Asking price: £100,000

Sales revenue: £227,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This is a excellent opportunity to aquire a well established business who offer a full design and manufacturing service to end users of press brakes plus supplying new and used machinery, and service work allied to the fabrication industry.

The two partners in the business keep in close contact with their clients and are responsible for the design and pricing of each individual job. The drawings are then sent directly to sub contract factories for manufacture and are then delivered directly to their clients.

The business was established in 2002 by the two owners and has built up a good reputation for their industry knowledge and become a well known and trusted supplier mainly to the engineering and fabricating industries. They have a databse of over 1,000 active customers and a huge database of essential drawings for tools which in many cases help to speed up the ordering and supply of the vital equipment.

The company is profitable with no bad debt, low overheads and a good cash flow situation. They have a consistent turnover and profits each year and the future for the company is bright with further expected growth during the next twelve months, making this a real opportunity or a bolt on business for new owners.


Key Strengths:

This is a well established and sound company with an excellent reputation . There is work in progress with future impending contracts from repeat customers in the pipeline with the opportunity to increase turnover and profits.

The business is run by the two owners sub-contract manufacturers who are used on a need only basis allowing for the company’s low overheads.

The company provides a specialist service to the engineering and fabricating industries supplying press brake tools. Over the years the company has built up a huge database of drawings allowing their customers to take advantage of their first class knowledge and experience within the industry.

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 £227,000 per annum with Gross Profits of circa £79,000.

Years established: 2002

Employees: There are two partners who run all aspects of the business. There is an option to retain one of the owners of the business if required.

Relocatable: This business can be relocated.

Property: Leasehold

Location
The business runs from small offices in an office development and business park. The rent is circa £500 per month, including rates and services. They also have a small storage area which they pay £70 per month.

The business is totally re locatable

Expansion potential
The company, whilst being successful and gaining an excellent reputation needs some small investment. They sometimes miss out on orders by simply not carrying the stock of basic press brake tools. The owners have suggested that the company could grow immediately by circa 30% simply by carrying a minimum stock allowing for speedier delivery than the company can offer at present. Most clients are reluctant to wait for production as it keeps their machines idle, therefore there are many occasions when orders are lost as supply can take up to three weeks from receipt of the order. The company have been investigating the possibility of buying directly from China, where prices are circa 50% of the cost of UK & European manufacture, which at present the company uses. This will mean buying in advance and buying press brake tools to keep in stock with a lead time of circa 12 weeks for delivery. Long term this will make the company more profitable for a small investment.

Support & training
The owners would be happy to help out with a smooth transition of the business and help in anyway possible. They are prepared to help for a period of time to introduce the new owner to all of the major connections that the company deal with on a regular basis.

Reasons for selling
One of the two partners wishes to retire. There is an option to retain the other partner if new owners should wish.