Operating from an ideally located freehold premises based in the Midlands.
Business Description
The company is a leading UK wholesaler and manufacturer of welding and cutting equipment and associated products, operating on an international basis and predominantly working with prominent clients in the engineering industry.
Utilising a highly experienced team, the company offers cohesive, customer-focused services, providing unparalleled technical support for its entire product range and working closely with clients to supply the most suitable equipment for their unique requirements.
The company has experienced considerable growth since its inception, with its reputation for providing an exceptional service and high-quality products ensuring the continued strength of the business.
The shareholders are now offering the company for sale as part of their future plans for retirement and to facilitate further expansion of the business.
Financial Summary
Achieved turnover of £16 million in YE19, with an adjusted EBITDA in excess of £1.5 million.
Turnover and adjusted EBITDA are on course to rise in the current financial year, with the sustained demand for the company’s products enabling it to overcome the challenging market conditions associated with Covid-19 and continue operating successfully.
Investment Rationale
As the company manages such a high volume of accounts, it has no reliance on any particular client, with no individual account supplying over 4% of its annual turnover, and its top ten clients only accounting for 21% of income each year.
The company possesses assets including freehold properties, land, plant, machinery and motor vehicles with a collective value of circa £1.5 million.
Offering a comprehensive range of welding and cutting equipment, holding the largest volume and variety of stock of any UK-based company in its sector.
Customer Overview
The company operates on an international scale, predominantly working with clients based across the UK, and benefits from strong retention rates, with several relationships spanning over 10 years.
Works closely with leading manufacturers to supply a variety of specialist items, many of which are exclusive to the company, and utilises on-site manufacturing and engineering facilities to produce its own bespoke products.
Team Overview
A strong and highly experienced management team is in place, possessing the necessary skills and expertise required to manage operations and grow the business on an ongoing basis.
