INDEPENDENT SCAFFOLDING CONTRACTOR ON HANTS BERKS BORDER

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INDEPENDENT SCAFFOLDING CONTRACTOR
ON HANTS/BERKS BORDER CLOSE TO M4
SERVING NATIONAL HOUSEBUILDERS ACROSS
THE SOUTH OF ENGLAND
STRONG BALANCE SHEET WITH NO EXTERNAL DEBT
REVENUES OF £5.3m FOR YEAR ENDED 31/03/22
GROSS PROFITS £1.9m; ADJ NET PROFIT £1.3m

LOCATION:
The business operates from secure storage facilities on a rural site located in North Hampshire close to the Hampshire/Berkshire border with easy access to the M4 corridor.

BUSINESS:
This independently owned Scaffolding Contractor was formed in 2007. Managed by 2 Directors and a small management team, it has more than 45 years of management experience in the Industry. The business provides scaffolding contract services across the South of England focusing on the Thames Valley, Oxfordshire, Buckinghamshire, Hampshire and Surrey. The company works with many of the UK's leading housebuilders. During the life of the company it has worked in partnership to construct in excess of 8,000 new residential properties. In addition to New Build Housing the business also undertakes major Scaffolding contracting in the Commercial Sector. The company also provides Scaffolding solutions for temporary roofing, domestic renovations, chimney stacks, edge protection, crash decking, birdcages or any scaffolding services that may be required. The company has invested heavily in both the quality and quantity of training for its staff with all Lead Scaffolders registered with the CISRS scheme to Advance Level and all site supervisors with SSSTS or SMSTS accreditation.

BUSINESS PREMISES:
(all sizes are approximate & should be considered 'nominal'.)
The business operates from low cost, secure storage facilities on a site located in Hampshire close to the Hampshire/Berkshire border.

TENURE:
The business rents a storage yard with Portacabin office accommodation on a 6-year lease which commenced on the 1st of March 2017 at an annual rent of £24,600 with 3-year rent reviews.

Note: Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.

TRADE:
Accounts inspected by Adams & Co show turnover for the year ended 31 March 2022 of £5,281,415 with Gross Profits of £1,908,640 and Adjusted Net Profits of £1,319,830 confirming business levels have returned to pre-Covid trading when compared to the year ended 31 March 2020 with turnover of £5,539,096, Gross Profits of £1,868,946 (34%) and Adjusted Net Profits of £1,283,116. 2021 financials were impacted in the first 4 months of the period with all the Major housebuilders shutting their sites from March to June. The smaller developments were also impacted but less so with the business continuing to trade but at a lower level. The company's revenue growth has been consistently above market since incorporation. 2014 and 2015 saw growth of 28% and 30% respectively with a further 21% growth in 2016. During 2017 and 2018 the company reported smaller percentage revenue growth in a UK market that was contracting, however give the companies tight control on variable cost and their low fixed cost base, this market contraction has not significantly affected profitability or net cash. In 2019 growth continued with revenue in excess of £5.5m but with some pressure on rates in Q3 Q4. Further investment in plant and equipment has been made to secure orders excess of 5.8m at the end of the fiscal year. Order backlog is 1.05x revenue. 2020 reported a lower revenue number than the previous year due to the lower order intake in 2019 but with an increase in EBIT. 2021 shows the impact of COVID during the first 4 months of the reporting period, further detail is reported below. 2022 has seen a return to the pre-covid numbers with backlog and revenue increasing above the 2020 position with closing backlog in excess of £6.2m which based on historic performance indicates a strong 2023 forecast.

STOCK:
The vendor informs us that the value of the stock including tube, boards, ladders and fixings is approximately £4,500,000. A detailed stock list is available on request. All plant is owned outright with no material hired. There is a flexible stock purchase plan plus a deferred stock payment option available. The vehicle fleet consists of 8 HGV lorries ranging from 1 to 10 years old plus 40 vans with a current market value of approximately £700,000. All vehicles are owned outright.

STAFF:
The business is run using a 90% sub-contracted and fixed-price work force of more than 100 scaffolders all holding their appropriate high working Health and Safety certifications. Many of the sub-contractors have worked with the company for many years demonstrating loyalty to a successfully run business.

COMMENTS:
The vendors' decision to offer the business for sale to active industry operator represents an exciting opportunity to acquire one of the most established, profitable and well-regarded scaffolding contractors in the South of England.
Financial information will be made available to seriously interested purchasers after they have formally viewed the business.

LEGAL FEES:
Vendor and Buyer each to meet their own legal costs,
VIEWING

If you wish to discuss this business opportunity in greater detail, or arrange an appointment, please call Nick on (023) 8025 3910
PLEASE DO NOT MAKE CONTACT DIRECTLY WITH THE BUSINESS