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BUSINESS REFERENCE : GO009 / RightBiz PRECISION MARINE ENGINEERING COMPANY | | | | | | Precision Marine Engineering Company Confidentially offered for sale Ref No: GO009 Location: North East Asking Price: £350,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Other | | SALE: | Agent Sale | LEASEHOLD: | £350000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
This successful company was formed in 1982 as a supplier to the marine industry. The business has continued to grow and diversify its product offering, and when the current owner joined the company in 1990 new markets were developed. They are now one of the most respected suppliers of major branded marine engine spares. They also manufacture, repair and service marine engines. They supply depth senses to the enviromental industry and also work with the brewing industry. This company has developed niche markets in key areas of precision engineering.
Precision engineering, which works down to microns, is a specialist field. The company employ a highly skilled workforce, which can work comfortably providing the design and the solution for all problems given to them.
The strength of the company is the ability to provide quality and precision engineering. They have proved themselves to be a company, who, are flexibile and adaptable.
The business has a long list of clients it works with, including some Blue Chip companies,with many of their customers having dealt with them since the 1980’s
Equipment:
All machines and equipment are included in the sale of the business. A full list of the machinery and equipment can be provided on request. They include; centre lathes, milling machines, grinding machines, drilling machines, Inspection equipment, pressure testers, welding set, band saw, and other ancillary equipment. There is also a list of basic office computers and furniture etc.
Key Strengths:
For over 20 years the company has built up a library of component drawings, featuring a wide range of parts. These include fuel pumps, injector valves, cylinders, gears and gauges, just to name a few. It is the vast experience and knowledge gained with working and solving the problems, which give their clients the comfort of knowing that their problem, will be solved. The company are quality assured through N.Q.A. to BS ENIS09002. The quality control systems are geared towards achieving the highest standards demanded by their customers. The company has extensive experience working with third party inspection bodies.
The capabilities of the company are extensive, manufacturing a wide variety of components and assemblies. Included are low and high pressure valves in a range of sizes, covering many applications – lubrication oil pumps and distributor systems – high pressure fuel oil pumps and associated high pressure pipe assemblies.
Opportunities:
This is a superb opportunity to purchase, a highly skilled and specialist precision engineering company with such strong values and commitment to its mission.
There is huge scope to build on the existing business levels and customer base of this company. With strong demand for their services, there is room for the company to grow and expand its profile.
There is a growing world wide need for eco friendly solutions. It is commonly known that four stroke, high speed marine engines are one of the largest polluters on the planet. The original medium speed diesel engine is more eco friendly. This company still has the original drawings of the two stroke engine and would be able to solve any problems thrown at them.
The company has recently entered into the supply of, component sub assemblies to the oil and gas industry. There is huge scope for further development within this sector.
Growth and Expansion:
The company has recently designed a new tank gauging system which the current owner informs us will be a lot cheaper to buy than the current offerings on the market.
Approximately 22% of the total client business is now from the environmental industry, and this sector if forecast to rise over the next few years.
The company sub contracts some of its work as the factory is not set up for welding or batch work.
The factory is leased and is stretched for space. Relocating the workshop would be possible as the lease is only on a short rolling contract of 28 days notice.
Employees:
The owner does the daily running of the business from estimating to production planning and, purchasing. The owners wife is in charge of all administration, and there are five other highly skilled engineers on site.
Marketing:
The business does not advertise its service as they rely completely on word of mouth recommendation . There is a company web site, which is fairly basic and could benefit from an update.
Premises:
The leasehold factory and office are circa 2,500 sq.ft with a small reception area. They are situated on a busy industrial estate with security fencing around the premises. The estate also employs its own security guard.
Lease costs are circa £7,500 per annum with rates of circa £3,300 per annum.
Financial Information:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Current turnover circa £325,000 per annum. Gross Profit circa £160,000 and Net Profit circa £64,000.
Reason for Sale:
After nearly seventeen happy and prosperous years building up the business, the owner wishes to retire. He would be prepared to help the new owners, carry on the high tradition and quality of work that the company has built its reputation upon | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | GO009 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
