Niche Tool Manufacturer In South East For Sale

Business description

Key Points:
Supplying tool hire shops/chains worldwide. Specialised product lines, plus related ongoing accessory sales
Export sales through established network contributes 52% of revenues
Regarded as top quality end of market by refurbishment contract professionals
Parts machined and assembled inhouse; highly under-utilised machining facility
Relocation required within approx 12 months; requirement as standalone approx 15,000 sq ft
Turnover 2009 forecast circa £1,900,000 with Net Adjusted EBITDA £136,000. NAV £800,000, including £140,000 cash
A new invention, pending patent confirmation is set to propel the business forward with new revenue streams in 2009

Business Activities:
A well respected brand and major supplier to hire shops and professional refurbishment contractors in the UK and overseas, this business has been a market leading name for many years.

The product ranges are constantly high in the list of product demanded of hire shops. Over the years this business has brought several new innovations to the market, and is currently preparing to launch a new patented product that will almost certainly be adopted as the market norm within a few years as the product is compatible with machines produced by all the main manufacturers in the market today. This will generate strong sales of accessories which in turn will increase the sales of their own range of machines in the future. This exciting new development is likely to show substantial increases in turnover and margin.

The business currently has reliable distributor relationships in most major overseas markets, with America and Australia both being significant marketplaces, with several further European countries figuring significantly. Accreditations include; ISO 9001 and ISO 14001.

The business is run by its owner manager, supported by a team of engineers and operators, as well as a small administration team; the staff are retainable. The current owner will provide a handover for an agreed period following sale after which he wishes to pursue other personal, and unrelated, ambitions. Given the level of expertise of the staff and the established sales distribution network it is envisaged that a change of ownership is unlikely to be noticed.

The current premises are required shortly for other purposes and therefore the operation needs to be relocated. Our opinion is that the whole business could be housed in 15,000 sq ft,or less if a purchaser already operates in a similar environment. Rent currently stands at £96,000 and rates at £42,187. A rough evaluation suggests that a move may be limited to a cost of £50,000, as the current premises are owned by the vendor, negating potential dilapidations.

The assets of the business are in very good working condition, are significantly undervalued on the balance sheet which also includes approximately £140,000 of cash. Of particular note is the level of utilisation of the machining assets, which remains very low, as they are only used for the production of parts for their end products; these assets could cater for significant increased levels of production of related and non-related products.

It is our opinion that this business should be of particular interest to:
- competing manufacturers seeking market share, and control of the accessories marketplace
- manufacturers in similar market sectors seeking to diversify their offering
- UK and overseas manufacturers wishing to enter the massive UK DIY and contractor hire marketplace
- manufacturers wishing to exploit overseas hire markets facing difficulties penetrating
- engineering businesses with existing premises and resources offering capacity
- investors seeking a business with a high potential new product range

Sale Basis:
To receive further information on this business please click "Contact Seller" at the bottom of this page. We will then automatically send you our Non-Disclosure Agreement (NDA). You will need to print and complete this form and return it to the address on the form. We request this document to protect the confidentiality of our clients.

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Property information

Property:

Leasehold