CONFIDENTIAL SALE
FOR SALE
15/01/24
605025
493 / Rightbiz
Our client is a highly-regarded, profitable and cash generative provider of driver plus bus and mini coach services in South West Wales.
Taken over by the current owner in 2009 with a turnover of £6,500 per month and three vehicles, he has built the company up in that time to a turnover of £797,000 and a wholly-owned fleet of 18 vehicles. Whilst this growth has been remarkable, so has the credit control and cost discipline exhibited by the owner. The pre-tax net profit margin in the business is 40% and the company has amassed a cache of nearly three-quarters of a million pounds in the bank.
Highlights
· Turnover has jumped from £417,000 in 2020 to £797,000 in 2023, an increase of 91%
· Gross profit increased from 72.7% in 2020 to 76.7% in 2022, an increase of 5.5% indicating a high level of effective cost control
· Net profit before tax at 40% and with add-backs 47.5%
· Leading supplier of SEN and disabled resident minibus and coach travel services to the local council
· Wholly-owned fleet of 18 vehicles with a cumulative worth of £296,000.
· Not owner-reliant, established and well-organised management team can oversee day-to-day activities.
· Team of 16 experienced drivers and 13 SEN transport escorts
· In-house mechanic keeps fleet on the road at a much lower cost than using garages. Minibuses and coaches are fully serviced every 6,000 miles.
Work undertaken
The current owner has intentionally targeted more profitable work rather than trying to spread the company too thin. In the last ten years and more, they have built a strong working relationship with the local council for whom they provide school transport for children with special educational needs and transport for disabled residents in the catchment area.
Representatives from the council, in addition to the contracted work (awarded in five-year cycles), also contract our client to perform ad hoc transport work when the need arises or to cover for another contractor.
Our client bids for work via the e-tender Wales procurement platform, provided by Bravo Solutions. The contracts our client works on are awarded for a period of five years. When submitting a bid, companies need to send through their costs, insurance details and driver ID badges.
Our client enjoys very close relationships with decision-makers at the local authority including the director of services and service managers.
Staffing
In addition to the Managing Director, the management team includes:
· Office Manager: Responsible for the day-to-day running of the business including assigning drivers to jobs, invoicing, invoice chasing, payroll and liaison with council contacts. With the company for 3 years.
· Transport Manager: Responsible for driver and vehicle checks. With the company for 10 years.
· Mechanic: The company has an in-house mechanic whose job it is to service the fleet as required. With the company for 5 years.
The members of the management team also are responsible for their own school run every day. This is in addition to sixteen coach and minibus drivers, all of whom operate part-time.
The company’s drivers have been with the firm for periods between 6 months and 7 years.
There are also thirteen escorts - carers who work with the drivers to take children to and from school that work on a voluntary basis.
The company does not require the presence of the managing director to operate profitably. In recent years, the sole shareholding director has trained his staff on how to run the business in his absence.
Enquire
We expect interest in our client’s business to be high. To pursue your continued interest in acquiring our client and to meet with the current owner, please contact Swan Corporate at your earliest convenience.
Do not pay any deposit to private sellers upfront. If you are looking to purchase a business, we advise that any deposits or transactions made are through a solicitor to prevent fraudulent activities from occuring.
Do not share confidential information with any private sellers, including your home address, account passwords, bank accounts and credit card information.
The vast majority of these scams involve the transfer of substantial sums of money. We advise all transactions made are through a solicitor to prevent fraudulent activities from occuring.
Send a test amount before you consider handing over a large amount of funds. Maybe even try transferring £1, and then speaking to your solicitor to confirm receipt.
Do not disclose proof of funds directly to the sellers. If the sellers request you to show proof of funds, we advise that it is done through a solicitor to prevent fraudulent activities from occuring.
Buying a business is not covered by consumer rights legislation. It is your responsibility to acquire a business that holds up in quality and agreement.
Fraudsters will typically use false news in an attempt to get you to act quickly. For example, 'Your account has been disabled. Reset your password now.'.
Review the performance of a business to make appropriate financial projections. Some businesses are dormant or not trading, so it is essential to check their short and long-term potential.
Legitimate emails from Rightbiz will be with the domain @rightbiz.co.uk. However, emails from [email protected], [email protected] or [email protected] are not affiliated with Rightbiz.
Be safe, use a Rightbiz Solicitor
Do not pay any deposit to private sellers upfront. If you are looking to purchase a business, we advise that any deposits or transactions made are through a solicitor to prevent fraudulent activities from occuring.
Don't share confidential information with any private sellers, including your home address, account passwords, bank accounts and credit card information.
The vast majority of these scams involve the transfer of substantial sums of money. We advise all transactions made are through a solicitor to prevent fraudulent activities from occuring.
Send a test amount before you consider handing over a large number of funds. Maybe even try transferring £1, and then speaking to your solicitor to confirm receipt.
Do not disclose proof of funds directly to the sellers. If the sellers request you to show proof of funds, we advise that it is done through a solicitor to prevent fraudulent activities from occuring.
Buying a business is not covered by consumer rights legislation. It is your responsibility to acquire a business that holds up in quality and agreement.
Fraudsters will typically use false news in an attempt to get you to act quickly. For example, 'Your account has been disabled. Reset your password now.'.
Review the performance of a business to make appropriate financial projections. Some businesses are dormant or not trading, so it is essential to check their short and long-term potential.
Legitimate emails from Rightbiz will be with the domain @rightbiz.co.uk. However, emails from [email protected], [email protected] or [email protected] are not affiliated with Rightbiz.
Be safe, use a Rightbiz Solicitor
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