Steel Fabrication Business – Bespoke Metalwork – Manufacture, supply and installation
Location : Kent
Asking Price : £2,100,000
Turnover : £2,009,000
Net Profit : Undeclared
Gross Profit : Undeclared
EBITDA : £663,103
Net Asset : £364,000
Premises : Not Included
Confidentially offered for sale
The Business is a firmly established concern based in a convenient location. The vendor has developed the Business over 25 years into a highly respected and profitable steel fabrication company that is contracted by premier construction firms to manufacture, supply and install bespoke metalwork. The Business utilises a variety of materials alongside their most commonly used alloy steel to fabricate a wide range of designs for new builds, including balconies and balustrades, fencing and gates, stairs (internal and external), structural steelwork and bespoke works. With a highly experienced and skilled workforce and the use of best quality materials the Business can swiftly and accurately fabricate products requested by its clients to a very high and certifiable standard.
Strong reputation, known for quality products and service
• Robust, repeat base of satisfied customers
• Operating in London and South East England
• Consistent growth in established and new markets
• Highly profitable
• Experienced and skilled workforce who care about the Business
• Well maintained equipment and machinery used in the manufacturing process
• Growth opportunities for the right buyer
Years ended 31 December, figures in £’000’s
|Cost of Sales||11,70,354||8,47,826||7,90,854||6,69,292|
|EBITDA before Directors costs||£663,103||£690,058|
The recently published 2017 Accounts show turnover of £1.51m, a Gross Profit of £644,393 and an adjusted EBITDA before drawings of £428,883. The vendor has explained the reduction in turnover was due to the fact that nearly £400,000 of work (at sales value) was in the yard and waiting to be taken to site for fitting etc. Had the customers been ready for this, it would have gone out before the year end, and clearly this would have increased both turnover and profit. The WIP value identified on this is £240,598. The other part of the reason for this decrease is the new contract start delays from our client’s end, however, this work has now started.
With the current order book in excess of £2M and further orders in the pipeline, the vendors are confident that 2018 will equal if not exceed the 2016 results.
On the basis that profits continue to accrue at a rate in excess of £50,000 per month, the asset value of the company continues to rise. The underlying goodwill of the company has been evaluated at something in excess of £1,750,000. The vendor is therefore seeking offers for 100% of the issued share capital in the business in the region of £2,100,000 being £1.736m for the Goodwill and £364,000 for the net assets assuming no cash, no debt. There will be a £ for £ increase/decrease in the final sale price to reflect any movement away from this benchmark net asset figure. The excess cash and investments will either be withdrawn prior to sale or added to the purchase price.
If you are interested in receiving further information, please sign and return the attached Confidentiality Agreement. In returning the Agreement we shall be grateful if you will provide us with details of your interest in this opportunity along with your funding position.
All enquiries should be submitted to Turner Butler.
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