MANUFACTURE, INSTALL and BANK THE PROFITS

SIMPLE TO OPERATE - RIPE FOR THE PICKING

• Established for 27 years
• Preferred Stratco supplier and dealer
• Low staff and low overheads
• Great reputation in the industry
• Nearly $300,000 in forward orders
• Comparatively low stock for a business of this nature
• In-house fabrication capability
• Work secured by deposit, then 85 percent cash on completion
• Ease of operation – highly systemised and no special knowledge needed
• Steadily increasing sales and profits, even from an artificially limited market base

This business is the longest-serving dealer for a high-profile national supply company.

The first 6 months of the 23/24 financial year showed a net profit of around $170,000. This trend is expected to continue for the remainder of the financial year.

It has the ideal two-way supply agreement, meaning the supply company provides the business with products and they send this business leads – currently more than it can service.

The fact that this business has been around for over 25 years demonstrates its stability to a potential customer, which is an important factor for a lot of people. The arrangement with the national supply company also helps build confidence as it is such a well-known quality brand.

The story of began in 1996 when the vendors founded the business with just a trade assistant offsider. At the time, the business primarily focused on selling and building patios, offering only a limited range of services to its customers.

Despite its humble beginnings, the business quickly began to establish a reputation for quality and service that would become its hallmark in the years to come.

Over the years, the business continued to grow and expand its offerings, taking on more and more complex projects and developing new and innovative solutions to meet the needs of its customers.

Not only sell and install Stratco patios but also their own Homeline brand, fabricated in-house. The materials are supplied by Stratco and the business manufactures the frames in-house.

There is no shortage of quality leads from both word-of-mouth referrals and from Stratco. The current owners have been happy with the current performance, but a new owner could easily increase turnover by adding to the installation team.

The business services around 125 patios per year into the domestic market, with approximately 20 to 30 patios to builders and commercial businesses.

This business also faces low competition. Stratco does not pit it against other dealers, so the business gets a very healthy flow of leads all the time.

This businesses 27-year record of supplying and installing top quality, reliable structures means anyone in the market looking for these products is instantly reassured of the company’s ability to supply. Added to that is its status as the only Stratco-accredited supplier in the area it currently services.

The business is barely scratching the surface of its potential is evident in the fact that the current owners occasionally stop taking new business leads within their own area.

High Gross Profit Margin
Self-propelled sales and a high gross profit margin of 62.9 percent is indicative of a business which is both solid and in a strong growth phase.

COD or payment on completion – low working capital
This is a high cash flow business with some 85% of debtors paying COD. This provides it with an excellent cash flow, which minimises working capital.

Immediate potential to expand the business
Because the current owners are happy with the income they make from this business, they actually ask Stratco to stop sending it leads. The company has the infrastructure to double its turnover with the onboarding of additional team members.

Automatic growth
With a steadily expanding population to service, and with the infrastructure already in place to train more installers, a new owner can easily increase sales and net profit. The business’s products are an essential requirement of almost every new home built and thus revenues will grow in line with population growth.

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