Specialist Cab Design and Manufacturer
Ref.EB015 Location WarwickshireAsking Price Ł700,000Confidential offered for sale
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA | |
Asking price includes:
Very well equipped machine shop with quality tools
A trusted and respected name in the industry
Many years of successful operation
Excellent opportunity to grow
Established customer base
Training and handover
Re locatable Business
Excellent reputation | Business profile: | This business has been in existence since 1979 and offers an exceptional design, development, manufacturing and consultancy service, working with customers from “concept” all the way through the design process. This includes approval testing and documentation to the fully engineered product ready to be delivered to the customer . This business has a reputation for unstinting attention to quality and has developed a very profitable business delivering 500-750 units per annum to the Original Equipment Manufacturer/Manufacturing (OEM) sector in the UK and export markets. By adopting an evening shift in the paint shop this could theorectically be increased to around 1500 units per annum. The company has been built on integrity and offers a very reliable & dependable service, which has been established for twenty seven years.
The Companies Mission statement
“Make brilliantly designed robust and reliable cabs to the highest levels of quality at competitive prices”
Within its modern freehold property containing 15,000 square feet of manufacturing space plus 600 square feet of office space, the company produces both weather type and safety cabs from a library of engineering designs of which the company owns the intellectual rights to many of its products.
The founders and owners of this 27 year old company, who presently enjoy semi-retirement status, wish to complete the retirement process creating a rare opportunity for a new owner/investment team to take this solid business to the next level. There are considerable opportunities for expanding the company's revenues and profits within the existing customer base as well as through marketing targeted at new potential growth areas such as the leisure industry.
With a total of 16 skilled tradesmen plus a management team of 6, the company enjoys extremely low staff turnover. A management team of 3 full time staff control the day to day running of the business, whilst the current owners act in a supporting role. To ensure that the transition to a new owner occurs without disruption, the current owners are prepared to consider continuing on in the business for a limited period.
While the company operates an informal work atmosphere, it employs "best practice" concepts in its operation. This is chieved through the use of a formal company operaand quality control manual based on ISO-9002. The company has also formalised its employment policies.
Safety cab structures are designed to meet the exacting standards of ROPS, FOPS, FEM, OECD, SAE, ISO, AND EEC Type Aproval, where necessary.
The business prides itself on the solid relationships it has built with major customer’s over the years. Sales exceeded £1.6 Million in the last twelve months with an excellent cash flow; work in progress and material stocks
Clients
OEM,s maunfacturing, compact sweepers, airside vehicles, agricultural vehicles, mechanical handling equipment, cold store trucks, control cabins, electric vehicles, turfcare, crawler cranes, utility vehicles and golf course maintenance vehicles.
Key Strengths
The companies’ ability to provide a cradle to grave solution and competitive approach and policy of continuing investment to improve the technical capabilities of the Company demonstrates the determination and commitment to maintaining the excellent reputation it has earned over the years.
The Company has never had to look for work with customers returning time and again because of the excellent service they receive.
Key Opportunities:
There is unlimited potential within this business, with a tried and proven history of success and profitability. Further strategic marketing and planned expansion of there existing product offering plus investment into additional sales and operational personal would promote more orders and lead to the expansion and profitable growth of the business.
Growth and Expansion:
This Company is capable of supplying all customers’ needs and with such a strong demand for existing services there is a capacity to increase the turnover and profitability.
Further quick growth could be readily achieved with concentration on internet box product sales and by gearing the work force to increase from 500-750 thousands units produced per annum. To achieve five million punds of turnover, the manufacturing output would only need to rise to 1600 cabs at current trade prices. The business has all the in house know how required to complete any job, with a level of service that not only satisfies and delights but also is genuinely first class in all respects. A new owner would contribute fresh ideas and energy to expand on this solid foundation.
| Premises:
The company is located in a modern freehold property containing 15,000 square feet of manufacturing space plus 600 square feet of office space. The premises offers good access for incoming/outgoing vehicles with excellent transport links.
The Directors own the freehold and they propose granting a new lease. Rent is to be discussed with the present owner, plus there is potential to buy the freehold in 2007 which could be made available by way of separate negotiation. | <>Advertising and Marketing:
The business exhibits at large (NEC) trade shows and has a excellent web-site which gives excellent opportunities to increase this and market the business more aggressively.
The highest proportion of the business’s revenue being due to strong word of mouth recommendation, bearing testimony to the excellent reputation it has throughout the industry | | | Financial profile: | The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The current turnover is in excess of ÂŁ1,600,000 million per annum. | Employees:
The business currently operates with a total of 16 skilled tradesmen plus a management team of 6. | Support and Training:
The owner will assist fully with hand over and training. | Reason for Sale:
After more than 27 happy, prosperous years in the business, the current owners, who are already semi retired, wish to spend more time outside the business environment having a special interest in charity work and no longer have the youth and enthusiasm needed to take the company to the next level. The company comes fully operational and a new owner with drive and energy cannot fail to carry this business forward. | | Turner Butler Disclosure Statement: This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business') The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business. For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions. Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler. You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler. Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision. Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information. This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006 |
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