Independent Drain Cleaning And Repair Specialist | | Undisclosed Devon | | Independent Drain Cleaning and Repair Specialist Ref.GC094 Location South East Devon Asking Price £180,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 58629
ADVERT IMPRESSIONS : 21,333 TIME(S) | | | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Contract Cleaning Services | | SALE: | Agent Sale | LEASEHOLD: | £180000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established for over twenty five years, this business has grown to become one of the leading drain cleaning and repair businesses in its area.
Very successful and profitable, this business covers all routine maintenance and emergency drainage work including surveys, drain relining, and remedial repairs – servicing a wide range of loyal customers in both the commercial and domestic sectors right across south east Devon and Cornwall. Turnover is split 80:20 between the two sectors in favour of domestic though the commercial sector is expanding rapidly as a result of the business’s fast growing relationships with Insurance companies and one of the UK’s fastest growing home emergency and home maintenance businesses.
This well run business is built on a foundation of quality practices and management procedures. Working to a proven successful pricing formula, every job is priced before work starts with regular and accurate communication with the customer throughout, ensuring a high level of customer confidence and satisfaction. Such is the business’s superb reputation backed up by good local marketing, this business has an excellent conversion rate amongst all of the jobs it is called out to look at. Rather than use a competitor, customers will frequently wait for this business to attend even if it can’t attend immediately.
Contributing no less to the success of this business is the heavy investment in technology it has made to ensure every effort is made to offer the very best service possible, having extended its capabilities in response to its clients' specific requirements, and the growing demand for its services. Each of the three vans this business has on the road are fully equipped with all of the specialist equipment expected of such a major player in this marketplace including on-board high pressure water jetters with other key plant including drain lining equipment also within its inventory. With very well trained operatives, skill levels are maintained at a very high level incorporating all the latest advances and procedures in drain cleaning and repairs.
With all the procedures and processes in place, the technology, an existing loyal customer base and a marketing programme to generate new business on an on-going basis, this is an easy to run business. With turnover for the year ending August 2009 of approximately £270,000 generating a gross profit in excess of £230,000 and pre-tax net operating profits of almost £60,000, it also represents an excellent acquisition opportunity for anyone looking for an established business within the drain cleaning and repair sector or an existing operator looking to extend their coverage into south west England.
Services:
The business currently provides drain blockage clearance, high pressure water jetting, pipe lining, root cutting and pipe descaling, drain relaying, sonar tracing and drain testing, no dig drainage solutions, pitch fibre pipework, septic tank and soakaway renewals and CCTV surveys to domestic and commercial clients.
The business offers surveys and advice on difficult drainage situations and quotes for any repairs required, arranging free consultations with clients to discuss their requirements.
Key strengths:
This business is well established with a strong, growing customer base. With highly controlled overheads, the business provides a personal, friendly, quality service. The skilled loyal, dedicated and qualified team provides a first class, reactive, speedy, thorough and efficient service with careful attention to detail and excellent quality control. The company retains a high level of repeat business, drawn by its outstanding reputation for quality, service, reliability and value for money, particularly among a number of customers returning on a regular basis and having done so throughout its several years of operation. Such is its reputation within the sector, this business is frequently recommended by plumbers who do not specialize in drainage work and can boast a high conversion rate of leads to actual business.
This business is ideally situated with staff able to service customers right across south east Devon and Cornwall. As such they can fulfil customer requirements throughout the area however remotely they are located, using the excellent road links in the area to minimize travelling time between appointments. With a large proportion of turnover cash based, cash flow is excellent.
Key opportunities:
With a strong demand for the services of the business coupled with a capacity to increase turnover, a new owner contributing enthusiasm, outside influence, fresh ideas and investment in resources will have every opportunity of building on an excellent base.
Currently working at or near to capacity with its current staffing resources, this business is frequently in the enviable position of turning down work, particularly during evenings and weekends. As a result, the business would have little or no difficulty in providing work for additional technicians, particularly if supported by additional marketing efforts aimed at Insurance companies or if it were to provide 24 hour emergency cover, for example.
Premises:
The business currently operates from rented premises of approximately 200 square feet comprising two offices, some storage and a staff room. Rent is approximately £350 per month with Rates of approximately £1200 per annum.
The business has however outgrown the premises and requires to be relocated.
Marketing and advertising:
Having been established for over twenty five years, this business enjoys high levels of awareness and benefits further from an excellent web presence through a well designed, informative and easy to navigate web site. Further activity is in the form of local advertising and direct marketing initiatives to the existing customer base and a presence in Yellow Pages and Thomson’s. The business has also built a comprehensive customer database on which is logged every job – a powerful marketing tool for identifying potential planned maintenance leads, lapsed customers etc.
Awareness of the business throughout its operating area is further maintained through a highly visible and distinctive corporate identity which is used through all of its customer communications but is perhaps most strikingly evident on its sign written vans. The business has also maintained a significant presence in local editions of the Yellow Pages and Thomson directories.
The use of promotional merchandise including fridge magnets is also very effective however, word of mouth recommendation is by far its strongest form of marketing, testimony to the excellent regard and high esteem with which the business is held within the industry.
Financial profile:
This 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.
The business is financially stable with low overheads, positive cash flow, enjoys a strong order book, high gross and high net profit and has shown a consistent performance throughout its many years of operation.
Sales revenue for the year ending August 2009 was approximately £270,000, generating gross profits of £232,000 and pre-tax net operating profits of almost £60,000.
The Asking Price of £180,000 is for a sale of the shares in the Limited Company based on a net asset value of £63,000.
Employees:
The Owner is responsible for the day-today running of the business supported by full time administrative assistance. The business employs three highly skilled, trained and experienced Field Technicians.
Training and support:
The current Owner will provide a full handover and whatever assistance is required to ensure a smooth transfer of the business to new Owners.
Reason for Sale:
Having been involved in the industry throughout his career and having run this business for over twenty five, the current Owner believes the time is right to pass the business on to new Owners to build upon the excellent foundations already laid. | | | | | | FOR SALE | | | | | REFERENCE: | GC094 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
