Freehold Children’s Adventure Playground Equipment Manufacturer For Sale

Business description

The existing directors of the company established this highly successful business in 1997. They initially focused on providing playground and sports markings. It soon became evident that there was a demand for high quality playground equipment. Both directors became involved in designing testing and building. They were quick to develop a range of equipment and specialist flooring that appealed to a wide market.
The customer base now consists of schools, parish and town councils, tourist attractions, holiday parks and adventure playgrounds, pubs, hotels and brewery chains. The equipment is seen by many as the market leader in high quality items designed for the development of key interpersonal skills from safe imaginative play. The company can now boast a range of over four hundred products all of which are designed and manufactured in house by a small team of long serving and dedicated workers. It is abundantly clear that this team enjoys its work and it is lead by the directors who are still highly enthusiastic and ambitious for the company they run.
The operation has at least four months forward orders at any one time.

Equipment:

The company use a simple but effective quotation softwear that incorporates photographs of existing items alongside carefully detailed plans.

The majority of units are made from imported Finnish timber with steel mountings and some HDPE panels. They also install safety flooring where necessary which is made from granulated recycled car tyres to give an added level of safety.

The operation has its own in house Health and Saftey testing equipment to make sure each and every item comes up to the required standards

Key Strengths:

Excellent brand image
Directors willing to stay with the business
Strong repeat business
No Overdraft
Good profits
Large freehold premises with residential planning permission applied for
Quality products
Pragmatic pricing

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 business enjoys a turnover of circa £2,000,000 with gross profits of around £895,000 adjusted net profits for 2009 are anticipated to be in the region of £300,000. Shareholders funds adjusted for revaluation of the property will be in the region of £1.3m

Property information

Property:

Freehold

Location:

The freehold premises form part of the sale and include a site of circa one acre that has planning permission applied for to be redeveloped for residential housing. The company also owns a neighbouring three bedrooms Victorian House.

Other information

Expansion potential:

There is huge room for growth and the company recognises that a properly structured and incentivised sales team with operatives based in each county would quickly bring them into the world of mass production. The European market has not been considered as yet.
There is also a big opportunity to add on maintenance contracts for each and every sale. At present there are only a few of these in place at an annual fee of three hundred pounds. Re marketing the existing client base would be a great start point for this additional revenue.

Competition / Market:

The company has an excellent web site and advertises in the National parent teacher magazine, National schools magazine and takes stands at Shows, Exhibitions and Head teacher conferences.

Reasons for selling:

The directors both wish to stay with the business and continue doing what they clearly enjoy. They wish to sell the business purely to give them and their family’s financial security