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BUSINESS REFERENCE : EA004 / RightBiz STOVE ENAMELLING & POWDER COATING SPECIALISTS | | | | | | Stove Enamelling & Powder Coating Specialists Ref no: EA004 Confidentially offered for sale Location: Berkshire Asking price: £365,000 | | | BUSINESS LOCATION: | Undisclosed Berkshire UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Machinery | | SELLER: | Agent Sale | LEASEHOLD: | £365000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
A family business, established for over thirty five years, and run by the son of the founder for the past thirteen, this profitable company prides itself on offering a broad range of high quality but affordable powder coating services to its loyal and established client base. Primarily servicing the sheet metal fabricating sector, within a forty mile radius of its very well suited premises and experienced in the pre-treatment and powder coating of galvanized steel, mild steel and stainless steel, this business processes up to fifty to sixty jobs per week. Able to deal with high volume capacity right through to ‘one off’s’ or prototypes, this business provides a durable, high-quality, attractive and seamless finish in a vast array of colours.
This business prides itself on very high levels of customer service, always striving to maintain reliable turn around times without sacrificing the quality of finish. All work is checked for any defects before any preparation work is carried out before being cleaned and prepared using either a 3 stage on-line iron phosphate pre-treatment system, or a
yellow etch using a two pack etch primer (zinc chromate) prior to powder coating for added adhesion and protection. Whilst a two to three day turnaround is often sufficient to meet most Clients’ requirements, this business can achieve turnaround within just a few hours if required using its highly effective on line processing system. An approved applicator from Akzo Nobel this business is also approved for work from both the MOD and LUL.
This business‘s pro-active approach to quality control ensures the highest possible service to all its customers. Not surprisingly this business can boast an extensive and loyal Client base enjoying very longstanding relationships with many of its customers – justifiable reward for the significant investment this business has made in plant and equipment and staff training over the many years of its operation. Staff are highly skilled and have many years on-the-job experience, enabling the business to offer its clients a guaranteed range of services, at the highest levels of quality. The business has also developed excellent relationships with its key suppliers - all suppliers whether powder paint or sundries are ISO Approved – to help ensure that client service and product quality is never compromised and that customers receive the highest possible quality of service, resulting in repeat business.
This is a profitable business, well established within its operating sector, stable, with an extensive, loyal Client base. With turnover of approximately £360,000 generating pre-tax net profits of approximately £70,000 per annum this represents an excellent opportunity for a new entrant to establish a firm foothold in this sector or an existing operator to extend their coverage and penetration into the marketplace.
Plant and equipment:
This business has all the necessary plant and equipment normally associated with a company operating in this sector. It utilizes an on-line powder coating system for faster, accurate throughput using a 3 metre cube box oven for larger items and a 5 metre long x 1.5 metre drop x 1 metre wide tunnel oven for high volume processing.
The business also has a large stove enamelling and wet spray area with the ability to coat plastics and lacquering with facilities for 2 pack epoxy polyurethane spraying for items up to 6 metre cube together with facilities for general air drying finishes.
A full list of plant and equipment is available subject to the completion of the normal Confidentiality formalities.
Key strengths:
With over thirty five years of successful operation, this is a very well established business with an excellent reputation not only for high quality work at very competitive prices but also for the speed with which this business turns around the orders placed with it. With excellent facilities, systems and processes in place, the on-line system utilised by this business allows for turnaround of jobs within a couple of hours if required.
This business has longstanding customer relationships to which it supplies high quality products at a sensible price, by way of a highly skilled, experienced and loyal workforce with specialist knowledge and high levels of expertise in the fulfilment of orders. This business appreciates more than most 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. As a result, this business enjoys strong word of mouth recommendation from its extensive base of satisfied customers.
Key opportunities:
There is an outstanding opportunity to build on the existing business levels and customer base of this company. With the capabilities it has through its highly experienced and expert staff, new Owners contributing fresh ideas, drive, enthusiasm and investment, particularly in capacity and the areas of sales and marketing will have every advantage of building on an excellent platform. There is certainly scope to leverage the excellent reputation this business has amongst its existing customer base into other industrial sectors and a much wider geographical area.
Employees:
The Owners, a Husband and Wife team are responsible for the day-to-day operation of the business supported by three other employees involved in production.
Premises
The business is located on a small industrial estate in an easily accessible area of Berkshire offering easy access to its fairly localized customer base via excellent motorway links including the M4 and M25.
The very well suited, secure premises are approximately 3,500 square feet including a wet spray area with administrative offices situated on a mezzanine floor. There are three years remaining on the lease, however the current Owners believe there will be no problem extending it beyond this date. Rent is approximately £48,000 per annum. Rates are £16,000 per annum.
Hours of operation:
The business currently operates between 8.00am and 4.30pm, weekdays.
Marketing and advertising:
Having been established for over thirty five years and with a loyal, regular customer base, this business has invested little in marketing and advertising in recent years.
The business does however have a very well designed and informative website that performs very well in all of the major search engines for all appropriate search topics.
The vast majority of turnover however results from returning customers and strong word of mouth recommendation, testimony to the very high levels of customer satisfaction this business generates.
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.
Turnover for the most recent financial year for which figures are available was approximately £360,000 generating pre-tax net profits of £70,000.
The Asking price of £365,000 is for the sale of the shares in the business based on a net asset value of £65,000.
Reason for sale:
This is a genuine retirement sale.
Support and training:
The current owner will provide all necessary training and all relevant contacts to ensure a smooth and swift transfer of the business to new Owners | | | | | CONTACT: | TURNER BUTLER | | TELEPHONE: | 01895 25 6000 | | REFERENCE: | EA004 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
