Niche manufacturer of steel bright bars with an established client base.

Gauteng
Industrial & Manufacturing
Client Code: BM007298
Turnover (Actual): R92,608,135
EBITDA (Actual): R3,801,348

Our client is a manufacturer of specialised steel 'bright' bar by means of extruding hot formed mild steel ‘black’ bars through a cold-drawing process. The bright steel bars are geometrically precise and straight within tolerances. The company has an established customer base which provides repeat business and long term projects.

Key Aspects
  • Highest quality, niche product range of steel bright bars, available in a range of sizes and die patterns.
  • Unique, specialised extruding process with proprietary machinery that reduces material wastage.
  • The established customer base of equipment and component manufacturers provides repeat business as the company's products form integral parts in its customer's equipment.
  • The company's customer-centric culture is well-entrenched in their long-serving staff.
  • Long-term project orders provide ongoing revenue for reliable forecasting.
  • The company practices prudent cash flow management for achieving the best prices through bulk steel purchases.
Opportunities
  • The company plans to build a new extrusion machine to cater for the uptick in demand.
  • Additional shifts would enable the company to scale production without capital expenditure.
  • Improved marketing could attract new customers.
  • Relocation of the factory or merging it with another company's operations is possible.
  • An acquirer may opt to introduce new synergistic products into the offering.
Headquartered

Gauteng, South Africa