Freehold Motor Salvage & General Scrap Metal Dealer For Sale

Business description

Freehold Motor Salvage & General Scrap Metal Dealer-Non ferrous Recycling
Waste Management License

There has been a scrap metal dealer on this site for almost 100 years. The current business has some 40 years trading experience and in that time the business has established a real presence in the market it serves and an excellent reputation. It has a full waste management license and ATF (Authorised Treatment Facility) status.

The business has several revenue streams. The majority of its work (60%) is generated from the dismantling and salvage of motor vehicles (cars and light commercial generally). The business then sells on the various components, both used and new, to a wide variety of clients within the trade. This also incorporates the sale and fitting if so required of tyres.

The business also buys non ferrous metal – copper, brass, lead, aluminum etc. at very competitive prices for recycling purposes.

In addition to this the business can also source new parts, tyres and components for customers if they do not have the items in stock as they have built up their own network of suppliers so as to ensure customer requirements are fully met. The company has an excellent website where customers can search for particular parts by make and model online and submit enquiries.

The business operates from a superb location in the town. The site is circa 1.2 acres and very accessible. There are many development opportunities available for a new owner on this site for the business to expand or for other development use. The site has the capacity to handle circa 1500 tonnes.

Equipment:

The business has a comprehensive catalogue of plant and equipment as you would expect from an operation of this maturity.All plant and equipment is included within the sale. This includes the workshop equipment, cabin and storage containers.

Customer Service:

The vendor understands the importance of customer satisfaction and has put together a team of staff who share this belief. This together with speed of response and consistent quality of product ensures significant levels of repeat business as well as new business creation through word of mouth recommendations within the markets it serves. This is backed up by the comprehensive licenses the business holds and impeccable safety record.

Key Strengths:

The site itself is a real asset of the business especially its location within the town, not to mention the excess capacity it has available. There are no real competitors in the area which gives the business a real edge. The freehold site also has future development possibilities.

The business has developed an excellent portfolio of clients it both buys from and sells to and enjoys a high level of repeat business and referrals such is its consistency of performance.
The infrastructure is in place- staff, facilities, licenses, knowledge and experience. The customer base is large.

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 currently achieves turnover circa £611,000 per annum with impressive gross profits circa £203,000 p.a. The site has the capacity to do significantly more. The business tends to hold stock of circa 350 tonnes light iron at any one time with a further 50 tonnes of plate. This business represents an ideal investment opportunity with much room for further growth and development. It also has the added attraction of offering a prime freehold site.

Property information

Property:

Freehold

Location:

The site is freehold with value of circa £800,000. It is approx 1.2 acres with full perimeter fencing. It is understood the current site could accommodate some 1500 tonnes of scrap if need be. There is an onsite cabin that houses the office and reception areas. There are also 3 containers on site that house the workshops and stores. The site has good access and is highly visible.

There are many development possibilities for the site such is its position.

Business Operation

Expansion potential:

There is plenty of spare capacity within the current set up. The customer base is large. The business’s reputation is such that it is well positioned for future work in this growing market. The business is well positioned with growing demand for salvage and recycling facilities.

Competition / Market:

The business advertises in the Yellow Pages, local phone books and local press. The company has developed a highly informative website which allows customers to search for vehicles and components online and place enquiries with the business. In addition to this the business also uses E-Bay to list parts.

Reasons for selling:

The vendor is wishing to retire and travel.

Trading hours:

Monday – Friday: 0900-1730
Saturday: 0900-1300

Employees:

The vendor currently works full time in the business through choice. The company also employs the following personnel: • Yard Supervisor (full time) •2 Yard Operatives (full time) •Office Administrator • Metal Sorter (part time)

Other information

Support & training:

The current owner would be happy to provide full training and support at handover.