Infra Red Perimeter Security Equipment Commissioning Business For Sale

Business description

Design, Manufacture and Commissioning of
Infra-red Perimeter Security Equipment

Originating from a company established almost eighty years ago – and renowned as being innovators of the Active Infra-red beam, this business, itself now in its eighth year of operation is a leading designer and manufacturer of Infra-red perimeter security products.

From its base in Surrey, this business offers a wide range of products employing leading edge technology in the field of active and passive Infra-red detection – both as hard wired or wireless systems. On the active side the business manufactures a comprehensive range of beam sets, ranging from single, dual, quads, and columns/towers for both medium & high security applications whilst on the passive side, the business works with leading suppliers to provide a range of reliable Passive Infra-red (PIR) detectors for external low to medium risk applications, ideal for integration with CCTV and/or alarm management equipment. Its high security equipment offers NATO codification.

The business has also developed an Infra red beam set specifically for use in hazardous environments that enhances its range of products that are certified to the appropriate standards including that of the new ATEX requirements. This range comprises active Infra-red beams (ATEX certified), passive Infra-red detectors, magnetic door contacts/interface units, and CCTV camera housings and are suitable for use on off-shore oil platforms, petrochemical sites, explosive material storage and other potentially explosive environments.

With such a comprehensive and all encompassing product range, the company has equipment installed within Nuclear power stations, HMP services and Ministry of Defence (MOD) and Home Office properties – this business has recognition by, and indeed subjects its products for evaluation by the ‘Home Office Scientific Development Branch’ (HOSDB), for use in MOD & Home Office security systems, – right through to security installation companies and large private homes of high net worth individuals.

The cornerstone to the success of this business is its ability to remain at the cutting edge of Infra-red technology. Early in its development, this business was judged as a finalist in the BSIA (British Security Institute Association) awards held at IFSEC, for their innovation work in Infra-red, Radio Transmission, and Solar / Battery powered technology and continues to offer a level of technical expertise and integrity that Clients expect, able to call upon resources from what must be one of the UK’s longest serving team within the field of Infra-red technology. Not surprisingly all equipment is designed and manufactured in-house – with all components built from scratch including all of the metalwork, printed circuit boards etc.

With turnover of approximately £110,000 for the financial year ending March 2008 generating gross margins of approximately 57% and significant intellectual property rights this represents an excellent opportunity for an existing operator in this sector to increase their presence within the industry or a new entrant to establish a firm foothold by acquiring a comprehensive product range and a strong, diverse customer base.

Key strengths:

Associated with almost 80 years of operation within the Infra-red security products sector, this business enjoys high levels of awareness across the industry. It has a very strong name in its marketplace and an excellent reputation for manufacturing a quality, robust product with high levels of reliability.

Built as a result of the technical expertise and experience of some of the best engineers operating in this sector this business can boast a unique range of products built to some of the most exacting standards. This business is a preferred supplier to Nuclear Power, the Ministry of Defence (MOD) and the Home Office. It has achieved NATO codification which enables products carrying this accreditation to be used on military bases throughout the world. It is the only company with product that meets the requirements for ATEX certification.

This is a very lean and well managed business. All of its tooling and extrusions are paid for with key manufacturing operations outsourced. As a conseq uence, the business has low overheads, high gross margins and is easily re-locatable.

Key opportunities:

There is an outstanding opportunity to build on the existing products and customer base of this company. With a strong demand for its products combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources will have every advantage of building on an excellent platform.

With growth limited by the current Owner’s access to resources there are several areas of growth and expansion available to the new Owners of this business. As well as replacing systems previously installed, central Government expenditure on UK infrastructure products e.g. prisons, nuclear power stations etc offers excellent opportunities for growth.

There is also the possibility of the business getting involved in portable products – for use on construction sites for example and the possibility of increased sales of its wireless products through small commercial outlets and distributors. This of course doesn’t include the possibilities of export markets or further sales effort and marketing to the hugely profitable market for explosives proof Infra-red security products.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover for the financial year ending March 2008 was approximately £110,000 generating gross profits of almost £65,000 and pre-tax net operating profits of almost £30,000 after Directors’ remunerations of £10,400 and an allowance for depreciation.

The Asking Price of £195,000 is for a sale of the shares in the business based on Shareholders Funds slightly in excess of £28,000 to include all tooling and extrusions and reflects the costs of achieving ATEX certification and NATO codification.

Property information

Property:

Leasehold

Location:

The business is currently run from a home office environment with a small workshop on site. Individual system components are outsourced to longstanding members of the production team and then assembled accordingly with the use of ad hoc rental of workshop space when required. As such the business is easily re-locatable.

Business Operation

Competition / Market:

Within the niche sector of Infra-red security products this business already benefits from very high levels of awareness and with necessarily limited resources, invests carefully in marketing and advertising. The business has a very well designed and informative website which performs very well in all of the major search engines for all appropriate search terms as well as a suite of corporate product literature. By far the most effective form of marketing for the business is however, strong word of mouth recommendation testimony to the very high regard the industry has for this business and its product range.

Reasons for selling:

Having been involved in the manufacture of security products for almost all of his working life, the Owner believes the time is right to pass the business on to new Owners to build on the excellent foundations already laid, which will enable him to pursue other business interests.

Employees:

The Owner of the business supported by his wife in a part-time capacity is responsible for the day-today running of the business. Two others, both self employed are involved in manufacture - in the design, build and testing of the printed circuit boards.

Other information

Support & training:

The owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners.

Relocatable:

This business can be relocated.