Warkworth Tanks an industry leader

Warkworth Tanks operates from leased premises, at 19 Goatley Rd, Warkworth.

An established, Warkworth-based water storage and treatment manufacturing business is up for sale following more than 15 years of operation.
LINK business broker Brett Clarkson is selling Warkworth Tanks, which is kept busy servicing fast-expanding residential development north of Auckland.
Warkworth Tanks manufactures domestic water storage tanks, sewerage treatment tanks, septic tanks; as well as stormwater retention tanks and pumps (now required with all new sub-divisions).
It is for sale following a decision by present owners, Peter and Mandy Burnside, to retire and enjoy some overseas travel, says Clarkson.
Operating from leased premises, at 19 Goatley Rd Warkworth, the business has an established reputation among builders, contractors and other key industry players.
"Warkworth Tanks has achieved financial success and improvements to its manufacturing operations have increased its competitive edge," Clarkson says.
"Following on-site inventory upgrades — such as installation of an overhead gantry and steel moulds — the company has significantly reduced the turnaround time required to manufacture a water tank, which is now under 24 hours.
"With the addition of new inventory, increased efficiency and cost-effective operations, there has been a consistent rise in discretionary earnings. The gross profit margin is now more than 30 per cent, an impressive result for a niche business in its sector."
Clarkson points to population forecasts predicting rampant population growth in and around Warkworth in coming years.
"And with the recent zoning changes, large tracts of adjoining property have been re-zoned for commercial and industrial use," he adds.
"This is expected to generate substantial additional commercial activity in an already fast-growing area."
He says as the Super City continues to expand outwards, the number of residential developments also continue to rise, particularly to the north.
In addition to the extension of the Northern Motorway (which will finish a few hundred metres south of the business), Warkworth Tanks is positioned to benefit from economic growth and increasing demand expected throughout the region.
"Developments are providing further opportunities for Warkworth Tanks to offer new products and services, to complement its core business of manufacturing concrete tanks.
"These could include the manufacture of tilt-slab walls and sound dampeners for motorways, or the installation of septic tanks — a service now in high demand."
However, the core business is based on an excellent product, with concrete tanks a staple in the market for many years; they are durable, strong and can be installed in almost any situation — as opposed to plastic tanks that can mostly only be situated above ground.
Clarkson says Warkworth Tanks Ltd has an asking price of $595,000 and its Warkworth premises has a solid on-going lease in place.
"The business now employs three full-time staff (one yard manager and two labourers) in addition to the current owners.
"At present, Peter is responsible for manufacturing, production, and delivery of product and Mandy is focused on sales, quotes, management, financials and general administration."
Clarkson says the new owner would benefit from having skills in sales, management and marketing, with a junior administrator suggested for support in the office. Production would require a foreperson supervising staff for tank manufacturing."