Growing Building Maintenance Service For Sale

Business description

A SW England building maintenance business is for sale due to planned retirement. It provides planned and responsive maintenance services to the public and commercial sectors mainly via Measured Term Contracts up to 5 years’ duration. 80% of its turnover is via Term Contracts and it currently has a forward order book of £8M. The maintenance service scope includes building fabric, mechanical and electrical and its main market focus is the housing association sector. It has a diverse customer base and a very high rewin rate on contracts. This results from its strong customer relationships. All its trading is B2B. It continues to grow steadily even in the recent recession. The company’s reputation enables it not only to retain existing customers, but also to win new ones without significant marketing. It is profitably turning over £2.4M and £3M is forecast for the year ahead. It has gross margins of 30% and a sustainable profit base of at least £0.26M p.a. The profit forecast for the year ahead (after all management costs) is £0.28M. A full management team will remain in place post sale.

The Asking Price for 100% of the shares is £1.05M plus surplus cash

Property information

Property:

Leasehold

Location:

Adjacent junction on motorway

Premises details:

leasehold office and workshop in an industrial estate adjacent to a major motorway junction

Business Operation

Expansion potential:

large and limited only by delivery capacity. It is a local business which already has expanded well beyond its home county and is becoming established as a regional player in the South and South West. Its sale capacity greatly exceeds its productions capacity and it is aready growing as fat as the directors feel it is prudent, but suject only to adding capacity has the ability to double sale within 3 years. Several of its best customers are national or large regional players anad these are offering the company more work than it can cope with.

Competition / Market:

competes on service and reputation and retains business via strong relationship. Most competitors are large nationals who do not or cannot maintain comparablly good customer relationships and generally cannot compete on service.

Reasons for selling:

planned retirement of shareholder-director

Trading hours:

6 days per week for standard trading and 24/7 for response maintenance service

Employees:

30

Years established:

20

Other information

Support & training:

As required

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