Highly Profitable Engineering Company For Sale

Business description

This long established light engineering company was founded by the current owner in 1989. Since that time it has expanded such that current turnover is circa £500,000, generating pre tax profits of £150,000 per annum. Key assets of the business are the excellent relationships that have been deveoped with major, blue chip construction companies which include Amec, Balfour Beatty and Tarmac.

A significant specialism has been established in conveyor systems, for which there is much current demand. This can be, for example, from luggage handling systems as are installed at airports or from businesses in the supply of aggregates, construction and building materials.

The company generates regular repeat business from a multitude of clients: this is a testimony to the business's unrivalled reputation for quality and reliability.




Customer Service

High levels of service sit at the heart of the businesses ethos, coupled with a demonstrable ‘we care’ attitude. This business has never lost track of its focus of attracting and keeping customers. It offers a personal service and prides itself on being able to both design and manufacture from a client’s specification.


Key Strengths

The company is underpinned by the strength of the key relationships it enjoys with its major clients. Most of these are currently engaged in major infrastructure development and/or major construction projects and the company is currently enjoying a high level of repeat business. The company’s reputation has been built on the quality of finished product produced coupled with flexibility and urgency. This is a winning combination.

Strong cash flows are enjoyed and the company is debt free. There is an established customer base of circa 150 companies: most will place orders each month.




Currently, approximately 2/3rds of product is produced in house, whilst the rest is outsourced to a number of reliable sub contractors. This arrangement works well as the specialist, highly engineered output uses the skills within the business, and the less complex, but still profitable, product is manufactured elsewhere.


Growth and Expansion

The premises met the needs of the business currently and it is readily relocatable. More facilities would undoubtedly enable larger projects to be won.


Key Opportunities

London’s winning of the 2012 Olympic & Paralympic Games will provide a major growth opportunity for the business. Current clients are sure to be at the forefront of the development of the Olympic Park and associated facilities: the current owner is already positioning the business to take advantage of this opportunity, and there is every expectation that significant projects will be won.

The business has enjoyed much work through the development of Terminal 5 at London Heathrow, indeed new projects are still being won, as fit out will not be completed for another eighteen months. As the project approaches completion, new work can be won from the myriad of support companies that will be operating within the newly completed building.

Property information

Location:

Circa 2,500 square feet of freehold premises, on one level, are occupied.

Other information

Expansion potential:

The premises met the needs of the business currently and it is readily relocatable. More facilities would undoubtedly enable larger projects to be won.


Key Opportunities

London’s winning of the 2012 Olympic & Paralympic Games will provide a major growth opportunity for the business. Current clients are sure to be at the forefront of the development of the Olympic Park and associated facilities: the current owner is already positioning the business to take advantage of this opportunity, and there is every expectation that significant projects will be won.

The business has enjoyed much work through the development of Terminal 5 at London Heathrow, indeed new projects are still being won, as fit out will not be completed for another eighteen months. As the project approaches completion, new work can be won from the myriad of support companies that will be operating within the newly completed building.

Competition / Market:

To date, no advertising and marketing has taken place. To fuel accelerated growth the establishment of a strategic marketing plan, including a web site is considered to be necessary.

Support & training:

Unusually the current owner will agree to an extended period of handover and training to ensure a smooth transition to new ownership. Furthermore, and subject to separate negotiation, a consultancy arrangement could be established committing the current owner to perhaps two/three days per week of on-going support and advice.

Reasons for selling:

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further significant growth potential.