Manufacturer Of Vinyl Products For Sale

Business description

This Business is a niche manufacturer operating mainly in the upholstering, automotive and marine trimming industries. The company provides stock vinyl trim products via a nationwide network of distributors and direct to end users as well as performing custom jobs on customer supplied materials.

The business was established 23 years ago and has been owned and managed by the current owner for the last three years. The business is being sold to allow the owner sufficient time to manage other business and family commitments.

The company is very well known in the trade and obtains a lot of business purely through its reputation. It has recently secured a lucrative order to supply trim products for the Sydney Rail Authority.

Operations:

The business is currently operated by the owner and one part-time staff member. Operating hours are Monday to Friday, 9.30 a.m. to 5.00 p.m.

The business operates out of leased premises of approximately 200 sq. metres and pays a monthly rental of $1,375. The lease expires on 30th September 2008, and there is one three year option for renewal.

A full list of plant and machinery will be provided and is currently valued at about $56,000 and is included in the purchase price. This includes a Crown walkie stacker leased under a hire purchase agreement at a cost of $545.22 per month.

The owner does assist with production, but his main tasks are buying, selling and management.

Market / Customer:

The company’s products are marketed via direct contact, email and mail outs to its extensive customer base, distribution of sample cards and a website.

The business has approximately 150 customers on its data base, of which 54 purchased directly last year with 15 purchasing regularly on a monthly basis. Distributors account for approximately 53% of sales, with 38% to larger customers and the balance to trade customers. Most end users are in the upholstering, auto trim or boat building industries. There is very little competition for the products being produced by the company, and only one real competitor in Melbourne for the custom work being undertaken.

Products / Services:

The products produced by the company are mainly:

• Piping
• Hidem binding
• Raw edged binding
• Folded binding
• Some specific customer related processes

The process is largely one of converting large rolls of vinyl and associated materials through slitting, coating, folding or sewing, according to customer requirements. The slitting process is important as there are not many machines in Victoria capable of performing this function.

Plant/Equipment / Fittings:

The following equipment is included in the purchase price.

• 1 Facsimile Machine
• 1 Coating Machine
• 1 Slitting Machine
• 1 Dust Extractor
• 1 Vacuum Cleaner
• 3 Piping Machines
• 2 Twin Needle Sewing Machines
• 1 Portable Sewing Machine
• 2 Slitting Knives
• 1 HP Pavilion Computer
• 1 HP Printer
• 2 Driven Winding Machines
• 2 Batching Machines
• 2 Gymping Machines
• 6 Gymping Knives
• 1 Microwave
• 1 Crown Walkie Stacker
• 1 Binding Folder
• 1 IBM Think Centre
• 1 Brother Fax/Printer
• Various office equipment and furniture


Transfer of Ownership

The owner will grant a generous hand over and training period, if required.

Property information

Real Estate:

Lease

Lease terms:

1x3 year option to renew in September 2008

Other information

Trading hours:

Mon to Fri 9:30 to 5:00

Furniture / Fixtures value:

$56,000 (included in the asking price)