CONFIDENTIAL
FOR SALE
629882
Business and Assets sale opportunity – offers invited
Project Magnolia:
· Established and fully accredited construction business with an established and efficient manufacturing capability for the design, manufacture, supply and install of cubicle systems and bespoke high end and specialist furniture.
· Ideal opportunity for a turnkey market entry, to supplement existing and growing business and introduce specialist capability. Significant future growth potential.
· Significant opportunity to scale design and manufacturing output of IPS and cubicle systems for a supply only or supply and fit provision
Status: Trading and operational. This profitable, operational business is available due to strategic realignment by the current owner. With a full team in place and documented systems, processes and a suite of accreditations along with a strong client base, the company is ideally suited for a swift acquisition and immediate continuity.
Location: Prime locations in South Wales with strong local market and client links with ability to provide and deliver services nationally.
Turnover:
• 2021 £0.6m (pro-rata), net profit/loss -£18k
• 2022 £1.3m, gross profit £517k, net profit £64k,
• 2023 £1.6m, gross and net profit c£125k
• 2024 c£2m, gross and net profit TBC
Employees: Skilled local workforce of experienced and qualified staff comprising 12 operational and 2 admin/management staff including finance/VAT/accounts specialist
Categories: Construction, turnkey project management, specialist commercial fit-out, design & manufacture of bespoke cubicle systems and furniture, furniture supply.
Premises: Two separate leasehold premises strategically located in well connected and established locations comprising:
· Extensively fitted workshop, office and store (c2,500 ft2), including mezzanine storage. Leasehold until May 2026
· Adjacent unit storage facilities (c1,100 ft2). Leasehold until May 2026
· High quality office. Leasehold to March 2029 with break option March 2027
· 3 no. storage units strategically located on short term lease terms
Description: Established in May 2021, drawing on extensive experience of the founders, the business has grown organically and established itself a recognised business within the South Wales region, becoming a go-to supplier for prominent Public Sector organisations. Works provided range from reactive emergency works, the design, manufacture and installation of specialist installations to full turn-key project delivery. Value of individual works and projects delivered to date vary up to c£500k but with potential to deliver projects valued in excess of £1m .
In addition to the provision of end-to-end construction and building services the business has an in-house capability for the design, manufacture, supply and install of bespoke cubicle systems using MFC, MDF, HPL, SGL and specialist worktops and cladding including Trespa products. This established high margin capability has high potential for further growth in supply only or supply and install capacities. This is an ideal component to supplement existing contractors who have a requirement for good quality bespoke installations in demanding or reactive timescales at an efficient price point.
Established relationships with existing client base resulting in repeat works and tender opportunities. Significant re-investment since business commencement to support growth is reflected by extent of assets, business capabilities and EBITDA.
Clients: Approved suppliers to multiple Local Authorities and local NHS Trust, plus framework approved supplier for 4-year term to South Wales NHS Trust comprising multiple lots, including General Building. Numerous other reputable public and private sector organisations.
70% public sector, 25% reputable private sector, <5% exclusive and high net worth private clients
Suppliers: A well-established supply chain comprising national, local and specialist suppliers.
Accreditations: Extensive, including Constructionline Gold, SSIP and for installation of fire doors and fire stopping works
WIP: In excess of £500k
Order book: Forecast £350k to £675k
Assets of note:
Extensive workshop equipment including but not limited to:
High quality panel saw
2 x professional multi-function edge band machines
Industrial wood shredder
Industrial briquette press
Broad range of woodworking machinery including multi-borer, pillar drill, table saws and routers
Ancillary machinery including high quality extraction system
High quality air compressors
Commercial generators
Professional wide format printer
Manitou forklift
Multiple workshop and site equipment and handheld tools
Storage facilities: comprising professional racking and storage provisions which are well stocked with materials and consumable items
Office: High quality fully fitted office with extensive office furniture and equipment. Significant potential for expansion utilising office space.
Vehicles: As listed below:
2020 H3 L4 Ford Transit - owned outright
2021 VW Crafter - owned outright
2015 Fiat Crew cab open back tipper - owned outright
2011 VW LWB Caddy - owned outright
2021 Iveco Daily Luton van - owned / HP in place
2024 Ford Ranger – leased – 12 months remaining
2024 2 x Peugeot 208 pool cars – leased - <12 months remaining
2023 Landrover Defender 110 Hard Top HSE X Dynamic (Grey) - currently leased on flexible terms but optional inclusion by separate negotiation
2024 Maxus panel van – owned / HP in place
2023 Landrover Defender 110 Hard Top HSE X Dynamic (Black) - currently leased on flexible terms but optional inclusion by separate negotiation
Website: Fully operational professional website and social media accounts across LinkedIn, Twitter, Instagram and Facebook. Beta website for supply only of specialist materials and cubicle systems brochure.
IP: Client base and extensive contact details. Fully operational Xero and BrightHR applications comprising client, supplier and staff details.
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.
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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.
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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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