turner-butler

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Manufacturer of Nets
Nets for everything except fishing!
More than 130 years of continuous trading

Ref. EB061

Location : SouthWest

Asking Price : £450,000 + Assets

Turnover : £522,000

Net Profit : Undeclared

Gross Profit : £197,000

EBITDA : £142,000

Net Asset : £180,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

Next Step, Please submit Confidentiality Form/NDA Online 

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Premises: Leasehold

Business highlights include:

(2018 accounts) Turnover: circa £522,000
(2018 accounts) Adjusted EBITDA: circa £142,000
(2018 accounts) Gross Profit: circa £197,000
Assets: circa £180,000 to include stock at valuation and machines

Very well established
Skilled & motivated personnel
Fully equipped factory unit
Significant Goodwill

Introduction:

Turner Butler has been appointed to offer for sale, one of the oldest & most established manufacturers and suppliers of nets in the UK and for more than 130 years has been successfully selling its portfolio of products worldwide.

Business Profile

The Company was founded in 1889 and is a very well established manufacturing business and has been a pioneer in the industry and consistently & successfully responded to the variable market conditions that surround a highly competitive industry.

The company has its origins in supplying nets to the area’s fishing industry and today manufactures and sources from overseas partners, high quality knotted nets for a range of uses, including bird control, fruit cages, and sports facilities.

The company blends traditional craft with modern techniques and uses spooled twine on a variety of net weaving machines that are then stretched and heated, which sets the nets, before hand-joining and being trimmed to size.

Customers can order one of the company’s off-the-peg products, or specify any size of net that is required.

Alongside the Company’s own manufactured products, the Company enjoys long standing alliances with complementary reputable international manufacturers that the Company sources from and supplies in the UK and internationally.

Customers come from around the world and the business supplies its nets to all manner of markets including agriculture, wholesalers, pest control, game keepers and private individuals; the business has even supplied nets to a New York City Theatre.

Equipment/Capacity:

Stock, plant and machinery is currently held at a Net Book Value of 180,000, with the replacement value estimated to be approximately £220,000. Specifically 2x Toyo net making machines and 1x Zang net making machine. The company also uses Sage accounting software for all financial matters.

Key features:

• One of the UK’s oldest and most established net manufacturers
• 130 Years of strong reputation and excellent track record
• Versatile and customised products with fast turnaround
• Well equipped with reliable machines
• National and International customer base
• Loyal, longstanding and highly skilled workforce

The business operates from a large unit on a modern industrial park where it manufactures packs and stores stock along with administrative offices.

Customer Service:

The company is a quality driven organisation and has never failed to successfully meet a customer’s requirements.

The company has a full time administrator taking care of day to day customer relations, this together with speed of response and consistent quality of product ensures significant levels of repeat business as well as new business creation through client testimonials and word of mouth within the market it services.

Key Strengths:

The company is financially strong with a very good asset base and operates from ideal leasehold premises. It enjoys reliable trading year on year in terms of customers and financial performance and it consistently generates impressive profits.

The business is a multi-skilled operation that can undertake a large variety of projects due to the impressive infrastructure it has in place. Both large and small quantities can be produced side by side. The internal skills are high and the company’s reputation is very strong.

The business is established and profitable with a broad and diverse client base and has regular customers with the largest single customer accounting for just 12% of turnover. The business retains a high level of historical clients. It has superb internal quality systems and an excellent health and safety record.

The company has earned an outstanding reputation for its honesty, integrity, technical ability, service and reliability.

Key Opportunities:

This is an outstanding opportunity to build on the existing products, services and customer base of this leading company. With a strong demand and impressive profitability, combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level.

The business maintains a significant number of satisfied customers, who appreciate the company s superior products and skill sets, attention to detail, value for money and service.

There are many excellent avenues for growth, especially within the current operations capacity. A dedicated sales and marketing effort would yield significant levels of additional business and profitability as, by its own admission, the business tends to be reactive rather than proactive in its approach to sales and marketing, as it has no formal sales team.

Financial Information:

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.

(2018 accounts) Turnover: circa £522,000
(2018 accounts) Adjusted EBITDA: circa £142,000
(2018 accounts) Gross Profit: circa £197,000
Assets: circa £180,000 to include stock at valuation and machines

The Asking Price is for 100% of the issued capital of the company based on Net Assets being circa £180,000. There will be a £ for £ adjustment to the asking price to reflect any rise or fall in this net asset position as at completion.

The business has a clean bill of health with no loans or HP outstanding. We are advised that the freeholds can be available.

Advertising and Marketing:

The business could benefit from a more strategic internal medium/long term sales and marketing planning. It has a basic yet informative website but does very little in the way of proactive marketing. In saying that the website ranks very well on Google for explicit searches for the specialised products that the company manufactures.

Growth and Expansion:

The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale.

It also has the ability to enter new markets should a new owner so wish as it has a sterling reputation in place. It is already seeing growth in terms of new enquiries as its proprietary designs and products consistently find new customers around the world.

The business currently operates a one shift pattern. There is no reason why this cannot be expanded should a new owner look to increase output.

Premises:

The business operates from fully equipped leasehold premises that are located on a modern, well-known business park, near busy market towns. The premises are circa 10,000 square feet, over two floors, with stockholding on the ground floor and admin, manufacturing, finishing & packing on the first floor.

The premise offer excellent value for money and are located in a fabulous semi-rural location, very close and in easy access of A roads and nearby Towns. We are advised rent, rates and water are circa £30,000 p.a.

Business Hours:

The business currently operates on a one shift system, Monday to Friday. This could be expanded if need be.

Employees:

The vendor works in the business on a part time basis and relies successfully on staffs who are mostly responsible for the administrative duties, manufacturing and customer relationships.

As well as the vendor, the business also employs:

2x sewing operators

Support and Training:

The current owner would be happy to provide full training and support at handover to ensure a seamless transistion of ownership, subject to negotiation.

This innovative and market-leading Company presents with proven financial track record as an excellent opportunity for investors in a well established market place. Interest is invited from buyers ready to advance the business to the next level.

Reason for Sale:

The owners are planning their exit strategy due to pending retirement.

Next steps:

If you are interested in receiving further information, please sign and return the attached Confidentiality Agreement. In returning the Agreement we would be grateful if you could provide us with details of your interest in this opportunity along with your funding position.

Looking for finance ?

If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at finance@turnerbutler.co.uk

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 Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 678532
info@turnerbutler.co.uk
www.turnerbutler.co.uk