Commercial Vehicle Service And Repair Business In Surrey For Sale

Business description

Commercial Vehicle Service and Repair Including a Major Japanese Truck Dealership

Established in 1995, this garage services business, specialising in the service and repair of commercial vehicles, is one of the leading companies operating in its sector within the M25 area. Operated more as a ‘fleet workshop’ – it carries out planned maintenance and maintains vehicle records on behalf of several Clients, for example - rather than a commercial workshop, this business delivers a professional, cost effective and friendly service. This business has the capability to work on all makes and models of commercial vehicles – from small vans upwards – and is also a service and parts dealer for one of the major Japanese manufacturers.

This business can boast an extensive Client base which is generally made up of large leasing companies. As a result, vehicles can come from the private and public sector including one of the leading vehicle hire business in the UK, a prison service operator and a leading electronics manufacturer. The business is more than competitive with other local service and repair outlets and especially with other main dealers, choosing to differentiate itself by the quality of its service. The level of service offered has ensured this business has outlived many local competitors that have fallen by the wayside whilst this business has gone from strength to strength.

Ideally located, on a small business park, just a few miles from the M25, this business’s fully equipped workshop ensures that a quality job is completed each and every time with all repair and maintenance work undertaken under strict internal quality guidelines. Rigorous quality inspections are always completed before vehicle pick up. And with four fully equipped mobile vans the business is also capable of undertaking breakdown work at the side of the road and minor servicing and repair at Client premises.

Employees have been carefully recruited and trained to ensure that their product knowledge and technical proficiency is extensive and current, especially in relation to the manufacturer it represents. Loyal to the business, many with several years of service, all staff understand the importance of customer satisfaction and the impact it can have on the future success of the business. Consequently all strive to ensure customer expectations are managed effectively, enquiries are dealt with efficiently and work on vehicles is completed on time.

This is a strong, independent garage with a workshop well equipped for the service and mechanical repair of commercial vehicles, offering friendly and genuinely personal service from a team of first class technicians. It is well managed and with projected turnover for the financial year ending March 2010 approaching £1m, generating a gross profit of £600,000 and an estimated pre-tax net operating profit reaching £100,000, it represents an excellent bolt on for an existing operator looking to increase their penetration in the commercials market or an excellent foundation for a new entrant looking to establish a foothold in this sector.

Key strengths:

This is a longstanding business with an excellent reputation in the marketplace built on reliability and for providing a high quality of service at competitive rates. Good value for money combined with high levels of workmanship, prompt reliable and friendly service, have all generated high levels of repeat business. Consequently the business enjoys strong word of mouth recommendation from an extensive base of satisfied customers – turnover supplemented by the extensive volume of warranty repairs and planned maintenance inspections the business receives through its dealership link.

Providing a full service with the sole objective of making life easy for its Clients, this business is trusted by many to look after their vehicle records, for example – and with excellent admin systems in place is often the first port of call for any servicing and maintenance information required by its customers.

The business employs experienced, knowledgeable and highly skilled technicians and uses the latest equipment to provide a level of service equivalent to, if not better, than that normally associated with the big name dealerships. The business is fully equipped to handle the repair and servicing requirements of all makes and models of commercial vehicles.

Key opportunities:

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's services, a new owner contributing fresh ideas and investment – in updating its diagnostic equipment, for example will have every advantage of building on an excellent platform.

One area for growth would be the possibility of incorporating an MOT station, work which is currently outsourced, within the current set up. Not only would this generate additional throughput together with the revenue that would accrue from MOT’s, but would undoubtedly generate additional income from repairs arising from the MOT checks themselves.

Furthermore the business would benefit from securing additional dealerships outside of the one it currently has with a leading Japanese manufacturer.

Financial information:

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 for the financial period ending March 2011 was approximately £1.025m generating a gross profit of almost £640,000 and a pre-tax net operating profit of £156,000. The Asking price of £395,000 is for a sale of the shares in the business based on a Balance Sheet value of £210,000.

Property information

Property:

Leasehold

Business Operation

Competition / Market:

With a track record of success extending fifteen years, and frequently working at or very close to capacity, this business has little need of heavy investment in marketing and advertising. The business has recently launched a new website which performs very well in all of the major search engines for all appropriate search terms, also benefiting significantly from traffic generated via the website of the Japanese manufacturer it currently represents. By far the most cost effective form of marketing for the business however is the strong word of mouth recommendation the business enjoys - and its strong, loyal, repeat client base. .

Reasons for selling:

This is a genuine retirement sale.

Trading hours:

The business currently operates between 7.00 am and 6.00 pm, weekdays and between 7.00 am and 12.00 am on Saturdays.

Employees:

This is a family business – with the four family members in the roles of MD, Company Secretary, Operations Director and Parts Manager respectively, responsible for the day-to-day management of the business supported by four fully trained, highly skilled mechanics, a full-time office administrator and a general Workshop ‘hand’ – cleaner/driver/handyman.

Years established:

1995

Other information

Support & training:

The owners are happy to assist with the hand over and the training required to ensure a smooth transfer of the business to new owners, even to the extent of the younger members of the family staying on in the business on an on-going basis, subject to negotiation.