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Steel Fabrication Business – Bespoke Metalwork – Manufacture, supply and installation

Ref. IS051

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


  • Turner Butler

Next Step, Please submit Confidentiality Form/NDA Online 

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Fixed assets and working capital c£250,000
Turnover for 2016 c£1,950,000
EBITDA before Director’s costs c£690,000

Business Profile

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.

Key Considerations:

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

Summary Historic Results:

Years ended 31 December, figures in £’000’s

y/e                  £s 2016 2015 2014 2013
Turnover 20,09,551 16,71,027 13,08,279 12,10,361
Cost of Sales 11,70,354 8,47,826 7,90,854 6,69,292
Gross Profit 8,39,197 8,23,201 5,17,425 5,41,069
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.

Asking Price:

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.

Next Steps

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.
Head Office: Ickenham House, 2-4 High Road, Ickenham, UB10 8LJ Tel: 01895 256000

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.

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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