Opportunity Overview 

·       FYJune’18: Sales $865k & EBITDA: $285k,  margin 33%;  

·       FYJune’21: Sales range $9.4m to $5.4m & EBITDA: $1.1m to $2m 

·       reusable proprietary containment system for both scaffold and site hoardings

Commercial, infrastructure and residential construction activity underpin product use

·      newly accepted robust infill panels clip onto standard scaffold network and is reusable 

·       replaces shade cloth, steel cyclone mesh or plywood to protect workers and contain the site from debris 

·       site hoarding provides a robust site and event containment system  

Investment Thesis 

Early stage business with the fundamentals for a high growth and strong margin 

·       outsourcing agreements in place to tool, manufacture and distribute the product (non exclusive for growth) 

·       Victorian State Government support with use across multiple sites 

·       current business model is to sell product with opportunity to also hire to scaffolders, builders and events 

·       reached the point where it shows accelerating growth, sustainable profits and a healthy order book 

Durable light weight plastic, reuseable, easy to install/dismantle, saves time and cost compared to alternatives 

·       can install scaffold containment system comprising 500 panels in just two hours 

·       complete infill system installed from the inside of the scaffold 

·       easy handling largest panel weighs only 7.2kg which also means less load on the scaffold 

·       site hoarding system is also easily installed 

Strong and identifiable barriers to entry support continuing market development 

·       commodity pricing of petroleum based raw material and panel weight limits capacity for regional production 

·       existing shade cloth, steel cyclone mesh or plywood are cumbersome with limited reuse  

Transaction Dynamics 

·       divestment of the business with funds to be used to invest in other divisional activity 

·       logical add-­‐on for an existing company or as a starter business for an owner manager 

Process  

Indicative non binding offers, due diligence, final offer and contract negotiations