Excellent Precision Engineering & Coating Company For Sale

Business description

§ Enviable long term customer base & Circa 80% repeat business
§ Blue chip clients in diverse sectors including Aerospace and Rail
§ Niche market within the business sector, therefore little competition
§ Efficient project-flow & pricing system
§ Strong gross margins, consistent & increasing profitability
§ Excellent management controls
§ Strong opportunities to increase sales from existing customer base


This highly regarded, well run, and very profitable business has over 30 years of experience in the Aerospace, Marine, Automotive and Rail industry and has a number of ongoing, long term, relationships with Blue Chip clients, the majority of which have written contracts in place.

The company has a niche within its sector which has very little or no UK competition and, as a result, turnover has increased by over 90 % in the last 12 months from a number of key clients and is set to continue. The company prides itself by undertaking both large and small projects, performing precision work to detailed customer drawings and plans as well as bespoke work which includes painting, coating and fabrication.

It has an efficient project management system for internal organisation and project pricing which ensures tight control and excellent gross margins.

The established name and reputation has meant that over 80% of its business is repeat customers and, consequently, there is excellent scope to add extra sales and profit.

Property information

Property:

Leasehold

Location:

The company is located close to the A11 in Norfolk with easy access to the UK via the main A11/A14 trunk road system.

Premises details:

The premises are traditionally built factory units of 7500sq ft. Capacity utilisation is below 60% which allows for significant increase in volumes and activity levels.

Other information

Expansion potential:

The business has been turning away work due to capacity restraints imposed by the current owner due to his ability to devote more than a set amount of time to the business. Any new owner will immediately be able to increase turnover by opening up the working shift system.

Competition / Market:

The company is positioned in a niche within its very large market for precision engineering projects for the Aerospace and Rail industries. It has unique expertise which can not be readily transferrable with ease.

Support & training:

The current owner will be delighted to work with the new owners in whatever capacity they require and for however long the transfer of knowledge takes

Reasons for selling:

Retirement

Trading hours:

8am to 4.30pm Monday to Friday

Furniture / Fixtures value:

£185,000 (included in the asking price)

Inventory / Stock value:

£54,000 (included in the asking price)