Commercial/Industrial Heating & Ventilation Company
Location : Nr. Glasgow, Lanarkshire, Scotland
Asking Price : £139,000 (Inc. Net Assets)
Turnover : £405,000
Net Profit : Undeclared
Gross Profit : £163,000
EBITDA : Undeclared
Net Asset : £19,000
Premises : Leasehold
Confidentially offered for sale
Turnover circa £405,000 per annum
Gross Profit circa £163,000 per annum
Net Assets circa £19,000
All plant and equipment
Prestigious customer base
Run under management
Full turnkey solution
Training and handover
Turner Butler has been appointed to invite offers of purchase for this established and highly reputable commercial heating/ gas fitting company that has excellent infrastructure, key management, desirable public sector clientele and impressive profitability.Business Profile
This well managed business was set up by the current vendor some 27 years ago and has established itself as a highly reputable and trustworthy business, providing a combination of heating, gas fitting and ventilation services to the commercial and industrial markets in and around the Glasgow/Edinburgh Region. The business is fully certified to carry out works on site and has Gas Safe accreditation, so is able to provide a complete turnkey solution to its clients providing a comprehensive range of services, whether it be a new installation or repair and/or maintenance.
The company provides services primarily to the commercial market and has a very impressive regular customer base. Clients are typically based locally, nevertheless, the business does offer services to some clients further afield if so required. Typical clients include local authorities (for whom they are an approved contractor so no tendering is required for many of the works), schools, colleges and private companies. The majority of revenues (circa 70%) come from the public sector.
The business has worked on some large high profile projects over the years and continually has the opportunity to bid for works that could significantly increase its current turnover. The business enjoys very high levels of repeat business and has a loyal customer base due to the quality of its customer service. The company is known for its professional attitude hence its high levels of customer retention.
As a Gas Safe registered company this business provides high quality work that meets all the necessary health and safety standards. It has an impeccable health and safety track record and its customers enjoy superb levels of service. This is reflected in the high number of referrals the business enjoys and is backed up with its numerous accreditations that include:
• Gas Safe
• Construction line
All relevant plant and equipment is included within the sale.
The strengths of this company include its accreditations, reputation, product knowledge, and its technical expertise developed over many many years. It is able to provide clients with a high quality turnkey solution.
The business has earned and maintained an impressive base of satisfied clients.
There is constant high demand for its services leading to consistently strong financial performance, making this Company an exceptional investment opportunity.
There are many new opportunities available to grow the business as it is a truly scaleable operation.
Because of its accreditations and standing as an approved contractor the company has many opportunities to work with many new clients but these are more often than not turned down due to ongoing regular commitments. This has been a conscious decision by the vendor as he has kept the business the size it currently is through choice and due to his lifestyle choices over recent years. There is huge scope to expand the business and develop the many opportunities that are available to them.
Approximately 70% of current work is within the public sector. The vendor has to date been selective in the business he has taken on, particularly over the last few years. There is huge potential to grow the business both with existing customers and targeting new clients within the region and within the public and private sector.
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 achieved turnover of circa £405,000 per annum last financial year.
Resultant gross profits circa £162,000 per annum.
Net Assets circa £19,000
Equally impressive figures have been posted over previous years as the business enjoys high levels of repeat business from its loyal customer base.
There is huge potential to develop this business further. As already mentioned, the vendor is pretty much reactive in their approach to business these days and there is scope to maximise additional opportunities that exist within its current customer base and beyond.
The Asking Price of £139,000 including Net Assets is for 100% of the issued capital of the company, assuming Net Asset position of circa £19,000. The final selling price will have a £1 for £1 adjustment to reflect any rise or fall in this benchmark Net Asset figure at completion.
The business does very little in the way of self-promotion and marketing, preferring to rely on repeat business and referrals to generate sales. However it does have its own basic website and listing in BESA Year Book, Gas Safe and Yellow Pages.
The business has had regular revenue streams to date. Further investment and expansion would offer potential for the business to expand its operation further with a more proactive approach to sales. The vendor has never really looked for work and concentrates on his core client base. A new owner with larger infrastructure could certainly target larger projects relatively easily. They could also look to introduce maintenance contracts and emergency call out services if so required.
The business operates from leasehold premises located on a well-known industrial estate with excellent access to the road network. Circa 2000 square feet unit housing offices, store and workshop (Built circa 1982).
We are advised the vendors pensions fund owns the property so a new lease agreement would be made available subject to negotiation. Relocation would not be an issue should a new owner so require.
Current rent is circa £12,000 p.a. We are advised the business benefits from small business rates relief.
Mon – Thurs - 8.00am – 4.30pm
Fri- 8.00am -2.30pm
The vendor has built a team that means he no longer requires being involved in the business on a day to day basis. The business employs a full time Operations Director (non-shareholder), 2 full time Gas Engineers and a full time Office Manager.
The business is relatively simple to run. Staff are a real asset and can multi-task and complete a variety of tasks.
The current owner would be happy to provide full support at handover. The full time staff would make the transistion relatively straightforward as the vendor is very much part time (one day a week) and not involved in the busienss on a day to day basis.
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.
I 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 email@example.comTurner Butler Disclosure Statement
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