Software & Solutions Developer Of CCTV Management For Sale

Business description

Software & Solutions Developer of CCTV Management & Controls Systems

This is a good opportunity to aquire a well established and successful privately owned company specialising in software development and associated technology integration. The company is focussed on the UK public space CCTV market.

Although mature, the UK market is growing fast, being driven by far reaching technological changes - in particular the move away from anaologue equipment to I.P. based technologies.

The company has a strong commercial proposition and encourages clients to extend the useful life of exisiting analogue equipment by integrating with new technologies using its application integration platform. This software has a number of unique features – and allows clients to be completely “hardware agnostic” – as opposed to locking the client into an end to end proprietory technology solution.

Despite being a small player in their chosen market, awareness of the company brand and products within this market is high. The company has around 100 blue chip clients – mainly local authorities – and most subscribe to an annually renewable support contract with the company. The company writes the software solutions, integrtaes the hardware chosen by the client, installs the solution, provides on going training and technical support to the client.

The business is profitable with no bad debts and low overheads and would be a perfect acquisition for either a hardware manufacturer to provide a vertical operation or for a company in a similar industry as a bolt on business.

Key Strengths and Opportunities

The company operates in a tightly defined niche market. It has valuable intellectual property. Maintenance agreements in place are currently running at approx £60K per annum. With additional working capital much more can be done to explore new markets for the existing application software.

The company is profitable with debts factored out allowing the company the benefit of a regular cash flow position. New owners with their own accounts department would benefit from an immediate saving on the factoring costs. The company has done exceptionally well without really marketing itself apart from its website and without having the benefit of working capital. If these two factors were in place the owner believes that the company could forge ahead to the next level securing other contracts along the way.

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 is circa £305,000 per annum with Adjusted Net Profits of circa £84,000. The owner has forecast that with WIP and imminent contracts in place, Turnover for the current year will be circa £450,000 with Net Profits rising accordingly.

Other information

Support & training:

The owner would be happy to work with the new owners either as an employee or shareholder/partner or to just help them achieve a smooth takeover of the business.

Reasons for selling:

The owner has been frustrated with the lack of working capital holding the business back. He would like to see the business grow and believes that new owners with investment into the business and a small marketing campaign will take the company to a new level.