Buy PAINT & COATINGS MANUFACTURING BUSINESS IN WA

Overview

The business's main activity is the manufacture and sale of water based coatings. It commenced trading in 1980.

Main Operations

• Production and sale of a trade marked timber coating system known as TimberGlow™ for which the company owns the Intellectual Property (IP).

• Manufacture of a tennis court surface coating system called Sportcoat™ similarly trade marked and IP protected.

• Contracting to build and surface tennis courts and other sports courts.

• Production of a range of water based coatings (paints) for use in the domestic and trade paint market.

Background

Over recent years we have concentrated increasingly on the niche market for TimberGlow, which now forms the core of the business. Whilst the market for timber care products is quite competitive, it is a developing and profitable area, with the principal business drive for Hulett's Paints being the wholesale sales of products to specialist paint shop distributors.

Since 2001, whilst concentrating on the development of TimberGlow, we have not actively pursued the sporting surfaces market. During this time, various new entities have entered the market, the US$:AUS$ exchange has deteriorated and this has led to markedly less attractive prices than before. However, currency fluctuations may frequently work to our advantage and we own the IP for our products which are held in high regard in the local market. We currently carry out work on invitation from clients and are now more aggressively pursuing this market.

During the 1980s and through to mid 1990s, retail paint sales formed a significant part of the company's business. Paint of equivalent quality to major brands can be sold by small manufacturers very competitively compared to that from major stores.

The paint market is volatile and with the recent introduction of a major overseas paint brand into the Australian market, it may be that more positive marketing into this area may soon become a worthwhile venture. Service to customers is the key to success in this area – this is a most positive aspect of 'factory direct' retail paint selling.

In this regard we have a full suite of architectural tried and tested paint formulations and in retail paint selling, an excellent customer base for the products.

The marketplace

• The market for timber coatings is large and expanding – we have 25 years exposure to this and are well known.

• Sports surface coating is a large niche market, with high turnover.

• The general retail and trade paint market is continuing to grow. Small, 'boutique' companies such as Hulett's Paints have the potential, as niche marketing operations, to rejuvenate this portion of its previous market.

• The market for heat reducing paint (for roofs and walls) is available for exploitation, and with well directed marketing could contribute enormously to the business.

Company Statistics

Turnover breakdown of the company's operation is as follows

Intellectual Property

The company owns IP and trade marks for five coating products in the areas mentioned above and formulations for these and a wide range of other coatings.