Freehold Power Tool & Plant Hire Company For Sale

Business description

Turner Butler are delighted to be appointed as sole selling agents for this exciting business opportunity now on the market for the first time.

The business has been developed organically by the current owner over a 33 year period and in that time the business has established a first class reputation in the region for supplying good quality equipment time and time again. This consistency as well as its presence in the market has been a big factor in the company sustaining success for many years. The business is renowned for its excellent levels of service.

A wide range of plant & machinery are available for hire, most of which is from leading manufacturers such as Hilti and DeWalt. The majority of revenues are attributed to power tool hire(circa 80%). The remaining 20% comes via repairs, maintenance and sales. The company also has a large stock of scaffolding, which it also hires out on a regular basis. The knowledgeable management team are well placed to offer their experience to customers who need advice and assistance in sourcing the right equipment.

For many customers, this business is the first supplier they call. Relationships with customers go back many years and loyalty is another big factor in why this business has prospered for so long. The customer has some 50 regular trade customers including main contractors, builders and manufacturing companies as well as many more ad-hoc clients.

Equipment:

A wide range of equipment is available for hire. The majority of the numbered plant are power tools as well as a few larger items already mentioned. The business also has a fleet of sign written motor vehicles that are included within the sale including two transits, a pick up and a combi.

The company utilises Sage accounting software.

Customer Service:

The management and staff are highly knowledgeable and well known to the customer base. They have a personal approach and their advice is often sought to ensure that the right piece of kit is ordered and supplied. A flexible and informal style to the business attracts a high majority of customers back time and time again.

Key Strengths:

This business has built up a real presence in the market and a high level of goodwill over more than thirty years of trading. Very high levels of repeat business have helped the business remain profitable for many years. The business has very high profile locations, the main site having excellent signage and presence on a major route through the county.

Loyal customers have such strong links with this business that it has become an integral element in how they operate.

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.

This is a very well established business with a good staff structure and a very loyal customer base. It has good locations and opportunities to grow. The business consistently generates sales well in excess of £300,000 p.a. and returns a healthy profit for the owners. The main site is freehold and included within the sales price.

Property information

Property:

Freehold

Location:

The business trades from two separate premises , both strategically positioned to serve the region as effectively as possible.

The main site is freehold, circa £120,000. Situated on a busy parade on a major route. Comprises ground floor entrance with shop front/trade counter, workshop, stores and yard to the rear. The recently refurbished offices are located on the first floor. Total area is circa 1000 square feet plus the yard. There is parking to front and rear.

The second site is based on a small industrial estate and comprises front trade counter, offices and warehouse. There is ample parking . This site is rented. Rent is circa £600/month. It is understood a new lease would be made available to a new owner if so required.

Other information

Expansion potential:

There are several opportunities to expand the business. The business does not proactively chase business and it is understood that more external sales initiatives and a more strategic sales and marketing push would certainly increase revenues still further. There is room to expand the main freehold site and expand the range of equipment as well as increase the sale of accessories, spares and complimentary products.

Competition / Market:

The business advertises within Yellow Pages (inc Yell.Com) and various phone directories, but does very little else, preferring to rely on word of mouth recommendations, repeat business and referrals to generate business. It would certainly benefit from further marketing activity, not least through the development of a website.

Support & training:

The vendor is happy to provide a comprehensive handover programme to ensure continuity of trading. He would also consider staying on as an employee should a new vendor so require, subject to separate negotiation.

Reasons for selling:

The vendor feels he has taken the business as far as his own management capability allows and believes it would be better placed with a new injection of energy and initiatives from a new owner to take it through its next period of growth. He would also like to consider a change of career.

Trading hours:

Monday – Friday: 0800-1700
Saturday: 0830-1200