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.