Specialist railway consultancy with senior associate delivery model

Our client manufactures real log inserts for electric fires from two production facilities. The company supplies a major UK electric fire manufacturer under an exclusive five-year agreement running to May 2028, with the product sold under the customer's premium brand in the UK and internationally.

 Highlights:

 ·        Turnover £2.03m in the most recent trailing 12-month period, up 115% in three years

·        Gross profit margins rising year on year, from 40.9% to 44.9%

·        Adjusted profit of approximately £597,000 after addbacks

·        Five-year exclusive supply agreement with stated minimum purchase values escalating at 25% per year, running to May 2028

·        Anchor customer's premium brand ranked as the top media wall electric fire in the UK

·        75% capacity utilisation on a single shift. 120 sets per day achievable without additional capital expenditure

·        MD in post since 2022 with full operational autonomy. Business is not founder-dependent

·        Bespoke production machinery designed and fabricated in-house. Not available off the shelf

·        No sales or marketing function. Significant untapped growth opportunity

·        Cash at bank of £526,000. No material debt

Products and services

 The company manufactures real log inserts for electric fires from kiln-dried hardwood, sealed in resin to preserve the natural appearance of the wood indefinitely. The product range covers inserts from 400mm to 2,400mm in two standard layouts. Two resin formulations are used to meet different international regulatory standards. Finished sets for the US and Australian markets carry full export certification.

 Production competencies include log processing through bespoke splitting and trimming equipment, jig-based assembly for visual consistency, resin casting at dedicated benches in a filtered and extracted environment, and quality control to export standards. A patent application has been filed in relation to the manufacturing process. All production machinery was designed by the founder and fabricated to order..

Revenue sources

 Approximately 90% of revenue comes from the anchor customer under the supply agreement. The contract includes annual minimum purchase values that escalate at 25% per year. International demand from Europe, North America, Australasia and the UAE has added volume above the original UK-only contract base. The company also retains its own brand, which was generating approximately £210,000 per year before being deliberately scaled back to prioritise contract capacity.

Operations

 The company employs 17 people across two facilities. The MD manages the customer relationship, production planning and day-to-day operations. A production supervisor oversees all lines, supported by two team leaders and approximately 13 trained operatives. The founder attends three days per week and is not involved in production, customer contact or order management. Output averages 90 log sets per day on a single shift.

Opportunities

 The business has no sales or marketing function. No one has sole responsibility for generating revenue outside the supply agreement. Advertising spend was £564 in 2024. A website has been built but product pages are not yet live. The electric fireplace market is growing at 4.75% per annum. Media wall installations are the fastest-growing product category in the UK.

 When the exclusivity restriction lifts in May 2028, the company will be free to supply other electric fire brands. Management has already received inbound interest from other manufacturers during the exclusivity period. The company also retains the premises, equipment, showroom and capability to reactivate its own-brand range.

 A new owner with commercial ambition has multiple routes to grow: relaunch the dormant brand, supply additional manufacturers post-exclusivity, increase production capacity on the existing single shift, and develop adjacent markets including decorative log products, bespoke resin casting and processed timber for construction.. To register your interest, please contact Swan Corporate on 0800 634 9679 or email [email protected].