Choose Your Country
X


UK FlagUK
Fri, Jan 27 2023 05:01:56 AM  |  /

Environmental Services Company

Business Id:000794     |    Reference: GC124
Leasehold Price:
£1,600,000.00
Business Description

Location: Shropshire

Leasehold premises

Asking price: £1,600,000 plus Net Assets

Business highlights include:

Adjusted EBITDA c. £470,000 (2022 Draft accounts)

Net Asset Value c. £366,000 (2021 accounts)

Reliable return customers

Established over 10 years

Trusted management team

Demand exceeds capacity

New business lead generation

Long serving knowledgeable workforce

Superb reputation

Website

The business has experienced a significant increase in demand for its services and the year to date, 6 month management accounts show turnover of circa £657,000 and this is expected to continue to the full year’s end, at which time the EBITDA is forecast reliably to be circa £400,000.

This level of trading is now expected to be maintainable over the long term.

Business Profile:

The business is an established, services company, which has been in business for 11 years and has established itself as a well known service partner to its customers in the Midlands as well as having managed out workers covering the Yorkshire area. It is particularly associated with providing high levels of service at a competitive price, but above all, for its reliability and responsiveness to the requirements of its clients.

From modest beginnings, as a single driver with a road-sweeper, the vendor has built the company into a trusted commercial partner for sweeping, drainage and deep cleaning services with a reliable team of management & staff who make sure that all parts of the business work well and to each customer’s satisfaction.

The company’s activities now extend across the North of England for larger infrastructure and housebuilding developments and the company’s fleet includes road sweepers, a high pressure combi tanker for drainage work, cctv surveys for drainage work, 5 tractors, trailers and tankers for our agricultural contracting work.

Current customers include:

Civil construction companies
House building companies
Industrial estate cleaning companies

The vendor considers that there are many competitor companies throughout the UK but that the market demand remains so high that it is unable to accept all the work that it is offered. The company will also cross hire to other sweeper companies to enable them to meet the demand in their own areas.

This necessary collaboration and scale of demand illustrates a clear opportunity for a new owner with the resources, to add to the fleet and take advantage of this demand; which at the time of writing shows no sign of abating.

During the more than 11 years of trading, the company has provided its comprehensive portfolio of services across the region and consequently gained an enviable reputation for quality, service and reliability.

The business is kept very busy, running its operation from large freehold premises that include storage facilities, yard and offices. A full turn-key solution is offered to the large database of both commercial and institutional clients.

The business is in the process of aligning its practices and procedures with FORS (Fleet Operators Recognition Scheme) with a view to membership; similarly it is well prepared for ISO accreditation.

Equipment:

The company has invested in a good level of plant and equipment in order to satisfy its very high standards of service and quality, including:

13x road sweepers

A high pressure combi tanker for drainage work

cctv survey equipment for drainage work

5x tractors, trailers and tankers

Each road sweeper is equipped with vehicle cameras along with vehicle tracking.

Customer Service:

The company's most important asset are their clients, who appreciate the prompt, friendly service, reliability, positive attitude, and reasonable & competitive prices.

Key Strengths:

  • Honesty and Integrity
  • Maintainable profitability
  • Strong commercial/institutional client relationships
  • Professional Management team and staff
  • Problem solving
  • Reputation and detail
  • Commercial and domestic customer base
  • Complete turnkey operation
  • Good level of plant and equipment

Key Opportunities:

There is a lot of work to be gained. The business would benefit from a new owner with more energy to explore currently unexploited opportunities. A more proactive approach to sales and marketing could further increase revenues in the future.

Another avenue would be to consider investment in more vehicles & equipment in order to meet demand.

Advertising and Marketing:

The business engages in little or no advertising or marketing since a vast majority of the business’ turnover is by referral and recurring business from satisfied clients.

The business has an excellent company website that attractively presents the high quality services on offer.

Employees:

The owner runs the business ably supported by 18x full time staff including:

  • Drivers
  • Work shop fitter
  • Agricultural workers
  • Transport compliance manager
  • Regional Op’s managers

It should be noted that staff have been working with the company for many years, they understand the company’s quality approach and work to the very stringent standards this business expects and delivers on a consistent basis.

A complete list of all employees is available to interested parties.

Premises:

The business operates from leased premises in Shropshire close to main trunk roads and motorways and comprises administrative offices, fully equipped work shop and a large, secure vehicle yard. There is also a remote team in Yorkshire, which is developing quickly.

The current annual rent is: circa £25,000

The current lease has 6 years remaining

Business Hours:

Monday – Sunday:      24/7

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 c. £1,735,000 per annum (2022 Draft accounts)

Adjusted EBITDA c. £470,000 (2022 Draft accounts)

Net Asset Value c. £657,000 (2022 Draft accounts)

Reason for Sale:

This is a genuine retirement sale.

Support and Training:

The owners are happy to provide support and training for a negotiated period of time. 

Asking Price:

The Asking Price of £1,600,000 plus net assets, is for 100% of the issued capital of the company, assuming Net Assets of circa £366,000 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 circa Net Asset figure of £366,000 at completion.

 

 

 
Business Information
Turnover:£1,735,000.00 Annually
Property Status:   Leasehold
Is this business relocatable: No
Business Sector: Environmental Businesses
Statistic Information
Total Views:
Impressions:
Total Enquiries:
Last Viewed:
Last Updated:
Last Enquiry Made:
Business Profile
Equipment: The company has invested in a good level of plant and equipment in order to satisfy its very high standards of service and quality, including: 13x road sweepers A high pressure combi tanker for drainage work cctv survey equipment for drainage work 5x tractors, trailers and tankers Each road sweeper is equipped with vehicle cameras along with vehicle tracking.
Key strengths: • Honesty and Integrity • Maintainable profitability • Strong commercial/institutional client relationships • Professional Management team and staff • Problem solving • Reputation and detail • Commercial and domestic customer base • Complete turnkey operation • Good level of plant and equipment
Key Opportunities: There is a lot of work to be gained. The business would benefit from a new owner with more energy to explore currently unexploited opportunities. A more proactive approach to sales and marketing could further increase revenues in the future. Another avenue would be to consider investment in more vehicles & equipment in order to meet demand.
Financial performance: na
Asking Price: 1600000
Advertising and Marketing: The business engages in little or no advertising or marketing since a vast majority of the business’ turnover is by referral and recurring business from satisfied clients. The business has an excellent company website that attractively presents the high quality services on offer.
Growth and Expansion: na
Premises: The business operates from leased premises in Shropshire close to main trunk roads and motorways and comprises administrative offices, fully equipped work shop and a large, secure vehicle yard. There is also a remote team in Yorkshire, which is developing quickly. The current annual rent is: circa £25,000 The current lease has 6 years remaining
Business Hours: Monday – Sunday: 24/7
Employees: The owner runs the business ably supported by 18x full time staff including: • Drivers • Work shop fitter • Agricultural workers • Transport compliance manager • Regional Op’s managers It should be noted that staff have been working with the company for
Support and Training: The owners are happy to provide support and training for a negotiated period of time.

Related Property
.