Contract Gas Solid Fuel & Oil Heating For Sale - East Riding of Yorkshire, United Kingdom

Business description

Contract Gas, Solid Fuel & Oil Heating, Maintenance & Repair Company Started in 1985, this leading heating maintenance company in East Yorkshire has grown significantly year after year. Initially the business was set up for heating and maintenance repairs, however the first maintenance contract was signed for the domestic market in 1989 and the business has never looked back. There are now in excess of 3,400 customers signed up on maintenance contracts, as well as many other clients who use the companies services on a pay as you go basis. Installation of new appliances is another facility and service the company offers, many of which become maintenance customers. As a service provider the company offers a round the clock, all year round, call out facility for all customers within a fifty mile radius. Due to the nature of maintenance contracts, there is a large amount of money that is paid in as monthly direct debits or as cheques/cash paid in advance, which gives the business a strong cash flow situation. Equipment: There are 5 leased commercial vans, and 2 cars that are used by the Directors. All additional tools and equipment are included in the asking price. Key Strengths: The business has become a leading heating maintenance contract supplier for the area. This has been achieved by giving an enviable 24hr x 7 day per week service at competitive pricing, with all engineers who attend call outs being Gas Safe approved. Each maintenance contract offers a 24 hour call out service that also includes, repairs, parts & labour with a yearly service performed on every domestic heating system. This is on all Gas, Solid Fuel & Oil appliances. As a licensed credit broker the business is able to offer interest free finance and ‘buy now, pay later’ finance deals. Maintenance contracts account for circa £450,000 per annum. Circa 70% of this figure comes in from monthly direct debits, while the balance of this figure comes in either from cash and cheques paid in advance. This gives a guaranteed monthly income and an extremely positive cash flow for the business. 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. Turnover last year was circa £797,000 with GP circa £318,000 and NP circa £158,000 The business comes together with the Freehold property last valued at circa £180,000, stocks, tools, equipment, work in progress, maintenance contracts and goodwill.

Property information

Property:

Freehold

Other information

Expansion potential:

Domestic contracts could be secured within the current catchment area. There are real opportunities to grow the existing domestic contract market through a local advertising campaign or other media. In this sector of the market there are 1000’s of businesses who are untapped and would bring far greater returns in the future. Entering into this market would mean investing in additional, specifically trained engineers, however the rewards would easily out strip the investment.

Competition / Market:

Marketing of the business has mainly been with leaflet drops, these have taken place approximately every two years. This is an effective marketing strategy, which has been very successful in increasing sales and has showed a good return. The last effective mail shot took place over an 8 week period ,delivering 8,000 leaflets each day within a 50 mile radius of the head office. On average this brought in circa 20 new clients per day. Investment in updating the company website would be a valuable asset.

Support & training:

The current owner would be happy to fully assist with the training and handover.

Reasons for selling:

The present owner would like to pursue other interests.