Profitable Hampshire Architectural Practice Specialising In Heritage Conservation For Sale

Business description

Profitable Architectural Practice – Specialising in Heritage, Conservation and Historic Buildings

Founded in 1991 by the current owner of the business, this well established Practice, offering the full range of architectural services, is a conservation specialist successfully delivering its Clients requirements for a wide range of projects with historic environment dimensions. Operating throughout the UK and with a successful track record of completed projects in Ireland, the vast majority of its work comes from London and southeast England with their large numbers of historic buildings and areas.

Currently comprising two fully qualified architects, a qualified planner/cartographer and part-time administrative support, this business offers a unique combination of conservation architecture and planning working across public, private domestic and commercial sectors – with the vast majority of fees arising from the residential sector. The business is equally comfortable with new building projects in conservation areas – designing high quality contemporary buildings in context. The Principal is also well known within the ecclesiastical sector – being approved by four diocese within easy reach of its offices.

As well as the full architectural services expected of a business of this nature - taking a project from inception right through to completion, the Practice provides tailor-made consultancy services for example involving advice and support for Planning and Listed Building Applications. It has a very successful track record of achieving planning consents, winning Appeals and Public Inquiries – and winning permissions for Clients whose projects had previously failed or were meeting resistance. Good design is a particular strength of this business – with Clients sometimes taking on the build once permissions have been secured.

This business works closely with other members of the construction industry including property developers and house building companies as well as Architects and Planners of all sizes who do not have the specific expertise this business has in historic buildings. It also works directly for owners of buildings themselves. Always maintaining the highest professional standards, using the latest CAD and other technology, this business is fully committed to delivering Client requirements, on time and budget.

This is a very well established Practice with commitment, experience, expertise and always with work stretching months ahead. With turnover consistently in the region of £220,000 - £250,000, generating gross margins of approximately 65% and net profits of approximately £40,000, this represents an excellent opportunity to acquire a very professional operation with an excellent national and emerging international reputation for its chosen niche market work, of which there is an inexhaustible supply. It would particularly suit an existing generalist practice looking to add specialist expertise to its portfolio of services.

Key strengths:

This business is one of the few leading Practices in the UK to focus on the two core capabilities of conservation architecture and planning. It has an excellent reputation within the industry in this regard and is frequently invited to bid for projects by leading public authorities throughout the UK, including being finalists for projects involving World Heritage Sites. Dovetailing urban design within an historical context - is a key strength stemming from the Owner’s arts and culture background. – as is its ability to identify how to extract attractive and profitable solutions within the constraints of historic areas.

The business thrives on its reputation for honesty and integrity – not hesitating to turn down projects where it feels there is a strong likelihood that it will fail and in particular for ‘trouble shooting’ - winning more than its fair share of Appeals, or re-designing a project to achieve a permission whilst often enhancing Clients’ returns. It provides a good all round service and has an excellent reputation for high levels of Client care involving personal attention, strong teamwork and complementary skills. All staff are highly qualified, loyal, experienced and dedicated. It is particularly well known for being approachable – including by private clients looking for assistance on smaller but complex issues with historic buildings.

Not surprisingly the Practice is always in demand and with almost twenty years of successful operation it has good personal contacts. As a result it has a broad, longstanding Client base – many of which have brought repeat business or recommended the Practice to other clients.

Key opportunities:

This business has been conservatively managed throughout its many years of operation – never wishing to take on more staff than could be accommodated within the building in which it is currently located. As a result there is considerable scope to grow the business by promoting it more heavily using the significant network of contacts the business has built up over many years as well as more direct targeting of specific sectors with property portfolios – for example banks, railways, churches, larger property companies and the public sector- that have interests in historic places and estates that have a conservation aspect to them.

Financial Information:

The Practice 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.

A profitable Practice, turnover for the financial year ending December 2008 was almost £230,000 generating gross profits of almost £160,000 and pre-tax net operating profits of £40,700 after minimal Directors’ remunerations.

The Asking price of £295,000 is for a sale of the business based on Shareholder’s Funds of £21,700.

Property information

Location:

The business operates from very well suited premises renovated in keeping with the philosophy of the business. Approximately 1,100 square feet in all – sufficient for six workstations, the premises are located within the grounds of the Owner’s residence. As such, the business will need relocating.

Other information

Competition / Market:

Because most of the work finds the business, often through its excellent website, this Practice’s marketing strategy concentrates on specialist heritage and urban design listings, journals and websites, with little need of heavy investment. The Practice’s website showcases its recent work and the breadth of its experience and expertise – supported by a number of freestanding downloadable ‘leaflets.’ As well as generating its own traffic, the site also enjoys significant referral traffic from affinity sites such as the RIBA, RTPI and the Urban Design Group systems. The business is also signed up to a number of industry wide websites that enable it to filter out particular projects that fall within its remit, for direct follow up. Further marketing generally comprises newsletter mailings to its own database of contacts built up over its many years of operation. But by far the biggest and most effective advertisement for this business however is its portfolio of completed projects generating significant word of mouth recommendation. Clients’ enquiries and appointments often result from seeing previous successful, comparable commissions.

Support & training:

The current Owner will provide full business familiarization and handover to ensure a smooth transfer of the business to new Owners – to the extent of considering an on-going Consultancy style role within an enlarged entity, potentially for an extended period, subject to negotiation.

Reasons for selling:

This is a genuine retirement sale.