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Tissue Paper Converter Supplier In Durban For Sale

Durban, KwaZulu - Natal, South Africa
Asking Price:
R6,900,000 Furniture / Fixtures included
Sales Revenue:
R18,570,000
Cash Flow:
R3,450,000

The Sale Price of the business is R6.9m, plus stock which at any one stage would be some R1m, while the Net Profit to the owner & business combined was R3.45m off a turnover of some R18.57m. as at the year end Feb 2022; with similar results being experienced presently & expected forward.
This Durban based Tissue paper converter & supplier, has an excellent name & brand, in respect of quality & delivery, over some 19 years. The existing client base & new clients are also attracted by the product range, being : toilet tissue (1-2 ply); dispenser rolls & wipes; serviettes; etc. Virgin raw product is converted by two main machines with 10 competent staff.
2 Tissue converters & 2 Ban-saws & tools - worth R1.1m when purchased around 2012 but depreciated to zero in the AFS, but on a 2nd hand basis some R600 000. They will last at least 10-20 yrs, with really only 3-4 bearing replacements pa & rubberised rollers every 2 yrs.
3 pnuematic compressors
3 x 1.5 ton trucks (backs enclosed) - worth R1.2m when purchased around (2015/2016/2020, with 80k/105k/22k km's on the clock, but depreciated to some R420k in the AFS, while some R600k on a 2nd hand basis.
1 hyster 6 yrs old bought for some R300k but on a 2nd hand basis some R150 000
Also 3 computers & office furniture on a 2nd hand basis of some R30 000
All are in working condition & sufficient for the present turnovers - 5 day 8hr week

Property Information

Real Estate:

Lease

Premises Details:

The premises are rented, within a strategically placed Industrial Estate, which has immediate freeway access.
The total size is some 460 m2 at some R26 000 pm, excl of VAT & utilities of some R 3 700 pm excl VAT; with a 3 year new lease being available, with 10% escalation.

Business Operation

Trading hours:

M-F :

Employees:
10
Years established:
19

Other Information

Support & training:

The Owner is retiring,
however, there is the option to purchase only 50% of the shares of this business initially, as long as there is clarity on the remaining 50% eventual purchase plan (which either way, will certainly provide comfort & security to a Purchaser).

Furniture / Fixtures value:
R1,380,000 - included in the asking price
Relocatable:
This business can be relocated.

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