$967,890 - Auckland
This is an opportunity for someone with a basic understanding of engineering/production processes to take over and grow a highly successful business. This engineering/contract manufacturing business has been family owned for nearly 50 years. It consistently produces an impressive profit to a single working owner.
The business could easily be grown from its current levels by a purchaser with good sales and marketing skills. The present owner does very little in the way of marketing relying instead on Yellow Pages advertising and the existing name and reputation. All required plant is in place and there is a skilled team of experienced, long serving production staff.
Over $1.2 million has been invested in plant and other fixed assets. The premises are also extensive, and well located for the Auckland motorway network.
A major part of the business is performing high volume contract manufacturing production work for corporate clients. Gross profit margin averages around 45% (after wages and materials costs).
The client base is diverse. In 2018/2019 the largest single client made up 8% of turnover.
- In business nearly 50 years
- High gross profit margins - average 45% across the last four financial years
- Broad range of production capabilities
- Owner does not have to be 'on the tools', and the production staff report to the manager rather than the owner
- Trained, experienced and loyal workforce - average length of service 12 years
- Extensive plant - c$1.2 million of fixed assets at cost
- Large, well located site
- Broad spread of corporate clients - not reliant on any one client
- No bad debts over the last four financial years
- Scope for further growth through marketing
- Monday to Friday operation
- Flexible lease options (the owner is also the landlord)
- Extended handover available by negotiation if required
This business is likely to suit someone with a basic understanding of engineering and manufacturing processes, and good sales and marketing skills.
Net Surplus $351,960 year ended 31 March 2019 EBPITD
EBPITD - Earnings before Proprietor, Interest, Tax and Depreciation