Asking price: £395,000

Sales revenue: £500,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Heating Gas & Plumbing Engineers
Gas Boilers, Central Heating
Supply & Installation of Gas Fires
Fire Surrounds & Kitchen Bathroom Appliances

Having originally served their time as Heating and Ventilation Apprentice’s for the major gas supplier in the UK, the owners established this business in 1987, following which this business has grown steadily, generating turnover of over £620,000 for the most recent year for which figures are available and now employs five engineers, all of whom are Corgi registered, plus additional sub contract assistance if required.

The engineers of this business work within the domestic market and have carried out more than its fair share of bathroom and shower installations plus the installation, service and maintenance of gas boilers, full central heating systems, gas fires and fire surrounds. Whilst still remaining within the domestic sector, an increasing proportion of business is as a result of relationships this business has developed with a number of local and regional building developers and councils. A particular area of recent growth has been the contract maintenance side of the business, which still has much growth potential.

The cornerstone to the success of this business is its honesty and integrity, this business prides itself on its quality of work. All of the staff employed by this business are highly trained, vastly experienced with a wealth of product knowledge which ensures that jobs are consistently completed to the highest standards and with the minimum of disruption to the customer. As a result a large proportion of work for this business arises from excellent referrals and recommendations from satisfied Clients, testimony to the excellent reputation this business has established throughout the years of its operation for providing a very high level of customer service at a very competitive price.

The company offers a wide range of products to meet all heating and plumbing criteria. They offer products to satisfy all budgets and products include plumbing and heating systems, boilers, cylinders, radiators, controls and gas fires/fire surrounds, kitchen gas appliances and showers, all by leading manufacturers.

Turnover has continued to grow at a healthy rate over the previous years and market conditions continue to flourish in this sector of the industry. The business is able to supply and install to the domestic markets, with many local councils amongst their satisfied clients and also supplies to the trade.

The company has a superb location Customers can choose from a wide display of products on show, many of which are kept in stock allowing for a speedy and efficient supply for the customer, which enhances the company’s excellent service reputation. The showroom is located on a busy main road, on a main bus route with a constant flow of foot and vehicular traffic passing the door. It is bright and well presented with attractive displays on view and is in the middle of a densely populated area.

Customer Service:

This business maintains an extensive and loyal base of satisfied clientele who appreciate prompt, friendly service, reliability, convenient hours and reasonable, yet competitive prices.

Unlike many competitors the business will not compromise on service to customers, or the quality of products on offer, there is little doubt that this has encouraged and sustained client confidence and loyalty. The business offers high quality customer care from friendly staff, cultivating a warm and welcoming atmosphere.

Key Strengths:

This business is founded on the hard work and dedication that the current owners have put in over the years to develop the company to its current size. Every project however large or small receives the same attention to detail. The business offers experience, value, quality parts and materials at very competitive rates and maintains a large and loyal customer base of approx. 10,000. It has an excellent reputation for honesty and integrity. This business does all that is necessary to ensure a satisfied Client, often being called upon to work in demanding environments and on very tight schedules particularly within the commercial and domestic sectors. Many of its extremely capable, highly trained and qualified engineers have been working with the same customers of this organisation for many years.

The company has very little competition in the local area and has a huge database of clients, many of which have passed on, by word of mouth, recommendations to potential new clients.

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 no borrowings, low overheads, positive cash flow, enjoys a strong order book, high gross and high net profit and has shown consistent growth over the years of trading.

Sales revenue is circa £500,000 per annum and our clients feel that with a commitment to the opportunities illustrated, the business could dramatically increase its revenues.

Employees: As well as the two owners there are four installation engineers who are all Gas safe registered.

Trading hours: Monday to Friday: 8.30 – 5.30 Saturday: 9.00 – 1.00

Expansion potential
This is an outstanding opportunity to build on the existing products, services and customer base of this business. The foundations for the next period of growth are already in place, and with a new owner contributing fresh ideas, energy and enthusiasm the business will reap the benefits in terms of turnover and profit. The current owner suggests that the strong demand for the services offered will continue and new avenues of business can be obtained, including the increase of the contract maintenance side of the business. The other area of industry that will benefit is the fitting of solar heating. The government have announced that financial help and grants will be forthcoming in the near future to help reduce our carbon footprint. This can only lead to an increase in solar heating systems in the household.

Competition / Market
There are excellent opportunities to expand the business's marketing and capitalise on its excellent standing. Most new business is generated from strong word of mouth recommendation from existing satisfied client referrals, bearing strong testimony to the business's excellent reputation. The company advertises locally and has an un-tapped client base of approx. 10,000 who would provide an ideal base for selling maintenance contracts through some form of targeted marketing combined with more assertive methods of advertising to expose the business to even greater markets. This could include advertising in trade magazines and the local press or by using direct mail, leaflets or brochures. The company does not have a web presence and there is no doubt that turnover and profits could increase exponentially using this additional medium.

Support & training
The owners are prepared to offer full support and training to the new owner and to pass over all contacts and contracts etc.

Reasons for selling
This is a genuine retirement sale as both owners have reached the age when they wish to retire and pass this thriving business on to younger hands that can drive this business forward to the next level of growth.