Scrap Metal Dealer specializing in Ferrous/ELV
Confidentially offered for sale
Leasehold
Location: London
Asking price: Undisclosed
asking price includes:
Turnover for current financial year is circa £ 3–4 million p.a.
Resultant Gross profits are circa £1.55 Million p.a.
Adjusted EBITDA is circa £0.5m p.a.
Net Assets/Shareholders Funds circa £ 520,000
Fully licensed and accredited for both ferrous and non-ferrous metals
Ongoing growth pattern
Huge expansion possibilities
Leasehold site
Close to City of London with HGV access
New long term lease to be made available
Over 37 years continuous trading
Well established client base
Ongoing investment
Computer system
Training and handover
Goodwill
Business Profile:
This business was founded in the early 1980’s by the current owners, and since then it has built up a great reputation in the market as a reliable, high-quality scrap metal dealer. While specialising in the handling of ferrous metals and ELV, the business holds all the relevant licenses, including the DVLA C.O.D. and environmental and health and safety certifications, to handle both ferrous and non-ferrous materials, as well as plastics and other recyclable materials.
The business is able to provide clients with a collection, processing, and delivery service, offering a total solution for the waste sector, industry, and the public community. Strategically located near central London and not to far from Tilbury Dock, container shipments are relatively easy.
The business has invested well in equipment and currently handles approx. 500–700 metric tons of material a month. This can increase with the right structure and management systems, and location material is never a worry.
With a comprehensive range of processing equipment, the business is well placed to continue selling its products to discerning quality end users, including wholesalers, major exporters and leading refineries and smelters in the UK, Europe and Asian markets.
This market is currently experiencing huge growth, partly fuelled by the enormous demand for products in China and Eastern Europe and is expected to continue in the medium term at the very least. The business is well positioned to service this ongoing demand with its ability to handle both ferrous and non-ferrous materials and other recycled products.
Equipment:
Equipment includes:
• 600 TON Shear/Baler
• Cable Stripper
• 6 recovery vehicles
• 50 tons Avery pit-mounted weighbridge
• industrial scales
• Hookloader
• 2 off-road Diesel Forklifts with rotating heads (ranging from 2 to 7 tons)
• Van
Customer Service:
The business prides itself on its excellent customer service, and the basis of this service is geared around complete flexibility when it comes to client requirements. This, together with the speed of response and consistent quality of the product, ensures significant levels of repeat business as well as new business creation through client testimonials and word-of-mouth recommendations within the markets it serves.
Key Strengths:
The business has established an excellent network of clients it both buys from and sells to, and it enjoys a high level of repeat business and referrals that bear testimony to the reliable and trustworthy service it provides.
Growth and Expansion:
The current market for this business is growing. The business is well positioned to take maximum advantage of this growth as it occurs, as it already has key relationships within the sector. Business operations are not at maximum capacity given the company’s existing infrastructure, and there remains considerable scope for an increase in production, turnover, and profit simply by gearing operations in line with current market demand.
To date, the business has been built without any real sales or marketing activity. It is understood that further development of this function would reap immediate rewards.
Key Opportunities:
This market, as well as the plastics sector, is currently experiencing huge growth, partly fuelled by the enormous demand for products in China and Eastern Europe, and is expected to continue in the medium term at the very least. The business is well positioned to service this ongoing demand with its ability to handle both ferrous and non-ferrous products.
Employees:
As well as the owner, who works within the business, there are 6 fully trained operatives and 3 administrative assistants. All employees are full-time.
Advertising and Marketing:
The business advertises on a low budget; if this budget were increased, we would see an influx of new business as many customers travel to London for work and would rather offload their material before leaving London.
A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word-of-mouth recommendations, and this is expected to continue.
Premises:
The current owners would make a new lease available to the new owners, subject to negotiation. The main premises has a high-span single-story warehouse, two container offices, an open yard area and a secure garage unit. Rates circa £9,600 p.a.
Business Hours:
Monday–Friday, 0730–1700
Saturday mornings, 0800–1300
Security:
The site is very secure, has two gates, and has CCTV.
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.
Turnover for the 2022 financial year is £4 million
Resultant Gross profits are circa £1.55 Million p.a.
Net Assets/Shareholders Funds circa £ 520,000
With a dedicated sales and marketing push and a broader range of services, the business could dramatically increase its revenues beyond this in a market that has exceptional growth potential.
Reason for Sale:
Retirement and relocation.
Support and Training
The current owner will provide all necessary training and all relevant contacts to allow continuity of trading.
