Specialists in the design and manufacture of composite components for the aerospace, automotive, defence and construction sectors
Ref.EY026 Location South EnglandAsking Price £1,600,000Confidential 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:
Turnover for 2004/5 financial year £828,000
Adjusted net profits of approximately £250,000
Well-suited premises in excellent location
A trusted and respected name in the industry
Huge opportunities and expansion capabilities
Highly experienced, qualified and skilled workforce
Leasehold premises with potential for expansion
Excellent design and manufacturing facilities
Extensive, loyal, blue chip Client base
Many years of successful operation
Training and handover
Leasehold property
Low overheads
Goodwill | Business profile: | Established in 1987, this business is a leading supplier of composite materials to the motorsport and aerospace industries amongst many other industrial sectors, having built a growing reputation for innovation and quality, based on its leading edge materials development, technical expertise and reactive customer support.
This business offers a complete design and manufacturing service for the production of high quality composite components from concept through to final production. With nearly twenty years of manufacturing and materials experience across a wide range of markets this business has an in-depth understanding of advanced composites technology ensuring that the precise needs of each and every Client are fully understood and realised.
With some of the best production facilities available in the UK today, this business can supply build-to-print manufacturing or the complete package of component design, tooling design and component manufacture. Component manufacture can vary from one-off prototyping to thousands-off production runs with all design and manufacturing activities carried out within its ISO 9000 and AS 9104 accreditations.
Whilst this business secures more than its fair share of glamorous and exciting aerospace and motorsports projects – this business has recently been involved in the manufacture and supply of parts for six cars likely to compete in this year’s Le Mans 24 hour race, for example - this business is equally at home with the mundane, having recently secured a contract to supply side panels to a major contract involved in the building of security vans and ambulances. Regardless of the individual project, this business’s commitment to quality is just the same.
To maintain its pre-eminent position in the marketplace, this business has continuously invested in staff development and plant and equipment resulting in the latest production facilities and a reputation for outstanding design and development skills. Not surprisingly therefore it can boast a wide range of long standing and loyal customers, with contracts stretching some months ahead always in place and negotiations currently underway to supply components to some of the largest and most high profile industrial customers in the world.
With consistent year on year growth resulting in turnover approaching £830,000 for the 2004/5 financial year and net profits in the region of 30% this is an excellent opportunity to acquire a very successful and profitable, high technology business, widely recognised as being at the forefront of its sector.
Key strengths:
Over the years of its operation this business has invested heavily in its plant and equipment and its staff. Consequently its production facilities are as good as any available within the UK - at least on a par with, if not better than those available at any of its competitors. The excellence of the production facilities is equally matched by the skills, experience and expertise of its dedicated workforce. This business prides itself on ‘getting the job done’ and most importantly, doing it well!
This business is situated in very well suited premises with a low annual rent and plenty of room for growth and expansion. This business has an extensive, loyal customer base attracted by high quality design and production offered at a competitive price. With low overheads, excellent production capabilities and an extensive, loyal customer base, not surprisingly this is a very profitable business.
Key opportunities:
Although the business is very well run, the resources available particularly in relation to business development have been limited. Despite this turnover has been growing consistently over the years of this business’ operation. A new Owner contributing new ideas and enthusiasm would naturally exploit the considerable potential available and with an aggressive business plan, incorporating a new marketing strategy could easily leverage the excellent reputation this business has built within its current markets to exploit not only the existing customer base further but establish this business in other markets too including perhaps, the construction, marine and automotive sectors.
This business continuously tenders for new projects across a wide range of Clients and is currently awaiting decisions on several potential projects, anyone of which is capable of completely transforming the already positive outlook of this business.
Quality assurance:
This business achieved its ISO 9000 accreditation some time ago and also has AS 9104 in place for design and manufacture underpinning its credentials within the aerospace sector.
Plant and machinery:
This business is equipped with all of the plant and machinery associated with a leading designer and manufacturer of composite components including autoclave facilities, curing oven, machining facilities and CAD/CAM modelling and programming.
A full inventory of plant and equipment is available on request. | Premises:
The business is run from very well suited premises of approximately 7,000 square feet including a small, newly built area of offices. Leasehold, there are 17 years remaining on the current 20 year lease, with five year break clauses, the next one being in 2008. Rent is currently £16,000 per year.
Planning permission has been granted to enable the extension of the production facilities to a 10,000 square foot workshop on the same site for no increase in the current rent.
There is ample car parking available. | <>Advertising and Marketing:
A large percentage of new clients derive from recommendations. The business regards existing clients as their best advertisers and has a large base of satisfied repeat customers and continues to attract new referrals.
This business could however, benefit significantly from Internet marketing. Although the business has a web presence, its site is barely populated and a professionally designed informative website could generate further interest from a larger market with excellent potential to increase turnover and profitability in the future. | | | 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 turnover for the 2004/5 financial year was £828,378 generating an adjusted net profit of £250,000. | Employees:
The two joint Managing Director/Owners are responsible for the day-to-day operation of the business supported by a loyal workforce of seven employees who have excellent technical ability and are dedicated to providing a quality service. | Support and Training:
Our Clients are happy to assist with a handover and training period to ensure a smooth transfer of the business to new Owners. | Reason for Sale:
Having worked in the business for a number of years, the current Owners feel they have taken the business as far as possible from within their own skill sets and feel the time is right to pass the business on to new Owners to build on the excellent foundations that have already been 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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