Steel Processing Company Iso 9001 2000 Lrqa Approved For Sale

Business description

Set up some 10 years ago, this now very well established and reputable business provides a comprehensive steel
processing and manufacturing service to a range of Tier 1, Tier 2 and Tier 3 customers throughout the UK. Services include

• Low volume supply to Tier 2 and Tier 3 Press-workers serving a variety of markets including Automotive, Yellow Goods and Exhaust Aftermarket.

• Sub contract steel processing services for Tier 1 distributors.

The business has been developed over time with significant investment in the company, particularly in the steel processing area. Because of this the company can boast a substantial level of plant and machinery complimented by long serving and highly experienced staff at all levels. This internal capability has enabled the business to take on varied and challenging projects over time, many of which have been high profile. It has also ensured ongoing growth in terms on continuous financial improvement year on year.

The business can boast some very impressive blue chip customers and serves a wide range of markets offering a true turnkey solution if need be. From first contact to completion the onus is geared towards complete customer satisfaction through value manufacturing and project management.

The business has become a key partner to many large customers and understands the rationale and requirements of such prestigious clients. It has some 20 regular customers, holding preferred supplier status with many.

The business has in place a structured and responsible workforce from the top down with all staff committed to ensuring manufacture is to the required standards of excellence, as you would expect from an ISO9001:2000 accredited company.

Equipment:

The company has a comprehensive catalogue of plant and equipment. A full listing is available upon request but includes:

• A bank of 9 Cincinnati Guillotines (0.40 to 6.35mm)
• Narrow Blanking Line (0.40 to 1.6mm 600 max width)
• Narrow Slitting Line (0.40 to 3.50mm 350mm max width)
• 5 Tonne craneage

All equipment is included within the sales price. The company also utilises Sage Accounting software.

Customer Service:

The company is a quality driven organisation backed up with its ISO9001: 2000 accreditation-LRQA approved. The company is customer focused and this is demonstrated by its impressive list of blue chip customers and high profile projects it has completed. This together with speed of response, internal ability and consistent quality of product ensures significant levels of repeat business as well as new business creation through client testimonials and word of mouth within the markets it services.

Key Strengths:

The business is an experienced and multi-skilled processing operation that can undertake a large variety of projects such is the level of infrastructure it has in place in terms and people, processes and equipment. The internal skills are high and the company’s reputation is very strong.

The business is established and profitable with a broad and diverse customer base in the Tier 1, 2 and 3 sectors. It has regular customers throughout the UK yet is not reliant on any one market sector.

The business retains a high level of historical clients and enjoys preferred supplier status with many of them which ensures a steady stream of work. It has superb internal quality systems and an excellent health and safety record.
The company has earned an outstanding reputation for its speed of response, integrity service and reliability.

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 for last financial year circa £2.9 Million per annum, with resultant gross profits circa £694,000 p.a. The business has a strong balance sheet (circa £245,000). All plant and equipment is included within the sale price. This is a well established, highly equipped and profitable business with potential for further development.

Property information

Property:

Leasehold

Lease terms:

Rent and services is circa £34,084 p.a. Rates payable are circa £12,648 p.a. Current lease is for 5 years with a break clause after 2 years.

Location:

The business operates from leasehold premises situated on a secure industrial estate with excellent access to all major routes and sufficient parking. The premises comprise circa 16,000 square feet of production, warehouse and offices. Rent and services is circa £34,084 p.a. Rates payable are circa £12,648 p.a. Current lease is for 5 years with a break clause after 2 years. The current lease has two years left to run, but is available to extend.

Business Operation

Expansion potential:

The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a large range of products and services in house. It has the infrastructure already in place in terms of accreditations, position in market, equipment and staff, to cater for significantly more work.

The business has grown year on year and forecasts indicate that this trend is expected to continue in the coming years. Further development of existing accounts should ensure future prosperity.

Competition / Market:

The business has used very little marketing in the past and there are excellent opportunities to increase this in line with a new sales and marketing push which would reap immediate rewards in existing and new market sectors. A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation and this is expected to continue with very impressive levels of blue chip customer retention and ongoing business levels. Its accreditations are such that these alone bring in enquiries as does its status as a preferred supplier.

Reasons for selling:

One of the directors is looking to retire.

Trading hours:

Monday – Friday: Typical 40 hour week.

Employees:

The business has an Operations Director who works full time in the business. One of the other shareholders works in the business circa 6 days a month carrying out a more strategic and financial role. In addition to this the business employs: • One Full time Business Development Manager •Two Part Time Account Managers/ Administrators • Eight Production Operatives (one of which is a foreman) All staff are highly skilled, responsible and share the company’s quality ethos.

Other information

Support & training:

The current owners would be happy to provide full training and support at handover and stay on for an additional period of time after the sale if so required subject to negotiation.