How does the business operate on a daily basis?
The business purchases ferrous and non-ferrous scrap metal from members of the public and also conducts collections from suppliers when required.
Incoming material is weighed either on the vehicle scale or smaller platform scales, after which the seller is paid according to the type and weight of the material.
The scrap metal is then processed by employees who strip, sort and clean the various materials.
All transactions and material details are captured electronically, with values allocated to each category of scrap.
Once sufficient volumes have been accumulated and sorted, the materials are sold in bulk to wholesale scrap metal buyers and recyclers.

How are the clients attracted to the business?
This is a well-established small to medium-sized recycling operation that enjoys strong recognition within the local community.
The business attracts suppliers primarily through word-of-mouth referrals, repeat business and its reputation as a reliable buyer of scrap metal in the area.
Over the years, the business has developed a loyal supplier base and has become a well-known collection point for both ferrous and non-ferrous scrap metals.

What Advertising/Marketing is carried out?
The business relies mainly on word-of-mouth referrals, repeat customers and its strong reputation within the local community, with minimal formal advertising required.

Does the business have any contract work?
Not Currently

What competition exists?
The business benefits from limited direct competition in its immediate trading area.
Over the years it has established a strong reputation for fair dealing and reliable service, resulting in a loyal supplier base and a high level of repeat business

Is the business VAT Registered?
yes

Are there up-to-date Management Accounts available?
The seller is willing to discuss the business's financial and operational performance with suitably qualified purchasers.
Additional information will be provided during due diligence.

What Balance Sheet and Income Statements are available?
The 2024/ 5/ 6 Annual financial statements were available to the Broker for analyses

What percentage of the business is cash/credit?
The business is largely cash-based, with most transactions conducted on a cash or immediate settlement basis.
Credit accounts forms only a small part of the overall operation.

How could the profitability of the business be improved?
Increase scrap collection volumes and supplier relationships.
Improve recovery rates of higher-value metals.
Expand collections into surrounding areas.
Further streamline operational efficiencies.
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Is Seller finance available and for what amount?
To be discussed

What is the total staff complement?
It varies from 3 people to 15.
Depending on the projects and on how busy it gets.

Give a breakdown of staff/ functions/ length of service?
The staff mainly perform recycling duties in the yard.
Separating Ferrous from non-ferrous metals and helping clients

Do any receive special perks or incentives?
No

Are they on contract?
No

Do any have management potential?
Yes

How involved is the Owner in running the business?
The owner is actively involved in the day-to-day operations of the business.
He resides on the premises, oversees the recycling activities, manages supplier payments and captures transaction data on the business's computer system.

When does the current lease end?
The business operates from leased premises and currently rents the site from PRASA.
The monthly rental includes water and electricity, providing a predictable occupancy cost structure

Is there an option of renewal & what period?
yes , 3 years or 5 years

What are the trading hours?
The business operates six days per week, trading from Monday to Friday between 07:00 and 16:30, and on Saturdays from 07:00 to 12:00.
The business is closed on Sundays.

Is a copy of the lease available?
yes

Do you require a licence?
The seller advises that the business currently holds two licences with SAPS.
Based on the nature of the operation, these are likely to relate to registration as a Second-Hand Goods Dealer and a Recycler in terms of the Second-Hand Goods Act.
Prospective purchasers should verify the status, validity and transferability of all licences and registrations during the due diligence process

What lease deposit and/or other surety is required?
2 months rent - which is payable with a new lease agreement

What are the main assets of the business?
The business is being sold with a range of operational assets, including a UD40 truck, Nissan NP300 LDV, two forklifts, two weighbridges, workshop tools, office equipment, wendy houses and various household items used in support of the operation.

In addition, the business benefits from its established supplier network, operating licences and strong reputation within the local market.
The seller has also indicated that a simplified operating system and handover process will be made available to assist the new owner with the transition.

Are any items not included in the sale?
The OS is specifically built for the current Business that's why the Software cant be sold.
Arrangements can be made to acquire software based on needs

What is their overall condition?
Fair

Do any require repairing?
Small oil leak on the small Fork lift
Seals need to be replaced on the big forklift horizontal system

How have they been valued ?
The assets was indicated at a highly depreciated value
Asset list available

Which assets are on lease/HP and with whom?
Nothing

Are they presently insured?
yes

Strengths?
Well-established business with a strong local reputation.
Limited direct competition in the immediate trading area.
Loyal supplier base supported by repeat business and word-of-mouth referrals.
Includes a range of operational assets, vehicles and equipment.
Simple business model with predominantly cash-based transactions.

Weaknesses?
Business remains owner-dependent in certain operational and administrative functions.
Earnings are influenced by fluctuations in scrap metal prices.
Limited scalability without additional working capital and operational resources.
Operates from leased premises and is therefore dependent on lease continuity.

Opportunities?
Increase scrap volumes through additional collection services.
Expand relationships with commercial and industrial suppliers.
Improve profitability through more efficient sorting and recovery of higher-value metals.
Extend the existing supplier network into surrounding areas.
Opportunity for a hands-on owner to further grow and streamline the operation.

Threats?
Fluctuations in scrap metal prices can impact profit margins.
Changes in industry regulations or licensing requirements.
Increased competition from larger regional recycling operators.
Theft and security risks associated with handling metal and cash.
Loss of key suppliers or reduced scrap volumes in the area.

What is the reason for the sale?
Retirement and focusing on a different industry

Why is this a good business?
Well-established business with a strong reputation and loyal supplier base.
Limited direct competition in the immediate trading area.
Includes valuable vehicles, equipment and operating infrastructure.
Simple business model with growth potential for a hands-on owner.

Disclaimer :
The financial information contained in this report has been supplied by the seller and has not been independently verified.
Prospective purchasers should satisfy themselves as to the accuracy of all financial and operational information during the due diligence process.