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Fri, Jan 27 2023 04:09:35 AM  |  /

EMPLOYMENT AGENCY SPECIALISING IN CONSTRUCTION INDUSTRY

Business Id:000803     |    Reference: CE233
Freehold Price:
£2,200,000.00
Business Description

COMPANY COMPOSITION:  

Incorporated in 2007 and started trading in August 2013, the entire Issued Share capital in the Company is split equally between two owners.

COMPANY ACTIVITIES: 

Established 9 years ago, by the current owners of the business, one of whom, having been involved in senior recruitment positions in the construction industry had direct experience of the problems in finding good quality temporary staff, the Company has rapidly become one of the leading specialist employment agencies operating in the industry. It is widely recognised for supplying the best temporary and permanent staff to the construction and trades and labour industry throughout London, South East and across the UK.

The company has built an envious active client list of over 150 clients with an outstanding reputation in the construction industry.

The senior management team at the Company with its experience of working in the sector for many years understands the unique demands of the industry and appreciates how important a reliable and well-trained team is to the smooth running and efficiency of a building site.

Appreciating that building sites operate to tight deadlines the management staff of the Company, are also available 24/7 – able to find the very best staff at very short notice. With such high levels of service, Clients are loyal to the Company with many having worked with the business since inception. Staff in turn, whilst temporary, also stay loyal to the Company, attracted by the opportunity to work for a good, well run business offering excellent pay and conditions.

SECTOR/CLIENT PROFILE:

Operating throughout London the South East ,and across the UK, the Company is an active supplier to over 150 clients nationally.

BUSINESS SOURCE:

Already benefitting from high levels of awareness within the construction industry, the business has little need of heavy investment in marketing and advertising. The Company undertakes direct email campaigns to selected target companies in addition to highly effective targeted tele-sales promotions.

The business has a very well designed, informative and easy to navigate website which performs very well in all the major search engines for all appropriate search terms. This also acts as a very effective recruitment channel – supported by a high level of candidate referrals and job site recruitment campaigns across various online portals. But by far the most effective form of marketing for the business – either to attract clients or staff comes from the strong word of mouth recommendations that the Company enjoys: testimony to the high levels of service it provides and the excellent positions it can offer to those wishing to work within the industry.

GROWTH POTENTIAL:

  • Additional Branches: Currently only one operating office in Kent, additional branches would help develop specific growth in other areas.
  • Additional Sectors: Some small work undertaken in Waste & Recycling, this is an area that can be expanded and couples nicely with the trades and labour sector.
  • Permanent Recruitment: Small amount of permanent work undertaken; this can be developed to offer a wider, broader service to clients.
  • Geographical expansion: Currently operating primarily within the London, Kent and UK areas, there is ample scope to expand the geographical coverage into other cities throughout the United Kingdom.

STAFF SUMMARY:

One of the owners, named as Managing Director, takes no part in the day-to-day operation of the Business which is in the hands of the other owner, operating as Construction Director, supported by an billing Recruitment Manager and 5 Account Managers all of whom run their departments and are paid a base salary and performance percentage.

The current working Director is fully prepared to remain in post following a sale.  The working Directors’ main asset is the ability to train and motivate sales personnel to perform at the highest level and produce 360 billing consultants.  Testimony to this is that all Managers and Accounts Manager had no previous recruitment experience prior to working with the business.

The Company regularly employs between 200 and 230 temporary workers at any one time, rising to between 240 and 260 at peak times. 

FINANCIAL PROFILE:

Year end 31 December

 

2022

(5 months Actual)

2021

‘000’s

2020

‘000’s

Turnover

£2,948

£7,001

£4,267

Gross profit

£409

£946

£651

Operating profit/(Loss)

 

£354

£245

ADD-BACKS

 

 

 

Directors remuneration

 

 

£15

 

Depreciation

 

 

£7

 

Bad debts

 

 

£83

 

Entertainment

 

 

£3

 

Replacement MD

 

-£75

 

 

Adjusted EbTDA

 

£387

 

 

Balance Sheet NAV

 

 

£455

 

The above table sets out the profit and loss performance of the Company for the financial years 2020 & 2021 (Covid affected) and the first five months of 2022.

It is anticipated that the performance for the financial year 2022 will be better than 2021 with an anticipated turnover of c£8m and a GP of £1.24m and an adjusted EBTDA of c£450-500,000.

Full financial statements are available upon request, pending authorisation from our Clients.

PREMISES:

The Company currently operates from serviced offices in Kent, with 2 years remaining on their lease with the option to extend.  The premises is predominantly office accommodation at an annual rent of £18,000 p.a, the business is easily re-locatable.

TRAINING AND HANDOVER:

The current owners will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners. The existing working Director is willing to remain in situ post-sale subject to suitable terms.

REASON FOR SALE:

The non-working owner wishes to pursue other business interests.

ASKING PRICE:

The Asking Price of £2,200,000 is for a sale of 100% of the Issued Share Capital in the limited company, the Company, based on a Balance Sheet of £455,000 (there will be a £ for £ adjustment to the final price to reflect any movement away from this figure).

 

 
Business Information
Turnover:£8,000,000.00 Annually
Property Status:   Freehold
Is this business relocatable: No
Business Sector: Recruitment or Employment Agencies
Statistic Information
Total Views:
Impressions:
Total Enquiries:
Last Viewed:
Last Updated:
Last Enquiry Made:
Business Profile
Equipment: na
Key strengths: na
Key Opportunities: na
Financial performance: na
Asking Price: 2200000
Advertising and Marketing: na
Growth and Expansion: na
Premises: The Company currently operates from serviced offices in Kent, with 2 years remaining on their lease with the option to extend. The premises is predominantly office accommodation at an annual rent of £18,000 p.a, the business is easily re-locatable.
Business Hours: na
Employees: One of the owners, named as Managing Director, takes no part in the day-to-day operation of the Business which is in the hands of the other owner, operating as Construction Director, supported by an billing Recruitment Manager and 5 Account Managers all o
Support and Training: The current owners will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners. The existing working Director is willing to remain in situ post-sale subject to suitable terms.

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