"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
This company has a strong market position in the Western Cape manufacturing and retailing school uniform for 14 schools in the Cape Town area.
1989 First retail customer was Logans (Sportsman`s Warehouse), supplying their 2 stores with a range of ladies tennis clothing. Thereafter supplied several small retail outlets and schools throughout the country
2001 Moved to first premises when they grew too large to be accommodated for their home workshop. The Shop is now accommodated at these premises
2003 Moved to second premises where the factory is situated
2003 to date: Expanded clothing range to include sport, bowls and general promotional clothing, designing ranges for numerous Western Cape and local club sports teams
How long has the business been established?
Since 1989
How long has the owner had the business?
Since inception
What steps are in place to solve 'load shedding' problems?
The business has 2 generators which were recently serviced.
How does the business operate on a daily basis?
They have always been involved with the designing of ranges, sourcing of fabrics and trims, general running of the production and have been able to maintain their high standards of design and quality.
Their customer service ethos and relationships â they have a long-established association with most customers, some for over 20 years that they still supply to this day.
Loyalty to their suppliers including a close relationship with a couple of small and expert CMTâs and textile companies.
Numerous schools and sports teams have invited them to redesign their clothing to bring it up to date in style and the use of modern and comfortable fabrics.
How are the clients attracted to the business?
They are well known in the area and have grown organically over the years.
What Advertising/Marketing is carried out?
None, predominantly word of mouth.
What competition exists?
There are other manufacturers, however this company has been supplying school uniforms for a number of years to the 14 schools on their books.
What are the seasonal trends?
November to end January Peak sales â Back2School
March to May Peak sales â Back2Winter uniform
August to October Moderate sales - Summer term 4 (learners have often outgrown some items)
June to August Low sales - however winter sports maintain a constant trade.
Is the business VAT Registered?
Yes, the business is vat registered.
What VAT documentation is on file?
All documentation is on file.
Are there up-to-date Management Accounts available?
Recent management accounts available.
How could the profitability of the business be improved?
The business is in a position to be scaled through supplying other schools in the area.
What is the total staff complement?
17 staff including the manager.
How involved is the Owner in running the business?
The owner is involved in the business on a daily basis, however she has relocated and scaled down her daily involvement passing on more responsibility to her manager.
When does the current lease end?
The seller of the business is also the owner of the property and will enter into a lease agreement with the buyer.
Is there an option of renewal & what period?
Arc Uniform Shop 210sqm @ R 65.00p/sqm R 10 000.00
Arc Sportswear Factory 300sqm @ R 65.00p/sqm R 27 000.00
198sqm @ R 55.00p/sqm(mezzanine)
Excludes Vat, services and electricity
What is the annual escalation %?
3 to 5 year lease with 8% escalation.
What is the square meters of the business?
700 sqm.
What lease deposit and/or other surety is required?
2 months rental deposit will be required.
What are the main assets of the business?
A full asset list will be provided to a qualified buyer.
Are they presently insured?
All assets are comprehensively insured.
Strengths?
1. Consistent and Predictable Demand
Recurring Need: Schools require uniforms every academic year, creating a steady stream of repeat customers.
Bulk Orders: Institutions often place large, bulk orders, which can stabilize cash flow and reduce marketing costs.
2. High Customer Retention
Once a school or district partners with a manufacturer, they tend to stick with reliable suppliers to maintain consistency in design and quality.
This leads to long-term contracts and predictable revenue.
Weaknesses?
- Seasonal Sales Peaks: High dependency on back-to-school seasons can lead to uneven cash flow.
- Inventory Management: Risk of overproduction or underproduction if demand forecasts are inaccurate.
- Limited Market Flexibility: Focused product line may limit diversification opportunities.
- Price Sensitivity: Schools and parents may prioritize cost over quality, squeezing margins.
Opportunities?
Scalability:
The business can scale by:
- Expanding to more schools or districts.
- Offering additional products like sports uniforms, accessories, or seasonal wear.
- Entering new geographic markets.
Government and Institutional Contracts
- Many regions have government-funded school uniform programs, which can be lucrative if you secure a contract.
- These contracts often come with guaranteed payment terms and large volumes.
Golf wear
- Prior to covid the business manufactured clothing for the Proshop group as well as a number of Golf clubs around the country - this opportunity can be rekindled by a new buyer.
Threats?
- Economic Downturns: Reduced school budgets or household spending can impact sales.
- Competition: Both local tailors and large-scale manufacturers may undercut prices.
- Policy Changes: Shifts in school uniform regulations or moves toward casual dress codes.
- Supply Chain Disruptions: Delays in fabric or material sourcing can affect delivery timelines
What is the reason for the sale?
The owner is reaching retirement age and is looking to relocate.
Why is this a good business?
This is a good business for the following reasons:
- Consistent and Predictable Demand
- High Customer Retention
- Low Fashion Volatility
- Scalability
The business is currently supplying 14 schools, which includes manufacturing the uniforms for the schools, uniform retail store and online store.
This is a sought-after business with many growth opportunities.
Annual Turnover Amount between R 500 thousand and R 6 million
