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BUSINESS REFERENCE : IS11 / RightBiz LEADING INDEPENDENT SHEET METAL FABRICATORS ESPECIALLY STRONG IN THE ELECTRONICS AND MOBILE TELECOMMUNICATIONS SECTORS | | | | | | Leading independent sheet metal fabricators especially strong in the Electronics and Mobile Telecommunications sectors Confidentially offered for sale Ref. no: IS11 Location: Re-locatable Asking price: £1,500,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Machinery | | SALE: | Agent Sale | LEASEHOLD: | £1500000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established in 1971, this medium-sized light engineering business specialises in fine limit sheet metal work and over the thirty-five years of its operation has continually grown to become one of the leading operators in its field.
This business produces an extremely wide range of products for customers across a number of vastly different sectors. From small stainless steel ovens and cleaning equipment; security guards, air conditioning units and power press tools right through to medical equipment, scientific research benches, calibration chassis and even special fittings for classic cars - cut, punch, form, weld, re-grain, provided there is a good margin to be made, this business can do it all. It has however established a particular presence in the electronics and mobile communications sectors for which it produces an equally wide range of equipment including fascias, frames, chassis, racking and brackets as well as the cabinets frequently found at the base of mobile communications masts.
This business is simply very good at what it does, often taking on projects other suppliers won’t touch and prides itself on quality production, having been one of the first engineering businesses in the UK to achieve ISO accreditation. These processes together with the extensive knowledge and dedication of its highly skilled staff results in a reject rate of less than 0.1% in production and the highest levels possible in satisfaction surveys independently assessed by the business’s major customers.
As well as being at the forefront of production techniques, this business’s in-house team is equally adept at design and prototype production, also having full tooling and finishing facilities on-site including powder coating and wet spraying. Iron phosphate and plastic polymer pre-treatments for steel and aluminium and stove enamelling complete the excellent range of services available.
Not surprisingly this business has an extensive base of loyal customers including a number of major blue chips. Although the business has no need to go out looking for work – work comes to it, the forward order book is consistently strong mainly as a result of strong word of mouth recommendation from well-satisfied customers.
Facing retirement age the Owner of this business is looking to transfer its customer base and extensive forward Order book and to integrate its top quality facilities with those of a new Owner. With projected turnover for the current year in excess of £2.0m and an extensive inventory of up to date plant and equipment this represents an excellent opportunity for any investor looking to acquire a very well managed and profitable operation and expand their presence in the light engineering sector.
Customer profile:
Particularly in the mobile communications sector, this business services some of the biggest brands in the world.
Including this core of regular high value, the customer base of this business also encompasses a number of smaller independents resulting in a Client base that is very well spread by customer type and across a number of different industries making it less vulnerable than most businesses within its sector to any downturns in the marketplace.
Key strengths:
This is a very well established business. It has developed an excellent reputation for producing work of the highest quality and accuracy, particularly within the electronics and mobile telecommunications sectors. It has no particular reliance on any one customer or even on any one type of customer – having a good loyal and widespread customer base to which it supplies high quality products at a sensible price, by way of a highly skilled, experienced and loyal workforce. Prices are competitive whilst still ensuring a healthy operating margin.
This business has no need to chase work enjoying high levels of word of mouth recommendation from its extensive base of satisfied customers. It is selective with the businesses it chooses to supply and the terms on which it does supply and as a consequence is very profitable with excellent cash flows.
This business appreciates the importance of detail – and is passionate about getting the product right for the Client. It is simply very good at what it does, throughout all aspects of the operation of the business – getting its prices right for the right products, prepared to the right quality and delivered at the right time.
Key opportunities:
There is an excellent opportunity to integrate this operation into another well established light engineering business. With a strong demand for services and capacity to increase turnover, a new owner would contribute fresh ideas particularly in the area of marketing and outside influence to build on an excellent base. There are excellent opportunities not only to ‘farm’ the existing customer base – even specialising further in ‘metalwork’ for the electronics sector if considered appropriate - as well as picking up some of the additional production requirements of the sector from customers now seeking new chains of supply as a result of several major competitors having recently left the market.
Quality Assurance:
This business achieved ISO Accreditation in 1994. The latest standard, ISO 9001:2000 was awarded in February 2002.
Premises:
The business currently operates from purpose built premises comprising approximately 22,500 square feet - approximately 90% of which is dedicated to workshop facilities – although this does include ample room for expansion.
IT:
This business operates the latest CAD/CAM programming facilities and is able to receive data in Drawing Exchange Format (.dxf), via the internet or disk, enabling the information to be printed as full engineering drawings in house. It can also receive drawings in many other formats including .dwg .idw .pdf .tiff .jpeg, providing a virtually instant service for issue changes and quotes. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IS11 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
