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The core business activity is the inspection, maintenance and repair of traditional playground and gymnasium equipment within schools, both fixed and freestanding items including climbing frames, rope frames/ladders, hand rings, horse boxes, spring boards, trampolines, balance beams, mats and netting. Schools are visited once a year for their annual inspection and a report is produced along with photos detailing condition and repair/maintenance required. A comprehensive database of each school is maintained. Other clients include local authority sports centres, private leisure centres, universities and some government facilities.
Established in 1990, the business was purchased by the vendor in 2016 and under the current ownership the business has gone from strength to strength. The operating territory has expanded, the client base has grown and is now in the region of 1800 and sales/profitability have continued to improve on a yearly basis. Trading accounts for the year ended 31st July 2020 show Annual Sales of £247,723 and a Net Profit of £115,862 (before amortization, depreciation and director’s salary/pension costs).
The ever increasing importance of Health & Safety has clearly helped to drive the growth of the business along with numerous referrals from Health & Safety companies who undertake assessments and provide advice to client businesses and organizations on compliance issues. Annual inspections and detailed risk assessments are a recommendation of the HSE and, increasingly, major insurance providers are making it a condition of continued cover that regular inspections are carried out.
Whilst some installation work is undertaken, this is not a major part of the business at present although an area which offers excellent potential for growth. When an order is received, the equipment is obtained from leading suppliers such as Universal Services and Neils Larson and then direct shipped to the customer for installation by the business.
The business operates throughout all of the southern counties of England and reaches up into most of Wales. Scope exists to expand this territory even more with work further afield sometimes turned away. Client visits/inspections are grouped together geographically which maximizes the number of daily visits and ensures a most efficiently run business. The current owner operates from home in the East Sussex area but the business is not location dependent and could be based anywhere. New owners can choose to run the business from home or from other suitable premises with only a small storage facility also required.
There are 3 employees at present (2 full-time and 1 part-time) who assist with inspections, maintenance and installation. The business could easily be managed by a couple with one person handling the admin work on a part-time basis and the other undertaking visits. We understand that no previous experience or specialist knowledge is required and the vendor is willing to provide a comprehensive training/handover period if required.
This seems to be a highly profitable and professionally run business with the added benefit of huge potential for further growth and diversification under ambitious new owners. The business has a very strong foundation with an extensive and valuable existing client base and operates in a niche sector with growing demand and very limited competition. The ability to operate the business from home also means that overheads can be kept to a minimum and provides total flexibility in terms of relocation.
PRICE: £265,000 REF: M34491T
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