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BUSINESS REFERENCE : IT074 / RightBiz IT074-RELOCATABLE-£ 750,000-SPECIALITY METALS TRADING COMPANY | | | | | | Speciality Metals Trading Company Ref.IT074 Location Relocatable Asking Price £ 750,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Metal | | SALE: | Agent Sale | FREEHOLD: | £750000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
This is an exceptional opportunity to purchase two associated companies which deal/trade speciality metals/alloys in all forms of raw materials to a worldwide market place.
Originally a “one man band” having traded since 1984 the company remains today owned and managed by the founder to trade in specialised metals/alloys. In 1998 he founded a second company which became a trader, stockholder and manufacturer by conversion,of speciality mill products( sheets, plates, bars, tube, rod/wire)
The company has an excellent group of contacts within its network of refineries, steel mills, alloy melting companies, overseas trading houses and other major producers of specialist alloys throughout the world. They deal in alloys such as, Cobald, Molybdenium, Nickel, Tantalum, Titanium, Tungsten in any form of raw material. Because of the use of these metals in the aerospace -,offshore-,chemical-,steel-industry as well as for the production of medical implants, sport articles etc. The prospects for this type of business are extremely positive. Due to its international connections, the company deals also in surplus stock, excessive inventory and insurance sales.
Amongst the database of regular customers/ suppliers they have both producers and end users all over the world of various metals/alloys. The skill and expertise is to match the seller to the buyer,and this is the unique proposition which the company specialises in.
The business is profitable and has a reputaion for its speed of supply, with a considerable network of transportation, very often to get products delivered half way around the world.
The secondary company deals exclusively in Titanium bars, sheets, tubes etc. which has a more universall use. Material is either sold ex-stock or bought and sold on a back to back basis. The company has a wide knowledge of suppliers/end users and of having material converted(i.e. from ingots to bars) in the UK as well as abroad. The company uses externall warehouse facilities in either the UK or Germany.
This business would be perfect for a new owner with trading and entrepeunerial skills, ideally with a background in metals as well as to an existing company trading in associated products to widen their activities/markets.
Customer Service:
Customer service is paramount to the success of this business. This business is built on a supply and demand basis. The company needs to be able to marry up the needs of their buyers to the availability of specialist alloys from the manufacturers. Once they have found the desired alloy it is imperative that shipping and transportation are found as speed of supply can be a crucial element as to the needs of their customers. This takes skilled administration to achieve the delivery.
Key Strengths:
The key reason why business has been successful and why their clients contact them on a continuous basis, is they offer an excellent and unique service proposition.
The company has built up, over the years, direct relationships with specialist alloy manufacturers throughout the world. These include mills, melting companies refineries and trading houses. The company’s trading partners have great confidence in them to trade on their products at favourable conditions. They also have a large database of clients who regularly utilise the specialist alloys the company can supply. They are in contact with these clients on a daily basis advising them as to availability.
The business has been developed in such a way so it can cater for the most demanding of clients. The infrastructure is in place to go forward to a higher level.
The reputation is such that the business enjoys very high levels of repeat business. The client base is a mix that ensures a degree of economic resilience. There is excellent scope for growth for the company.
The business is well run, with an expertise and knowledge second to none in its field
Growth and Expansion:
The company would benefit from its own yard and warehousing facility as they contract out all storage of metals at present. There remains scope for an increase in dealing with other metals to bring in further turnover and profits.
They have been trading consistently over the past twenty four years and the current owner has maintained the business at a level that is comfortably manageable to him based on the current infrastructure. Currently the owner picks and chooses the jobs that are attractive to his company, and they are normally on a reasonable scale. There is definite scope to deal with smaller and more profitable jobs, thus creating more work, but bring in more profit to the company.
Key Opportunities:
This is an outstanding opportunity to build on the existing products, services and customer base of this business. With a strong demand for the product combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy, will have every advantage of building on an excellent, existing platform.
The company concentrates most of its energy between two markets, the EU/UK and USA, with a seasonable amount of business with India and China. There is huge scope to explore the Far East and India, which are now two of the fastest growing manufacturers, users and producers of specialist alloys in the world markets. The company has contacts also in Japan, Russia, South Africa and South America.
Premises:
The business runs from an office in the owner’s home with a small amount of sub-contracted warehousing to store/commission any of their products.
Financial profile:
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 for the two companies is circa £1,463,000 per annum with Net Profits of circa £260,000. The owner would prefer to sell both companies together, but would listen to offers for both individual businesses.
Employees
The owner looks after all of the negotiating and currency dealing within the company. He has an assistant who looks after all of the other administration including the shipping.
Support and Training:
The owners would be happy to help out with a smooth transition of the business and help in anyway possible. He is 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.
Reason for Sale:
The owners would like to retire and believes this would be a perfect time for someone to take the business onto the next level. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IT074 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
