Machinery Manufacturer With Worldwide Niche Markets For Sale

Business description

Asking Price: $1,000,000 to $1,200,000

Sales Revenue: $4,600,000 FY'09 and $2,700,000 FY'10 Forecast

Net Profit: $400,000 FY'09 and $250,000 FY'10 Forecast

Employees: 6 full time, 2 part time

Relocatable: This business can be relocated.

Business Description

The main focus of the business is the design, manufacture and sale of its own product range of marine machinery for high speed aluminium ships, both civilian and military. This is a niche market and the company is well respected worldwide. Over 90% of possible clients in our market sphere deal with us. Most of the product is exported and most of our custom is repeat business. In 2009, this segment provided about 85% of the turnover.

The company has expanded the range of deck machinery to appeal to a broader range of ship builders, thereby increasing turnover.

Between 10 and 20% of sales, depending on the state of the wine industry, is for basket presses used in premium red winemaking. These too satisfy a niche market and are sold within Australia and exported to New Zealand and the United States.

The company has expanded the range of press capacities to appeal to the higher volume premium winemakers who wish to improve the quality of their wine by basket pressing.

Other products include import, sales, spare parts and service of radial piston hydraulic motors.
The business has an exclusive agency covering Australia and Asia, including China, which is shared with the principals. Depending on the state of the mining, timber and agricultural industries, this can account for 10% of sales and has considerable potential for expansion.

Other agency hydraulic hardware accounts for up to 10% of turnover.

Manufacturing processes take place off site with the company managing procurement, inventory control, external sub contract profile cutters, welders, fabricators, machinists and surface treatment specialists. Final assembly and testing to various marine classification society standards is performed in house.

The nature of operation lends itself to purchase as thriving business in its own right or as an acquisition to enhance an existing product range.

Revenue in FY’08 was approximately $3.5 million and $4.6 million in FY’09. Because of the GFC, FY'10 revenue is forecast to be $2.7 million, rising again during FY'11.

The business operates with at least six months of work in hand, and has contracts to June 2010.
Recent successes include extending our marine market in the United States with the end customer being the US Government. There is further potential in the USA for further supply from end 2010.

The company operates under an ISO 9001 Quality Assurance system, audited annually by the American Bureau of Shipping.

Established in 1980 by the present owner.

An Information Memorandum will be issued to interested parties who sign a confidentiality agreement.

Property Information

Real Estate: Lease

Lease Terms: Rent approximately $60,000.00 p.a. plus outgoings.

Location: Light industrial area – 15 mins to CBD.


Other Information

Support and Training: Owner happy to negotiate continued support.

Reasons for selling: Owner wishes to retire.

Trading hours: 5 days, 7.30 – 3.30

Financing available: No

Furniture/Fixtures value: Undisclosed

Inventory/WIP value: $600,000.00 variable, subject to current contracts in hand.

Property information

Real Estate:

Lease