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Plastics Recycling and Reprocessing Plant

Ref. CT041

Location : South Coast

Asking Price : £250,000 Inc. net assets

Turnover : £900,000

Net Profit : Undeclared

Gross Profit : £296,000

EBITDA : £70,000

Net Asset : £180,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Leasehold

Asking price includes:

Typical Turnover circa £900,000 p.a.
Operating Profits EBITDA (pre-director drawings) circa £70,000 p.a.
Net Tangible Assets circa £180,000 (Inc. stock, plant, equipment)

Very well located leasehold premises
Significant technology advantage
Over 28 years successful trading
Impressive referral rates
Top quality supply partners
Handover and training
Goodwill
Attractive Website

Business Profile

This well established and successful plastics recycling business which operates as a partnership is one of the largest and most significant recycling businessess in the south of England, with a well-earned reputation for the breadth of its services and abilities in solving some of the most troubling or sometimes seemingly intractable issues relating to maximising the potential for recycled plastics.

The business has been operating since 1988 and processes a wide range of plastic products, creating the highest quality recycled product sufficient for some of the highest added-value plastics products.

This is a family run business and managed by two partners who have known each other for many years predating the founding of the business; and this friendly nature is responsible for the hard working and motivated quality of its people. The business takes enormous pride in its personal service, attention to detail, quality and professionalism, ensuring that the highest standards are maintained throughout the entire duration of a product recycling journey.

This business has grown from its earliest days where product for recycling would be trailered behind the founders family cars to become one of the best known and significant providers of recycling services in the UK.

Problem solving

It has often been the case that the business will have what seems to be an intractable problem in extracting the best quality of product from recycled material or that an opportunity for margin might be lost; often in these cases the company has been able to engineer a way of doing exactly that and setting new standards, then adopted elsewhere by competitors – but never so well.

The business is a certified plastics recycler and licensed carrier registered with Environment Agency and has been working with many councils on their environmentally sensitive efforts.

The WEEE directive aims to reduce the amount of Waste Electrical and Electronic Equipment that goes into landfill and the company has been working with companies in this field to help recycle any plastic components that are recoverable.

Products

The business’‘ extensive range of reprocessed plastic products are listed below and are available in either Re-Grind or Pellet form:

High Density Polythene (HDPE)
Low Density Polythene (LDPE)
Linear Low Density Polythene (LLDPE)
Polypropylene (PP)
Polycarbonate (PC)
Polyvinyl chloride (PVC)
Acrylonitrile Butadiene Styrene (ABS)
Nylon (PA)
Acetal (POM)
Polystyrene (PS)
Acrylic (PPMA)

Reprocessing

The business’ reprocessing system uses some of the most advanced technology in its field and is constantly monitored for quality.

From start to finish all reprocessed material undergoes rigorous checking and uses a three stage, food-grade metal detection system at various points throughout the production line. Numerous filtering and sieving systems are also in place to eliminate any non-metal contaminants.

Customer Service:

This business has the strongest commitment to customer service and the process for ensuring this begins with those staff receiving enquiries all the way through to operative staff; all are suitably qualified.

Key Strengths:

The infrastructure is in place including staff, facilities, knowledge, experience and accreditations for the ongoing success of this business. The many strengths of this business include:

• Infrastructure in terms of skills, staff, supply base
• Technology for reprocessing
• Location
• Large historical customer base generating high levels of recurring business
• One of the best known businesses of its kind in the region
• Reputation-ongoing recommendations from historical customers and trade suppliers
• Growth pattern and future opportunities in the sectors it serves
• Full turnkey solution

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.

The business is financially stable and has enjoyed excellent trading results year on year. This has resulted in a healthy order book and profitability to the owners and this trend is expected to continue in line with growth in the sectors it serves and the company’s reputation going from strength to strength.

Turnover for last financial year circa £900,000 p.a.

Gross Profits for last financial year circa £296,000 p.a.

Adjusted Operating Profits/EBITDA for last few financial years in excess of circa £70,000 p.a. (pre director drawings).

Net Assets circa £180,000,000.

Net assets include significant machine assets of great technological advantage.

The Asking Price:

The Asking Price for OIRO £250,000 Inc. Net Assets is for 100% of the interest of the company, assuming Net Assets of c£180,000 on completion (calculated on a zero cash-zero debt basis). The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark Net Asset figure of £180,000 at completion.

Advertising and Marketing:

The company has a comprehensive and attractive website detailing products and activities and has engaged in some search engine optimisation but not in a planned or methodical fashion.

Growth and Expansion:

The business currently operates on a regional scale concerning the supply of raw material from County Councils and other sources of commercial and consumer waste plastics but in terms of sales of reprocessed product, the company trades all over the UK. There is no reason why it cannot further develop its presence in other international markets should a new owner so require.

Some product is sold to the Chinese market via a 3rd party and this could considered internally.

The company has also engaged in modest trading activities, which the owners believe could be expanded upon with excellent returns.

Premises:

The business is managed from leasehold premises consisting of offices of circa 500 square feet in one building with circa 10,000 square feet of reprocessing area. An adjacent building has circa 10,000 square feet of processing area.

Both buildings have an adjacent yard of circa 1 acre for storage and materials management.

The premises are situated on railway sidings in close proximity to many large industrial units, close to a busy trunk road with easy and ready access to motorways and the UK road network.

Rent and rates: c £100,000 p.a.
Electricity: c £60,000.

Employees:

The vendors choose to work in the business on a day to day basis and are responsible for sales and technical development. The business has also put in place an excellent team who are able to manage and run the business with a minimum level of supervision.

Employees include:

8x Full time yard staff
2x Full time Drivers
6x Full time machine operators
2x Full time Managers/Engineers
1x Full time Administrator

The business appreciates that its staff are real assets. They are fully conversant with the latest products and process techniques, not to mention health and safety and on-site legislation requirements and manage these factors on a day to day basis.

Support and Training:

The vendor is happy to provide a comprehensive handover to ensure a smooth seamless transition.

Reason for Sale:

Retirement.

Energy Performance Rating

Please contact us for a copy of the EPC if required

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

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