Carpentry & Joinery Contractors In East Anglia For Sale

Business description

Carpentry & Joinery Contractors New Build Homes & Timber Frame Specialist

This first class carpentry and joinery business was established by the current owner in 1973. Since that time it has grown to be recognised as the compnay of choice in its locale – a busy region in East Anglia.

First class relationships have been formed with the major national and regional house builders in the area. The company is regularly assessed for performance by these large companies, consistently achieving very good results. The business has been awarded a formal subcontract performance award and has also worked on numerous sites where NHBC awards have been attained. Circa 90% of current turnover is generated from within the new build market: the balance is comprised of refurbishment work.

The company undertakes all of the woodworking and timber joinery aspects of a home, including roof timbers, flooring joists, floorboards, architraves and skirting boards. Additionally it also includes the installation of wooden window frames and complete kitchen refits.

The company is somewhat unusual in the building industry as, with the exception of two part time office staff, all labour is sub contracted out: this includes the second level management and third level supervisory team. This provides for significant flexibility in staffing and ensures that labour costs are kept under strict control and accurately matched to demand.

The business is debt free.

Customer Service:

The highest levels of personal and attentive service sit at the heart of the business’s customer engagement strategy.

Key Strengths:

This is a sound business with a superb reputation and excellent relationships with its major customers. There is a particularly strong second and third tier management team, which enables the current owner to be absent for holidays without undue concern. The company is demonstrably ‘easy to do business with’ and all staffs display a first class work ethic.

The sub contract business model is ideal for the industry, providing the flexibility needed, yet delivering excellent workmanship. This flexibility provides for very competitive pricing and a very high win rate of new opportunities quoted for.

Health & Safety assessments are provided in house.

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 company is financially stable, is performing consistently, enjoys high gross and net margins and is very cash generative. The current turnover is in excess of £500,000 per annum.

Property information

Location:

There are no premises involved in the sale of this business. To keep overheads low, the administrative aspects of the business are effectively run from the owner’s home office.

Business Operation

Expansion potential:

The UK is entering a period of high demand for new homes. Estimates are that there will be circa 200,000 new households established every year: current housing stock will not meet the demand. The Government has identified areas where much new housing will be built and East Anglia is a key location. In addition, it is likely that to speed up the time of construction of a new home, timber frames will increasingly be used. The company has undertaken some work in this aspect of construction and is expanding this side of the business.

Competition / Market:

To date most new business has been won through referrals and direct ‘word of mouth’ recommendation. There is a strong network of surveyors moving within the industry, who are inclined to use those sub contractor companies who have served them well in previous jobs. As the business is very well established in its main area of operation, a formal marketing plan would only be needed for the generation of new contracts ‘out of area’.

Reasons for selling:

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern, but with further significant growth potential.

Employees:

54

Years established:

1973

Other information

Support & training:

A full period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.