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Nationwide Industrial & Commercial Cleaning Company

ISO9001/CHAS/BESA

Ref. GC111

Location : Nationwide

Asking Price : £2,500,000

Turnover : £2,760,000

Net Profit : Undeclared

Gross Profit : Undeclared

EBITDA : £500,000

Net Asset : £384,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Asking price includes:

Current Turnover £2.76m annualised.
EBITDA £500,000 after management costs
Net assets £384,000.

Fleet of 30 Sign-written vehicles
Impressive levels of plant and equipment
“Own brand” consumable stock
Growing year on year
Impressive senior management team
Excellent back office systems
New training centre and trade counter
Superb large commercial customer base
On-going future revenues with contracted customers
Multiple revenue streams
Handover and training
Goodwill
Website

Business Profile

This very successful commercial contract cleaning company has enjoyed impressive growth since inception, and has developed into one of the leading cleaning companies in its field within the UK offering nationwide coverage. This growth trend is expected to continue, as the company’s brand and reputation goes from strength to strength furthermore it continues to develop and offer new services to its extensive and ever growing customer base.

The business specialises in providing all cleaning and hygiene requirements for commercial and industrial premises throughout the UK. It has all the necessary knowledge, training and equipment to provide the most comprehensive cleaning and on-going maintenance programmes to its clients.

Services include: industrial cleaning, deep kitchen cleaning (Inc. extractor hood, Kitchen and oven), floor clean and sanitation, window Cleaning ), roof, gutter & drain cleaning, carpet cleaning, high pressure steam cleaning, graffiti removal, flood and fire restoration, drainage works, unblocking and cleaning, new build handover cleaning, hazardous waste removal, pest control and garden maintenance services.

The company has achieved excellent market penetration, particularly within the care sector and this continues to be one of its core markets. The business also has long term contracts in place with a variety of organisations within both the public and private sector. Clients include schools, care homes, private health companies, hotel chains, restaurant chains, construction companies, supermarkets, offices and councils.

The company boasts some 700 regular customers in total and currently services and cleans around 2,000 commercial properties per month. These sites are spread across the UK. All customers, many of whom are blue chip, have contracts in place (up to 4 years).

The vendor has put in place a comprehensive senior management team who can run the business on a day to day basis, which allows him to focus on strategy as well as pursuing other business interests.

The company is fully conversant with all current legislation and guidelines relating to health, safety and quality. The company has excellent internal procedures and policies that are backed up by the company’s impressive range of accreditations and registrations that ensure a high quality of service and treatment, both for customers and employees.

Equipment:

The offices are equipped with a fully networked and automated IT based administration system that allows users to access remotely if need be.

The business has a fleet of about 30 fully liveried commercial vehicles which it operates on a very flexible lease agreement with a leading fleet management company. All vans are sign written, modern and in good condition. Each vehicle is fitted with a tracker.

A large level of equipment including market leading reach and wash window cleaning systems, scrubbers, polishers, steamers, buffers, wet vacuums etc. is offered as part of the sale. The business also carries a good stock of its own label chemicals and other consumables. It also has a suitably equipped training centre (practical and classroom) and a brand new corporate website.

Customer Service:

This business provides quality services at highly competitive rates and clients receive a professional and efficient service. All staff are CRB checked and suitably trained. This is backed up through the company’s accreditations and registrations including:

• ISO-9001 Registration
• Construction Line Accreditation
• CHAS Accreditation
• Building & Engineering Services Association (BESA)
• PASMA

Key Strengths:

The company has been developed so it can cater for a diverse range of clients. The infrastructure is in place including staff, systems, facilities, knowledge, experience and accreditations. Because of this the company is able to offer a consistent high level of service and has built up an impressive reputation on the back of this. This is evident in the impressive financial figures it has posted and continues to post. The many strengths of this business include:

• Profitability
• Infrastructure in terms of senior management, policies and accreditations
• Large prestigious customer base with long term contracts
• The brand and reputation
• Multiple revenue streams
• Growth pattern and future opportunities in the sectors it serves

Attention to detail and a friendly yet professional approach by all personnel is one of the main factors for the success of the business, as is speed of response and the ability to provide suitable solutions for a variety of different scenarios as and when they arise. The comprehensive service that it provides ensures the business maintains and continues to grow its already impressive customer base and to remain a leader in the commercial cleaning sector.

The business has strong relationships with both its suppliers and customers and views them as partners. This is demonstrated by the excellent profitability it enjoys.

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 enjoys an impressive number of contracts with major blue chip companies that ensure consistent levels of business now and in the future. This has resulted in impressive growth rates over the last couple of years 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.

The business is currently doing an annualised turnover of £2.76m per annum. Withn an average 18% net margin the EBITDA after allowing for management costs is c£500,000.

The Asking price is for the sale of 100% of the Issued Share Capital in the Limited company. All owned plant and equipment is included within the sales price. The asking price is based on a debt free cash free scenario with an NAV of c£384,000. There will be a £ for £ increase/decrease in the sale price to reflect any movement away from this NAV figure at completion.

Advertising and Marketing:

The business enjoys high levels of repeat business, word of mouth recommendations and referrals but could benefit from a more strategic medium/long term sales and marketing campaign. It has recently invested in a new improved website that is highly informative illustrating all the business’s offerings. The website has excellent rankings and internet presence achieved through the utilisation of external search engine optimisation.

Growth and Expansion:

The business currently operates on a national scale and whilst it currently services some 2,000 commercial properties per month there is huge scope for expansion. The care sector alone is seeing huge growth and the trend expected to continue with the ageing population. The hotel & hospitality industry is seeing renewed growth and this business are ideally positioned to service the large main contractors looking for nationwide service provision.

The company has recently opened its own internal training centre and trade depot and both these new offerings are expected to generate new levels of business on a local/regional level. There is an opportunity to roll this out on a larger scale should it prove to be the success that initial uptake suggests it will be.

With a more proactive sales and marketing function a new owner could significantly increase revenues and turnover within the business, both with existing and new clients.

Premises:

The head offices are leasehold and ideally located on a very prestigious and high profile business park. The premises are circa 7,000 square feet and comprise offices, warehouse, training centre with practical area and new trade counter and retail centre. The current lease is for 5 years. Current rent is circa £25,000 p.a.

Business Hours:

Offices 9-5 Monday to Friday
Operatives as required

Employees:

The vendor has put in place a highly experienced and skilled senior management team that allows him not to be tied to the business. Senior staff include: Financial Controllers, Several Key Business Development Managers, Office Managers and Remote Site Supervisors/Area Managers. The business also employs circa 45 other members of staff.

Support and Training:

The vendor is happy to provide a comprehensive handover to ensure a smooth seamless takeover and is prepared to stay on for further period as a consultant if so required by a new owner. This should be a relatively simple handover as the business already has key management in place.

Reason for Sale:

The vendor wishes to spend more time with his young family and is also looking to emigrate. He believes the business has grown to such a size where it is ripe for a new injection of business acumen to take it through its next period of growth.

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