business for sale

Niche Supplier of Livery for Emergency Vehicles

Businesses for Sale

Sale Memorandum

Niche Supplier of Livery for Emergency Vehicles


Ref.CA038

Location North of London

Asking Price £ 350,000

Confidential offered for sale

Asking price includes:

Turnover forecast £600,000 y/e 30th September 2007
Circa 40% gross profit
Leading niche product provider
Significant market footprint
First class client relationships
Superb growth potential
Assets
Goodwill
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

This exciting business is a leading provider of high conspicuity livery and associated markings to police and ambulance vehicle manufacturers and end users. The company enjoys a market share of circa 30% and has developed outstanding relationships with a number of police authorities and ambulance NHS trusts.

The current UK Government has made health a key objective, and the NHS is benefiting from unprecedented levels of investment. This however, is not only in buildings and other infrastructure, as ambulance NHS trusts are also heavily investing in new vehicles: this directly leads to new business opportunities for the company.

The business is one of only five UK licenced users of 3M™ Diamond Grade™ high conspicuity sheeting, generally regarded as the product of choice by emergency vehicle operators. A major benefit of using this product is that it is factory edge sealed to resist water and dirt ingress, thereby making it last longer and remain high performing.

The company produces many types of kits and bespoke livery from chevrons to improve rearward visibility to full battenberg markings for overall conspicuity, for just about any vehicle and application, and provides a total package from design to application.

Equipment

The process of producing livery commences with the manufacture of templates for each usage e.g. type of vehicle. These are manufactured through a computer based package and submitted to the client for approval.

Recently the company has invested in the latest, computer controlled laser cutting equipment, which has significantly reduced waste, and produces higher quality end product every time.

Customer Service

Personal customer service sits at the heart of the company’s engagement strategy. The company is known for being ‘easy to do business with’ and this quality is reflected in every
Key Strengths

The business displays a demonstrable ‘we care’ attitude and this is consistently valued and commented upon by clients. Significant flexibility is also displayed, which larger companies will always struggle with – if a client needs a template made or vehicle kit produced at short notice, the business will always respond positively.

The market for high conspicuity livery is worth perhaps £2M per annum in the UK. This business currently enjoys a market share of circa 30% and further market expansion is predicted in the years ahead. This puts the company in a great position to increase market share and to therefore accelerate growth.

European Union (EU) grant aid is available for smaller expanding companies. An application is currently under consideration by the directors.

Perhaps the greatest strength of this business however, is that it sells its products to end users and intermediaries who are largely funded by public investment. This is likely to continue in the years ahead, irrespective of what political party gains power in subsequent elections.

Growth and Expansion

To date the business has focussed on the requirements of police and ambulance vehicles. There is however much additional opportunity from within local authorities for other ‘highway operated’ vehicles for which high conspicuity is paramount. These include fire engines, road maintenance vehicles, refuse vehicles and other vehicles used in a non-emergency context.

The UK military are also significant users of emergency vehicles and this could prove to be another market that remains untapped at this stage.

Key Opportunities

In the past few years the company’s effort has been expended in the acquisition of market share from within the UK. However, now that a significant share has been gained, the business can look towards export sales as a major driver of future growth. Emergency vehicle usage from within the EU and specifically those countries close to the UK namely France, Holland and Belgium can provide great opportunity.

The business has focussed on vehicles as the primary source of revenue. However, signage and boards will again provide for new opportunities both in the home and export markets, especially for local authorities where high conspicuity is paramount.

The directors consider that the business can generate sales of £2M per annum, with little additional investment.
Premises

The business occupies light industrial premises of circa 800 square feet. The rent is £7,200 per annum whilst the business rates are currently £1,200 per annum. The business is readily relocatable.
Advertising & Marketing

Little advertising and marketing has been undertaken. The company would therefore significantly benefit from the establishment and execution of a strategic marketing plan, addressing all media including press, brochures, mailshots and the internet. A website needs to be established as a matter of priority.
Financial profile:
The business is being offered for sale on an ongoing concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business is financially stable with low levels of borrowing and enjoys a strong order book with high gross margins and is showing strong growth. The forecast turnover to 30th September 2007 is circa £600,000
Employees

The business currently employs five full time and one part time member of staff. Some have been with the company for a number of years.
Support and Training

The Directors and Officers of the Company are prepared to agree to an extended period of handover, training and familiarisation to ensure a smooth transition to new ownership.
Reason for Sale

The Shareholders are looking to dispose of the business to concentrate on other activities.
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