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UK Exporter of Pipeline Products to the Water/Sewerage & Oil/Gas Industries

Ref. GD063

Location : Manchester(Yet fully relocatable)

Asking Price : £350,000

Turnover : £796,000

Net Profit : £167,000

Gross Profit : £259,000

EBITDA : Undeclared

Net Asset : Undeclared

Premises : Not Included

Confidentially offered for sale


  • Turner Butler

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Asking Price: O.I.R.O. £350,000

Asking price includes:

Turnover for last financial year circa £796,000 per annum
Gross Profits circa £259,000 per annum
Current Net Profit/.EBITDA (pre director drawings) circa £167,000 per annum
Low overheads
Superb supply base
Reputable blue chip client base
Positive cash flow
Global opportunities
Training and handover
Goodwill

Business Profile

This specialist UK company set up by the current vendor some 20 years ago specialises in the supply of pipeline equipment to the export market, primarily to the water/sewerage and oil/gas industries. Equipment include pipes and pipefitting made from a variety of materials as well as specialist machines, plant and equipment.

Over the last five years the business has focuseed on the Caribbean where the business has establsihed a sterling reputation for supplying reliable products and for providing a consistent level of service. This has resulted in the business enjoying substantial ongoing business which is both sustainable and offers significant opportunties for growth.

Most of the products the company supplies are from major UK manufacturers , but also increasingly from associates in India. The business has developed its own product that is already being sold in volume(at higher than average margins) and also has a number of other such products that are at different stages of development.

The company is debt free and enjoys a strong/potential order book for the future. It enjoys very good profit margins, has very low overhead and enjoys positive cashflows such is the nature of its work.

The company’s clients are primarily water authorities and contractors. In some cases the business deals direct and in others through an established and trustwortthy network of local agents. The business also has some clients/ contacts in th Middle Eest that are ripe for future expansion.

This represents a significant investment opportunity to a new owner in a vast and growing market sector.

Customer Service:

The business prides itself on the levels of customer service it provides. It is for these reasons that it enjoys very longstanding and fruitful relationships with both its customers and suppliers. This backed up by the fact all the products the business supplies meet the relevant standards.

Key Strengths:

• Profitability

• Speed of response

• Reliability

• Market Knowledge

• Unpatented technical knowledge

• Quality of materials

• Customer base

• Positive cashflow

• Low overheads

• Supplier relationships

• Growth

Growth and Expansion:

This business operates within a field with ongoing demand anticipated for the short/medium and long term. It is currently servicing a very small part of this market both in terms of share, customer base and geographical spread. It currently does no proactive advertising or marketing. It has no internet presence. Growth is inevitable. It is understood a new owner with new levels of energy, investment in resource and marketing could significantly increase the levels of business within a short period of time. Alternatively such are the relationships already in place that the business would expect to continue growing at its current levels if a new owner so required.

Key Opportunities:

The opportunities to a new owner are huge. The current vendor has concentrated on a very small area in global geographical terms to date (namely the Caribbean) to do business. Many of the products he is able to source are required throughout the world so there is a huge opportunity for a new owner to target a wider geographical region. In addition to this the business has just recently started to source product direct from some suppliers in India and this represents a massive opportunity to not only improve upon the already impressive profit margins but to compete in new markets and expand the product offering still further.

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.

The business currently achieves turnover circa £800,000 per annum. Historically the  figure has been as high as  circa £1.33-1.6Million.  Gross profits for the last financial  year circa £259,000 with resultant adjusted EBITDAcirca £167,000.

The Asking price is based on a cash free debt free scenario.

The business enjoys excellent profit margins, positive cash flow due to the nature of its contracts and low overheads. The scope for future growth is huge as the current owner has concentrated on one particular geographical region in a global market through choice.

Advertising and Marketing:

The business currently undertakes no conventional advertising or marketing campaigns such is its position in the market. It does not have a website. However the vendor does attend the main trade show to network and visit clients.

Premises:

There are no premises associated with this sale. The business is run from a home office environment.

Business Hours:

As required.

Employees:

The owner works full time within the business ably assisted by his wife who undertakes administrative duties on a part time basis.

Support and Training:

The current owner would be happy to provide full training and support at handover. He may even consider working as a consultant for an agree period thereafter subject to negotiation.

Reason for Sale:

The vendor is setting up a new unrelated venture with his family and wishes to now concentrate on this.

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