposit and/or other surety is required?
No deposit. Personal and Company surety as shown in lease.

What are the main assets of the business?
Bridge saws, compressors, material handling equipment and polishing machines.

Are any items not included in the sale?
• 1 forklift. Storage container in Margate with solar system. Both recently purchased.
• Some old machinery in storage – bought as scrap.

What is their overall condition?
good

Do any require repairing?
Yes, but minor repairs. Mainly cosmetic – new paint etc.

How have they been valued ?
Fair 2nd hand value

Are they presently insured?
yes

Strengths?
• Tombstone industry is very resilient driven by black community traditional beliefs.
• Strong brand established in 1989.
• Experienced staff.
• Durable, reliable equipment.
• Prime location of factory.
• Safe and secure. Was not affected by recent floods. Quality workmanship and on time in full delivery.
• Load shedding proof.
• Adequate spare capacity to service large contracts.

Weaknesses?
• Branches have been closed over the years which has affected Company’s solid reputation.
• Too reliant on sales direct from factory.
• Not utilising equipment to full potential in terms of production hrs – currently only about 40% utilization.
• Current owner does not have cash flow to invest in the opportunities below.

Opportunities?
• Grow a branch network and/or franchises.
• Tender for large contracts eg. Avbob, Doves.
• Allow undertakers to buy on account.
• Marketing campaign to boost exposure.
• Develop Online ordering system.
• Upgrade trucks to newer models
• Tender for government work
• Increase utilization of equipment.
• Open a kitchen countertop division.

Threats?
• Smaller fly-by-nights cutting prices, doing inferior work and stealing customers deposits hurts the industry.
• Rising interest rates and other costs of living reduces customer disposable income to buy tombstone.
• High unemployment rate.

What is the reason for the sale?
Tough trading conditions since COVID resulted in the business not accumulating enough cash to purchase the operating premises which was a key objective for the owner. Business needs cash injection to resurrect it back to the leading supplier of tombstones in Durban and take advantage of the opportunities mentioned.

Why is this a good business?
There will always be a market for tombstones, as people pass on, and in some communities cultural norms do not allow for cremation. This business has survived over 30 years and more recently the effects of COVIDs, floods, riots etc. The next owner has a solid base to grow it to its full potential to once again be the market leader in Durban.

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AGENCY DETAILS

Aldes Prestige

2 members
11 mandates
KwaZulu-Natal , Hillcrest
2 Old Main Road, the Brook Block B, Suite3 , Gillitts.
Hillcrest
4016

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