Highly profitable painting, decorating and property maintenance contractor
Ref.GC031 Location RelocatableAsking Price £ 445,000Confidential offered for sale | |
Asking price includes:
Turnover for the year ending January 2005: £605,000
Net operating profits of £286,000
A trusted and highly respected reputation in the industry
Substantial customer base of Estate Agents, Housebuilders & Property Management Co’s Huge opportunities and expansion capabilities
Qualified and highly skilled workforce
Sustained and steady growth
Excellent profit margins
Leasehold property
Strong Order Book
Turnkey operation
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: | Originally established in the 1970’s and re-established in the late nineties following a spell abroad by the Owner, this business is a highly reputable and reliable painting decorating and property maintenance company opersting in the South East. This business works in both the residential and commercial sectors for a wide and very impressive Client base of large Housebuilders, Estate Agencies and Property Management companies across South London, Kent, Sussex and Surrey.
For its Clients this business undertakes all aspects of Commercial painting, internal and eternal decorating and buildings maintenance. All staff are highly skilled and well trained, CIS accredited, tried and tested sub contract staff and are permanently employed by the business – many having been with the organisation for a number of years.
This business prides itself on the professionalism it brings to every task, however complex or simple it may be. All staff wear ‘painters whites’ and hi-visibility jackets when working outside. It is particularly strong on Health and Safety, whilst still completing contracts quickly and efficiently.
This business also believes in getting the job done. The aim of this business is always to complete the work on time, to budget and to the highest standards. With two or three projects always underway at any one time, this business always provides the right teams with the right skills necessary to get the job finished properly and on time, often ‘blitzing’ a site with plenty of staff to ensure a high quality of work at an extremely fast rate. Any number can be employed on-site at any one time, with small works – across all trades including plastering, bricklaying, electrics, tiling, plumbing, carpentry, with some planned maintenance programmes in place - a particularly sizeable source of revenue.
This commitment to the highest standards of workmanship together with a clear understanding of the needs of its Clients has resulted in practically all of its main Clients continually using its services. As a result, even when tendering, which it is not always required to do, this business wins jobs when it certainly is not the least cost option.
This is a very profitable company. Performing consistently well in recent years, this business demonstrated exactly what could be achieved with a turnover in excess of £600,000 in the financial year ending January 2005 – and net operating profits of £238,400. | Key strengths:
The cornerstone to the success of this business has been its ability to complete projects to the very highest standards in very short periods of time. With an excellent pool of tradesmen to call upon, this business can dedicate lots of staff to each Client project – even when working on behalf of two or three Clients at a time.
This commitment to quality of work and speedy service has enabled this business to build up an excellent, broad, longstanding and regular Client base of approximately twelve Housebuilders, Property Maintenance companies and Estate Agencies, many of which use this business exclusively for all their painting, decorating and property maintenance needs – even through it is certainly not the cheapest in the marketplace.
Having built an excellent reputation within the industry this business enjoys strong word of mouth recommendation.
Key opportunities:
With a strong demand for the services of this business, combined with a capacity to increase turnover, a new owner contributing fresh ideas, will have every advantage of building on this excellent platform.
Although this business can already boast an impressive and extensive Client list, having always adopted a very passive approach to sales and marketing, this business is barely scratching the surface. Just within its current commercial residential sector, with a far more pro-active approach to business development, maintaining contact with Clients and working with them to secure tenders it is conservatively estimated that the turnover for this business could be increased to £2m or more. Additional turnover could also be secured by extending into the commercial management sector – working with Facilities Management on office maintenance and refurbishments for example.
Although currently operating with very low overheads, additional resource in the form of an experienced and highly motivated Contracts Manager to oversee all projects would also reap dividends. | | Premises:
This business operates from small High Street office premises of approximately 250 square feet with a lock up used for additional storage. The business is ideally located for easy access to all parts of the South East via the M23 and M25 motorways.
The office premises are leasehold with approximately eighteen months remaining on the lease at an annual rent of £5,000. Rates are £1,200 per annum. The lock-up is rented at a rate of £60 per month.
The business is considered easily re-locatable within its current area of operation – South London, Kent, Sussex and Surrey. | Marketing and advertising:
With an excellent reputation built up over a number of years and with a regular Client base, this business has little need of advertising. It does not even appear in the Yellow Pages and chooses to have its phone number ex-directory! On the rare occasion this business needs to generate business it adopts a direct approach – a personalised letter with telephone follow up to key decision makers within target companies.
It does invest in signboards for use on site – all of which are new and in excellent condition. | | | 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.
A highly successful business, this company showed some of its real potential in the financial year ending January 2005 achieving turnover of £604,731 and a pre-tax net operating profit of £238,400. | Employees:
The Owner is responsible for the day-today management of the operation who has in the past been supported by a Contracts Manager/Supervisor. Secretarial and administrative support is outsourced.
This business currently calls upon a pool of nine tradesmen, all of whom are CIS accredited and have been working with the business for a number of years. These are occasionally supplemented by a further pool of seven others, called upon as and when required. | Support and Training:
The owner is happy to provide the training and handover required to facilitate a smooth transfer of the business, even to the extent of maintaining a minority shareholding to ensure continuity of the all important Client relationships. | Reason for sale:
This is a genuine retirement sale with the current Owner wishing to spend more time at his property abroad. | | 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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