Business Summary:
Ref No:CT009LeaseholdLocation: MerseysideAsking price: £5.5 millionAsking price includes:Turnover for current financial year circa £ 9.2m p.a.Resultant Gross Profits circa £2.4 Million p.a.Adjusted EBITDA circa £1.9m p.a.Net Assets/Shareholders Funds circa £ 843,000Fully licensed and accredited for both ferrous and non ferrous metalsOngoing growth patternHuge expansion possibilitiesLarge leasehold site with spare capacityClose to major transport links including major portNew long term lease to be made availableOver 40 years continuous tradingWell established client baseOngoing investmentComputer systemTraining and handover GoodwillBusiness Profile:This business was founded in the early 1970’s by the current owners and since then has built up a sterling reputation in the market as a reliable high quality scrap metal dealer. Whilst specialising in the handling of non-ferrous metals the business holds all the relevent licenses, environmental and health and safety certification to handle both ferrous and non-ferrous materials as well as plastics and other such recycleable materials.The business is able to provide clients with a collection, processing and delivery service offering a total solution for the waste sector, industry and the public community. Strategically located near to superb dockside facilities, allowing it access to near Continental markets as well as deep sea destinations.The business has invested well in equipment and currently handles approx 350-400 tonnes of material a month. However just with the current infrastructure in place it could quite easily accommodate an additional 100% throughput.With a comprehensive range of processing equipment, the business is well placed to continue selling its non-ferrous products to discerning quality end users including wholesalers, major retailers and leading refineries and smelters in the UK, Europe and Asian markets. This market is currently experiencing huge growth partly fuelled by the enormous demand for products in China and Eastern Europe and is expected to continue in the medium term at the very least. The business is well positioned to service this ongoing demand with its ability to handle both ferrous and non-ferrous materials and other such recycled products. Equipment: Equipment includes:• 105 Tonne Press with 359 Tonne Shear Force• 2 Off Box Baler Press• Cable Stripper• 3 Off Non-Ferrous Shearers (6” to 24”)• 50 tonne Avery clockface weighbridge• Range of industrial scales• 2 off JCBs• 5 off Diesel Forklifts with rotating heads (ranging from 2-7 tonne)• Skip wagon• TruckCustomer Service:The business prides itself on its excellent customer service and the basis of this service is geared around complete flexibility when it comes to client requirements. This together with speed of response and consistent quality of product ensures significant levels of repeat business as well as new business creation through client testimonials and word of mouth recommendations within the markets it serves.Key Strengths: The business has established an excellent network of clients it both buys from and sells to and enjoys a high level of repeat business and referrals bearing testimony to the reliable and trustworthy service it provides. The infrastructure is in place, be it staff, facilities, accreditations, knowledge and experience. The customer base is large with over 100 live accounts, most of whom are well recognised names. The business’s reputation is such that it is well positioned for future work in this growing market. The business is in a very healthy financial position, with a good order book and impressive ongoing growth being achieved year on year.Growth and Expansion: The current market for this business is growing. The business is well positioned to take maximum advantage of this growth as it occurs as it already has key relationships within the sector. Business operations are not at maximum capacity given the company’s existing infrastructure and there remains considerable scope for an increase in production, turnover and profit simply by gearing operations in line with current market demand. To date the business has been built without any real sales and marketing activity. It is understood that further development of this function would reap immediate rewards.Key Opportunities:This market, as well as the plastics sector, is currently experiencing huge growth partly fuelled by the enormous demand for products in China and Eastern Europe and is expected to continue in the medium term at the very least. The business is well positioned to service this ongoing demand with its ability to handle both ferrous and non-ferrous products.Employees:As well as the owner who works within the business there a 9 fully trained operatives and one administrative assistant. All employees are full time.Note- there is no second tier management in place at this time. It is the vendor’s view that this would best suit a buyer already familiar with this industry sectorAdvertising and Marketing: The business has never seen the need to advertise in the past and there are excellent opportunities to increase this in line with a new sales and marketing push, which would reap immediate rewards in existing and new market sectors.A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation and this is expected to continue.Premises:The current owners would make a new lease available to the new owners subject to negotiation. The main premises are single storey brick build warehouse type facility with high ceilings and comprise circa 20,000 square feet of storage and processing space with a small office and canteen area above on a mezzanine floor. There is an additional 4000 square feet site adjacent to the building as well as a yard. The site has excellent accessibility and is close to major port, rail and road networks. Rates circa £8,500 p.a.Business Hours:Monday – Friday 0700-1700Saturday Mornings 0800-1200Security:The site is very secure, is fully alarmed, and has CCTV. It also has a security call out service.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 for the 2022 financial year is c£9.2 millionResultant Gross Profits circa £2.395 Million p.a.Adjusted EBITDA circa £1.9 Million p.a.Net Assets/Shareholders Funds circa £ 843,000Offers are invited for the sale of 100% of the issued share capital of the company.There is surplus cash on the Balance Sheet of c£3m. The NAV excluding the surplus cash is c£843,000 and there will be a £ for £ increase in the final sale price to reflect any movement away from this £843k NAV figure. With a dedicated sales and marketing push and a broader range of services the business could dramatically increase its revenues beyond this in a market that has exceptional growth potential.Reason for Sale:Retirement.Support and TrainingThe current owner will provide all necessary training and all relevant contacts to allow continuity of trading.
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