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BUSINESS REFERENCE : IT072 / RightBiz PRECISION &BESPOKE ENGINEERING | | | | | | Precision &Bespoke Engineering Confidentially offered for sale Ref No: IT072 Location: Teeside, Durham Asking Price: ₤675,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Machinery | | SALE: | Agent Sale | LEASEHOLD: | £675000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This family business was established in 1976 by the owner and is now regarded as an excellent, bespoke precision engineering company.
The business specialises in offering their customers, a full turnkey solution to their problems, by working round the clock to provide a service which is hard to beat. There is no doubt that this company works in the sevice industry, and that is the top priority for their clients.
Located within the industrial heartland of Teeside,the company works with a hardcore of around 20 regular, repeat clients in major industries, including, Nuclear Power, Steel Making, Mining and the MOD. They regularly manufacture bespoke parts such as, shafts, housings, nuts, bolts, locknuts and other enginering components, no matter what the size or shape.
The business employs highly skilled and experienced engineers, who help to make the workshop run smoothly. It is a very busy company with three months work in progress at any one time,but they always seem to be able to accommodate the emergency rush jobs from their key clients. It is extremly profitable with high margins and the company prides itself on its quality so it does not have to compete on price.
The business is for sale with all of the machinery included in the price, and the freehold property is available to either purchase from the owner or to rent on a leasehold basis.
Customer Service:
The company has approximately 20 regular/repeat blue chip customers who constantly provide them with work. Everything is made to order, although the company manufactures a few extra regularly ordered key components, to keep in stock. The company endeavours to deliver orders speedily to all of their customers and regularly help out clients with emergency parts to keep their plants in working order.
The service which this company provides is not something that can easily be found elsewhere. They need to pay great attention to detail with the jobs they receive as most of the work is engineered to extreme finite tolerances. In 30 years of trading the owner informed that they had never lost a customer.
The company are subjected to regular health and safety checks from their clients and are credited to BS5750 from BSI ( now ISO 9002)
Key Strengths:
This small company has an superb reputation, within a niche market, for manufacturing quality product
They have a large volume of business from a regular customer base, which keeps the workshop busy throughout the year.
Profit margins are high ,and the company is highly profitable .There is excellent scope for growth for the company, both in the UK and Overseas, as they offer a much demanded service to industry.
Overheads are low, and the company does not need to spend any money on advertising and marketing. Their regular throughput of orders has allowed the company to turn business down, in order to keep their key clients satisfied.
Growth and Expansion:
The owner runs a highly profitable and successful business together with his son ,who is highly capable of running the workshop ,as he is a fully qualified tradesman. New owners would be able to build on the solid foundations and the regular workload that the company has, and with a small investment, the current owner suggests that they could easily double the size of the turnover.
The two workshop units are becoming stretched and there is no more room for any more machinery within them. However there is land adjoining the workshop which could be used for expansion, taking the company to a new level.
There is still huge opportunity to increase the UK customer base and become more involved with existing customers. However the opportunities for export are excellent as they offer a hard to find service to industry.
Key Opportunities:
The company spends no money at all on marketing. There is no web site, no direct sales force and all of the business comes in from word of mouth recommendations.
There is very little spare capacity in the workshop, and if the business is to be grown a small amount of investment in work space and engineering staff are needed.. There are plenty of new, prospective, customers who would gladly place orders with the company if they could just accommodate the workload.
Employees
The owner overseas the company on a daily basis with his son who is a qualified tradesman. The owners wife is the company secretary. In the workshop there is a foreman plus six fully qualified engineers and two apprentices. There is a handyman/driver and a part time administration clerk.
Equipment
A full capacity list is available, with a comprehensive list of all machinery included in the sale of the business. These include;-
CNC machines(2), Centre Lathes(Imperial & Metric x 6),Milling machines(4), CNC Milling machines (2), Boring machines (2), Drilling machines (5), Grinding machines(3), Slotting machines (3), Metal sawing machines (3), Hydraulic press, Welding equipment, Spraying gun, Lifting beams, Fork Lift Truck, Isuzu 1.5 tonne dropsied truck.
Premises:
The business is based in the heart of Industrial Teeside, close by to some of its main clients. The workshops total circa 5,400 sq.ft
The company is in a small industrial park with two adjoining units, which are used as workshops. The office is now housed outside in a Portakabin with ample parking at the front of the building.
There is a plot of land, which the company owns at the back of the building , which could be used for expansion of the workshop.
The freehold is owned by the owners family and can be either bought for £150,000 or can be rented. Current rental is £16,000 per annum and a period of rent is negotiable.
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 £709,000 per annum with Adjusted Net Profits of circa £280,000. There are assets within the company of circa £164,000
Reason for Sale:
The owner has been in the business for 32 years and is now reaching retirement age.
Support and Training
The owner would be happy to help out with a smooth transition of the business and help in anyway possible for a negotiable period | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IT072 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
