UK Exporter Of Pipeline Products For Sale

Business description

This specialist UK company set up by the current vendor some 20 years ago specialises in the supply of pipeline equipment to the export market, primarily to the water/sewerage and oil/gas industries. Equipment include pipes and pipefitting made from a variety of materials as well as specialist machines, plant and equipment.

Over the last five years the business has focuseed on the Caribbean where the business has establsihed a sterling reputation for supplying reliable products and for providing a consistent level of service. This has resulted in the business enjoying substantial ongoing business which is both sustainable and offers significant opportunties for growth.

Most of the products the company supplies are from major UK manufacturers , but also increasingly from associates in India. The business has developed its own product that is already being sold in volume(at higher than average margins) and also has a number of other such products that are at different stages of development.

The company is debt free and enjoys a strong/potential order book for the future. It enjoys very good profit margins, has very low overhead and enjoys positive cashflows such is the nature of its work.

The company’s clients are primarily water authorities and contractors. In some cases the business deals direct and in others through an established and trustwortthy network of local agents. The business also has some clients/ contacts in th Middle Eest that are ripe for future expansion.

This represents a significant investment opportunity to a new owner in a vast and growing market sector.
Financial profile:
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 currently achieves turnover circa £1 Million per annum. Historically theis figure has been circa £1.33-1.6Million with impressive gross profit margin in excess of £330,000. Gross profits for the current year circa £230,000 with resultant net profits circa £160,000. The business enjoys excellent profit margins, positive cash flow due to the nature of its contracts and low overheads. The scope for future growth is huge as the current owner has concentrated on one particular geographical region in a global market through choice.

Property information

Location:

There are no premises associated with this sale. The business is run from a home office environment.

Other information

Expansion potential:

This business operates within a field with ongoing demand anticipated for the short/medium and long term. It is currently servicing a very small part of this market both in terms of share, customer base and geographical spread. It currently does no proactive advertising or marketing. It has no internet presence. Growth is inevitable. It is understood a new owner with new levels of energy, investment in resource and marketing could significantly increase the levels of business within a short period of time. Alternatively such are the relationships already in place that the business would expect to continue growing at its current levels if a new owner so required.

Competition / Market:

The business currently undertakes no conventional advertising or marketing campaigns such is its position in the market. It does not have a website. However the vendor does attend the main trade show to network and visit clients.

Support & training:

The current owner would be happy to provide full training and support at handover. He may even consider working as a consultant for an agree period thereafter subject to negotiation.

Reasons for selling:

The vendor is setting up a new unrelated venture with his family and wishes to now concentrate on this.

Trading hours:

As required.