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Industrial Fencing (Steel &Timber) & Automated Gate Manufacturing & Installation Company

Undisclosed, South Yorkshire
Leasehold Price:
£425,000
Status
FOR SALE
Advert ID
241987
Reference
GE090 / Rightbiz

Industrial Fencing (Steel &Timber) & Automated Gate Manufacturing & Installation Company 
Ref. GE090
Location : South Yorkshire
Asking Price : £425,000

The well-established business has been successfully trading for the last decade under the stewardship of the current owner and founder of the business. He has used his knowledge and expertise to build up the business earning a sound and reputable name. They are now a well-respected manufacturer and contractor of perimeter fencing, supplying mainly steel and wooden fencing to a host of major construction companies, building developers and local councils. The customer base spreads far and wide such is the reputation this business has secured.

More recently the business has also branched out into automated gates and this is generating significant growth moving forward. Currently the automated gates represents circa 6-7% of sales.

The company’s aim is to provide a first class turnkey service, manufacturing the fencing to individual specifications, delivering and installing the product on site. All manufacturing takes place at their large industrial site in South Yorkshire where all equipment, machinery and raw materials are stored.

The business runs with a small but highly skilled and experienced team of manufacturing staff and fence erectors who have worked with the owner and the company for many years.

The business is profitable and easy to run with no bad debts and a good cash flow. There is continual work in progress with good growth over the past three years. This is an excellent opportunity for new owners to take over the order book in place and obtain their database of regular repeat high profile clients, which the company has secured.

Equipment:

All of the machinery and equipment is included in the sale of the business. Within the inventory are four Transit pick-up vans and general fabrication equipment including, welding gear, drills, band saws, punchers and rollers. A full list is available to genuinely interested parties. It is esrtamited plant and equipment is worth circa £30-40,000. All plant and equipment is included within the sales price.

Customer Service:

The business works with their clients to strict time deadlines and they have a name for honesty, flexibility and reliability. The company are able to compete on a sound footing with their competitors because of their all-round manufacturing and installation capability.

Unlike most other industrial fencing company’s they have their own workforce in place and are able to turn jobs around much quicker than their competitors, giving them the edge when it comes to tight deadline work.

The customer can boast a very impressive customer base which is testament to the service levels it provides.

Key Strengths:

This is an established very profitable business with an enviable database of highly respected regular, repeat customers. They have work in progress with an experienced workforce in place to look after both the manufacture and the installation of the steel perimeter fencing and automated gates.

As security becomes an ever increasing necessity the demand for perimeter fencing becomes greater and the forecast for the industry is for continual growth. This is a company which has earned a solid reputation for its honesty and reliability and new owners would be able to build upon the sound business foundations laid down by the current owner.

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 has consistently achieved sales circa £2m for the last few years. Turnover for last financial year was circa £1.99 Million p.a. Operating Profits circa £390,000 p.a.

Asking Price:

The Asking Price of £425,000 is for 100% of the issued capital of the company, assuming Net Assets of £30,000  on completion (calculated on a zero cash-zero debt basis). This Net Asset position includes all the plant and equipment but excludes freehold and other  non-associated properties that are owned by the business.

Advertising and Marketing:

The company has an informative website but currently caries out no other forms of marketing. It could certainly benefit from producing more marketing literature, particularly for its new automated gate products offering.

Growth and Expansion

This is an outstanding opportunity to build on the effort and investment that has been put into this company and take advantage of the growth in the perimeter fencing and automated gate industry. With strong demand forecast for their services over the coming years the company are primed to increase turnover and profits. New owners with fresh ideas and enthusiasm will be able to take advantage of the opportunities available.

The owner has been happy with the amount of business coming in to the company over the past twelve months but believes that the business could easily double if new avenues of opportunity were explored including, water board & gas board business plus perimeter prison fencing as well as sports fencing This is in addition to the relatively new automated gate sector which is showing strong demand at present.

The company would benefit from marketing its services more proactively. There is no advertising or marketing budget within the business. All work comes from word of mouth recommendations and referrals.

Premises:

This is a very modern leasehold site, circa one acre secure fenced and locked industrial site with workshop buildings, car park  and large yard. Premises circa 6,400 square feet with option to expand if need be. New lease to be made available to a new owner or business could be relocated should a new owner so require.

Employees:

As well as the owner who looks after the running of the company there is a manager plus an office administrator. There are three production staff and ten fence erectors in total.

Support and Training:

The owners would be happy to help with a smooth transfer of the company in any way possible to help the new owners if so required.

Reason for Sale:

Personal reasons. Vendor wishes to spend more time with family

Looking for finance ?

If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at finance@turnerbutler.co.uk

Listing Details
Leasehold Price: £425,000
Tenure: Leasehold
Location: Undisclosed, South Yorkshire
Sector: Fence Businesses, Home & Garden, Manufacturing Businesses
Financials
Annual Turnover: £2,000,000
Annual Net Profit: Available upon request
Key Features
  • Company for Sale
  • Established Business
  • New Lease
  • Attractive Business
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Advert Reference: GE090 / Rightbiz
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