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Large Fire Extinguisher Supply Testing And Maintenance Business For Sale

Johannesburg, Gauteng
Asking Price:
R8,500,000 Furniture / Fixtures and Inventory / Stock included
Turnover:
R18,000,000
Net Profit:
R4,000,000

The company is essentially a CO2 Specialist. Business activities include the annual testing of fire extinguishers which contribute 30% of annual revenue, the repairs and maintenance of fire extinguishers (30%) and the supply of a wide range on new fire extinguishers and related products. (40%)
-The business is accredited and is testing against SABS standards.
-There are 7 teams that service roughly 20 clients every working day with over 4500 sites serviced every year. Products include standard mobile CO2 fire Extinguishers but there are over 1000 lines when all the accessories and related products are considered.
-Invoices ranges from as low as R300 to R100,000 for large products where new buildings are equipped with requirements.
The business has a large concentration (80%) of customers within 30km radius from their operation but also have some major blue-chip listed companies they service nationally.
- Legislation require all business to have Fire Extinguishers in the workplace and also that these require testing once a year.
Clients are therefore approached on a rotational basis.
- The business has a website and carry out electronic marketing through Google advertising to source clients with needs.
- Word of mouth also contribute to improved awareness and some selected Promotions and Publicity generate enquiries.
- There are 2 sales persons employed that follow up on all enquiries.

Property information

Real Estate:

Lease

Lease Terms:

Negotiable term and escalation.

Leasehold Rent:

30,000/m per annum

Location:

Established for 47 years operating from the same site with 80% of clients and customers withing a 30km radius of the premises.

Premises Details:

Owned by seller. Can be acquired (R3,0m), rented (R30,000/m) or relocated

Size in square feet:
~500m2

Business Operation

Expansion Potential:

The business has gone through a major consolidation phase and focused on the quality and quantity of the team and also improved margins by improving procurement policies and costs. This should have a continued and lasting effect on the business bottom line.

A weakness is that it does not have diversified services like some of its competitors such as fire detection and sprinkler systems which could also be an opportunity for the new owner to explore.

Investment in a further testing machine could also yield improved capacity and reduced lead times.

Increased marketing and sales activities in order to expand the customer base.

Competition / Market:

- There are literally a 100 or more operators in the territory.
- Between 3 and 5 of these are regarded as close competitors who can offer a similar level of capability and sophistication as offered by the selling company.

Reasons for selling:

The Sellers are emigrating.

Trading hours:

Monday to Thursday 07:30 – 17:00
Friday: 07:30 to 15:30.

Employees:
32
Years established:
47 Years

Other Information

Furniture / Fixtures value:
R2,500,000 - included in the asking price
Inventory / Stock value:
R1,800,000 - included in the asking price
Relocatable:
This business can be relocated.

Contact Information

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