Specialist Telecommunications Provider In London For Sale

Business description

Business overview

– Outstanding opportunity to acquire a highly successful specialist telecommunications provider with an almost exclusively blue chip client base and significant growth potential.


– Established in 2005, the business has developed an extremely loyal client base of over 28 clients, most of whom are global brands and/or household names including building societies, airlines, consulting firms and recruitment companies. No one client accounts for more than 25% of revenue.


– The business provides GSM gateways and a range of complementary products which carry a current 1.2 million minutes of landline to mobile call traffic per month.


– There are currently an additional 1.6m monthly call minutes under discussion in the sales pipeline to potential new clients.


– The proposition of the business is to guarantee a cost saving of approximately 50% to its clients on all phone calls from the client’s phone network to all to mobile phones.


– The majority of the businesses current clients are on 2 year fixed contracts


– The business has delivered a consistent c. £330,000 revenue per year for the last two years with a reduction to £249,500 in 2011 year largely due to the lack of business development effort and the loss of a small number of clients due to reasons beyond the control of the company. The business is now projected to achieve significant growth in 2012 to projected sales of £464,000 due to already committed orders from the existing customer base and a healthy new business pipeline.


– One new client alone has committed in January 2012 to a two year fixed contract which guarantees revenues of £156,000 and a gross profit of £42,000 in 2012 from this one client alone.


– The business achieved a £161,000 net profit (49%) in the financial year to November 2010 and adjusted projected net profit to November 2011 is £142,381. Projected adjusted net profit for 2012 is £229,000.


– The business has a well defined brand and an excellent website which ranks highly on appropriate Google searches.


– The business does not have any costly infrastructure and is completely portable.



– This business should be of particular interest to either larger telecommunications or IT providers who could benefit from the existing contracted recurring revenues or to investors who are looking for an opportunity to take on a completely portable business with a solid platform of recurring revenue.


– The business has no employees and has only relied on a small range of outsourced services to develop business through digital media.


Financial overview

YE: 31st May 2011
Sales revenue: £249,500
Adjusted EBITDA: £142,381 (57%)

Note: The adjusted EBITDA above is higher than the gross profit due to:
(i) one of the adjustments being a major replaceable cost which has historically been charged to Direct Costs and:
(ii) the relatively low proportion of other operating overheads.



Reasons for Sale

The business is now at the stage of potentially significant growth due in part to some current clients wanting to realise further savings and roll out the businesses services into a larger proportion of their estates. The current owner’s perception is that the full potential of the business would be better realised by either a company already in the Telecommunications or IT sector who could drive and support the growth, or by an individual/team who wanted to move the business onto a more commercial footing.


The owners plan was always to take business to the stage that it is now with the minimum infrastructure and being able to operate from home which was a considered lifestyle decision. He now wishes to exit the business and concentrate on other unrelated projects.


The owner would want to facilitate a smooth transition of the business into new ownership and would be happy to commit to a handover period of the business including continuing to close new current pipeline business if this was required.



Offers invited

Other information

Financing available:

Hornblower has established links with banks and other financial institutions that we can introduce you to.

Related documents:

• 
• Confidentiality Agreement

• 
• Business Summary