CNC Engineering Company For Sale

Business description

CNC Engineering Company Manufacture of repetition and precision turned parts

Set up over 40 years ago this very well established and reputable business provides a comprehensive precision engineering service to a variety of clients, predominantly throughout the North West of England. The company specialises in the manufacture and supply of high quality turned and precision parts using a variety of materials including mild steel, stainless steel, aluminium, brass, copper and plastic, including nylon.

The business has been developed over time with significant re-investment in the company and its premises. Because of this the company can boast a substantial level of modern automated plant and machinery complimented by long serving and highly experienced staff. The business also has its own internal inspection facility to ensure customers receive only the highest quality products and services. This internal capability has enabled the business to take on varied and challenging projects over time including up to 2” diameter bar work and up to 8” diameter billet work using a wide variety of materials.

The business can boast some very impressive customers and serves a wide range of industries including the automotive, textile, oil, medical and telecommunications sectors.

From first contact to completion the onus is geared towards complete customer satisfaction.
The business has in place a responsible workforce from the top down with staff committed to ensuring manufacture is to the required standards of excellence, as you would expect from a company with such infrastructure.

Equipment:

The company has a comprehensive catalogue of modern CNC machinery, automated plant and secondary operations. A full listing is available and includes several CNC machine centres and CNC lathes, Automatic Sprints and Microsprints, milling machines, bench and spindle drills, bandsaws, grinders, finishing machines, roll marking machines and welding equipment.

The company utilises Pegasus accounting software to run the administrative side of the business.

All equipment is included within the sales price.

Customer Service:

The company is a quality driven organisation and has its own fully equipped inspection department, as well as its own in house quality system which it put in place over 20 years ago. All instruments are regularly calibrated. Personnel are very well trained with many years experience. The company is customer focused and this is demonstrated by its impressive list of loyal customers. This together with speed of response 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 company is strong with a good asset base and operates from ideal long leasehold modern premises.

The business is an experienced and multi-skilled operation that can undertake a large variety of projects due to the impressive infrastructure it has in place. Both large and small component quantities can be produced side by side offering quick turnaround or scheduled call offs. 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 and has regular customers throughout the region, yet is not reliant on any one market sector. The business retains a high level of historical clients. It has superb internal quality systems and an excellent health and safety record.

The company has earned an outstanding reputation for its honesty, service and reliability.

Key Opportunities:

This is an outstanding opportunity to build on the existing products, services and customer base of this company. With a strong demand combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level.

The business maintains a significant number of satisfied customers, who appreciate the company's superior products and skill sets, attention to detail, value for money and service.

There are many excellent avenues for growth, especially within the current operations capacity. A dedicated sales and marketing effort would yield significant levels of additional business and profitability as by its own admission the business tends to be reactive rather than proactive in its approach to sales and marketing.

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 is circa £328,000 per annum with gross profit circa £119,000. Operating profits is circa £53,000 p.a. All plant and equipment is included within the sale price as are the premises. Current stock levels are circa £8,000. This is a well established, highly equipped and profitable business with potential for further development.

Property information

Property:

Leasehold

Location:

The business operates from ideal modern detached premises situated on a secure industrial estate with excellent access to all major routes and sufficient parking. The premises are long leasehold (originally 100 year lease with circa 70 years remaining) and were recently re-valued at £300,000. The building comprise circa 5,000 square feet of workshop, stockroom and loading bay with offices to the first floor. It is fully alarmed. The long leasehold premises are included within the sale price.

Other information

Expansion potential:

The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale.

Competition / Market:

The business has used very little advertising 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. It does have a basic informative website that could be further developed. 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.

Support & training:

The current owner would be happy to provide full training and support at handover and stay on for a period ot time after the sale if so required subject to negotiation.

Reasons for selling:

The vendor is planning exit strategy as wishes to spend more time with young family.

Trading hours:

Monday – Friday: 0900-1700