Engineering Business For Sale
Palmerston North, New Zealand



Quality, reliability and service

Tool Sharpening & Engineering Ltd has been providing cutting tools and general engineering services to customers in Palmerston North and the Manawatu Region for almost 20 years.

Another similar business traded from the site prior to Tool Sharpening & Engineering, meaning that customers in Palmerston North have had over 50 years of unbroken service. Today, this iconic business has a diversified income stream from:

• Retail sales of cutting tools for woodworking and engineering applications (saws, router bits, planner knives rotor broaches, band saws) as well as Printing & Publishing knives and blades.
• Manufacturing and sharpening all types of cutting tools.
• Servicing two sawmills sharpening requirements.
• Manufacturing wrought iron balustrades and fences, steel gates, pool fences, security steel work.
• General engineering and iron work.

• The business services all of the product lines that it sells.

Pool security fencing

If you have a working knowledge of cutting tools and saw doctoring, plus general engineering skills and a desire to assist customers with their requirements, consider what this business has to offer.

Financial performance

This is a high turnover business and because of careful management policies, margins are at excellent levels as is profitability. Waikato University in Hamilton has constructed a benchmark survey of 107 comparable businesses. Tool Sharpening & Engineering Ltd compares very well with the survey’s median values:

• Tool Sharpening & Engineering Gross Profit – 65.0% (Benchmark Survey – 55.9%)
• Tool Sharpening & Engineering Net Profit – 25.6% (Benchmark Survey – 15.4%)

This is a genuine business in an ideal location that has been developed with sound long-term strategies.

Leasehold premises

Tool Sharpening & Engineering Ltd trades from leasehold premises at 10 Andrew Young Street in central Palmerston North. The property (486 square metres) includes a main building (220 square metres) with mezzanine floor (38 square metres) that is used as a staff room.

The low maintenance building is built on a concrete floor with steel portal frames, concrete block walls, aluminium joinery, and a corrugated iron roof. Interior partitions are clad with wall board. There is a separate office, staff toilet, stock room and ample customer parking.

A new lease will be negotiated with the incoming owner.

Assets being sold

A list of all engineering plant, equipment, fittings and chattels being sold is available. The asset list includes all office equipment and a HiAce van.

Well-maintained plant and equipment

Day to day management

Business Hours:
Monday to Thursday - 8.00 am to 5.00 pm.
Friday - 7.30 am to 4.00 pm (5 day a week business).

Staff
The business is operated by the owner with assistance from 2 permanent and 2 part time staff. If required, the present owner is available to assist the new owner, terms by arrangement.

Agencies:
The business has Agencies for selling Router Bits and Saw Blades.

Stock:
Stock will include saw blades, router bits, cutting tools and steel stock, totalling about $30,000.

Customer Database:
A customer database will be included with the business sale along with relevant price lists, catalogues and photo albums of past iron work.

Automated wrought iron gateways are a specialty

Advertising and Promotion:
Tool Sharpening & Engineering Ltd advertises through signage on the building frontage, a listing in Yellow Pages, and occasionally in local newspapers. This business has a proven reputation for product quality and prompt service. Repeat business and word of mouth recommendations bring a lot of work.

Call Graeme on +64 021 278 0080 (day) or +64 6 357 5432 (evenings)

Palmerston North and the Manawatu Region

Palmerston North is the commercial centre of the Manawatu Region of the North Island. The city has over 80,000 people and is the sixth largest city in New Zealand.

Palmerston North spreads over a flat alluvial plain that extends from the banks of the Manawatu River. This is an attractive, tree-lined, city with excellent shopping based around the "Square" with its gardens, fountains and stately trees. The Civic Centre, Manawatu Art Gallery, the Science Centre and Manawatu Museum are located in and around The Square.

Palmerston North is famous for its many education and research institutions and, in particular, Massey University, Polytechnics, allied Teaching Centres, Crown Research Institutes and excellent schools, many with long and famous histories. The large number of students living in and around the city bring a youth culture that helps to support retail shops and numerous cafes, restaurants and bars.

By road, Palmerston North is only two hours from the nation’s capital, Wellington, with its Government Buildings, Embassies, superb shopping, and exciting nightlife. It is also an easy two hour drive to the skifields of the Central Plateau, or to the wineries of the Hawkes Bay, or to the Taranaki Region with its famous Parks and Gardens.

For more information on Palmerston North, click on:

http://www.palmy.net.nz/
http://www.cityofpalmerstonnorth.co.nz/
http://www.manawatunz.co.nz/
http://www.pncc.govt.nz/
http://www.mdc.govt.nz/
http://www.massey.ac.nz/
http://www.pnbhs.school.nz/
http://www.manawatu.nzgolf.net/
http://www.wanganuinz.com/
http://www.horowhenua.govt.nz/