Freehold Manufacturer Hermetically Sealed Double Glazed Units For Sale

Business description

Freehold - Manufacturer of Hermetically Sealed Double Glazed Units to the Glass & Glazing Industry

A great opportunity to acquire one of the leading manufacturers in Wales of sealed glass units that are supplied to retailers in the home improvements market. All products exceed that which is required by ISO 9001:2000.

This company was started in 1989 with financial assistance from The Princes Trust. The founding director is still in charge of the company and has been the driving force in building it up to be the success it is today. The core business is the manufacture and supply of the sealed glazing units to the trade. These units are subsequently fitted to UVPC or Aluminium window and door frames. They offer a broad range of designs including stained, leaded and Georgian units. The business recognized that there is also a growing demand for toughened glass in many applications and have invested in the necessary plant and equipment to produce their own supplies.

The business has a client base of circa one hundred and twenty regular customers who are based along the M4 corridor to Reading, as far south as Newton Abbott in Devon and north as far as Birmingham. The business continues to grow at a consistent rate and this year is on track to break through the £3,000,000 sales barriers. Margins have remained unaffected and profitability is high.

Equipment:

A full asset register will be made available as part of any due diligence process.

Customer Service:

The business has a policy of involving a number of key personnel in customer facing activities. As such there is no one individual who would be perceived as the face of the business. The business does have a sales manager who is targeted for maximising the potential of every account and bringing on board new customers. They have an excellent record of customer retention and tight credit controls.

Key Strengths:

• Strong balance sheet
• Consistent growth pattern
• Good profits
• Well established and stable work force

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 has recorded a turnover for the last financial year of £2.65m with gross profits being circa £541,000. Net Profits were in the region of £213,000. Shareholder’s funds with adjustment for property valuation will stand at around £1.6M.

The management accounts for the present financial year indicate the year end objective of a £3,000,000 turnover will be achieved. The economies of scale, the introduction of the “whole unit” product, and tight credit controls are predicted to generate net profits of around £600,000.

Property information

Property:

Freehold

Location:

South Wales. The company has two premises within easy reach of each other. The main base is a freehold property owned by the business and located on a modern industrial site approximately two miles from the M4. It covers circa 28,000 sq ft and includes the main operational offices for the business. The second unit houses the glass toughening plant. The business has a one hundred and twenty five year lease on the property, which covers around 9500 sq. ft. There is adequate space to handle significant growth in volumes of business.

Business Operation

Expansion potential:

The business has contained its operations to the Midlands and South West where it has clearly been very successful. The strategic recruitment of further sales representatives would produce incremental volumes with controlled additional costs. The business has also started to buy in window frames in order to supply the whole unit to its customers. This is a recent move that is already proving popular.

Competition / Market:

The business would benefit from a structured and balanced advertising and marketing strategy.

Reasons for selling:

The founding director has decided that he would like to take a step back from the business and involve himself in a smaller family business that would not demand so much of his time. He would be very willing to complete an extended handover period to oversee the financial performance of the business in the present financial year with the possibility of a consultancy role on an ongoing basis.

Employees:

There are approximately forty five employees including. •Two shareholders •One Health and Safety Officer •Two sales staff •One production supervisor •One transport supervisor • One customer services manager •One office manager • One foreman •Thirty five general operatives

Years established:

1989