Manufacturer of Full & Partial Dentures
Location : West Midlands
Asking Price : £395,000
Turnover : £588,000
Net Profit : Undeclared
Gross Profit : £500,000
EBITDA : £225,000
Net Asset : Undeclared
Premises : Leasehold
Confidentially offered for sale
Highly respected UK dental laboratory
Turnover for last financial year circa £588,000 p.a.
Gross profits circa £500,000 p.a.
Operating Profits (pre-director drawings)circa £225,000 p.a.
All manufacturing equipment and stock (circa £30,000)
Custom made products for dentist’s patients
Regular customer base
Circa 100+ “private and NHS ” dental organisations/practitioners
Successfully trading for over 30 years
Ongoing growth pattern
This very highly regarded and firmly established UK dental laboratory specialises in the manufacture of prosthetic dental appliances- specifically full and partial dentures, which are custom made for dentists’ patients across the UK.
This laboratory has been successfully trading for over 30 years and has built up an exceptional reputation based on very high quality levels of product and service. The company currently serves both the public sector (NHS) and private sector. The majority of current sales are for NHS patients (circa 90%). The business has enjoyed strong growth and very impressive profitability over the years due to its consistent levels of customer service, technical expertise and supply.
The business has circa 100 regular customers within the UK. Customers include large organisations who have multiple dental practices (running into hundreds) right through to independent private dentists and dental surgeons. The business has annual contracts in place with some of its largest clients. Approximately 85% of current customers are located in and around the Midlands region. The large customer base the business has created and retains ensures the laboratory receives consistent levels of business throughout the year, so much so that is does not have the need to undertake any significant sales and marketing activity at present.
The business model is such that it operates with low overheads that enables it to post highly impressive profits year on year.
The business operates from ideal leasehold premises where the dental appliances are manufactured and distributed, either using in-house delivery vehicles or via couriers and the postal service.
All plant and equipment is included within the sales price including all manufacturing machinery, tools, equipment, IT and office equipment and stock. Net Assets circa £30,000.
The company along with the reputation it has created over the years has been built on proven manufacturing techniques, where quality control is paramount. Customer satisfaction is at the heart of the business The business is also registered with the following organisations to ensure full compliance.
DLA Membership (Dental Laboratories Association)
DAMAS (Dental Appliance Manufacturers Audit Scheme) 3rd party Audited
Registered with the British Bite Mark Scheme (BBM)
GDC Registered (General Dental Council)
This commitment to quality and compliance has helped create this highly successful and profitable business operation. This also ensures excellent customer retention levels and new referrals.
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.
Financial Year Turnover Operating Profits/EBITDA*
June 2013 £467,000 £165,000
June 2014 £520,000 £170,000
June 2015 £588,000 c£225,000
*Pre director drawings
Asking price includes equipment and stock (circa £30,000) but excludes cash at bank and is on a debt free cash free basis.
The Asking Price of £395,000 is for 100% of the issued capital of the company based on Net Assets circa £30,000 and is on a cash free debt free basis.
As previously mentioned, the business historically does very little in the way of marketing and gets most of its work via referrals, recommendations and repeat business. It does have a basic, yet informative website but this probably needs updating and promoting better to further increase the company’s exposure.
The business has grown year on year and this trend is expected to continue with more and more people needing full and partial dentures.
Business growth is good, benefitting from having contracts in place with some of its larger commercial customers. The business activities could be scaled up with additional staff resource should a new owner wish to do this. The vendor believes the business could easily accommodate sales of circa £1million p.a. within its current infrastructure.
To date, the business has done no real marketing so this could be ramped up to support such expansion.
Another area of opportunity could be for the business to diversify into other areas such as crowns and bridges. These services are again very much in demand and it would certainly complement their current products.
The business has concentrated on the NHS sector to date. There is no reason why a new owner could not target the private sector more as this only accounts for some 10% of current revenues.
A new owner with a new injection of energy and business acumen could easily drive the Company forward, thus exploiting the many new business opportunities available.
The business operates from ideal ground floor premises circa 1000 square feet. It has good access to major routes and parking. Current rent is circa £10,800 p.a.
The two directors work full time in the business. Both are registered Technicians with the General Dental Council (GDC) and work as Technicians in the business. The business employs another 6 Full Time Technicians, 2 Part time Technicians, an Administrator, A Delivery Driver and an Apprentice.
Both directors are happy to stay on in the business as employed Technicians.
The current owners will provide all necessary training and handover to ensure a smooth transfer of the business to the new owner. Both owners are happy to stay on in the business as Technicians should a new owner so require so this should be a relatively simple process.
The vendors feel the business would benefit from a new injection of business acumen and leadership to maximise the many opportunities at its disposal. They have been somewhat reluctant owners to date but would be happy to work in the business as employees moving forward.
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