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Sat, Apr 04 2020 02:59:54 AM  |  /

Specialist Precision Engineering Company Specialists in fine limit sheet metalworking

Business Id:000406     |    Reference: IH038
Leasehold Price:
£650,000.00
Business Description

Specialist Precision Engineering Company
Specialists in fine limit sheet metalworking
Ref. IH038
Location : West Sussex
Asking Price : £650,000 + Net Assets
Established by the vendors in 2003 this highly equipped and very well established and reputable business provides a comprehensive range of highly specialised precision engineering fine limit sheet metalworking products and services to a variety of clients in the manufacturing sector internationally.
The company specialises in the manufacture and supply of high quality and high added value fabricated metal parts and whole assemblies using a variety of materials including aluminium, mild steel, stainless steel and zintec steel. The company supplies both large and small products that are manufactured on both a bespoke basis and also made for stock and called-off by customer requirement.
The business has been developed over time with significant re-investment in the company, its quality/inspection systems, equipment and its premises. The company can boast a substantial level of up to date plant and machinery including latest state of the art machining centers and back office systems. It specialises in manufacturing for many sectors including the packaging industry, aerospace, automotive, construction, oil & water.
Though almost exclusively a UK supplier, the company does supply to the USA via a UK customer.
The business has its own internal inspection procedures to ensure customers receive only the highest quality products and services. This internal capability enables the business to take on varied and challenging high profile projects for blue chip end users.
The business has over time designed and developed many products that are the results of solving complex technical problems for its customers and retains significant intellectual property assets as well as being the obvious choice for customers requiring spare parts, replacement assemblies or even fine art sculpture & installations.
From first contact to completion the onus is geared towards complete customer satisfaction.
The business is committed to ensuring manufacture is to the required standards of excellence, as you would expect from a company with such infrastructure.
The company has the highest standards but will never be beaten on price, operations are geared perfectly for the optimum economic return on all resources – whether people or plant. Even so, the company is one where all employees are happy to work and to work hard, as evidenced by their commitment and years of loyalty.

 
Business Information
Turnover:£934,000.00 Annually
Profit:£370,000.00 Annually
Property Status:   Leasehold
Is this business relocatable: No
Business Sector: Precision Engineering, Fabrication Businesses, Metal manufacturing companies
Statistic Information
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Last Viewed:
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Business Profile
Equipment: Whatever the metal, mild steel, stainless steel or aluminium, the company can cut it, bend it and weld it. The company has a comprehensive portfolio of equipment and plant, including: • 3 metre Guillotine cutting up to 5 mm stainless steel, and 6 mm mild steel, with 1 metre and 3 metre bending capacity. • Rolling • Pressing • Polishing • Machining capacity • Laser Cutting • Tig, Mig and Arc welding in all materials specs by our Coded welders.
Key strengths: The company is financially strong with a very good asset base and operates from ideal Leasehold premises. It enjoys strong financial performance and it consistently generates impressive profits. The business is a multi-skilled operation that can undertake a large variety of projects due to the infrastructure it has in place. Both large and small component quantities can be produced side by side. The internal skills are high and the company’s reputation is very strong. The business is established and profitable with a broad and diverse client base and has regular customers returning year after year. The business retains a high level of historical clients. It has superb internal quality systems and an excellent health and safety record. The company has earned an outstanding reputation for its honesty, integrity, technical ability, service and reliability.
Key Opportunities: This is an outstanding opportunity to build on the existing products, services and customer base of this leading company. With a strong demand and impressive profitability, combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level. The business maintains a significant number of satisfied customers, who appreciate the company s superior products and skill sets, attention to detail, value for money and service. There are many excellent avenues for growth, especially within the current operations capacity. Continued dedicated sales and marketing effort would yield significant levels of additional business and profitability as, the business has been proactive in its approach to sales and marketing in more recent times but as yet has no formal sales team.
Financial performance: The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. (From 2019 accounts) Turnover circa £934,000 per annum Adjusted Net Profit circa £370,000 per annum Gross Profit circa £696,000 per annum Net Assets circa £347,000 The Asking Price is for 100% of the issued capital of the company based on Net Assets being circa £347,000. There will be a £ for £ adjustment to the asking price to reflect any rise or fall in this net asset position as at completion.
Asking Price: The asking price of £650,000 plus net assets is for 100% of the of the issued capital of the business on completion (calculated on a zero cash-zero debt basis).
Advertising and Marketing: The business could benefit from a more strategic internal medium/long term sales and marketing planning. It has a basic yet informative website but does very little in the way of proactive marketing. In saying that the website ranks very well on Google for explicit searches for the specialised products that the company manufactures.
Growth and Expansion: The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale. It also has the ability to enter new markets should a new owner so wish as it has a sterling reputation in place. It is already seeing growth in terms of new enquiries as its recent marketing activities find new customers around the UK. The business currently operates a one shift pattern. There is no reason why this cannot be expanded should a new owner look to put more resource in place. The company has no relationships with in-country agents to take advantage of the potential for overseas sales, this effort could be increased and it is believed would yield excellent results.
Premises:
Business Hours: The business currently operates 8:00am - 5:30 Monday to Thursday and 8:00am – 1:00pm on a Friday.
Employees: The 2 directors/vendors work in the business on a day to day basis. One director is hands on as a manager of the business including customers and the other is responsible for financial & administrative duties but both are supported by an experienced produ
Support and Training: The current owners would be happy to provide full training and support at handover to ensure a seamless transistion of ownership. One/both may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.

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