Very High Precision Machining Company For Sale

Business description

Established for over forty years, and acquired by the current owners just over five years ago, this company produces super precision parts for some of the UK’s leading companies and has a particular presence in the aerospace industry.
Capable of prototype and small batch precision machining in a variety of materials, a very large proportion of the £1.3 million plus turnover of this business relates to the processing of very high precision parts. In many cases the components this business manufactures fulfil a ‘safety to life’ critical role, consequently this business operates to very high tolerances indeed - accuracies of .005mm.
This business operates from very well suited premises in close proximity to excellent motorway links with easy access throughout the South East of England. Its facilities include a wide range of CNC lathes both for bar fed and chucking applications. Numerous vertical CNC mills provide capacity for 'one off', prototype, medium or large batch production of components for Aerospace, Defence and other commercial applications.

Property information

Location:

This business operates from well suited premises on a small industrial estate in West London. Approximately 6,000 square feet across two floors including a mezzanine housing stores and the programming department with office accommodation to the first floor, Rent is approximately £65,000 per annum with Rates of approximately £30,000 per annum.
A ten year lease was granted in 2005 with a break clause in 2010.

Business Operation

Competition / Market:

The business has invested little in marketing and advertising – an area of the business which could be significantly improved upon – relying on direct approaches to potential customers to solicit opportunities to quote. The business does however have an informative website that performs well in all the major search engines for all appropriate search topics. The business also benefits from the most cost effective form of marketing, strong word of mouth recommendation.

Reasons for selling:

The business was purchased by the current owners in 2003 with a plan to run it for five years before returning it to market.

Trading hours:

The business normally operates a single shift system of 40 hours per week and overtime as required.

Employees:

The business was acquired by the current Owners as investors rather than operators. A part-time Managing Director is responsible for the day-to-day operation of the business supported by a nineteen strong workforce that includes a General Manager, an Administrative Assistant, a Foreman, two Inspectors and a Driver with the remainder made up of highly skilled and experienced machinists, some of which have been with the business for a number of years.

Other information

Support & training:

The current Owners will provide all necessary training and all relevant contacts to ensure a smooth transfer of the business to new Owners.