Ref.GB051 Location London, South WestAsking Price 460,000Confidential offered for sale | |
Asking price includes:
Annual turnover of almost £810,000
Gross profits in excess of £145,000
Net income to the Owner of £111,000
A Chartered Building Company
No.1 provider in its niche sector
Comprehensive design and build service
A well known ‘brand’ in the local marketplace
Huge opportunities and expansion capabilities
Highly qualified, experienced and talented external Consultants
Range of sophisticated kitchen concepts
Very strong forward Order Book
Sustained and steady growth
Excellent ‘hourly rate’
Leasehold office
Goodwill
Website | | 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: | A very well-respected and established business, this very successful company specialises in the design and build of residential extensions with a particular expertise in the creation of additional living space in Victorian terraced houses, very high volumes of which are found in the South West London area in which this business is centrally based.
A specialist in its sector, this business operates towards the medium to top end of the market, providing the most comprehensive home extension service available. Able to demonstrate an intimate knowledge of design options, construction methodology and project duration, this business manages the whole project from concept to completion to ensure that the enhanced living space meets the needs of a Client’s lifestyle and is built with minimum disruption. Typically this involves managing Planning and Building Control applications to the Local Authority, managing all works required by chartered professional engineers and architects and closely managing all construction works on site to ensure the project stays on track and budgets are maintained. With the vast majority of extensions involving the installation or extension of kitchens this business also offers a sophisticated range of kitchen concepts including worktops, cabinets and appliances.
Managed on a day-to-day basis by its owner, a Chartered Building Surveyor, operating in a Project Management capacity, this business calls upon a wide range of external Consultants including a fee based Architect for design and planning issues, builders working for this business exclusively and a kitchen designer – all highly skilled and well qualified to complete the tasks in hand. Its recent achievement of Chartered Building Company status, the most prestigious professional building qualification available in the UK is clear testament to the quality of work undertaken.
High quality workmanship and finishing together with reliability and appropriate pricing means the services of this business are always in demand with many Clients considering this business to be the No.1 provider in its niche sector. Even by carefully choosing its projects this business is booked up, up to eight months in advance.
With a turnover for the 2005/6 financial year of £809,000 generating gross profits of £146,400 and a net income for its Owner in excess of £110,000 per annum, this is an excellent opportunity to acquire the market leader specialising in the design and build of residential extensions of Victorian terraced houses and may well appeal to a well established medium sized construction company, already operating in the London area. | Key strengths:
This business is the market leader in its sector within the tight geographical area in which it operates and is in the enviable position of being able to choose for whom it works. Centrally located within its prime target area and with a huge volume of suitable properties on its doorstep, all of the Owners of which are potential Clients, this business has little need of working more than a few miles away from its South West London base. Constantly working in this area and by concentrating solely on Victorian terraced houses, this business has a very strong reputation and trades very successfully on its specialization, benefiting from high levels of awareness and strong word of mouth recommendation, augmented by its excellent website which generates more enquiries than this business can currently handle.
This business has an excellent reputation for high levels of project management and Client care involving close personal attention – and especially for getting projects completed on time and on budget. All external Consultants are highly qualified, loyal, experienced and dedicated, consistently creating work to the very highest standards. Its planning experience enables it to conceive successful projects from the outset time and time again.
With each project requiring about twenty hours work from the Owner this business generates far higher returns per hour for its Owner than is achieved by other similar businesses.
Key opportunities:
There is great scope and opportunity to develop and expand this operation. A new owner with new ideas, drive and enthusiasm will have every advantage of building on an excellent platform.
Limited by the capacity of its current Owner this business currently undertakes upwards of 20 projects per year – in a market that conservative estimates suggest over 90% of the tens of thousands of suitable properties within its catchment area have yet to have the work this business offers completed. With interest rates the highest for a number of years and current levels of Stamp Duty significantly impacting on the propensity of Home Owners to move house, the future demand for the service offered by this business can only increase.
Having established an excellent ‘template’ which can be applied throughout areas with typical Victorian terraced properties, with additional manpower and resources this business could easily extend into other areas of London, and in particular West London, to significantly increase its turnover and profitability – even to the extent of potentially franchising the opportunity or opening additional branches.. | | Premises:
This business operates from a small two work-station leasehold office of approximately 400 square feet. Rent including Rates is £10,000 per annum.
There is approximately 15 months to the next break clause in the lease. | Marketing and Advertising:
Having established an excellent reputation and with a high profile within its area of operation this business has little need of advertising – particularly as it often has a forward order book stretching eight months in advance. Advertising is limited to twice yearly inclusions within the local glossy property magazines.
The business has a very well designed, informative and easy to navigate website. It performs extremely well within the major search engines for all major search topics and generates significant volumes of leads for the business. | | | Financial profile: | The business is offered for sale 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 has performed consistently well over its four years of operation. Turnover for the financial year ending April 2006 was £809,000 generating gross profits of £146,400 and net income to the Owner of £111,000. The trading year 2006/7 is set to generate similar profitability figures. | Employees:
The current Owner is responsible for the day-to-day management of the business and operates mainly in a Project Management capacity supported by a range of highly qualified, well trained, experienced and highly skilled external Consultants including an Architect/Designer, a Kitchen Designer and a small portfolio of high quality builders who work exclusively for this business. | Support and Training:
The current Owner is happy to provide sufficient training and handover to ensure a smooth transfer of the business | Reason for Sale:
Having built the business up to its current size the Owner feels the time is right to pass it on to new Owners to build on the excellent foundations already laid. | | 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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