Business Summary:
Location: South WalesPremises: Freehold Asking price: £340,000 + Net Assets + F/HFreehold value circa £600,000Business highlights include:Turnover circa £836,000 per annum (2021 accounts)Adjusted Net Profit circa £160,000 per annumGross Profit circa £198,000 per annumNet Assets circa £120,000Comprehensive website Fixtures & fittingsSkilled & motivated personnelModern & comprehensive factory unitSignificant Goodwill Business Profile:Set up by the current owner’s Father in 1970, this well-established business has an excellent reputation and provides a comprehensive sub-contracted manufacturing facility and installation expertise of custom made, aluminium window display fronts for large and small retail spaces in the UK to a variety of commercial clients with key customer relationships in many sectors including automotive, food retail, superstores and smaller outlets to well-known retail brands. The company is considered, a leading supplier and installer in the UK and has owned manufacturing facilities in South Wales, close to main trunk roads and Motorways as well as close ties with proven & carefully selected trade partners, providing very price competitive services for vital raw stock items. The business has an ever increasing and enviable order bookThe demands of large brands & international companies are well known for trackability and traceability throughout all supply chain partners, providers, services & processes, and this company has a successful history with these customers and is accustomed to meeting their high standards. The business has been developed over time and benefitted from significant re-investment in the company, including tooling, equipment and its premises. The company can boast a substantial level of high quality machinery including modern automated plant and including latest state of the art CAD systems and office systems, meaning that customers’ designs or maintenance requirements can be dealt with quickly and efficiently. The business has its own internal inspection procedures and is ISO 9001/2015 accredited 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 manufactured and installed many products that are the results of solving complex technical problems for its customers and is rightly proud of its workforce’s attitude & efforts in always pulling together to get the job done.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. Equipment/Capacity:The company has a comprehensive catalogue of quality machinery necessary for the successful manufacture of its products. A full plant list will be available by request.The business currently operates well below its capacity.The business operates from large, modern facilities in a busy industrial park and is close to main trunk roads such as the M4 Motorway and the A470. These links puts the business in easy reach of its customer locations. Customer Service:This is a key area of strength for this business. The company is a quality driven organisation and has never failed to successfully meet a customer’s requirements.The company has a small management team taking care of day to day client relations; this together with speed of response and consistent quality of product ensures significant levels of repeat business. New business creation is achieved through the internet with some keywords ranked well on Google and other search engines. Client testimonials and word of mouth within the market also accounts for a constant stream of new business.Key Strengths:The company is financially strong with a very good asset base and operates from ideal freehold premises. The company is benefitting from on-going investment. It is growing year on year in terms of customers and financial performance, having successfully emerged from the recent pandemic robustly and remains profitable.The business is a multi-skilled operation that can undertake a large variety of projects due to the impressive infrastructure it has in place. Both large and small product manufacture & installations can be managed. 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 with no single customer accounting for a disproportionate percentage of turnover. 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.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. The business currently operates a single shift pattern. There is no reason why this cannot be expanded should a new owner look to put more resource in place.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 profitability, combined with a capacity to increase turnover, a new owner contributing fresh ideas, investment and energy levels will have every advantage of building on an excellent platform to take this business to its next level.The business maintains many 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. A dedicated sales and marketing effort would yield significant levels of additional business and profitability as, by its own admission, the business tends to be reactive rather than proactive in its approach to sales and marketing.Advertising and Marketing: The business could benefit from a more strategic internal medium/long term sales and marketing planning. It has an attractive and informative website but does very little in the way of proactive marketing. Employees:The vendor works in the business on a day to day basis and has been coaching the management team with the result that this team has been taking more and more of these duties on as time has progressed. As well as the vendor, the business also employs: 1x Contracts Managing 2x Installers 2x Fabricators 1x Office administrator1x Part-time Book keeperBusiness Hours: The business currently operates on a one shift system, Monday to Friday. This could be expanded if need be.Premises:The business operates from fully equipped freehold premises that are located on a modern, well-known business park, near a busy, major town on the M4 Motorway. The premises internal floor area are circa 8,750 square feet, including manufacturing facilities and offices; this is a fenced and secure site with steel, locked gates. We are advised that the freehold has a current value of circa £600,000.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 £836,000 per annum (2021 accounts)Adjusted Net Profit circa £160,000 per annumGross Profit circa £198,000 per annumNet Assets circa £120,000 The business has a clean bill of health with no loans or HP outstanding. Reason for Sale:The owners are planning their exit strategy due to pending retirement.Support and Training:The current owner would be happy to provide full training and support at handover to ensure a seamless transistion of ownership and may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.Asking Price:The Asking Price is for 100% of the issued capital of the company based on Net Assets being circa £120,000 and freehold being £600,000. There will be a £ for £ adjustment to the asking price to reflect any rise or fall in this net asset position as at completion.
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