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Service, MOT & Tyre Centre with separate Alloy Wheel refurbishment centre

Ref. AL248

Location : Essex

Asking Price : £675,000 +Stock

Turnover : £980,000

Net Profit : Undeclared

Gross Profit : £380,000

EBITDA : £105,000

Net Asset : £400,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Leasehold

Asking price includes:

Turnover of c. £980,000 per annum
Gross profit c. £380,000
Equipment Assets c.£400,000
Adjusted EBITDA £105,000

9 years historic trading
Fully equipped tyre bay
Excellent repeat customer base
Well fitted with 1 x MOT bay, 6 x hydraulic inspection ramps
Knowledgeable, experienced and motivated team
Designated RAC repair garage
All tools of the trade included in the sale
Member of the Good Garage Scheme
Prominently situated site
Goodwill

Business Profile

This successful business set up over 9 years ago provides a comprehensive workshop service for motor vehicles/cars and light commerical vehicles within the busy Essex region it is located within. The business has built up a sterling reputation in the area during this time and provides, full repair, servicing, maintenance, tyre-fitting, Alloy wheel repair & refurbishment and MOT testing services to the local community and beyond. The wheel company has vast account work from the numerous local main dealers.

This profitable business has established itself as a market leader in the region with an enviable reputation for quality and service. Because of this the business enjoys very high levels of referrals and repeat business from a loyal following of customers. So much so that the business can boast a client base of over 8000 customers, many of whom span generations. The majority of clients are domestic customers but the business does have a few commercial clients also.

The garage is fully equipped for purpose and plant includes:

• Dedicated ATL Class 4 MOT bay
• Fully equipped tyre fitting bay
• 6 Ramps (including a 2 post ramp for heavy commercial vehicles)
• Full diagnostic equipment
• Range of specialist tools

The vendors have an excellent team of staff including a Senior Technician and 4 technicians who run the business on a day to day basis. Staff are fully conversant with the latest workshop techniques and engine management systems and the business is compliant with all necessary health and safety regulations and codes of practice.

Equipment:

The garage has a comprehensive range of plant and equipment as you would expect from a very well established workshop. All plant and equipment is included within the sales price.

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 workmanship. This is evident in the very high levels of repeat business the garage enjoys and the fact it does not need to advertise.

This business is a member of the Good Garage Scheme; which is a self-regulatory body for the motor industry, with a voluntary membership of thousands of garages all committed to maintain a customer’s car without affecting its warranty.

Key Strengths:

The business has many strengths including

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

Assets and Equipment of Garage

MOT Bay Class 4 (ATL System)
6 x Vehicle Hydraulic Ramps
Super-Tracker Wheel Alignment System
1 x Hofmann Tyre Fitting Machines
1 x Hofmann Wheel Balancer
1 x ABAC Dry Air Compressor
6 x Computor Diagnostic Systems
1 x Mig Welder
1 x Plasma Cutter
1 x Bayleigh Steel Cutter
All Aluminium Air pipes
All Tyre Racking

Assets and Equipment of Wheel Centre

CNC Diamond Cut Lathe
Combined Stripping Tank & Wash-Bay
Gas Fired Oven & Spray Area
Wheel Straightening Machine
Hofmann Tyre Changer
Hofmann Wheel Balancer
ABAC Dry Air Compressor
Wheel Polishing Machine
All Aluminium Air Pipes
All Tools of the Trade

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 of c. £980,000 per annum
Gross profit c. £400,000
Equipment Assets c.£400,000
Adjusted EBITDA £105,000

The business generates impressive profits. The vendors have invested in the infrastructure of the business over the years and it has a highly impressive level of plant and equipment that is included within the sales price.

Asking Price:

The Asking Price of £675,000 plus stock is for 100% of the issued capital of the company, assuming Net Assets of approximately £400,000 on completion (calculated on a zero cash-zero debt basis).

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 three comprehensive and attractive websites detailing the services and facilities offered.

Growth and Expansion:

The business has enjoyed steady growth over recent years and this is expected to continue in light of its growing and loyal customer base. The site has room for expansion if need be and this could easily be achieved if a new owner wished to employ further personnel as the demand is already there.

The tyre sales/fitting operation could easily be grown as this currently accounts for just 10% of overall sales. There is also the opportunity to look at motorbike MOT provision as there is currently only one motorcycle MOT station in the area.

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 as it has the necessary infrastructure in place.

Premises:

Premises are a real strength of this business. Ideally located on a busy main road and adjacent to a busy industrial estate that is close to the M11 Motorway, the A406 North Circular and a busy thoroughfare in its own right the business is very well known and accessible. The site is circa 5,000 sq. ft. of workshop and a large front parking area for numerous vehicles. The garage comprises a large single storey workshop with offices, reception, waiting rooms, toilets, kitchen and warehousing/storage.

The Garage Premises are leasehold. Current rent is circa £58,000 p.a. Rates are circa £22,000 p.a.
A new 10 year lease was signed in April 2018. It is understood the new lease will be signed over to new owners subject to normal checks and references.

The Wheel Centre is leasehold and a new 6 year rolling lease will be signed in November 2018. The current rent is £25,000 p.a & Rates are £9,000 p.a.

Business Hours:

Mon – Fri 8.45am - 6:00pm
Sat 8.45am – 2:00pm

Employees:

The vendor works within the business 6 day’s week. The business also employs a full time Senior Technician as well as 4 full time technicians. All staff is highly experienced and are real assets of the business.

Support and Training:

The current owners would be happy to provide full training and support at handover. This should be a relatively simple process as the vendors have put in place a General Manager who runs the business on a day to day basis.

Reason for Sale:

Semi-retirement sale.

Looking for finance ?

If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at finance@turnerbutler.co.uk

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This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

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Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 678532
info@turnerbutler.co.uk
www.turnerbutler.co.uk