CNC Machine Tool Service & Repairs Business For Sale

Business description

Established in 1990, this business has developed to the point where it is widely considered the number one provider for the servicing and refit of CNC tools and machinery.

The business is known for its high levels of professionalism. Many aspects of the business have contributed to years of sustained success from the efficient and fast response to client’s initial requests, to the strong relationships that the company’s team of engineers have built up with a multitude of customers over the years, to the comprehensive range of testing and diagnostic equipment to the strong image the business has built up over the years.

The management team have done an excellent job at attracting some fantastic clients. Britain’s top companies across several sectors of industry are regular and long term customers. The business operates in sectors such as Defence, Aerospace, Steel, Food, Marine and Offshore. Most contracts are long term and are renewed on an annual basis.

The business provides an emergency breakdown response. Long term maintenance contracts are tailored to the individual needs of each client. The business supplies spare parts but at the same time is able to completely rebuild machines where required. It is in fact the refurbishment side of the business that the company is so renowned for.

Additional services include operator training, surveys, insurance assessments, factory relocation and machine installation.

The company is completely geared for delivery of these all important aspects of their business model.

This business now trades from a robust platform and would be an outstanding candidate for perhaps a larger company to bolt on to their core business, thus generating even further profitability through amortisation of overhead ratios etc.

Customer Service:

As well as the impressive technical skills of this company’s team, this business is very strong at communicating with its clients. A fast, personal service is always the aspiration and is usually the outcome.

The business works closely with its clients. It knows the individual priorities of their customers. The company has members of its team who are regularly based on site and this leads to strong relationships and excellent channels of communication.

Key Strengths:

The business has got to the stage where much business is won purely on reputation. Some long term contracts make a big contribution to providing stability and consistent levels of impressive turnover.

Investment in personnel and in the infrastructure of the business has paid off impressively. The experience of the team means that any type of CNC machine is within the compass of the business.

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.

Turnover is circa £950,000. Net profit is circa £200, 000. Vehicles, tools and equipment are valued at circa £100,000.

Property information

Property:

Leasehold

Location:

The business operates from a 9000 sq.ft. Industrial unit. The property has been purpose built with a four metre entrance and high density flooring. The property also includes a sizeable board room and six additional offices. The unit also has space for numerous vehicles and for HGV’s to be processed and parked.

The property is owned by the current owners of the business. They are prepared to provide a lease agreement to new owners.

Business Operation

Expansion potential:

This business is in the right place at the right time. There is a trend for in house maintenance departments to be downsized. This has led to increasing demand for the kind of specialist service that this business provides.

One area where the management have identified potential is to simply increase the level of the relationships with their existing clients. It is felt that there is much more that could be delivered for current customers, if new owners have the resources to increase the range of services or to increase the size of the engineering team to accept more and more projects.

The business certainly should be able to offer a service outside of the UK, if new management wish to grow the company.

The business could also develop a manufacturing division, which would help to increase margins in the future.

Competition / Market:

The business secures the vast majority of its new business from word of mouth referrals. Only Google ad words are used to attract new clients. The business has built up an impressive list of circa 5000 clients.

Reasons for selling:

The owners have done a tremendous job to get the business to its current level of success. They feel that it requires new people to take the business to new heights.

Trading hours:

Monday – Friday: 8.30 am- 5.30 pm

Employees:

The business employs thirteen staff. Eight of these are engineers. The rest of the team provide a variety of office functions, including sales.

Years established:

1990

Other information

Support & training:

Any necessary training and a full handover will be available to ensure continuity of trading.

Relocatable:

This business can be relocated.