Labelling Supply Business

The business was established in 1995 years ago by the owners. The business specializes in manufacturing labels for a wide range of clients. Just about every business that sells products requires packaging and labelling. The major clients are in the retail, packaging and delivery sectors.

The business has recently increased their manufacturing capacity including a purchase of a vinyl 6 colour printer. This opened a new market for the business and there are quite a number of opportunities available for the new owner to grow the business. The business has a freelancer based in Cape Town, who assists with marketing, sourcing of clients and manage the storage facility. The new owner can could improve the website to gain better exposure and also look at expanding the business by having a storage in Durban in order to increase its market share. This company is current ranked at BEE Level 4 and with an improved BEE Level, this business can gain more contracts from previous and new clients.

With an average monthly turnover R 463,055, a monthly net profit of R 162,479.00 which excludes the monthly discretionary earnings of R80k and the market presence is quite evident for the Asking Price of R7.5 million. The business is priced just below a fair valuation and is therefore a bargain for the new owner.