Asking price: £225,000

Sales revenue: £180,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Rural Broadband Internet Service Provider

-Wholly Owned High Speed Radio Network-

A unique and rare opportunity to purchase this specialist rural broadband supplier with its very own, wholly owned radio network infrastructure that provides high speed broadband services to business users in and around the Kendal region.

The vendor has invested significantly to date in designing, testing and building a fully operational radio based network that serves the business community in and around Kendal with high quality broadband services. The network currently spans a 30 mile radius and the company has built up a very strong and loyal commercial client base, not least becasuse there are no other service providers able to provide such a service to this mainly rural business community. As part of this the company also provides web-hosting and web design services.

The company also provides the more traditional DSL broadband services itself via a wholesale DSL provider. As well as this the company can offer VOIP services, network security audits, anti-virus/spyware solutions and clean up, as well as general IT consultancy all on a local level. This company has been trading successfully since 2003 with the vendor having many more years experience within the IT/Telecoms arena.

Rural Broadband- The technology:

The microwave delivered broadband internet service is specifically designed to deliver high speed internet to rural communities where the distance from the exchange means that traditional phone line delivered services are either slow, intermittent or totally unavailable. Speeds up to 20Mb/s are possible as well as symmetrical options (SDSL equivalent) for businesses with requirements such as multi site linking.

Equipment:

All the network infrastructure and associated equipment required for this business to operate are included within the sale price. This includes the company’s own radio network, servers and the physical radio network points.

Customer Service:

This is a real strength of this business. The company provides its clients with a highly personalised and unique service in terms of set up, installation and on-going support. The radio network is faster than DSL and customers are very satisfied with the highly reliable services this company provides. There is no such competition in the area to compare with it. Because of this the business enjoys very high levels of continuous business, referrals and recommendations.

As members of the Internet Service Providers Association (ISPA)and The Communication & Internet Services Adjudication Scheme (CISAS) the company is fully committed to providing high quality services and fully understands the importance of customer care. (CISAS was established in 2003 as an independent dispute resolution service for communications providers and their customers).

Key Strengths:

• No local competition
• Radio network is quicker than DSL
• Significant investment in stable future proof infrastructure
• Lots of spare capacity
• Large diverse commercial client base
• Self sufficient (own network, own servers, easy access)
• Local and personal market presence
• Low running costs

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 currently achieves turnover circa £180,000 per annum with impressive gross profits possible of circa £114,000 p.a.. The vendor has invested significantly in this business to date, both in terms of finance, development and time. It is anticipated that the cost to rebuild the company’s current infrastructure would be somewhere in the region of £140,000. All equipment is included within the sale price.

This sale represents an ideal opportunity to invest in a truly unique business with very very limited competition, massive growth potential and a large loyal commercial client base.

Employees: The vendor works full time within the business. He also has three part time staff who provide Accounting, IT Support and Web Design services.

Trading hours: Office Monday – Friday: 0900-1800

Property: Leasehold

Lease terms
The current lease is for 3 years. Annual rent is circa £4500 p.a. Rates are circa £800p.a.

Location
The business operates from leasehold premises. The current lease is for 3 years. Annual rent is circa £4500 p.a. Rates are circa £800p.a. The site comprises 4 offices and a server room. Total square footage is circa 750 square feet. The offices are base in Kendall town centre.

Expansion potential
The business currently has some 400 broadband clinets with another 550 hosting clinets. The current network infrastructure could easily accommodate circa 5000 such clinets such is the in-built capacity. The geographical region this business serves certainly has the demand requirements for this business to enjoy significant growth in the coming years. The business could easily accommodate such growth with limited additional resource required.

Competition / Market
The company has never felt the need to advertise or actively market the company to date preferring to rely on word of mouth recommendations to fuel its growth. It does have a highly informative website, as you would expect, but would certainly enjoy significant new revenues and growth if a strategic sales and marketing campaign was put in place.

Support & training
The current owner would be happy to provide full training and support at handover and may consider staying on for a further period should a new owner so require.

Reasons for selling
The vendor is looking for a lifestyle change.