Highly Regarded Hertfordshire Specialist Building Contractors For Sale

Business description

Highly Regarded Specialist Building Contractors focused on Healthcare & Education Sectors

This highly respected specialist building contractor firm was established by the present owner in 2006 after many years in the Engineering sector. The business is structured into two partner companies, with one specifying and providing specialist products for use by disabled end users. The second company has a full team of trades in-house to provide construction and building services to both the private and public sector. Across the two interconnected firms, the overall business can offer a true ‘one-stop shop’ that has minimal direct competition. So much so, that over the past few years Health Authorities, Housing Associations and County Councils have utilised the on-site training facilities to instruct their key workers on the use of specialist products offered by the company and used across their portfolio of properties and the increasing number of private home conversions.

These public sector links are strengthened by the approved and preferred supplier status with key tier 1 contractors such as Apollo and Linebrook, along with the extensive list of accreditations including CHAS, NICEIC, Constructionline, SSIP, EXOR, Trustmark, Trading Standards and Investors in People. The company is also in the process of achieving both ISO14001 and ISO9001 status. This impressive base of recognition provides both partner companies and end users with total confidence in the quality of work and integration of key products.

The business supplies products specifically designed for use by the disabled from a range of suppliers including Abacus Healthcare, Brooks Stair lifts, Prism hoists and Terry Lifts. By having direct access to these key suppliers and lots of real world installation experience, the business has an enviable skill set which leads to their unique position in the market.

The revenue for construction projects is split approximately with 10-15% from domestic private works, 60% for public sector / county council projects, and the remaining 25% via main contractors. The company has the skills and assets in-house so that projects can be started from ground works, with a focus on techniques and methods that can be missed by less experienced construction firms. This results in the final installation, especially in the construction of wet rooms, surpassing all expectations that will stand the test of time.

Equipment:

The business is operated with an integrated back office, financial data and customer records are held on a SAGE system. The headquarters of the company has a fully fitted display and training area with specialist sanitary wear, lifts, beds, chairs and baths along with a wet room display. The construction tooling and equipment owned by the company include all that would be expected of a company of this size such as power tools, cement mixers and scaffolding towers along with specialist flooring and installation tools. The business also owns a fleet of vans comprising 2 x Ford Transits, (58 reg), 2 x Vivaros, (52-reg), 2 x Transit Connects and a Fiesta van for surveying, pricing and site visits. Total assets are conservatively valued at approximately £75,000.
Customer Service:

The business has worked extensively on levels of customer care and supported provided, whether working with public sector buyers, training physiotherapists, supporting partner construction companies or working with end users on site. This attention to all concerned in the buying, construction and use of equipment and service provided by the company has resulted in exceptional levels of recommendation and preferred status which acts a major barrier to entry for other in the market, and strong levels of repeat trade, referrals and ultimately revenue.

Key Strengths:

The key strengths to the business are obviously the incredible links with public bodies and industry. Combining this with the extensive accreditations and unique one-stop offering, the business enjoys a great market position and low levels of competitors. The on-site showroom and training facilities greatly strengthen the partner relationships with key clients further, and add extra revenue streams. All business processes have been streamlined allowing for an operation that is ready for a straight forward handover to new ownership.

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.

Property information

Property:

Leasehold

Lease terms:

The premises are leased on flexible terms, with minimal notice period. Annual rent is around £12,000 with business rates payable circa £4,500.

Location:

The premises are leased on flexible terms, with minimal notice period. Annual rent is around £12,000 with business rates payable circa £4,500. The premises occupies approximately 324 sq metres in total, split over 2 floors. On the ground floor is a large storage warehouse with disabled toilet (circa 145 sq metres). On the first floor is the Directors Office, Open-plan office for receptionist, business development and accounts, (circa 110 sq metres). Also on the first floor is the training room, functional assessment centre and showroom area, including fully fitted wet room and kitchen, (circa 52 sq metres).

Business Operation

Expansion potential:

This business is extremely well placed for further growth and expansion. The core market that the business serves is expected to grow over the coming years. The business has supplied to other complimentary sectors such as education, which can be extended. There are excellent opportunities to expand the geographical coverage of the business into neighbouring counties, especially with the cross border public sector buying groups in operation. The vendor believes that one of the key areas for future growth is by capitalising on new trends form the market leading position they have gained.

Competition / Market:

The business has a comprehensive website detailing all products and services offered by the business. The website is optimised to achieve high natural search engine rankings. There has been advertising in directories such as yellow pages. The majority of business comes from existing clients who have been won from direct sales, referrals and recommendations.

Reasons for selling:

The vendor of the business is now looking to hand over the company to new ownership who are in a position to capitalise on the potential offered. He is now looking to enjoy a well earned retirement.

Trading hours:

Monday – Friday: 8:00 am – 5:00 pm plus overtime

Employees:

The vendor of the business is currently Managing Director, responsible for all day-to-day operations, business administration and development. In support full-time the company employs a surveyor/estimator, Accounts Manager, two electricians and six builders who have been extensively trained all skills required for the specialist installation work. There is also a part-time receptionist working at the head office. The majority of staff have been with the business for a number of years and would consider staying under new ownership.

Years established:

2006

Other information

Support & training:

The vendor is a agreeable to a period of handover for the successful transition to new ownership, and will consider a longer term consultancy arrangement should that be of interest to all concerned.