Importer and Stockist of Steel Pipes For Sale

Business description

Established in 2004 by the current owner, the company has built up an excellent reputation for the supply of steel pipes, primarily to be used in gas and water applications(EN10255).The business has grown rapidly over the past 4 years, with turnover increasing each year.

The business predominately buys its pipes directly from a factory in India, although a small amount comes from China. These are delivered in bundles, split, and then sold on to suppliers, who then cut to requirements, and sell on to plumbers , heating engineers and fabricators etc. The pipes are generally for industrial use and take 8-10 weeks to be delivered directly from the factory.

The company are the smallest importer in the UK that deals directly with a foreign steel mill, and this helps them to retain a competitive pricing structure. On average,prices from India are circa 15% cheaper than UK supplies of steel pipes.

The business is easy to run, with low overheads and no seasonal fluctuation. Economic variances do not have any effect on the performance of the business.

Property information

Location:

The business runs from a circa 6,000 sq.ft leasehold warehouse in an industrial park in South Yorkshire. It has an 80ft high bay with room for racking if needed. There is a 10 ton overhead gantry crane in the warehouse with a 4 metre eaves height . There is a steel roller shutter door at the loading bay as security. In the warehouse, the office is situated in a small Portakabin.

Rent is circa £11,000 per annum with rates of £6,000 per annum

Other information

Expansion potential:

The volume of business from a wide customer database has increased greatly over the past four years, with huge scope for further growth. The current owner has worked solely by himself at the business without any sales support or any major marketing spend. He realises that to take the business to the next level would need some further investment to attract new clients.

All aspects of the business are handled by the owner. All debts are factored out by the company and large savings would be made by handling the debtors in house

There is still huge opportunity to increase the UK customer base and become more involved with existing customers. There is a need for the company to build its own web site and develop new sales leads.

Competition / Market:

The business takes out adverts in Yellow Pages and the Thompson Directory. There is a domain for a company website but this needs building in the near future. The majority of the sales come from word of mouth recommendation.

Support & training:

The owner would be happy to help with a smooth transition of the business.

Reasons for selling:

The owner wishes to emigrate.