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Professional Commercial Contract Cleaning Company

Ref. GC116

Location : South Lakes, Cumbria Relocatable

Asking Price : £115,000

Turnover : £190,000

Net Profit : Undeclared

Gross Profit : £160,000

EBITDA : £71,500

Net Asset : Undeclared

Premises : Relocatable

Confidentially offered for sale


  • Turner Butler

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Asking price includes:

Turnover for last financial year circa £190,000 p.a.
Gross Profits for last financial year circa £160,000 p.a.
Adj EBITDA/Operating Profits pre director drawings circa £71,500 p.a.
Circa 40 regular commercial customers
Approved Supplier status
All plant and equipment
Ongoing future revenues with contracted customers
Handover and training
Goodwill
Website

Business Profile

This successful commercial contract cleaning company has enjoyed consistent growth and profitability since inception and this trend is continuing with sales for the current financial year circa £190,000p.a. The growth has been organic and driven by the company’s belief that customer service is the key. This has led the company to develop its customer base in and around the towns of the South Lakes region of Cumbria and the surrounding areas. The company currently has some 40 regular commercial customers, several of who are responsible for large numbers of properties, who value this company’s exceptional service levels.

The business specialises in providing all cleaning requirements for commercial offices, facilities, retail units and company premises (circa 80% of current revenues), generally within a 40 mile radius of its base. It also provides builders cleans (15-20%) and to a much lesser extent carpets cleans (this is more domestic however).The company has contracts in place with circa 70% of its customers which ensures consistent levels of work. The company has a good spread of business and is not over reliant on any particular client or market sector.

The business provides a friendly professional and efficient service to the client. The quality of work is very high and the staff are reliable, polite and flexible in their approach.

The company is very proud of the excellent working relationships that have been developed with clients. Many clients are long standing and provide regular repeat business opportunities, having been with the business for many years.

The company is fully conversant with all current legislation and guidelines relating to health and safety and utilises the services of the maret leading external busines consusltancy to ensure full compliance.

Equipment:

The business model is highly efficient. The business has a good level of plant and equipment that enables its operatives to carry out their duties effectively including vacuum cleaners and a carpet cleaning machine. All equipment is included within the sales price.

Customer Service:

This business is dedicated to providing 100% customer satisfaction, making every effort to satisfy the clients’ requirements. This is demonstrated by the impressive levels of repeat business and customer loyalty the business enjoys.
This business provides quality services at highly competitive rates and clients receive a professional, personal and efficient service.

Key Strengths:

The company has been developed over time so it can cater for the most demanding of commercial clients and has built up good levels of knowledge in terms of providing the best cleaning solutions. 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.

The business has strong links with both its suppliers and customers and is an Approved Supplier to a regional building company that has on-going builds across the North West.. Other strengths include:

• Profitability
• Low overheads
• Scalable business model
• Desirable customer base
• Contracted customer base

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 ongoing levels of business with its regular and loyal commercial customer base.

• Turnover circa £190,000 p.a.
• Gross Profits circa £160,000 p.a.
• Adjusted EBITDA/Operating Profits pre director drawings circa £71,500 p.a.

Asking Price:

The Asking Price of £115,000 is for 100% of the issued capital of the company calculated on a zero cash-zero debt basis. It includes all equipment.

Advertising and Marketing:

The business has a basic information website but does no forms or advertising and marketing. 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.

Growth and Expansion/Opportunities:

There is room to expand the current business, in terms of more sales and also more service offerings. The vendors have not actively chased work for several years- there are many opportunities available to a new owner including:

• Commercial carpet cleaning- they currently do NOT offer this service to existing customers through choice
• Window cleaning –again this could easily be developed to serve both existing and new clients
• Holiday cottages- this is a big opportunity- the vendors have chosen not to serve this market at present
• Boat cleaning
• Consumable sales- the business does undertake some consumable sales but this could be easily expanded as it is not actively promoted and the range is limited at present.
• Domestic cleaning- the vendors again have chosen not to serve this market at present but there is no reason why a new owner could not branch out into this area.

This business has survived and prospered since 2009. Now confidence is coming back to the local economy, there is potential for more growth through additional energy, sales and marketing activity.

Premises:

The business has low overheads and operates from a home office environment. It is truly relocatable.

Employees:

There are 2 directors in the business. Both are very much part time. One director is responsible for administration and operations and spends one to one and a half days a week on this and occasionally covers for absence. The other director spends maybe 1 day a week cleaning.

The business has a pool of some 17 part time cleaning staff, one of whom is a supervisor.

Staff are trustworthy and fully conversant with the company’s own internal policies.

Support and Training:

The vendors are happy to provide a comprehensive handover to ensure a smooth seamless transition of ownership. It is envisaged this should be a relatively simple process as the business model is relatively straight forward.

Reason for Sale:

The vendors have other personal/career interests and are looking for a career change.

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 678532
info@turnerbutler.co.uk
www.turnerbutler.co.uk