business for sale

Designers & Manufacturers of Environmentally-Friendly Sewage Treatment Plants

Businesses for Sale

Sale Memorandum

Designers & Manufacturers of
Environmentally-Friendly Sewage Treatment Plants


Ref.GB025

Location Relocatable

Asking Price £975,000

Confidential 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
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Asking price includes:

Gross margins: 30% +
Current turnover: £700,000
Projected turnover: £1m + and growing
First class range of products with distinct USP’s
Intellectual Property Rights on all designs
Many years of successful operation
Superb industry-wide reputation
Excellent supplier partnerships
Complete Turnkey Operation
Superb growth opportunities
Training and handover
UK and export sales
Production moulds
Product literature
Goodwill
Web-site

Business profile:

Established in 1987 to specialise in all aspects of water pollution control this business has grown to become one of the UK’s leading designers and manufacturers of environmentally-friendly sewage treatment plants.
Included within a wide range of environmental products and services, the ‘jewel in the crown’ of this business is a recently developed range of products that represents the ‘New Generation’ of underground sewage treatment plants for small populations. This simple but very clever product has been developed specifically to manage the disposal of sewage where mains drainage is unavailable with a range of units to cater for all kinds of situations including single houses, small settlements, rural industrial units, pubs and hotels, Golf Clubs, Offices, Residential Homes and Camping and Caravanning Sites where upwards of 500 people could be using the facilities. Even larger installations can be also developed, custom-built to meet the specific requirements of a particular site using the extensive experience and expertise this business undoubtedly has.
The range, which is unmatched in the marketplace today, is manufactured in Glass-fibre reinforced plastic (GRP) with production sub-contracted to an ISO 9001 accredited, modern factory unit using the latest laminating technology in a controlled environment. Designed by a specialist GRP engineer to ensure all the relevant and proposed technical codes are met throughout Europe the range has a number of distinct advantages over its competitor products including odour free operation – the ‘T’ range comes with a ‘No Smell Guarantee’, simple installation and an extended emptying interval of between two and five years. With all parts requiring maintenance readily accessible via Opening Covers and serviced or replaced at ground level, maintenance is simple and inexpensive. All products come with a comprehensive two-year warranty.
Not surprisingly with such a long list of USP’s this product is increasingly in demand, particularly within the ‘self-build’ market in the UK. Sales are growing consistently not only from within the UK but from a number of major European markets including France and Spain – markets that are being driven by the potential for EU legislation to impact very favourably on the demand for this product.
This is a unique opportunity to acquire a well-established, rapidly growing, profitable business with a product range that has a distinct technological advantage over its competition thus offering further significant expansion opportunities not just in the UK but also right across the EU.

Products and services:

The range of products and services includes Sewage Treatment Plants and Package Pumping Stations for sewage, treated sewage effluent and surface water.
Other services include Site Investigations, Scheme Designs, Applications for ‘Consent to Discharge’, Installations, Maintenance Contracts, Surveys and Refurbishment of existing Sewage Disposal Systems and Contaminated land remedial works.

Key strengths:
Having been involved in environmental control for over thirty-five years the Principal of this business is extremely knowledgeable in the sector and has a wealth of experience and expertise. Consequently the underground sewage treatment plant range has been designed using very sound environmental principles whilst building in the very latest technology including its industry proven air blower. This business owns the Intellectual Property Rights to its unique designs as well as the moulds used for manufacture.
It has secured the services of the best sub-contractors available both in terms of manufacturing but also servicing where it offers nationwide coverage.
In developing the range costs have been kept to a minimum, a level that is reflected in the price of the units themselves. Consequently not only does the range have a number of major product advantages when compared to competitor products – simple installation and maintenance, extended emptying intervals, low power consumption, odour free, long life etc the price to the consumer is also far lower. These factors, coupled with extremely low operating costs and low overheads, ensures this business is very profitable.

Key opportunities:
The sales growth of this range is very much in its infancy and as such represents enormous potential. Rather than set up a distribution network efforts have been concentrated on direct to end user sales routes via the Internet and ‘self-build’ magazines for example. This business would undoubtedly benefit from a more widespread approach to marketing, significantly increasing awareness of the benefits of the range generally and the application of a greater volume of funds would undoubtedly reap significant benefits in turnover and profitability.
Similarly this business has spearheaded its own efforts in European markets – not without success. There is a French language version of this business’s web-site and the use of the range has now been approved in areas of France and Spain. Consequently sales are growing in these countries. Environmental issues are at the core of many areas of EU legislation and it has been suggested that the EU will legislate against the installation of septic tanks in the not too distant future, following the route adopted by Ireland where treatment plants are a requirement in circumstances where mains drainage is unavailable. This business with the range it has developed is uniquely placed to maximise sales in these and other countries throughout the EU.
Premises:
With the production and servicing aspects of the operation sub-contracted out the business is easily run from a home office environment. As such it is easily re-locatable.
Advertising and Marketing:

The business has a very well designed, easy to navigate web-site which performs well in all Search Engines for a wide range of relevant Search Topics. It also has a French version of this site targeted at one of its most attractive export markets. It has also developed a well-designed and very informative suite of product literature promoting its range of underground sewage treatment plants together with detailed technical information. Marketing efforts over and above this revolve around fairly limited display advertising in the ‘self-build’ press together with dedicated direct sales calls to contacts within the relevant target sectors which have in the past proven to be very effective.
Its excellent reputation however has largely been achieved as a result of word of mouth recommendation, bearing strong testimony to the excellent standing the business enjoys throughout the industry and its customer base.
Financial profile:
The business is being offered as a going concern. 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 borrowings, very low overheads, positive cash flow and high gross profits consistently re-invested in the development of the company in recent years.
Sales turnover for the most recent year for which figures are available was in excess of £700,000 with sales in the current year projected to approach or exceed £1,000,000.
Employees:
The Owner of the business is supported in day-to-day operations by one other senior level Executive, part time staff and sub contractors.
Support and Training:
Full business familiarisation will be available to ensure continuity and make certain of a smooth handover and also for longer periods if required, subject to negotiation.
Reason for sale:
Having re-invested profits over a considerable number of years to establish the company and build it to its current size the owner feels he has taken the business as far as it can go. New owners with additional resources available to them will be able to fulfil the true potential of the business and build on the significant foundations already laid to give the business the platform it needs to be highly successful in the U.K. and overseas.
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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