Scaffolding Contractor Substantial Stock Of Scaffolding For Sale

Business description

Scaffolding Contractor Substantial Stock of scaffolding with a market value exceeding £500,000

This business was formed in 2000 and since then has grown into one of the leading local scaffolding companies in Hertfordshire. Having built a reputation amongst a number of National and Local house builders, a high percentage of the turnover comes from this returning and growing market. Having been involved in the scaffolding business since leaving school, the current owner has utilized all of his experience and knowledge to develop an operation enjoying significant growth as a result of providing high levels of customer service and reliability, all at a competitive rate.

With a very diverse customer base, this business provides a comprehensive scaffolding erection and hire service for all types of requirements from the individual who simply needs a platform for an extension, to the large company that requires scaffolding for a Large New Build Project, maintenance or refurbishment.

This company is a very service oriented, customer driven business and offers a professional reliable and efficient service to all of its customers. It goes out of its way to understand its customers’ requirements and sets out to exceed their expectations – something it always achieves as demonstrated by the significant levels of repeat business and recommendations it receives.

As much as this business is customer driven it is equally, if not more so, committed to safety and safe working practices. As such, its Health and Safety record is second to none with the vendor personally ensuring its strict policy and commitment to safe working practice is maintained at all times.

This is a business demonstrating ongoing growth. Turnover for the financial year was approximately £514,000 generating gross profits in excess of £250,000 and an EBITDA figure exceeding £130,000. Turnover is on target to increase significantly during the current calendar year with a commensurate profits increase. As such, this represents an excellent acquisition opportunity for an existing operator to extend their penetration of this very lucrative marketplace or alternatively for a new entrant looking to establish a foothold in this sector.
Key Strengths:

This well established, well-respected business enjoys an excellent reputation within the industry for reliability, honesty safety and integrity. It is open with its Clients letting them know of any issues or difficulties with a project well ahead of time rather than letting them down. It is well known amongst its Clients for being cost effective, efficient and working well within time constraints to ensure contracts are completed fully to the Client’s satisfaction. As a result the business has grown significantly in recent times with high levels of repeat business and new customers drawn to it as its reputation has grown.

The Company has continued to grow in recent times and achieved sound financial strength. Many of its customers have been dealing with this business from Day One!

The business has a good level of stock – an appreciating asset in the current climate. It can also boast a loyal, highly skilled and experienced workforce of 12 sub-contract scaffolders who ensure projects are carried out in a safe and organised manner. A site survey is always carried out prior to any job being undertaken and written quotations are supplied to clients detailing pricing and exact requirements. The business prides itself on its level of expertise and the high levels of customer satisfaction it achieves..

Key Opportunities:

This is an outstanding opportunity to build on the existing services and customer base of this company. With a strong demand for services combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources will have every advantage of building on an excellent platform.

This business maintains an extensive base of satisfied customers, who appreciate the company’s superior services. There are many excellent avenues for growth not least of which is to invest more in advertising – by leveraging its excellent reputation for reliability, efficiency, honesty and integrity this business could expand by increasing customer awareness, particularly as there is never any shortage of potential customers looking for a competitive quote.

Plant and equipment:

The business has all the necessary plant and equipment normally associated with a business operating in this sector comprising approximately 400,000 feet of scaffold tube, more than 70,000 fittings and approximately 20,000 boards totalling well over 200,000 feet. There are also significant numbers of assorted ladders, towers wheels and ropes.

The business also owns a fleet lorry’s, vans and a forklift.

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 is financially stable with low borrowings, low overheads, positive cash flow, high gross and high net profit and has shown consistent high growth over 10 years trading.

Sales revenue is circa £510,000 per annum with very good gross and net profit margins. A conservative market value of the assets easily exceeds £500,000.

Property information

Property:

Leasehold

Location:

The business is located in an easily accessible area in Hertfordshire and operates from a secure Yard housing a portable container which has been adapted as a small office, plus a substantial number of bins for the fittings plus racking.

The yard benefits from high security perimeter fencing, with communal CCTV, security ‘intruder activated’ lighting and a 24 hour manned warehouse opposite.

The administration of the business is currently managed from a Home Office environment and as such this part of the business is easily re-locatable.

Other information

Competition / Market:

Having been established for over ten years and with a significant loyal, repeat Client base ensuring the business is frequently operating to capacity this business has had little need for marketing and advertising in the past – only appearing in yell.com. Perhaps its most prominent advertising presence is its signwritten vehicles acting as mobile advertising hoardings within its local marketplace. The business does have a web presence, which would benefit from investment to maximise its potential. By far the most cost effective marketing for this business however is the strong word of mouth recommendation, testimony to the excellent reputation this business has built up.

Support & training:

The current owner will provide all necessary training and all relevant contacts to allow continuity of trading.

Reasons for selling:

The vendor has been working towards creating a new life for his family overseas and feels that the time is right for a new owner to take the business up to a new level.