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Scrap Metal Dealer Specialising in Non Ferrous Metals

Ref. CT009

Location : Merseyside

Asking Price : Offer Invited

Turnover : £7,650,000

Net Profit : Undeclared

Gross Profit : £1,440,000

EBITDA : £1,157,000

Net Asset : £2,200,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Asking price includes:

Turnover for last financial year end 2017 circa £ 7.65Million p.a.
Resultant Gross Profits circa £1.44 Million p.a.
Adjusted EBITDA circa £1.157 Million p.a.
Net Assets/Shareholders Funds circa £ 2.2 Million

Fully licensed and accredited for both ferrous and non ferrous metals
Ongoing growth pattern
Huge expansion possibilities
Large leasehold site with spare capacity
Close to major transport links including major port
New long term lease to be made available
Over 30 years continuous trading
Well established client base
Ongoing investment
Computer system
Training and handover
Goodwill

Business 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:

• Recently refurbished/relined high temperature furnace with 2 tonne well plus casting machine equipment (inc moulds).
• 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
• Truck

Customer 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.

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.

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 companies 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.

Financial profile:

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 last financial year end 2017 circa £ 7.65Million p.a.
Resultant Gross Profits circa £1.44 Million p.a.
Adjusted EBITDA circa £1.157 Million p.a.
Net Assets/Shareholders Funds circa £ 2.2 Million

Offers are invited for the sale of 100% of the issued share capital of the company.

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.

Advertising 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 0700-1700 Saturday Mornings 0800-1200

Security:

The site is very secure and is fully alarmed and has CCTV. It also has a security call out service.

Employees:

As well as the owner who work within the business there a 9 fully trained operatives and one administrative assistant. All employees are full time.

Support and Training

The current owners will provide all necessary training and all relevant contacts to allow continuity of trading.

Reason for Sale:

Retirement.

Turner Butler Disclosure Statement

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

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk