Architectural Metalwork Conservation Restoration & New Build Business For Sale

Business description

Architectural Metalwork – Conservation, Restoration, New Build and Replication

Established for almost thirty years, this business has grown to become one of the UK’s leading specialists in cast iron and traditional metalwork, offering a range of services encompassing both conservation/restoration and new build/replication to a diverse Client base that includes Architects, Designers and Specifiers right through to Local Authorities, main contractors and private individuals.

From gates to railings, brackets, staircases, canopies, gazebos and loggias right through to bollards and sign posts, this business is the first choice for demanding and high quality architectural metalwork restoration and manufacture. During its many years of operation, this business has worked on some of the most prestigious projects and some of the most recognisable buildings in the UK. More recently the business has extended its operations to include the design, manufacture and distribution of more modern street furniture and lighting.

This business is a complete ‘one stop shop’ for specialist traditional architectural metalwork – from consultancy, initial design, pattern making, if required, right through to final installation, even to the extent of having its own specialist green sand foundry. The company also possesses a very wide range of original Georgian and Victorian cast iron patterns – an invaluable resource for any project requiring replica castings. Its consultancy service can include in addition to general advice on metalworking techniques and detailing, advice on restoration of metalwork, site surveying and recording, detailed design and even obtaining Planning and Listed Building Consents.

Maintaining a philosophy of minimal intervention wherever possible, this business uses traditional techniques and a wide range of materials including wrought iron, traditional cast iron, bronze and aluminium and gilded/decorative finishes as well as all of the associated trades including carpentry, joinery and glazing to ensure the closest possible appearance to either surviving fabric or historical records, always working to the highest standards – sometimes working with only old photos or drawings as source material. It works very closely with its Clients to ensure the best possible project outcome combining a thorough knowledge and understanding of the processes involved with the hands on experience of many years in the field.

With turnover close to £400,000 for the financial year ending December 2009 – a figure that is likely to be nearer £500,000 for the current year, generating gross profits of approximately £140,000 and profits available to the owner of the business of almost £50,000, this represents a rare opportunity to acquire an architectural metalwork business – and a leader in its field.

Key strengths:

This is a very well established business which has been consistently successful throughout its many years of operation. It is one of the leading companies in its sector and has an excellent reputation within the industry, frequently being invited to bid for projects through its close links with English Heritage, the National Trust and many other conservation societies. As a result the business is perhaps considered to be far bigger than it actually is.

This business is one of the very few in the UK able to provide a good all encompassing service – consultancy, restoration and repair, pattern castings, manufacture and replication. Installation is undertaken using the services of tried and tested, traditional trades and craftsmen such as blacksmiths, for example. Its enormous collection of patterns is a significant competitive advantage as is its access to its own foundry and its ability to do its own drawings.

The business has also built an excellent reputation for high levels of Client care and personal service. Not surprisingly the services of the business are always in demand and with almost thirty years of successful operation it has good personal contacts. As a result it has a broad, longstanding Client base – many of which have brought repeat business or recommended the company to other clients. It has an excellent track record of winning tenders – being competitive whilst maintaining good margins in the process.

Key opportunities:

There is great scope and opportunity to develop and expand this operation. A new owner with fresh ideas, drive and enthusiasm, but perhaps above all, additional resources, will have every advantage of building on an excellent platform.

This business has been conservatively managed throughout its many years of operation, opting to turn down work rather than risk disappointing a Client or jeopardizing its reputation by taking on too much. As a result there is considerable scope to grow the business by increasing resources – particularly staff, which would enable it to take on more and bigger projects than it perhaps currently does.

Whilst the business has been involved in projects in many parts of the world there is no doubt that it could expand more successfully into the European and US markets. Marketing and advertising - promoting the business more heavily using the significant network of contacts the business has built up over many years, as well as more direct targeting of specific sectors with interests in historic places and estates that have a conservation aspect to them, would also certainly increase turnover and profitability.

As well as the traditional architectural metalwork aspect to the business there is certainly scope to develop the more modern side of the business – including street furniture, lighting and stainless steel and glass balustrades etc.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover for the financial year ending December 2009 was approximately £390,000 generating gross profits in excess of £140,000 and profits available to the Owner of the business of approximately £50,000. Projected turnover for the financial year ending December 2010 is set to reach £500,000 with a consequent impact on gross and net profits.

The Asking Price of £230,000 is for a sale of the shares in the limited company based on a Balance Sheet value of approximately £70,000.

Full financial information will be available from the Vendors following the completion of the usual Confidentiality formalities.

Property information

Property:

Leasehold

Lease terms:

Rent for the premises is £8,000 per annum. The Rates are currently £2,800 per annum.

Location:

South East based. The business currently operates from two locations – an office and the foundry.

The business currently shares office space with the operations of another business in which the current Owner is involved. As such it pays no Rent or Rates and is easily relocatable.

The foundry is ideally located in a modern building of less than 1,000 square feet based on a small industrial estate with easy transport links throughout the south east via excellent, close motorway links. Secured on an annually renewable licence from the Local Authority, Rent for the premises is £8,000 per annum. The Rates are currently £2,800 per annum.

Business Operation

Competition / Market:

Frequently working at or near the capacity of the resources available to it, this business invests little in marketing and advertising, really limited to a presence in all of the major, relevant directories associated with its sector. The business has a very well designed, informative and easy to navigate website which very effectively showcases its capabilities and which performs very well in all the major search engines for all appropriate search terms. By far the most effective form of marketing for the business, however, is the excellent referrals and strong word of mouth recommendations the business enjoys, testimony to the excellent reputation the business has built throughout its many years of operation.

Reasons for selling:

This is a genuine retirement sale.

Employees:

The current Owner and founder of the business is responsible for its day to day running supported by a part-time PA, a full-time Foundry Manager and a part-time self employed Moulder. The business also calls upon a tried and tested portfolio of craftsmen for allied trades as and when required.

Other information

Support & training:

The current owner will assist fully with hand-over and training to ensure a smooth transfer of the business to new owners.

Relocatable:

This business can be relocated.