Asking price: £2,700,000

Sales revenue: £1,000,000

Net profit: £300,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This is an exceptional opportunity to purchase a highly profitable scaffolding and roofing company that was established in 2002 by the current owner and founder. The business has grown from strength to strength and has the financial security of a contract with the local authority to provide the scaffolding on an ALMO project in the local area to repair council properties over the next five years.

The company owns a wide range of scaffold tubing which is utilised on a daily basis and has an excellent fleet of vehicles. Having a wide range of equipment gives the company the advantage of providing a speedy and reliable service without having the wait or expense of hiring the equipment.

The business is based on a valuable freehold site with warehousing facilities and surplus land which is prime for further industrial development.

The business is well established with a reputation for safe and reliable supply. They have a regular daily pipeline of job sheets from the local authority. The business has grown and developed its roofing and repair skills and they are also being utilised on a daily basis by the authority project. There is a team of CISRS qualified scaffolders and a small team of highly skilled roofers and plasterers. The owner is a qualified advanced scaffolder.

The company are proud of the fact that they are part of the Governments “ Decent Homes Project” and believe this will only enhance their growing reputation In the North East.

Customer Service:

When the company were awarded the large contract for the supply of scaffolding from the local authority a number of criteria needed to be fulfilled. The company were able to demonstrate their credentials and were successful in gaining the ALMO work. They were able to show, a knowledge and understanding of the services required, a large inventory of equipment, to achieve a speedy and reliable delivery, a fully skilled workforce, a competitive pricing structure and a general belief in the company’s reputation for a safe and reliable service.

Equipment

There is a level of plant and equipment that you would expect from a business of this size and a full inventory is available to genuinely interested parties.

The wholly owned fleet of vehicles include 5 x seven and half ton drop side wagons, 3 x Ford Transits and 6 x Ford Transit Connect vans.



Key Strengths:

The business has been developed in such a way so that it can cater for the most demanding of clients. The experience that has been gained over the years gives the company the flexibility to carry out even the most difficult of tasks.

The company is well established and is a well respected business enjoying an excellent reputation for safe, reliable and competitive services that work efficiently to time schedules, ensuring that contracts are completed within the deadline

The company has grown steadily over the past six years and has now secured a major contract within the public sector which will maintain the long term financial security for the company and its workforce.

The business is well run with good cash flow and no bad debt. They have an expertise and knowledge second to none within their industry sector, and there is excellent scope for growth within the company.

Key Opportunities:

This is an exceptional opportunity to build on the existing services, customer base and existing contract of this business. With a strong demand for their services, the business has an excellent platform to grow from.

There are opportunities to grow all parts of the company in both obtaining new scaffolding contracts, introducing the roofing and repair skills of the company and there is plenty of room available to grow and expand on the freehold site.

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 turnover is circa £1,000,000 per annum with Net Profits of circa £300,000.

* The owner suggests that with the local authority contract in place, the turnover will rise significantly during 2009 with profits to match.

Years established: 2002

Employees: The owner and his wife look after the daily running and administration of the business. Within the staff there is a full time secretary/office manager, ten full time CISRS qualified scaffolders and two full time roofers/plasterers.

Property: Freehold

Location
The business runs from a large site which has two existing warehouse units. The first is a purpose built single storey 19,000 sq.ft unit which has a rateable value of £43,500 per annum. It is constructed from steel frame with brick/block work. The warehouse has three metal roller shutter doors for vehicle loading access, and storage of the tubing and other equipment. At night and at weekends it stores the fleet of vehicles. There is a mezzanine floor with offices upstairs. The unit has mains gas, water and electric. The property was recently valued at £1,000,000.

There is a large forecourt at the front of the building with open surplus land, circa two thirds of an acre, which is ideal for development. The land was recently valued at circa £100,000.

The second unit is used for storage and is circa 8,700 sq.ft. There are two overhead cranes within the unit. And it has a rateable value of £23,250 per annum. The unit was recently valued at £400,000.

The total valuation of the freehold land and units is £1,500,000. The owner has suggested that he would be prepared to negotiate the sale of the freehold or negotiate the lease of the site to new owners of the business.

Expansion potential
The company has grown steadily over the years and the owner believes that there are excellent opportunities to take the business forward over the coming years adding further contacts both large and small. The company now have a small team of roofers and plasters and this is an area which could easily grow as a natural add on to their already successful scaffolding business. The company will need to hire further tradesmen as the business grows. The business trades from a large site with two warehouse units and a circa two thirds acre adjacent plot of land which could be developed for further industrial use.

Support & training
The vendor would be happy to help out with a smooth transition of the business and help in anyway possible. He is prepared to work for the owners on a part time or semi full time basis in the future if they so wished.

Reasons for selling
The owner has worked tirelessly throughout his life in this industry and has built this business up for the past seven years. He would now like to take life a little easier and believe this would be a perfect time for someone to take the company forward onto the next level.