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One of the UK’s Most Established Renewable Energy Companies
Manufacturing in the UK since 1978

Ref. GJ035

Location : Northamptonshire

Asking Price : £1,400,000 + Net Assets

Turnover : £3,300,000

Net Profit : Undeclared

Gross Profit : £1,275,000

EBITDA : £372,000

Net Asset : £2,456,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

Next Step, Please submit Confidentiality Form/NDA Online 

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Asking Price: £1,400,000 + Net Assets
(Current) Cash at Bank circa £1,600,000

Business highlights include:

(2018 accounts) Turnover: circa £3,300,000
(2018 accounts) Adjusted EBITDA: circa £372,000
(2018 accounts) Gross Profit: circa £1,275,000
(2018 accounts) Net Assets: circa £2,456,000
Very well established
Experienced Management


Introduction

Turner Butler has been appointed to offer for sale, one the oldest & most established manufacturers and suppliers of renewable energy equipment in the UK who for more than 40 years has been successfully selling its portfolio of products worldwide.

Business Profile

Founded in 1978, the Company is a very well established renewable energy business and has been a pioneer in the industry, and almost uniquely, consistently and successfully responded to the variable market conditions that surround a nascent industry.

The Company’s proprietary brand of micro wind turbines is renowned worldwide, most prominently in the marine sector. Powerful, reliable and robust where other products fall short, the brand name is respected by many organisations including British Antarctic Survey, Highways England, Network Rail and many others. Sales exceed 100,000 units.

Taking advantage of market opportunities, the Company, via a separate but exclusively related entity, developed and brought to market another proprietary product which enables customers with installed micro generation equipment such as solar panels to automatically consume the excess energy that these devices generate thus allowing customers to take advantage of their energy production savings, by:

– reducing the cost of domestic water heating
– reducing boiler use
– maximising use of solar energy generated at a customer’s property.

This well known and highly successful product boasts in excess of 50% of the market’s installed PV power diversion devices. Since 2013, its brand-name has become commonly used to refer to power diversion devices by industry operators and is even referenced in government documents. Sales currently stand at over 64,000 units with many export markets remaining unexploited.

Alongside the Company’s own manufactured products, the Company enjoys long standing alliances with complementary reputable international manufacturers that the Company represents in the UK.

The Company is structured with a strong and experienced management team supported by a highly skilled loyal workforce, ISO9001 operations and fully computerised manufacturing, distribution and accounting software.

This innovative and market-leading Company presents with proven financial track record as an excellent opportunity for investors in an expanding and exciting market place. Interest is invited from forward thinking buyers ready to advance the business to the next level.

Equipment:

Plant and machinery is currently held at a Net Book Value of £70,000, with the replacement value estimated to be approximately £500,000 +

Key features:

• UK’s oldest and most established renewable energy company
• 40 Years of strong reputation and excellent track record
• Manufacturer of market leading micro wind turbine brand
• Owners of the market leading brand in PV power diversion devices;
• International customer base including many PLC’s
• Loyal, longstanding and highly skilled workforce

Financial performance:

(2018 accounts) Turnover: circa £3,250,000
(2018 accounts) Adjusted EBITDA: circa £372,000 (before Director’s Drawings)
(2018 accounts) Gross Profit: circa £1,275,000
(2018 accounts) Net Assets: circa £2,456,000

EBITDA Summary

• 2019 - 5 months to 31.05.2019 £ 193k (Projected to 31.12.2019 £400k)
• 2018 - £ 352k
• 2017 - £ 252k
• 2016 - £ 205k

Turnover Summary

• 2019 - 5 months to 31.05.2019 £ 1.64m (Projected to 31.12.2019 £3.5m)
• 2018 - £ 3.25m
• 2017 - £ 2.7m
• 2016 - £ 2.7m

Asking Price:

The Asking Price of £1,400,000 plus Net Assets is for 100% of the issued capital of the company, assuming Net Assets of circa £2,456,000 on completion (including c£1.99m in cash). The final selling price will have a £1 for £1 adjustment to account for any rise or fall in this benchmark Net Asset figure of £2,456,000 at completion.

Advertising and Marketing:

The Company has a sales and marketing team with 3 senior operators having more than 10 years with the company and 4 between 1-14 years. Current activity is centred on overseas territories. The team is incentivised via a Profit Related bonus scheme.

The Company enhances its reputation overseas by attending international exhibitions, which are a key meeting place for existing customers, lead generation, market intelligence and networking opportunities. The Company exhibits at significant industry trade shows and exhibitions.

Opportunity:

This provides the opportunity for a potential purchaser to acquire a pioneering, profitable and innovative company with exemplary credentials and reputation within the renewable energy sector.

Premises:

Since 1993, the Group has operated from c.13, 000 sq. ft., which comprises a manufacturing facility, warehouse, test site, showroom and office space. Also on site is a separate machine shop facility of c.2, 000 sq. ft and adjacent to the main premises is a warehouse facility of c.5, 000 sq. ft.

These properties are owned by the three Directors and their current market value is estimated to be £1,200,000. This could be sold by separate negotiation if required.

Employees:

The Company employs 21 x full-time staff, excluding the directors, who are all highly knowledgeable and experienced in their respective roles.

The Directors are generally responsible for overseeing the financial and technical aspects of the Company and are confident that these roles could easily be absorbed within a larger organisation post-completion and a replacement salary has been deducted, as one of the adjustments to the adjusted EBITDA figure given here.

Staff turnover is low, with the average length of service being >10 years.
The Group operates a culture of profit related pay to incentivise its employees.

Support and Training:

The vendor would be happy to remain with the Company to provide training for an agreed handover period.

Reason for Sale:

The Directors wish to retire.

Next steps:

If you are interested in receiving further information, please sign and return the attached Confidentiality Agreement. In returning the Agreement we would be grateful if you could provide us with details of your interest in this opportunity along with your funding position.

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