Profitable Packaging Manufacturer and Supplier
Ref.EY028 Location EssexAsking Price £480,000Confidential 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
Reputation for honesty, reliability and responsibility
Perfectly situated for all main road arteries
Trusted and respected name since 1988
Sales of circa £1 Million per annum
Highly skilled and experienced staff
Circa 7,000 square feet operational area
Fully equipped manufacture
Large amount of equipment
All fixtures and fittings
Established client base
Training and handover
Leasehold premises
Goodwill | Business profile: | This business was founded in 1988 by the Vendors and has grown since to become a significant enterprise with a countrywide reputation among its customers for the quality of its products and service, honesty and reliability. The business specialises in the manufacture of bespoke polystyrene packaging and the supply of packaging articles such as boxes.
The manufacture of bespoke packaging begins with a client specification by drawing or sample of the article to be packaged. From this a formed polystyrene packaging piece is developed and the relevant tooling for cutting and shaping prepared. The piece is then approved by the client and production commences.
Naturally the business maintains a complete record and file of every job; by job number, with docket and tooling. It is often the case that a client will have a later need for a prior designed and prepared piece of packaging and the business is then able to manufacture to given volumes, generating turnover by virtue of the extensive bank of tooling and client product knowledge maintained.
In further addition to these activities the business is often requested to supply branded cardboard packaging. The business maintains long term relationships with specialist suppliers for the printing and manufacture of bespoke cardboard packaging.
In this way the business can provide as much or as little of the whole client requirement for any fragile packaged article.
This business offers many advantages to customers, allowing a strong relationship to build up which improves product quality at all stages in the development and production process a commitment which has lead to the retention of many customers over many years.
The business operates from a prime location in Essex and offers a comprehensive range of cut and shaped polystyrene packaging products covering every level of requirement appropriate to their end use and market, many with uniquely designed features and it is this business’s ability to operate in such detailed ways in specific volumes that creates a clear difference between this business and competitors meeting the customer’s needs for cost, productivity, delivery and quality.
From the earliest days of trading, operations have been invested in significantly with technology and implemented to maintain the careful balance between cost and quality, providing exceptional value for money and combining ease of delivery to the customer with maintained manufactured integrity.
The business has the technical and manufacturing capacity to increase production significantly within current plant operations.
The business is further supported by exemplary relations with key suppliers who have helped to ensure that production is never compromised and that customers are never let down. This commitment to supply chain relationships has underpinned this business’s abilities in product quality and sustained business endurance.
With the benefit of comprehensive manufacturing facilities, the highest quality through key business areas has been maintained and conforms to British Standards where appropriate and to stringent strength and test standards. The business has also applied itself to control over costs in an increasingly competitive and demanding market.
The ability of this business to grow and sustain its profitability is due in no small part, to the business’s strong commitment to investment in technology, significant in maintaining the profitability of the business and its current position as it is poised to exploit expected and significant new growth in turnover.
Customer Service
The business manages a good number of core customers who form part of a larger supply chain and has the systems, processes and people to ensure that both productivity and customers’ orders are satisfied. The most important aspects of customer management and satisfaction considered by the business is honesty from which comes customer confidence and project turnaround times, which combined are responsible for the business retaining many customers and the reputation for which has led to the acquisition of new customers.
The effectiveness of customer delivery is managed by customer and business, collaborating as the link between customer orders, concerns and requirements and the business’s manufacture and supply capacity, thus ensuring that there is a balance of priorities between the customer and the business.
Quality assurance
The business is a member of the Federation of Small Businesses and was an early adopter of the ISO accreditation scheme and maintains its ISO 2000 qualification.
Key strengths
The business is an autonomous organisation where the business is developing and nurturing an operations management team capable of overseeing business operations effectively, reducing the need for constant input from the vendors. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the continuing presence of the vendors.
The business is well established and very profitable, with a strong and growing customer base. The business retains a high level of repeat business as much as 70%, particularly among a number of key high added value customers returning on a regular basis.
The company has earned an outstanding reputation for its value for money, honesty, service, reliability, efficient job completions, excellent quality work, ability to deliver multiple products, cost control and highly skilled, experienced staff. All of which is driven by the strong culture of innovation and commitment to customers, within the business.
Growth and Expansion
The current market for this business is competitively weak and recent business activity shows that the market is growing and is forecast in the near and longer term for further significant growth. The business is extremely well positioned to take maximum advantage of this growth as it occurs.
Business operations are not at maximum capacity and there remains considerable scope for an increase in production, turnover and profit simply by gearing operations in line with current market demand. | Key opportunities
This is an outstanding opportunity to build on the existing products, services and customer base of this business. With a strong demand for products combined with a capacity to increase turnover, a new owner contributing fresh ideas will have every advantage of building on an excellent platform.
This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with new products, operations capacity and specific market forecasts which are showing early trends for significant growth and development.
Technology
Suitable proprietary administrative and specific technical systems have been set up to provide the technology required for a modern and efficient business. There is also the portfolio of specialist tooling developed over 19 years of trading.
Premises
The business is located in an easily accessible area in Essex with its many key road transport arteries and operates from a four building circa 7,000 square feet operational area including factory, storage and 400square feet for administrative offices. | <>Advertising and marketing
The business has used only limited advertising in the past but has found most success through word of mouth recommendation and direct sales where a significant number of orders and enquiries are taken. This activity has been intermittently supported by direct marketing calls to potential and existing customers, highlighting new and existing products.
The company has a comprehensive website detailing products and services and a history of the business and its successes, there is little doubt that turnover and profits will increase through development of this medium, as it consolidates even further the business’s reputation nationally and opens the business to direct sales. | | | Financial profile: | The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendors 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 growth over 19 years trading.
Sales revenue is circa £1,000,000 per annum and our clients feel that with a commitment to the opportunities illustrated, the business could dramatically increase its revenues. | Employees
The business employs 5 people in total including administrative, cutters, driver and production manager who, with the Vendors are responsible for the day to day operations. | Support and training
The current owner will provide all necessary training and all relevant contacts to allow continuity of trading. | Reason for sale
The business is for sale as result of the vendors’ wish to retire. | | 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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