Manufacturer And Fabricator Of Mild Steel Stainless Steel For Sale

Business description

Manufacturer & Fabricator of Mild Steel, Stainless Steel and Aluminium Components and Structures

This is the perfect opportunity for someone to acquire a well established fabricating business manufacturing a wide and diverse range of components and structures in mild steel, stainless steel and aluminium. Clients include, commercial vehicle, agricultural, railway and general manufacturing companies, plus they obtain a tremendous amount of work from the local RAF base including work from additional bases within the county and surrounding areas.

This is the only fabricator in the local town and there is little competition in the nearby area. There is an infrastructure in place that allows the business to work on medium and large sized jobs, including the strengthening of air craft hangers, whilst never turning away small, yet profitable jobs such as prototypes and product development work. They pride themselves on their ability to turn their hand to virtually anything that their clients request, with a willingness and flexibility to get the job done!

The business is located in rural Lincolnshire and operates from first class leasehold premises that are fully equipped with a wide range of machinery and equipment and with a CAD design system in place. A small team of full time and part time fabricators work within the business with the factory manager having the ability to run the workshop in the owners absence.

With the exception of 2010, (when the business has had to quote agressively to maintain its work level), the business has consistently made good profits. However, there is again more work in progress for the current period, all with profitable margins, ensuring the future once again looks healthy. The owner is forecasting a return to profits during the current year.

Key Strengths:

• Well established fabricating business – over 35 years
• Flexible turnkey operation
• Ability to work with stainless steel, mild steel and aluminium
• Excellent database of clients
• Special business relationship with local RAF base
• Work in progress
• ISO 9001
• CAD design system in place
• Ability to work on all sizes of jobs – none too big or small
• Excellent full time manager capable of running the factory
• Limited local competition
• Good growth opportunities

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 a turnover of circa £520,000 per annum, with a break even position achieved during the year. The owner has predicted a return to profits during the current year.

Property information

Property:

Leasehold

Lease terms:

The rent is circa £21,000 per annum with rates of circa £6,200 per annum. The lease period is negotiable with the owner.

Location:

The business is located in the South East of Lincolnshire on a small industrial estate. The premises comprise of three adjoining units measuring circa 300 square meters in total.

Unit 1 consists of offices, toilets and canteen facilities.
Unit 2 consists of a fabrication/machine shop and paint shop.
Unit 3 consists of a stainless steel workshop and storage facilities.
The whole site is secured by steel fencing and there is ample parking outside.

There is planning permission in place to extend the factory by circa 250 square meters.

The rent is circa £21,000 per annum with rates of circa £6,200 per annum. The lease period is negotiable with the owner.

Business Operation

Expansion potential:

The owner has been happy and content with the amount of business coming in and did not see any need to either market the services or to seek new work from their existing customer database.

New owners would have a number of opportunities to grow the business, attracting new markets and seeking work from the excellent existing database of customers including the large agricultural industry within the area.

There is however one major opportunity which the owner has not secured, which is to be listed as an approved supplier to the numerous RAF bases in the area. The company have a direct contact to achieve this listing having completed work on each of the bases. Being on the approved list could improve the number of tenders that are accepted.

Reasons for selling:

This is a genuine retirement sale.

Employees:

This business is solely managed by the owner with his wife looking after the administration one day per week. There are three full time employees/ fabricators, one of which looks after the running of the factory. Self employed workers with various skills are hired during busy periods in the year.

Years established:

1975

Other information

Support & training:

The vendor would be happy to help with a smooth transfer of the business in any way possible.