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Mon, Dec 06 2021 11:40:17 AM  |  /

Engineering Supplies & Commercial Plumbing Supplies Company

Business Id:000781     |    Reference: GD123
Leasehold Price:
£150,000.00
Business Description

Business Profile

This family owned business, set up over 30 years ago and in current ownership for the recent 10 years,  provides a comprehensive supply of essential parts and engineering components to the construction, maintenance, refurbishing and associated industries throughout the South West of England. The business has built up a sterling reputation in the area during this time with an enviable reputation for product quality and service.

 

The business conducts a majority of its trade in supplying parts & equipment to its commercial customers but also offers to those with a specific need, other high added-value services such as manufacturing & technical support because of this the business enjoys very high levels of referrals and repeat business from a loyal following of customers. 

 

The vendor is supported by a dedicated full-time manager who takes care of the general stock management and sales parts of the business leaving the vendor to manage admistrative and financial matters. The manager is fully conversant with the latest online ordering and stock management systems  and the business is compliant with all necessary health and safety regulations and codes of practice.

 

Location is ideal being close to major road networks including the M4 motorway and busy regional towns and also has ample parking for customers while collecting products.

 

The business benefits from investment by the current owner in its online presence and is a testament to the positive financial outlook for the company. Growth is limited only by the owner’s decision to supply to certain geographic areas.

 

The business has a long-standing history and reputation, which is a great asset, all operations are streamlined with low overheads. The customer base is diversified enough to give stability to, revenues are spread across this loyal customer base and provide confidence for future earnings and growth.

 

The business’ product range has widened in recent years and now includes pneumatic, hydraulic and electro-mechanical items along with the well-known & established core range of engineering supplies.

 

Additional services:

Bespoke outsourced Manufacturing - The business maintains a strategic partnership in providing drawings to 3D design systems, prototype or volume production. Additional services:

  • Turning
  • Milling
  • Welding
  • Laser Cutting
  • Spray Painting
  • Galvanising
  • Anodising

 

Fabrication - which includes:

  • Bespoke Mesh Flooring
  • Bespoke Shelving Solutions
  • Hygienic stainless steel bespoke fittings
  • Water Jet Cutting

 

Kanban Solutions - On site consignment stocks are available successfully in place, supported by weekly stock checks and replenishments.

 

On-site Support - Technical support available on site to assist identifying obscure and potentially obsolete items. 

 

Customer Service:

The business offers an excellent standard of service and is proud of their attention to customer care offering professional advice and high quality products. This is evident in the very high levels of repeat business the business enjoys and the fact the vendor has never felt the need to advertise.

 

Key Strengths:

The business has many strengths including

  • Enviable reputation in the region it serves
  • Large customer base
  • Exceptional levels of service
  • Repeat business levels and referrals
  • Significant investment in infrastructure
  • Highly skilled workforce
  • Profitability
  • Location

 

Growth and Expansion:

The business has enjoyed steady trade over many years and has coped well with the disruption to trade presented by the recent pandemic, this resilience and a return to more usual and forecastable trading is expected to continue.

 

The business does very little advertising and could certainly expand this activity with a more proactive approach.  The business is well positioned to take maximum advantage of this growth as it occurs since it has the necessary infrastructure in place.

 

Employees:

The vendor works within the business and manages admin and finance.  The business also employs a full-time sales & stock manager.  This manager is highly experienced and a real asset to the business

 

Advertising and Marketing:

The business has never felt the need to advertise bearing testimony to the fact that it enjoys exceptionally high levels of repeat business from a large and loyal customer base.

 

There is however a comprehensive and attractive website detailing the products and services offered.

 

Premises:

Ideally located on a busy industrial estate that is close to South West of England trunk roads and a busy Motorway, the business is very well known in its sector and accessible. The premises comprises a reception, offices, toilets, stock area to ground floor and mezzanine and other storage. There is a forecourt area and parking for some 4 plus vehicles.

 

Premises are leasehold with 2 years remaining. Current rent and rates are circa £14,000p.a.

 

It is understood a new lease would be made available to a new owner, subject to negotiation.

 

Business Hours:

Monday – Friday:                                             08:30-17:00

Saturday and Sunday:                                    Closed

 

Financial Information:

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.

 

Turnover circa £427,000 per annum (2021 accounts)

Gross profit c£146,000 per annum (2021 accounts)

Net Assets c£65,000

Adjusted EBITDA c£50,000 before drawings (2021 accounts)

 

Reason for Sale:

The vendor wishes to pursue other business interests.

 

Support and Training:

The current owner would be happy to provide full training and support at handover.

 

Asking Price:

The Asking Price of £150,000 plus net assets is for 100% of the issued capital of the company, assuming Net Assets of £65,000 on completion (calculated on a zero cash-zero debt basis). The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark Net Asset figure of £65,000 at completion.

 
Business Information
Turnover:£427,000.00 Annually
Property Status:   Leasehold
Is this business relocatable: No
Business Sector: Engineering companies, Plumbing and Heating
Statistic Information
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Business Profile
Equipment: na
Key strengths: na
Key Opportunities: na
Financial performance: na
Asking Price: na
Advertising and Marketing: na
Growth and Expansion: na
Premises: na
Business Hours: na
Employees: na
Support and Training: na

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