Precision & Bespoke Engineering Company For Sale

Business description

This family business was established in 1976 by the owner and is now regarded as an excellent, bespoke precision engineering company.

The business specialises in offering their customers, a full turnkey solution to their problems, by working round the clock to provide a service which is hard to beat. There is no doubt that this company works in the sevice industry, and that is the top priority for their clients.

Located within the industrial heartland of Teeside,the company works with a hardcore of around 20 regular, repeat clients in major industries, including, Nuclear Power, Steel Making, Mining and the MOD. They regularly manufacture bespoke parts such as, shafts, housings, nuts, bolts, locknuts and other enginering components, no matter what the size or shape.

The business employs highly skilled and experienced engineers, who help to make the workshop run smoothly. It is a very busy company with three months work in progress at any one time,but they always seem to be able to accommodate the emergency rush jobs from their key clients. It is extremly profitable with high margins and the company prides itself on its quality so it does not have to compete on price.

The business is for sale with all of the machinery included in the price, and the freehold property is available to either purchase from the owner or to rent on a leasehold basis.



Customer Service:

The company has approximately 20 regular/repeat blue chip customers who constantly provide them with work. Everything is made to order, although the company manufactures a few extra regularly ordered key components, to keep in stock. The company endeavours to deliver orders speedily to all of their customers and regularly help out clients with emergency parts to keep their plants in working order.

The service which this company provides is not something that can easily be found elsewhere. They need to pay great attention to detail with the jobs they receive as most of the work is engineered to extreme finite tolerances. In 30 years of trading the owner informed that they had never lost a customer.

The company are subjected to regular health and safety checks from their clients and are credited to BS5750 from BSI ( now ISO 9002)

Property information

Location:

The business is based in the heart of Industrial Teeside, close by to some of its main clients. The workshops total circa 5,400 sq.ft

The company is in a small industrial park with two adjoining units, which are used as workshops. The office is now housed outside in a Portakabin with ample parking at the front of the building.

There is a plot of land, which the company owns at the back of the building , which could be used for expansion of the workshop.

The freehold is owned by the owners family and can be either bought for £150,000 or can be rented. Current rental is £16,000 per annum and a period of rent is negotiable.

Other information

Expansion potential:

The owner runs a highly profitable and successful business together with his son ,who is highly capable of running the workshop ,as he is a fully qualified tradesman. New owners would be able to build on the solid foundations and the regular workload that the company has, and with a small investment, the current owner suggests that they could easily double the size of the turnover.

The two workshop units are becoming stretched and there is no more room for any more machinery within them. However there is land adjoining the workshop which could be used for expansion, taking the company to a new level.

There is still huge opportunity to increase the UK customer base and become more involved with existing customers. However the opportunities for export are excellent as they offer a hard to find service to industry.

Support & training:

The owner would be happy to help out with a smooth transition of the business and help in anyway possible for a negotiable period

Reasons for selling:

The owner has been in the business for 32 years and is now reaching retirement age.