A LONG-STANDING MANUFACTURING BUSINESS

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NET PROFIT
$1,031,313 pa

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PRICE
$2,900,000

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STOCK
INCLUDED

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LOCATION
Perth Metro South

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REF NO
RL10602B

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BROKER
Paul Susana

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Manufacturing
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RL10602B

Key Features

  • Operating since 1966
  • Owner retiring
  • Long customer history
  • Extremely good reputation
  • Low stock
  • $750k in plant & equipment
  • Sales up 33% this year

A Long Solid History equals firm foundations for the FUTURE

IT'S THE RIGHT TIME!!

There are a significant number of positive factors that could possibly see WA reclaim its role as Australia’s fastest-growing region and.......

This Business Is Set To Take Advantage Of A Resurgence In The WA Economy And Mining Sector.

Sales up 33% on the same time last year!!

MORE ABOUT THIS BUSINESS

The weakening of the WA economy is evident by the 2016 and 2017 financial years results. A remarkable turnaround happened in 2018 due to an improvement of the mining sector and general activities in related industries followed by another 33% increase in the first 6 months of 2018/19 compared to the same time the year before.

According to Deloitte’s WA Economic Outlook - December 2018:

• The WA economy has continued down the path of slow and steady recovery to officially emerge from recession.
• Western Australia’s gross state product (GSP) grew by 1.9% in 2017/18. Growth was reinforced by slightly higher household spending and an end to the decline in business investment.
• Net international exports were the largest contributor to growth, with mineral and petroleum commodities accounting for 90% of WA’s exports by value.
• There are signs that population growth has turned a corner in WA, with net overseas migration growing by 14% in the year to March 2018, and a slowing in the net outflow of interstate migrants. If population growth follows the most recent ABS ‘medium’ projection, WA could absorb the population equivalent of both South Australia and the ACT combined in the next 50 years.

The consulting firm is extremely optimistic about the state’s future, which it commented on as...

As a result of this increased demand across a variety of minerals, Western Australia has become the second most attractive jurisdiction worldwide for mining investment, up from fifth place in 2017, according to the Fraser Institute Annual Survey of Mining Companies for 2018.

Having moved downward over the previous three years, WA revered the trend and rose three places on the survey’s Investment Attractiveness Index, placing it just behind the US state of Nevada.

In all, 83 jurisdictions were surveyed.

The Association of Mining & Exploration Companies said the state’s rise was driven by a jump of 12 places up the Policy Perception Index (PPI) from 17th in 2017 to fifth in 2018.

The PPI measures the overall policy factors which affect investment decisions, including environmental regulations, taxation, political stability, and labour and skills availability.

Australia’s growing population and expanding industries constantly require more freight movements: to collect their inputs from ports and rail facilities and to deliver their goods to customers across the country. Over the three decades between 1971 and 2007, total road freight grew six-fold, from around 27 billion tonne/kilometres to over 180 billion tonne/kilometres. And that growth is predicted to continue.

At present, there are more than half a million registered trucks in Australia and over 40,000 businesses in the trucking industry.

National vehicle numbers, too, are growing steadily, with both rigid and articulated truck totals increasing:

Of these, 71,474 operate in Western Australia, a number which has grown by 6% since 2013.

There are 15,368 articulated trucks on the register in WA, and numbers have grown by 8% since 2013.

Servicing firms which build, maintain and repair this growing fleet is another market which offers considerable revenue potential which the Business...

Australia’s shipbuilding and maintenance repair overhaul (MRO) sector are made up of approximately 470 organisations that cater to both the defence and commercial market.

Revenue grew at around 4.3% in the 2017/18 financial year, with the sector earning $3.8 billion in revenue during and producing exports valued at $251.7 million.

Western Australia has a thriving maritime construction industry producing vessels from pleasure boats to naval ships, as well as repairing freighters. The state hosts a large volume of shipping traffic, making it an ideal base for those businesses involved in shipbuilding and repair.

With hundreds of millions of dollars worth of work taking place across the sector at any given time, there is a significant opportunity for the Business to gain a foothold in this market.

The commercial construction sector is expected to boom in the coming months and is forecast to experience its best year in more than a decade, according to Building and Construction Industry Forecasts, produced by Master Builders Australia.

The report forecasts growth more than 14.5% (equal to $5.3 billion), meaning commercial building activity will be strong enough on its own to drag the whole industry back into positive territory for the first time in four years.

The MBA says it expects growth to be strongest in Western Australia, along with South Australia and Queensland.

And Deloitte’s Business Outlook Report for the September quarter revealed WA’s engineering and commercial construction sector, which shrunk by 9.4% in 2017/18, is expected to gain an additional $2.3 billion in annual investment by 2022/23.

Almost everything WA does is focused on supplying the international market. Much of what other states do, apart from coal exports, is focused on supplying the domestic market, with the gravest danger being over-reliant on the service sector.

The food, energy and minerals that WA produces provide an essential difference to the rest of the country. Leading WA Business News to recently predict they “will ensure a faster growth rate than other states over the next five years”.

Deloitte is extremely optimistic about the state’s future, which it commented on as part of the Shaping Future Cities A New WA initiative, launched in Perth in November 2018. In the report, Deloitte says:

“Western Australia is better positioned than any other state, and potentially any jurisdiction in the world, to leverage the enormous economic opportunities presented by global challenges, including rapid decarbonisation of economies, digital disruption and demographic change”.


Service and quality are the hallmarks of this business and, after 63 years, it takes considerable pride in the fact that many of its original clients continue to find it the most reliable, cost-effective supplier of its services. It combines a tradition of service and attention to detail with proven facilities and production techniques designed to meet the demand of today’s industry.

LONG-STANDING, LOYAL REPEAT CLIENT BASE
It is reliant on agencies or a few large clients, thus offering excellent stability. Many clients have traded with the business for over a decade, some for 20 years.

OUTSTANDING REPUTATION
The Business has invested in staff and equipment which means it has the capability to produce anything its clients need. This reliability makes it a valued partner to current clients and provides an irrefutable reference with which to attract future customers.

ROOM TO EXPAND
The current premises could accommodate an increase of 30% in output.

LARGE MARKET
The Business currently services the mining, construction industry, shipbuilding, agricultural machinery, transport and any other industry with a need for its components.

LOW STOCK LEVEL – JUST $20,000
Despite the scope of works, it undertakes a wide variety of products but it needs very little stock on hand. Carrying high values of stock will demand higher working capital requirements and unnecessary money tied up during the term of ownership.

PROFITS CAN BE PROVEN 100%
The business has a complete set of verified accounts which clearly show its sales and profitability.

LONG ESTABLISHED REPEAT CLIENT BASE
Not reliant on agencies or large clients reflects a lower than normal risk factor.

GREAT POTENTIAL
This business has been managed exceptionally conservatively, with not even an up-to-date website to promote itself to potential new clients, as well as no proactive sales and marketing effort. Its operations are still paper-based. A new owner, who oversaw the promotion and computerisation of the business, would make considerable gains on both sides of the ledger.

Key Features

  • Operating since 1966
  • Owner retiring
  • Long customer history
  • Extremely good reputation
  • Low stock
  • $750k in plant & equipment
  • Sales up 33% this year

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JUST SOLD

A snapshot of recent successful Business sales include:
  • SOLD IS CASH THE BEST MEDICINE FOR A BUSINESS? - $620,000
  • SOLD THE COOLEST BUSINESS AVAILABLE TODAY!!! - $820,000
  • SOLD AGRICULTURAL INDUSTRY - WHOLESALE - RETAIL - MANUFACTURING - $1,500,000
  • SOLD ARE YOU READY? ALL THE HARD WORK IS DONE…… YOU CAN NOW REAP - $450,000
  • SOLD A RARE FIND INDEED........... STILL LOOKING? - $6,650,000
  • SOLD CONTINUOUS INCOME STREAM!!! - $850,000

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