Sub Contract Precision Engineering Company For Sale

Business description

Established in 1985, this business specialises in manufacturing parts and components to the industrial sector.

This successful business uses modern machinery to keep labour to a minimum. Consequently the present owner has invested heavily on buying up to date equipment, with the emphasis on buying machines that could be used on an ‘as is’ basis or modified to make components automatically, in the knowledge that competitors were using more labour. The range of machinery includes mainly CNC machines.

Most components are manufactured in house. The Company is very good at engineering a production solution and is able to make components in the most cost effective way. A "one stop shop" service is provided for customers, taking care of every aspect of making their components from inception to delivering complete onto their production line.

With its wide capacity range, the business offers a very flexible package to both its present customers, and potential new customer base. The business works closely with suppliers to ensure that the latest tooling technology and materials are employed, continually looking to enhance operations to the benefit of customers.

The Company is known for its quick turnaround times, competitive prices and high quality products and has all the required facilities, research development and pre-production to develop ideas and needs into a superb finished item, all under one roof. Company philosophy is a very simple one, to produce customer requirements on time, every time, engineered to exacting quality standards.

The business has enjoyed a policy of continued investment in new equipment, and re-investment of profits. This has kept the Company in pace with modern manufacturing methods.

Equipment:

The business uses a various selection of precision machinery including 5 x CNC’s, 1 x Lathe plus various tools in trade to be included in the sale.

Customer Service:

This business is highly regarded and has gained a first class reputation for a consistently high standard of components plus excellent customer service. Overall the machine shop capacity and personnel gives customers a reliable service with excellent quality. A high standard of response to orders received is a priority, delivering products of the highest quality on time and adapting where necessary.

This Company is proud of its portfolio of customers, which has been achieved by concentrating wholly on producing the highest quality, close tolerance components on time and at competitive prices. These customers range from automotive to marine and the industrial sector. This business is an established manufacturer of turned parts, and has gained a reputation for a consistently high standard of products and customer service.

Key Strengths:

The competitive approach and policy of continuing investment to improve the technical capabilities of the Company demonstrates the determination and commitment to maintaining the excellent reputation it has earned over the years.

The business has never had to look for work with customers returning time and again because of the exceptional service they receive. This Company has a wealth of knowledge and skill, the workforce allow the company to fabricate small special items right through to large systems for blue chip companies.

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.

Turnover is circa £289,000 generating a gross profit of £187,000. The net profit of the business is £105,000 with a net asset value of £34,000 (machines and tools).

Property information

Property:

Freehold

Location:

The business operates from freehold premises valued at £300,000. Rates for the premises are charged at £6,814 per annum. The property measures circa 4,000 square foot of fully fitted double unit detached workshop. The property has a large car park.

Other information

Expansion potential:

With established account customers, this business enjoys a sterling reputation for quality, excellent service and value, not to mention a high demand for its wide range of precision engineering.

This company offers a new owner plenty of excellent growth potential and a strong market base, making it a business that is on the right track to the next level of business.

Competition / Market:

A large percentage of new clients derive from referrals and the business regards existing clients as their best advertisers. It has maintained an excellent reputation since inception and there is immense opportunity to implement further and more assertive methods of advertising to expose the business to even greater markets with a high proportion of the business’s revenue being due to strong word of mouth recommendation. This bears testimony to the excellent reputation it has throughout the industry. The business for sale would benefit from a professionally designed website, which would offer excellent potential to increase turnover in the future.

Support & training:

Full support and training will be provided to the successful purchaser.

Reasons for selling:

This is a genuine retirement sale.

Trading hours:

Monday – Friday 8.00 am – 5.00 pm.