Successful Precision Engineering Company In West Midlands For Sale

Business description

Business overview

– An outstanding opportunity to acquire a highly successful CNC and precision engineering company with a niche specialism in analytical instrumentation and laboratory equipment.

– The company has developed specialist skills in the production of highly complex components with the capability to machine, coat and heat treat complex profiles within extremely tight tolerances.

– The company operates within the niche market of analytical instrumentation and laboratory equipment; it also undertakes work for the aerospace, defence and motorsport customers.

– The company focuses on batch production of components to customers' delivery schedules and Kan-Ban call-off, and has developed an outstanding reputation for quality of workmanship and customer care.

– Despite a dip in sales during 2008 and 2009, the business is experiencing a significant growth with strong profitability and cash generation. Sales in the financial year 2010-11 surpassed levels seen prior to the recession and the business is on track to achieve sales of £1.2m in 2011-12.

- Circa 90% of the business is recurrent work from the existing client base, which leaves significant potential for the new buyer to expand the business through re-invigorated marketing.

- The company operates from one location the West Midlands UK.

Products and Services

- The company produces highly complex precision engineered components using a range of materials including Stainless Steels, Aluminium Alloys and polymers.

- The company places a priority on delivering quality first time and operates quality Management System in accordance with BS EN ISO 9001-2008.

Employees:

- 2 directors + 22 staff including 2 team leaders, 11 skilled engineers, 10 machine operators, 1 quality/admin and 1 store man/driver.

Premises:
- Leasehold premises in West Midlands UK

Reason for sale:
- To allow one of the two directors to retire. The operations director is however open to staying on in a management capacity for some time to come subject to agreed terms.

Financial overview

Year ending 31st March 2011-12
Forecast
Sales revenue: £1.2m
Gross profit: £501.1k (40%)
Adjusted EBITDA: £286k (23%)

UNDER OFFER

Property information

Property:

Leasehold

Premises details:

Leasehold

Other information

Reasons for selling:

To allow one of the two directors to retire. The operations director is however open to staying on in a management capacity for some time to come subject to agreed terms.

Financing available:

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

Related documents:

• 
• Confidentiality Agreement

• 
• Business Summary