Fire Protection Experts Business For Sale

Business description

This is a unique opportunity to aquire a highly successful and profitable company who are one of the UK’s leading specialists in passive fire protection and dry lining contractors, offering solutions to the construction industry. The company is able to undertake projects of all sizes and prides itself on it’s ability to continually exceed customer expectations.

The business was established in 2001 with a management team that has many years experience within their specialist field. They are experts in the installation of all leading passive fire protection systems on the market. This enables them to offer expert advice and cost effective solutions to meet specification requirements, building programme and budget needs. All of their operatives are trained to the highest standards enabling the company to offer a full guarantee on fire protection installations throughout the UK. They offer a service which is second to none and have developed a trusting relationship and working partnership with their customers. This strategy has led to continual growth over the years and secured repeat business from satisfied customers.

The company works closely with its customers and have worked on many varied projects including, sports stadiums, luxury flats, schools, government buildings, commercial buildings, offices and many other developments. Much of their work comes from surveyors who use them as their company of choice and as such a lot of work comes from word of mouth reccomendation.

The company is highly profitable with no bad debt, no overdraft and a good cash flow situation. They have continually increased their turnover and profits year on year and with government legislation on health and safety regulations the work continues to flow in. The future for the company is bright with further expected growth during the next twelve months, making this a real opportunity and a strong aquisition for new owners.

Key Strengths:

This is a well established and financially sound company with excellent historic trading figures. There is work in progress with future impending contracts from repeat customers in the pipeline with the opportunity to increase turnover and profits.

The business is run by the two owners with a team of skilled and experienced sub-contractors who are hired on a need only basis allowing for the company’s low overheads.

The company provide specialist fire protection to the construction industry including;

• Fire protection to structural steelwork ( using intumescent paint and fireboard)
• Fire stopping systems ( Including fire curtains, wraps and collars)
• Fire rated partitions and ceilings ( Offering up to four hours protection)
• Metal stud partitions ( Providing space division for robustness)
This is a growth market in todays fragile economic climate. There are opportunities to grow the company from an already stable and profitable base. Forecast for the coming year is for an estimated growth of 20% on turnover with profits to match.

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 turnover is circa 1,063,000 per annum with Net Profits of circa £177,000.

Property information

Property:

Leasehold

Lease terms:

Rent is circa £13,750 per annum with rates of circa £1,465 per annum.

Location:

The business runs from a small, modern industrial unit with a lease running until 2011 with an option for another five years. There is a workshop, storage room and offices on the ground floor and a mezzanine floor which is used as a further storage area. There is parking outside and a goods in area. The premises are secure with an alarm system. Rent is circa £13,750 per annum with rates of circa £1,465 per annum.

Other information

Expansion potential:

As previously stated, this is a growth market with an increase of circa 20% forecast for the coming year. The owners have built up the business with a small but skilled team of sub-contracted workers in order to keep the overheads down. There is an opportunity to save considerably with full time employees rather than self employed fixers and sprayers.

Very little is spent on advertising and marketing. Work comes in mainly from word of mouth recommendation or through repeat customers. The owners believe that taking on a sales agent or a full time salesman would reap huge benefits with new customers and contracts.

The owners have stated that the company could easily expand its operation within the retail sector by supplying fire prevention for shop fittings. This is a lucrative market which would expand the offering of the business bringing extra revenue and profits into the company.

Support & training:

The owners would be happy to help out with a smooth transition of the business and help in anyway possible. They are prepared to help for a period of time to introduce the new owner to all of the major connections that the company deal with on a regular basis.

Reasons for selling:

One of the two partners wishes to emigrate. There is an option to retain the other partner if new owners should wish.