Industrial Plumbing And Heating Contractor For Sale

Business description

Formed by the current owner on the basis of extensive experience within the plumbing and heating trade, this business was established in 2001 and in eight years of successful operation has developed a loyal, wide ranging Client base. Working right across the UK, this is a second to none, one-stop solution for industrial plumbing and heating services covering the full scope of works, from replacing a tap washer right through to the plumbing and heating installation, service and maintenance requirements of an entire building. Preferring to work on a labour only basis – but this business will also work on a supply and fit arrangement – for any part of the wet systems in a building, whether it is pipework, heating or plumbing, even for chilled work, this is the business to contact.

Almost always operating as a sub contractor to the main mechanical and electrical contractor on site and working from the detailed drawings supplied, projects undertaken by this business vary considerably in size – from small works right through to complete re-fits totalling hundreds of thousands of pounds, with entire hotels, colleges, public buildings and even army barracks amongst the bigger projects this business has recently completed.

This business has an excellent reputation throughout the industry for honesty, reliability and integrity. It is a very conscientious organisation providing an excellent, prompt, quality service at very competitive rates. As a result, this business is frequently working to capacity with virtually all of its work arising from excellent referrals and recommendations from satisfied Clients – clear testament to the standard of work and reliability of the business. Such is the standing of this business within its sector its Clients want it to do the work and assist it to price appropriately to get it.

Having always had work throughout its years of operation, turnover for the 2008 financial year was almost £690,000 generating a gross profit of £295,000 and a pre-tax net operating profit of £117,600. As such it represents an excellent opportunity for an existing operator – possibly even an electrical and mechanical main contractor – looking to add considerable turnover and profitability to their own bottom line or alternatively for a new entrant to establish a foothold within the sector by acquiring a very well established industrial plumbing and heating business with an outstanding industry-wide reputation.



Key strengths:
Every aspect of this business is based around providing a high level of customer service and customer satisfaction at a competitive price. Not surprisingly it has always had work throughout its many years of operation and is frequently working to capacity. Put simply, this business gets the job done and on the rare occasion a problem arises, pulls out all the stops to solve it. It has a very good loyal, directly employed workforce and is able to call upon regular sub contractors who perform to the same very high standards.
This business prides itself on its excellent reputation and does everything required to maintain it. Every job, whatever the size is treated in exactly the same way and from the very start of the job, nothing is overlooked. This business also appreciates the impact the carrying out of its work can have on the businesses of its Clients and does whatever it can to minimise disruption and completes the job as quickly and efficiently as possible.
This business has excellent long standing relationships with its customer base. It is frequently taken from company to company by its Clients ensuring continuous work without the need for expensive advertising. Over the years it has built up a significant network of industry contacts – such that if this business is not known to the Contracts Manager placing work, they can be referred to someone he will know.
Key opportunities:
There is great scope and opportunity to develop and expand this operation. A new owner with new ideas, drive and enthusiasm will have every advantage of building on an excellent platform.
A new Owner could certainly leverage the excellent reputation this business has built up within its marketplace to expand its operations – by expanding into the domestic sector, for example and also by picking up the service and maintenance contracts from the managers of the buildings to which it currently provides installation works.
Having had work throughout its years of operation, this business has had no real need to advertise. It could be argued that even a limited marketing presence would pay dividends and enable the business to take the step to becoming a £1m+ turnover business.
Quality assurance:
One of the three directly employed engineers is CORGI registered.

Financial information:
The business is being 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. The Asking Price is based on a sale of the assets and goodwill in the business.
Turnover for the 2008 financial year was approximately £689,700 generating gross profits of approximately £295,000 and pre-tax net operating profits of approximately £117,600. Assets in the business – vehicles, plant and machinery etc are estimated to value approximately £32,000.
Full financial information will be available from the Vendor following the completion of the usual Confidentiality formalities.

Property information

Property:

Leasehold

Location:

The business operates from the owner's home office and as such is easily re-locatable.

Other information

Competition / Market:

Frequently working to capacity and with an excellent network of contacts in place this business has never felt the need to market or advertise the business during its many years of operation. The business does not have a web presence as yet.

Support & training:

The current Owner will assist fully with hand-over and training to ensure a smooth transfer of the business to new Owners to build on the excellent foundations already laid.

Reasons for selling:

The current Owner wishes to pursue other business interests.