| | | IL007 -STAFFORDSHIRE-£700,000-MARKET LEADING DESIGN AND SUPPLY COMPANY OF POWER TRANSMISSION EQUIPMENT: | | | BUSINESS FOR SALE ADVERT DETAILS ADVERT VIEWED : 11,845 TIME(S)
BUSINESS REFERENCE : IL007 / RightBiz | | | | | | company of power transmission equipment: David Brown Radicon Service Centre Lenze Main Distributor Main Distributor for Flender Gearboxes Ref.IL007 Location Staffordshire Asking Price £700,000 | | | BUSINESS LOCATION: | Undisclosed Staffordshire UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Other | | SALE: | Agent Sale | FREEHOLD: | £700000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
This business was originally set up by the current owner some 24 years ago and in that time has built up an enviable reputation in the market place as a high quality and reliable company with unparrelled technical expertise. The company provides full design,supply and installation when required for all types of power transmission equipment as well as carrying out service and repairs.
A comprehensive range of gearboxes and motors, both single and three phase are stocked at the business enabling the sales engineers to be able to provide drive solutions at any time to suit any application. In addition to this the company also stocks sprockets, chains, bearings, vee and wedge belts, bushes, lock pulleys and pump spares.
As part of its development the company can proudly boast the following much coveted supplier accreditations:
David Brown Service Centre
As a David Brown Service Centre, the business carry the full range of their market leading gearboxes and couplings. Most of the gearboxes supplied are assembled by the company’s own technicians and carry the full David Brown warranty. David Brown is part of the giant ‘Textron’ group and their UK operation is complemented by their sister companies, namely Benzler in Sweden, and Cone Drive in the USA.
Main Distributor For Lenze
As a main distributor for Lenze, the business provide a same-day, next day or standard service to theirr customers. Lenze’s vast range of power transmission products will usually provide a solution. Products include:
Clutches & Brakes
Locking Bushes
Actuators
Inverters & DC Controllers
Electric Motors
Couplings
AC & DC Geared Motors
TorqueLimiters
Main Distributor For Flender Gearboxes
Again the company can provide this well respected range of gearboxes as ad ehn specified by its clients.
In addition to these brand leaders the company has also developed its own brand range of products and accessories to complement the current offering.
Equipment:
The business has all the necessary equipment you would expect from a well established company including fully equipped workshop with hydraulic equipment, overhead cranes and lifting equipment, presses, forklift truck, hand tools, paint spray booth and the like.
In addition to this the business utilises an off the shelf computer management system that has been tailored to meet their specific needs. This Pegasus Opera system links the accounts, stores, purchasing and invoicing functions into one simple easy to use operating system.
Customer Service:
All the staff are fully committed to providing the very best levels of customer service and this is demonstrated by the high levels of customer retention the business enjoys and repeat business. The business prides itself on providing full traceability for all products and services to ensure project success. These levels of customer services are further backed up by the business’s ISO9001 registration and long standing supplier dealerships. have regular contact with national employers and some courses can be tailored to place candidates directly into ongoing employment on successful completion.
Key Strengths:
The company has been developed in such a way so it can cater for the most demanding of clients. The infrastructure is in place, be it staff, facilities, accreditations, knowledge and experience. The customer base is vast with over 400 live accounts, most of whom are well recognised names. The business’s reputation is such that many projects are won via referrals which ensures there is always a healthy pipeline in place for future work. The business is in a very healthy financial position, with a very good order book and ongoing growth being achieved year on year. It has just recently secured two new large projects that will ensure continued growth for the coming years.
Growth and Expansion:
The business is currently in the process of acquiring new premises which will provide further capacity and improve productivity and efficiency. This will also enable the business to increase its scope of works which will result in increased turnover and better profitability.
Key Opportunities:
To date the company has never seen the need to go out and actively market itself. A new owner dedicating resource to market and account development could significantly increase turnover and profitability, especially with regards the current customer base. Many of the business’s clients are very large organisations that require further development to un-tap their full potential.
Premises:
The current premises are located in a mixed development(both residential and commercial property) and is totally self contained. There is a two storey building that contains the offices on the first floor(MD office, reception, small meeting room, sales office , toilets and canteen area). On the ground floor there are several storage outbuildings with the main fitting workshop and stores area attached. This has very high ceilings to enable overhead cranes to run(1 and 2 tonne) in the 2 bays. The workshop and stores are fully racked out. There is also a yard with parking for 3 to 4 cars.
The owner is currently looking to relocate the business to a new site. Negotiations are in process. Both the existing and new premises are owned by the vendor. The vendor is willing to consider all options should a new owner require, be it selling the freehold or negotiating a suitable lease at time of sale.
Business Hours:
Monday to Friday 08.30-17.00.
The company also offers a 24/7 call out facility to those clients who require an emergency breakdown service.
Security:
The current premises are fully alarmed with gated access. Also has smoke alarms fitted. The new site will have all necessary security as you would expect.
Advertising and Marketing:
The business has never felt the need to advertise in the past. There are excellent opportunities to increase this in line with a new sales and marketing push which would reap immediate rewards in existing and new market sectors. A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation and this is expected to continue. It does have a well designed informative website that could be further developed in line with new marketing strategies.
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 business is financially stable and enjoys a strong order book, excellent gross profits and has shown consistent sales growth over the years. Current pipeline of future projects is very good.
Sales revenue is expected to hit £2.5million this financial year with gross profits in the region of 29%. In fact the company has just secured two new major projects at time of writing that will significantly improve future revenues. With a dedicated sales and marketing push the business could dramatically increase its revenues beyond this in a market that has exceptional growth potential. This coupled with a move to new premises would enable the business to push on through its next period of growth.
Employees:
The employees are one of the key strengths of the business. The current owner has put together an excellent team of people who all share the same ethos that hard work brings results. As well as the owner who works full time within the business the company employs some 9 full time employees and also has a pool of well qualified sub contractors to call upon as and when required. The staff comprise:
1 Managing Director
1 Company Secretary/ Finance Controller
1 Works Manager
1 Internal Sales
1 Stores Manager
1 Secretary
3 Fully Qualified Fitters
1 Driver
Support and Training:
The owner will assist fully with hand-over and training to ensure a smooth transfer of the business. It is understood that the vendor would be willing to remain within the business for an agreed handover period up to 2 years subject to negotiation.
Reason for Sale:
Health /Retirement sale. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IL007 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
