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Steel Fabrication & Welding Company CE Registered, London

Ref. IS048

Location : Essex

Asking Price : £117,500

Turnover : £481,000

Net Profit : £24,000

Gross Profit : £202,000

EBITDA : £80,000

Net Asset : £35,000

Premises : Leasehold

Confidentially offered for sale



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Location: Essex Serving London and throughout South East

Leasehold

Asking price: £117,500 excl. Net Assets

Asking price includes:

Turnover for 2017 circa £481,000 p.a.
Gross Profit circa £202,000
Net Profit £24,000
Adjusted EBITDA before directors’ costs circa £80,000
Net Assets circa £35,000

Ideal well located leasehold workshop circa 50 meter square + 70 square yard
All plant & equipment (circa £30,000)
Over 40 years historical trading
Blue chip national client base
Superb reputation
CE Registered
Goodwill
Stock

Business Profile

Set up over 40 years ago, this very well established and reputable family business provides a comprehensive metalworking and fabrication service to a range of impressive clients.

BS EN 10190 accredited to supply CE marked Structural Steelwork (Execution Class 2), whatever the steel requirements of a Client, this Business can meet it – manufacturing to exact specifications, the highest quality requirements and in the shortest possible lead times.

With a wide ranging, loyal and longstanding Client base, including some of the biggest building contractors in the world, right through to local businesses and individuals, this business delivers across the widest range of projects – brackets and frames, grilles and ladders, angles and channels, open mesh flooring, weld mesh panels, structural and box sections, handrails and balustrades. It is able to offer most finishes including galvanising, powder coating and multi coat paint systems and such is its in-house expertise, it is frequently called upon to offer best advice on the design and development of projects and best fabrication practice.

The business has continuously re-invested in plant and equipment to keep pace with the ever-increasing demands of its customer base. Because of this the company can boast a good level of plant and machinery as well as knowledge of the market. This internal capability enables the business to carry out a variety of projects with quick turnarounds. From first contact to completion the onus is geared towards complete customer satisfaction.

Equipment:

The company has a good level of plant and equipment that has built up over 40 years of successful trading that enables it to carry out its duties effectively. Equipment includes

• Saws
• Metal Workers/Cropping/Bending
• MIG Welders
• Thread Cutting Machines and Presses
• Drilling and Grinding equipment
• Benches, Hand Tools etc.

All equipment is included within the sales price. A full inventory of plant and equipment is available on request. 

Customer Service:

The company is customer focused and this is demonstrated by its impressive list of blue chip customers and high profile projects it has completed. This together with speed of response and consistent quality of product ensures significant levels of repeat business as well as new business creation through client testimonials and word of mouth within the markets its services.

Key Strengths:

The business is an experienced and multi-skilled operation that can undertake a large variety of projects from simple batch production through to engineered one off structures.

The business is established and profitable with a strong customer base. It has regular customers throughout the area, yet is not reliant on any one market sector.

The business retains a high level of historical clients and an excellent health and safety record.

The company has earned an outstanding reputation for its honesty, service and reliability.

Key Opportunities:

This is an outstanding opportunity to build on the existing products, services and customer base of this company. With a strong demand combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level.

The business maintains a good number of satisfied customers, who appreciate the company`s products and skill sets, attention to detail, value for money and service. There are many excellent avenues for growth, especially within the current operations capacity. A dedicated sales and marketing effort would yield significant levels of additionalbusiness and profitability as by its own admission the business tends to be reactive rather than proactive in its approach to sales and marketing.

Growth and Expansion:

The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a large range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work, be it volume/batch production or ad-hoc projects. It also has a client base that is seeing good growth and it could easily develop its current account base further by actively promoting the company and chasing work.

Financial profile:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover circa £481,000 per annum
Gross Profit circa £202,000 per annum
Adjusted Net Profit before directors’ costs circa £80,000 per annum
Net Assets circa £35,000

The Asking Price of £117,500 is for the assets and goodwill of the business.
There will be a £ for £ adjustment to the asking price to reflect any rise or fall in the net asset position as at completion.

All plant and equipment is included within the sales price.

Asking Price:

The asking price of £117,500 is for 100% of the issued capital of the company assuming Net Assets of £35,000 on completion.

Advertising and Marketing:

The business has used very little advertising in the past and 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 comes from long standing relationships with clients and as such it enjoys good levels of repeat business. This is due to its excellent reputation for quality and service and strong word of mouth recommendation and this is expected to continue.

Premises:

The business operates from ideal leasehold premises offering good access and plenty of parking. Circa 50 metre square plus second yard area, 70 mtrsq, the unit comprises the workshop, office accommodation and toilets.

The existing lease is on a rolling basis. Rent and rates are circa £13,600 per annum

Business Hours:

Monday – Friday: 0800-1700 currently.

Employees:

The vendor works full time in the business (hands on) and also employs two full time workshop welders. In addition there is a full time secretary.

Support and Training:

The current owner would be happy to provide full training and support at handover and stay on for a period ot time after the sale, if so required, subject to negotiation.

Reason for Sale:

This is a genuine retirement sale.

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 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk