Specialist Sub Contract Precision Engineering Company For Sale

Business description

Specialist Sub Contract Precision Engineering Company for the Aerospace, Defence, Hydraulic, Marine and Medical Industries

Established in 1991, this business specialises in manufacturing parts and components to the industrial sector. The Company is a well established and highly regarded CNC Precision Engineering operation. Specialising in milling and turning of high quality precision machined components particularly for the aero space, defence, hydraulic, marine and medical industries. The business carries out sub-contract work for a prestigious list of regular customers and enjoys a good working relationship and regular work from a number of companies across the UK.

Primarily a batch and contract supply specialist, this business can work with any order volume - a single specialised product, volume batch manufacture or contract supply timed to meet a customer’s particular production schedule. This business is equally happy to manufacture on a complete supply basis or as processors of free-issue components or materials.

The business has the resources and expertise to undertake complex turned and milled components in any material to customer specifications and tolerances. The company can also undertake finishing, polishing, painting etc. using approved outside sources. Above all the business is committed to providing the highest level of service to every customer with efficient working practices; rapid response times and sensible pricing that create a winning package, which is the envy of competitors. The business provides high quality service and standards of workmanship and has an excellent reputation.

With a trading history extending over nineteen successful years, the Company offers an established reputation and valuable client base. The Company also has excellent scope for further development and the opportunity to develop new markets and forge growth through the expansion of the current client base. The Company offers a substantial annual turnover with strong gross and adjusted net margins.

The business shows consistently strong trading figures, has an impressive range of precision machinery/equipment and a core staff who are skilled and committed. In all, there is a genuine opportunity to expand and promote this business which is for sale due to retirement. This is great opportunity for a buyer to take over a manageable engineering company and grow a highly profitable business.

Plant & Machinery:

The business has a wide selection of machines to cover all aspects of producing precision machined parts including C.N.C. lathes, C.N.C. vertical machining centres, C.N.C. mill, manual mill with various capacities for producing quality turned and milled components.

Customer Service:

The team of trained friendly staff ensure the level of customer care, response and service pleasantly surprises customers.

The business has highly trained and experienced personnel, and is one of the key reasons for its success. The office staffs have many years of experience in the trade, and each member is totally committed to company success. Management structure is such that each member of the team operates to an extremely efficient level.

Offering exceptional levels of service and dedication to understanding the needs of customers, this business fulfils customer’s needs with the appropriate mix of service, reliability, products and pricing.

Key Strengths:

The core strengths of this company are its adaptability, its reliability and its willingness to develop solutions to Client briefs based on the barest of details. Any project can be commissioned provided the services are available – in or out of house. Its reputation for reliability – ensuring the product is delivered on budget on time – is well established.

A key part of its service is the use of its understanding and experience of the engineering process, working with the Client to develop a full project specification from the bare bones of an idea.

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.

The business is financially stable with low overheads, positive cash flow, high gross and high net profit and has shown consistent growth over its 19 years of trading. Turnover circa £2,100,000 per annum, Gross profit circa £560,000 and adjusted net profit circa £350,000 Net asset value circa £600,000.

Property information

Property:

Leasehold

Lease terms:

The current lease at a cost of £43,678 per annum is due to expire in 2012, and a new lease is renewable.

Location:

The business currently operates from leasehold premises on an industrial estate with easy access to the motorway serving the south and south west. The current lease at a cost of £43, 678 per annum is due to expire in 2012, and a new lease is renewable.

The business operates from an industrial property affording approximately 10,000 square feet and consists of Machine shop, Inspection area & Assembly /stock room plus additional mezzanine offices above.

Business Operation

Expansion potential:

Although the business benefits from many loyal customers there is huge scope for a potential purchaser to increase further the breadth and depth of the customer base.

Competition / Market:

This business has an atypical approach to marketing when compared with other companies within the engineering sector, specifically targeting medium value contracts with premium brand companies, limiting risk and maximising return. Advertising and promotion is viewed as an investment in the brand and the future growth of the company as opposed to a drain on resources. This approach has ensured the acquisition of many frequent and reliable customers. The achievement of ISO Accreditation is often a door opener with many larger and prestigious Clients. It also sets the business apart from the vast majority of small to mid range manufacturers who have not taken this initiative. Word of mouth is proving to be a very valuable and most effective form of advertising ‘Yellow Pages’ locally and regional has also proved very effective for generating leads.

Reasons for selling:

The owner of the business wishes to retire.

Trading hours:

The business hours are Monday to Friday 6.00am to 6.00pm and Saturday 6.00am to 1.00pm.

Employees:

The owner is responsible for the day to day management of the business, supported by 20 full time staff who work directly for the company. The employees are a variety of skilled turners and millers and also a full time Inspector and Quality/Works Manager to ensure all components are correct before despatch.

Years established:

1991

Other information

Support & training:

The owner of the business is willing to assist in a smooth transition with the new owner, for a period to be negotiated prior to the sale.