Specialist High Performing Plastics Engineering Solutions Company

Ref: EY049

Location: Northern Ireland

Premises: Leasehold

Asking Price: Offers Around £260,000 Net Assets.

Business highlights include:

Turnover circa £350,000

Adjusted Net Profit circa £56,000

Net Assets: Circa £43,000

Trading Name.

Leasehold unit in Business Park. (Relocatable)

Fixtures & fittings.

Equipment (tooling & moulds).

Goodwill.

Innovative product offering.

Efficient IT system.

Website.

Strong production network.

Material conformity/Compliance Certification.

Wide customer base across numerous industries.

Stock at valuation.

Significant potential for development.

Business Profile:

Established by the vendors in September 2001, this innovative and forward-thinking company recognised the potential to form a new category in the buoyant engineering sector and have established a successful and reputable business providing innovative engineering solutions to a wide range of industries.

The company specialises in the manufacture and supply of components produced from High Performance Plastics and have worked hard to promote the advantages of the High-Performance Plastic parts vs. traditional steel parts. Establishing a market for High Performance Plastic components and promoting a change in several industries from reliance on traditional materials (steel). 

The large customer base ranges from engineering & manufacturing companies from original equipment manufacturers to large process manufacturing plants.  These companies recognise the advantages and added value High Performance Plastic components offer. The business specialises in manufacturing components for machine building, process engineering, marine industry, civil engineering, pharmaceuticals and mining etc.

The business has developed a strong production network and good relationships with raw material producers and suppliers. They can provide Compliance Certification & Material Certificate of Conformity (COC), a regular requirement with many clients. There is potential for growth as many companies seek to source parts locally to alleviate import & transportation costs. The business continues to improve its network having recently sourced further semi-finished material producers.

The business has a superb reputation and benefits from a stable infrastructure, loyal staff and going forward has much potential for further growth and continued success.  

Premises:

The business operates from leasehold premises in a central location. Convenient to the main roads network and within easy access of motorways & airports. 

The premises include general office, warehouse and portacabin. The business operates by outsourcing production through the well-established production network therefore is fully relocatable.

Tooling & Design:

Significant knowledge, innovation and expenditure (vendor suggests circa. £100K) have been incurred in the continued development of successful designs, specific tools and moulding parts, which are the inherent value of the business. 

Consistent investment in tooling has in the past been a precursor to repeat business. Developments in tooling most recently include the production of new moulds & a new design jig for a bespoke acetal product. This indicates continued growth going forward in the form of repeat business. Significant inroads have been made in the Scottish market these factors combined bode well for future projections. A recent assessment by the vendors has indicated repeat business currently accounts for 65% of business. The most recent accounts show an increase in annual turnover & profitability indicating inherent potential for further growth. It is an exciting opportunity as a stand-alone business or would be a beneficial acquisition for an established company in an affiliated sector. 

Business Hours:

Monday – Friday:

8.30am -5pm.

Advertising/Marketing/Sales:

The business does not currently benefit from a dedicated marketing or sales function and huge potential remains to be released by the development of same with potential for increased turnover & profitability accordingly.

Development of a digital marketing plan and enhanced website would also be desirable.

Financial Profile:

The business is being offered for sale on a going concern basis with offers invited in the region of £260,000 for fixtures, fittings, equipment, goodwill, customer base/list and stock at valuation.

Turnover in the region of £350,000. Gross Profit: £171,000. Adjusted Net Profit: £56,000.

Employees:

Owner/ MD.

Personal assistant.

2 full time staff members.

Growth and Expansion:

The business is well positioned for further growth with opportunities to penetrate the market further now that there is an awareness and acceptance of the product offering. There is a continued increase in uptake from companies seeking to source parts locally to reduce import and transportation.

A new project with a London based company and developments into the Scottish market may be capitalised on going forward. 

 There are 3 key areas which can continue to be developed;

1. The supply and distribution of semi-finished high -performance plastics to other companies.
2. Development of new high-performance plastic components using our already established network.
3. Expansion into other geographical areas for sales of the existing product lines.

The creation of a sales/marketing function and digital marketing strategy would support these aims.

 Key Opportunities:

This is an exciting opportunity to build on the existing product line and customer base of this well- established business.

There is potential to increase turnover and profitability. A dedicated sales and marketing function would yield significantly increased returns.

A new owner with a fresh perspective and enthusiasm has the potential to enhance the business and take it to the next level.

Hand- Over Support:

Current owners are willing to provide training/familiarisation at handover as mutually agreed to ensure a seamless transition. Current staff members may be willing to stay on after acquisition subject to negotiation.

Reason for Sale:

The owners are planning their exit strategy due to retirement.