Leading manufacturer and supplier of plastic building products
Ref.EY020 Location MidlandsAsking Price £1,700,000Confidential 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:
Five locally branded regional depots
Sales turnover is in excess of £4.5m per annum and growing
Exclusive area stockists for various manufacturers
Well trained, experienced and informative staff
Excellent technical support and advice
Established client/customer base
Excellent supplier partnerships
Complete Turnkey Operation
First class range of products
Superb opportunity to grow
On-going growth pattern
Strong advertising base
Training and handover
Sign-written vans
Goodwill | Business profile: | Established as a small distributor less than five years ago, this business has rapidly grown organically and by acquisition to its current size of five depots spread across the Midlands and can now boast turnover of £4.5m per annum with significant growth year on year.
This business offers its customers a full range of plastic building products and related ancillary components backed up with a continued commitment to excellent customer service. This together with the ability to adapt to the ever-changing demands of its customers has enabled it to establish a very strong presence in its marketplace.
Servicing both the trade and DIY markets; with clever local branding of outlets this group combines the flexible image of the local supplier with the economies of scale and buying power available to a major regional ‘player’.
In just five years the business has built up an enviable customer base of 400 regular account customers who add to the hundreds of cash transactions that occur each week. New clients, often referred by satisfied existing customers are added to the customer base each day - from right across the building sector, including major contractors, window companies, roofers, builders and builders’ merchants.
This business offers quality products at competitive prices combined with a next day delivery service. Specialist advice is always on hand at each of its depots from its pleasant and helpful staff.
It has a long-standing association with HW Plastics and is a main stockist for Kestrel and BCE products. It is also a stockist for Permacell and Deceuninck products as well as being a main agent for Marshall Tufflex Rainwater Components.
With the foundations built from its regional dominance it is looking to extend its distribution further with deliveries now being made throughout the UK. The possibilities of adding depots in Leeds and Watford to service the North and South of England are under active consideration.
Having achieved considerable growth in such a short period, the group is well on course to achieve its ultimate aim - to leverage its excellent reputation for customer service, its excellent supplier relationships and its considerable customer base to become a ‘one stop shop’ incorporating building plastics, roofing components and window frames.
Locations:
The business currently operates from 5 fairly localised depots across the Midlands, all conveniently located for easy access to the excellent road network:
Location 1: Head Office and sales depot. Approximately 9,000 square feet. As well as housing the senior management functions of Operations, Sales, Finance, Accounts and Warehousing this is a depot in its own right. This property is leasehold. Annual rent is: £31,547 per annum.
Location 2: Approximately 2,500 square feet. This property is leasehold. Annual rent is: £6,800 per annum.
Location 3: Approximately 3,000 square feet. This property is leasehold.Annual rent is: £10,360 per annum.
Location 4: Approximately 2,800 square feet. This property is leasehold. Annual rent is: £10,000 per annum.
Location 5: Approximately 2,000 square feet. This property is leasehold. Annual rent is: £5,500 per annum.
Key strengths:
By trading under a number of local brands this business presents itself as a local supplier combining all the connotations that brings - flexibility, friendliness, good customer service, quality products, local market knowledge etc - with the economies of scale and buying power of a major player.
It has invested significantly in developing a high quality, professional and pro-active sales force used to meeting and exceeding aggressive sales targets within what can best be described as an ever changing market environment.
The business has in place a very sound group structure that extends beyond the current owners of the business – a team that is highly experienced and competent with the ability to adapt to the pressures of a rapidly growing organisation.
Key opportunities:
With such a successful business model – locally branded outlets with the economies of scale and buying power of a major ‘player’ - there is considerable scope for future growth of this business.
With demand for its products already evident outside its current ‘footprint’ there is the possibility of extending its coverage by opening or acquiring additional depots and expanding with the Midlands at its centre. The recent launch of its cutting centre which currently supplies all of the existing depots has proved very successful and could certainly be replicated in areas outside the Midlands.
The ultimate aim of the business is however to be a one-stop shop for its customers. Being a progressive and forward thinking organisation the business is already looking at the possibilities of diversifying into the window industry – the next logical step – with the potential acquisition of a window manufacturing company and regionally based re-sellers. Windows could then of course be introduced throughout the existing depot network further reinforcing its ‘one stop shop’ credentials, significantly boosting turnover and of course, profitability. | | <>Advertising and Marketing:
The business has advertised its services through the normal channels including Yellow pages, trade magazines, Thompson Directory, trade and local press and PR and is fully supported by its suppliers with a full range of product literature. The group does not currently have a functioning web-site.
It has recently introduced a customer newsletter, keeping customers up to date with the latest corporate developments and new product information.
An excellent reputation has been achieved as a result of word of mouth recommendations, bearing strong testimony to the excellent standing the business enjoys throughout 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, low overheads, positive cash flow, enjoys a strong order book, high gross and high net profit and has shown consistent strong growth in profits.
Sales turnover is in excess of £4,500,000 per annum and growing year on year. | Employees:
A senior management team of 6 head up the Operations, Sales, Finance and Commercial functions, with three others operating in support at Head Office.
A Depot Manager is responsible for the day to day running of each of the depots with the exception of the Derby depot where there is also a Deputy Manager. A further twelve personnel manage the warehouse and delivery requirements across the group.
| Support and Training:
The vendors will be available for a full business familiarisation to ensure business continuity and make certain of a smooth handover. | Reason for sale:
Having built the business up to its current size the current owners wish to realise their considerable investment to date. | | 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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