Established Forme Cutting & Print Finishing Company
Turnkey Manufacturing Operation
Location : West Midlands
Asking Price : £475,000
Turnover : £189,000
Net Profit : Undeclared
Gross Profit : £109,000
EBITDA : £72,000
Net Asset : £388,000
Premises : Freehold
Confidentially offered for sale
Ideal freehold manufacturing facility circa £250,000
Extensive range of Plant, Machines & Equipment minimum circa £138,000
Turnover circa £189,000 p.a.
Gross Profits circa £109,000 p.a.
Adjusted EBITDA circa £72,000p.a. (pre director drawings)
Net Assets (as above) circa £388,000
More than 30 years historical trading
Impressive client base
All fixtures and fittings
Cad/Cam Drawing Capability
Set up more than 30 years ago, this highly equipped, very well established and reputable business provides a comprehensive range of products and services to a diverse range of clients, the majority of whom are based in the West Midlands region.
The company manufactures cutting formes for various trades including the print trade, box-making trade, rubber and plastics trade. All of the tools and moulds are made using a variety of different materials ranging from paper, thin board to corrugated board, foams, plastics, rubber and other materials - pretty much all materials excluding metals.
The company provides a full turnkey solution to its clients to also encompass cutting, creasing and laminating, working with both small and large dimension requirements such is the infrastructure it has put in place.
The business has been developed over time with significant re-investment in the company and its equipment capability. The company can boast a substantial level of plant and machinery. It specialises in small batch sizes with quick turnaround and can provide a full turnkey solution, be it the manufacture of one-off items and samples, through to small and medium batch work.
The business has its own internal inspection procedures to ensure customers receive only the highest quality products and services. This internal capability enables the business to take on varied and challenging high profile projects for both end users and the print companies who work with them. The company offers customers the facility to email drawings direct, allowing them to automatically process the information on their own CAD CAM system.
The business boasts a large number of regular customers and serves a wide range of industries.
From first contact to completion the onus is geared towards complete customer satisfaction.The business is committed to ensuring manufacture is to the required standards of excellence, as you would expect from a company with such infrastructure.
The company has a comprehensive catalogue of machines, automated plant and secondary operations. A full listing is available and includes:
• Drawing/Plotting Table with CAD/CAM Package
• Various Die Cutters/Creasers inc. Heidelberg Cylinders and platens
All equipment is included within the sales price. The company recently had the equipment valued with a minimum value of circa £138,000.
This is a key area of strength for this business. The company has a reputation for exacting supply. It uses CAM/CAD systems to ensure accuracy and speed of response. The company is a quality driven organisation that has experience and a “can-do” approach.
This together with 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 it services.
The company is financially strong with a very good asset base and operates from ideal freehold premises that are central to its customer/supplier base. The company enjoys consistent levels of performance such is its position in the market.
The business is a multi-skilled turn-key operation that can undertake a large variety of projects due to the impressive infrastructure it has in place. Both large and small component quantities can be produced side by side. The internal skills are high and the company’s reputation is very strong.
Since it manufactures both the cutting tools and provides the cutting/creasing in-house this enables the company to provide a high quality, reliable turn around service to customers giving it a real competitive advantage.
The business is established and profitable with a broad and diverse client base and has regular customers. The business retains a high level of historical clients. It has internal quality systems and an excellent health and safety record.
The company has earned an outstanding reputation for its honesty, integrity, technical ability, service and reliability.
This is an outstanding opportunity to build on the existing products, services and customer base of this well established and respected company. With a loyal customer base and the 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.
Many of the end users who use this company’s products and services via the print companies they engage deal in very large projects and a more direct approach by a new owner could certainly reap significant rewards. Alternatively further development of its current account base could also generate new income streams.
There are many excellent avenues for growth, especially within the current operations capacity. A dedicated sales and marketing effort would yield significant levels of additional business and profitability as, by its own admission, the business tends to be reactive rather than proactive in its approach to sales and marketing, as it has no formal sales team.
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.
Turnover circa £189,000 p.a.
Gross Profits circa £109,000 p.a.
Adjusted EBITDA circa £72,000p.a. (pre director drawings)
The Asking Price is for 100% of the issued capital of the company based on Net Assets being circa £388,000. This is on a cash free debt free basis.
These Net Assets include the freehold properties and all plant and equipment There will be a £ for £ adjustment to the asking price to reflect any rise or fall in this net asset position as at completion.
The business could benefit from a more strategic sales and marketing campaign. It has a basic yet informative website but does very little in the way of proactive marketing. Currently most of its work is via repeat business and word of mouth recommendation.
The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale. It also has the ability to enter new markets should a new owner so wish as it has a sterling reputation in place. It is already seeing growth in terms of new enquiries as UK manufacturing starts to grow again.
The business currently operates a one shift pattern. It has spare capacity and does not actively chase new work at this time. There is no reason why this cannot be expanded should a new owner look to put more resource in place to feed the machinery.
The business operates from ideally located freehold premises. The premises comprise of 2 adjacent units on a centrally located industrial estate, with excellent access to the motorway network. We are advised both units have a total freehold value of circa £250,000.
(Note; only one of the units is currently owned by this Limited company, the other is owned outside this Limited company but the vendor is happy to sell both as part of the sale. Alternatively they MAY consider leasing).
The premises are circa 3,700 square feet in total. The building comprises large workshop/production areas, offices, kitchen and toilets and loading bay with ample parking for circa 8-10 cars.
The business benefits from small business relief. Rates are circa £1300 p.a.
The business currently operates on a one shift system, Monday to Friday. This could be expanded if need be.
This is a family run business. The 2 directors work in the business, one is full time the other part time. One director is very much hands on. The other is more responsible for the administrative duties. The business also employs 3 highly capable staff who are production operatives/forme-makers/technical drawings personnel.
One of the 3 can run the operation short term should the owners be away.
The current owners would be happy to provide full training and support at handover to ensure a seamless transition of ownership. One/both may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.
The owners are planning their exit strategy due to forthcoming retirement in the next few years.
Energy Performance Rating ‘G’
Please contact us for a copy of the EPC if required
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.
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