Mechanical Engineering and Fabrication Company
Ref.IH008 Location LancashireAsking Price £595,000Confidential 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
Inventory of fully owned plant and machinery
Established and loyal client base
On-going contracts in place
Networked Computers
Two Pick-up Trucks
One Lorry | Business profile: | This unique company supplies and installs steelwork fabrication, pipe work and valve related products to the heavy mechanical industry. The company commissions everything mechanical, including the manufacture of flange converters, flange floor columns, guide brackets, extension spindle, pipe fabrication work and access steel work for plant and walkways.
The Company stocks and carries out valve engineering work, converting standard valves to specialist valves, able to handle the growth areas within the water and sewage industry with the associated compliance with European legislation.
Valves are manufactured to suit individual clients specific requirements in respect of design, size and material selection. Contract handling through every stage is geared to meet the fast response times required. The company works with customers and ensures project specific equipment is supplied that meets customer requests.
Control equipment, engineering and fabrication equipment is primarily supplied to the Petrochemical, Power Generation, Water, Process and General Industries, offering a one stop facility, tailored to customers requirements guaranteeing cost effective and time saving solutions.
Established in 1994, there have been only the present three directors since inception. The directors have extensive experience in work relating to Valves and Pipelines. The business has evolved from being valve specialists and stockists, to include also the installation of steelwork and pipe work, supplying and installing mainly in the Water and Waste Water Treatment industry.
Customers comprise many leading players in these industries, including service contracts with high profile multinationals. Products are sourced from a wide range of leading overseas suppliers from various countries and there are exclusive agency agreements and manufacturing licences in place with leading global suppliers.
The company continually meets market demands with proven reliability and flexibility by utilising engineered product configuration systems and a continuous programme of IT development with a comprehensive range of engineered valve products that are renowned for long and dependable service life.
This company offers a complete and comprehensive turnkey package with little or no competition, offering services including fabricating steel pipe, fabrication of access structural steelwork, retrofit standard valves to specialist valves and installation of the equipment.
A suitable purchaser could be a company that has a sales force and a larger infrastructure already in place and would enable the business to expand to the next level.
Health and Safety:
Health and Safety compliant, the company takes health & safety very seriously both on their own premises and on the premises of their customers ensuring staff are aware of and implements current legislative requirements and best practice across the business. The Company is fully compliant with all relevant Health & Safety legislation and guidelines.
Quality:
The company understand the need to deliver a quality product, cost effectively and underpin all operations with a Quality Management infrastructure. This is a quality company giving outstanding value to customers. This commitment to quality is confirmed by the accreditation with requirements on ISO 9001.
Customer Service:
The company provides a one-stop solution for customers, ensuring a co-ordinated service across an entire project and a fast return on investment. The Company does not leave sites until the job is completed to the satisfaction of the customer and provides a professional aftercare service. All snagging work is carried out to the client’s satisfaction.
Key Strengths:
The Company has the ability to offer a turnkey package that includes design work and costing, providing solutions and product installation.
This is a specialised business, which is consistently profitable and with the ability to provide an immediate customer response. The company is relatively small in size, and is therefore adaptable; items can be made for the customer and fitted without delay. The company has the necessary equipment to certify the job and to ensure that the required quality assurance is in place. | Premises:
The Company operates from modern purpose built facilities that comprise a shop and mezzanine floor of approximately 7,000 square feet plus circa 3,000 square feet of office space, giving a total area of approximately 10,000 square feet.
The freehold is owned by two of the company directors and was valued at £525,000 in May 2004. The directors propose to grant a new negotiable lease for the purchasers at a rent of circa £30,000 per annum. The vendor would consider selling the building. | <>Advertising and Marketing:
To date the Company has invested limited money on marketing. The Company is recognised for its expertise within its relevant fields of operation, and therefore most of its work comes via word of mouth. The Company delivers what it promises.
The directors recognise that investment in updating the company website would be a valuable asset.
Technology:
Windows XP - IBM compatible.
Quick Books is used for the Company’s accounts and payroll.
There are five networked computers and the company operates a simple CAD system for AutoCAD drawings. | | | 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 financial stability of the company has been central to the success of the business and continues to be so.
The current turnover is in excess of £1Million per annum with a gross profit of circa £318,000 and gross profit margin of 29.1%. | Personnel:
In total the company employs fifteen staff including
•Managing Director
•Two Directors
•Sales/Office Manager
•Purchasing and Sales Manager | Support and Training:
The vendor is happy to provide full support and training for the new owner. | Business Assets:
Lifting Capacity
5 tonne overhead crane
1/2 tonne lifting jibs positioned over workstations
Valve Test Facilities
Hydrostatic – up to 10,000 PSIG
Nitrogen/air – low-pressure gas test
Machining
Turning, Milling, Drilling, Shaping and Boring
Welding
Electric ARC, MIG, TIG
Engineering Fabrication Services
•Steel Support Structures
•Plant Access Platforms
•Personnel Walk Ways
•Tank Manufacture, including
•Pressure Vessels | | 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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