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BUSINESS REFERENCE : IM008 / RightBiz MANUFACTURE & SALES OF AIR COMPRESSORS | | | | | | Manufacture & Sales of Air Compressors Confidentially offered for sale Ref No: IM008 Location: North London Asking price: £115,000 + stock at value (Circa £30,000) Turnover circa £120,000 | | | BUSINESS LOCATION: | Undisclosed London UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Electrical Manufacturing | | SALE: | Agent Sale | LEASEHOLD: | £115000 | | | | | | | | | | | BUSINESS DETAILS: | This well known manufacturer and retailer of air compressors was founded by the current owners in 1982. Since that time it has developed to be recognised as the air compressor specialist of choice in its locale, a busy part of North London, and further afield.
Operating from excellent light industrial premises, the company assembles the compressor systems and then sells them directly and through a network of dealers. To avoid ‘brand confusion’ those sold directly trade under a different brand name to those sold through the dealer network. The breakdown of direct and dealer sales is circa 50/50.
A range of circa thirty standard models are manufactured of varying capacities, with the full bills of material of each model being held on computer. Compressors are either electric or petrol motor driven: electric models are of either single or three phase electricity.
The compressor systems have a wide variety of uses with the majority being used by the following industries/trades/professions:
• Tyre dealers
• Garage/Motor dealers
• Dentists
• Garment manufacturers
• Metal processing
• Timber trade
• Printing trade
In essence, compressors are utilised wherever there is a need for a constant supply of compressed, high pressure air.
Of total sales generated each year, circa 83% is from the sale of new (and occasionally reconditioned) compressors with the balance from servicing and service parts. Circa 90% of servicing is undertaken in house. A full range of spare parts and air tools are stocked.
Systems retail between £300 and £1,200. The company sells circa 150 systems per annum.
The acquisition of this business represents a great opportunity for a new owner with renewed vigour and additional investment funds to drive the company to even greater sales and success.
Equipment
The full range of light manufacturing equipment is installed: complete assembly of all models is undertaken in house.
Customer Service
The highest levels of personal and attentive service sit at the heart of the business’s customer engagement strategy.
Key Strengths
The business has a superb reputation for the manufacture, sale and servicing of robust air compressor systems. Most new business to date is won through referrals and direct ‘word of mouth’ recommendation, a great testament to the quality of the product. By using both direct sales and sales through dealers, the business is able to generate a greater level of total sales than through direct sale only.
Servicing, service parts and spare parts are high margin activities which will only increase as more new systems are sold.
The business utilises high quality components, which further adds to the quality of the finished product: Honda petrol engines and single and three phase electric motors are exclusively used.
Growth and Expansion
Investment funding for the recruitment of a dedicated sales team, initially modest in size, would be of great benefit and would drive an immediate increase in sales. Similarly, an increase in marketing activity would create greater awareness of the business and the products sold.
Employees
The current owner and his partner run the business in its entirety.
Advertising and Marketing
In the past some advertising has been placed in Yellow Pages™ and Thomson Local™. The business has now reached the stage where the development and execution of a strategic marketing plan addressing all media activities, including the establishment of a website, would be most beneficial.
Premises
The business operates from excellent light industrial premises of circa 2,000 square feet. The current lease expires in 2012. The passing rent is £6,850 per annum: business rates are circa £2,600 per annum. The landlord is the local authority and will look favourably to the renewal of the lease in due course.
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 business is financially stable, is growing year on year and enjoys high gross (50%) margins. The current turnover is circa £120,000 per annum.
Reason for Sale
This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further significant growth potential.
Support and Training
A full period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | IM008 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
