Commercial & Domestic Plumbing and Heating Contractors For Sale

Business description

This is an outstanding opportunity to aquire one of the largest and most profitable plumbing and heating contractors in the East Midlands.

The business was established in 1974 and has earned itself an enviable reputation with lucrative maintenance and installation contracts held with local county councils, commercial building developers and the prison service. There is a large database of private clients who use the services of the company on a regular basis. The company also holds a waste management license.

Whilst the business specialises in plumbing and heating, the company also has both an electrical and a building division within their set up.This allows the company to provide a full turnkey solution to all jobs both big and small. The services they offer include, heating, plumbing, extensions, alterations, plastering, drainage, adaption welfare for the eldely and disabled, wet rooms, bathrooms, underfloor heating, ramps, lifts, rails plus all other associated work.

There is a team over over forty skilled and experienced tradesmen which can handle up to 50 jobs per week, with a back office team who handle all of the administration and offer a 24hour call out service 365 days per year.

This is a profitable company with a fine track record of growth and success. The business has shown itsellf to be resilient in the face of competition retaining and winning major blue chip contracts over the years. In the ever changing face of energy management, there are huge opportunities for the company over the coming years. Both private maintenance contracts and the advent of solar energy will be at the forefront of the public and this business is perfectly positioned to take full advantage of these opportunities.

Key Strengths:

This is a well established business with over 35 years experience and contacts within their industry. Primarily a family run business it has grown with now over 55 full time employees within the company and a fleet over 35 fully kitted out vehicles.

The business maintains regular work in progress through lucrative long term contracts with local councils, building developers and the prison service plus a growing number of private maintenance contracts. They offer an excellent emergency service to their clients with a 24 hour 365 days per year call out with call centre and skilled tradesmen on continuous stand by.

Product for installation is bought direct from the manufacturer and is available only to the trade. The company have good relationships with their suppliers of which a number have been supplying them for over thirty years.

The company is trade registered with Gas Safe, Corgi registered, Construction Line registered and is ISO 9000/14,000/18,001

The business is well run with good cash flow and no bad debt. The turnover and profits continue to rise whilst other similar businesses in the area have struggled. The owner has continued to invest in the company and this has helped them maintain their position as the leading plumbing and heating specialist in the East Midlands.

Financial Information:

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.

The turnover in 2007/2008 was circa £3.750 Million with Adjusted net profits of £400,000. The forecast for 2008/2009 turnover is circa £5.0 Million with adjusted net profits of £500,000.

Property information

Property:

Leasehold

Lease terms:

The lease runs until 2011 with rates annually of £35,000 per annum with an annual increase of £1,000 per annum on the lease. Rates are £12,000 per annum.

Location:

The business is located in a modern two storey office and warehouse. The lease runs until 2011 with rates annually of £35,000 per annum with an annual increase of £1,000 per annum on the lease. Rates are £12,000 per annum.

The premises are circa 9,875 square feet. Downstairs there is a reception area, board room, a training room, toilet block including disabled facilities, a canteen and a showroom with bathroom displays. At the back of the downstairs is warehousing and storage area with a large secure yard for further storage. There is ample parking for staff vehicles at the front of the building.

Upstairs houses the main offices and a large open plan office which is taken up mainly by the call centre.

The company sub lets parts of both the upstairs and the downstairs, including the yard, charging rent of circa £40,000 pounds per annum to their tenants. The premises are fully alarmed with added security cameras.

Other information

Expansion potential:

This is a solid and profitable business with significant potential to grow with a new owner who can take advantage of the sound foundations the company has been built on.

The owner has now reached retirement age and believes that the potential will be achieved with a manager who can introduce modern processes into the running of the company.

There are several areas which can be grown organically within the company including their adaption welfare programme for the old and disabled, the bathroom side of the business and the building services which the company offers, which up and till now has not been marketed.

Alternative power sources, including solar power offers a new and exciting opportunity for the future with the company perfectly positioned to take full advantage.

Competition / Market:

The business runs with a consistent marketing plan and appears high in the listings on the major search engines. They also advertise in Yellow Pages, Yell.com, Internet sites and use local mail shots to attract domestic customers.

Support & training:

The owner would be happy to help out with a smooth transition of the business and assist in any way possible for a period of time in order to introduce the new owner to the major contacts the company deal with on a regular basis.

Reasons for selling:

The owner has been working tirelessly to build up the business for the past 34 years. He has now reached retirement age and would like to take things easier and believes this would be a perfect time for new owners to take over the business and take it to a new level.