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Specialist Roofing Contractor

Ref. GB090

Location : South East London

Asking Price : £340,000

Turnover : £427,800

Net Profit : £112,000

Gross Profit : £200,100

EBITDA : Undeclared

Net Asset : £10,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Asking price includes:

Turnover for the financial year ending August 2006 of £427,800

Gross profits of £200,100

Pre-tax net operating profits of £112,000

Twenty years of successful trading

Domestic, commercial & Public sector projects

A trusted and respected name in the roofing industry

Reputation for honesty, reliability and responsibility

Loyal customer base of contractors generating on-going projects

Domestic, commercial & Public sector projects

Qualified and highly skilled tradesmen

Extremely lucrative margins

Training and handover

Plant and equipment

Goodwill

Business Profile

Established by the current Owner in the late 1980’s following many years working within the sector having started as an Apprentice asphalt roofer, this business provides a very competitive roofing service for a wide range of domestic, commercial and public sector Clients working primarily for major contractors – for which it has continuously developed and adjusted its service offering to meet the needs of this very important target sector.

Specialising in the design and installation of mastic asphalt and felt roofing systems, this business offers developers, architects, local authorities and consultants a complete flat roofing solution to meet all their requirements. The work this business undertakes is extremely varied including as it does projects for hospitals, factories and offices, churches and residential estates. Its range of work, which almost entirely occurs within the South East corner of England covers complete roofing projects, from home extensions right through to much larger commercial and public authority projects taking in all aspects of asphalt and felt roofing, flooring, balconies and paving, slating and tiling. From small roof repairs to large scale roof design, this business will find the right products at the right price and manage the installation through to project completion.

As a member of the Federation of Master Builders, Trustmark registered and a Warranted Roofer, this business prides itself on offering a prompt, reliable and professional service at a competitive price. The company is well respected as an expert throughout the asphalt industry and has an excellent reputation for providing very high standards of workmanship, with Health and Safety issues paramount. Many years of roofing experience, its highly skilled, experienced and qualified tradesmen equipped with full training and knowledge of all the latest roofing materials and construction techniques together with industry standard approved materials ensure the very best end result. Not surprisingly with this very well-established reputation within its locality, a large proportion of work arises from its existing customer base and excellent referrals and recommendations from its satisfied Clients.

This is a highly profitable and very well managed business. With turnover for the financial year ending August 2006 of £427,800 generating gross margins of approximately 46% and profits available to the Owner of the business of around £130,000, this represents an excellent acquisition opportunity for an existing operator to increase its penetration of the sector or for a new entrant to acquire a very well established business with an excellent foothold within the marketplace.

Key strengths:

This business has performed consistently well throughout its many years of operation and has built up an excellent reputation within the industry for excellent products and high levels of customer service, all at a competitive price.

Every aspect of this business is based around providing a high level of customer service. It is ideally located within easy reach of the M25 motorway and the Thames tunnels affording easy access to all parts of London and the South East. From an initial estimate through to taking into account the slightest technical detail, nothing is overlooked. This business has an excellent workforce and works only with the very best suppliers and tradesmen who have full training and knowledge of all the latest roofing materials and construction techniques so a customer is guaranteed the best tradesmen using the very best materials for the job.

This business also appreciates the impact the carrying out of its work can have on the lives and businesses of its Clients. It has an excellent Health and Safety record and does whatever it can to minimise disruption and complete the job as quickly and efficiently as possible.

Perhaps most importantly this business has very strong working relationships with its Clients with a definite ‘inside track’ with its Contractor customers. Such is the esteem with which it is held by its customer base it is often given the opportunity to ‘re-quote’ to match a competitor’s price to ensure it is the resource that gets the job. As a result of its excellent customer relationships this business suffers very little bad debt and enjoys very prompt payment from its customers.

Key Opportunities;

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business`s services, a new owner contributing fresh ideas, enthusiasm and motivation will have every advantage of building on an excellent platform. With its excellent reputation this business is frequently booked up for significant periods in advance. It would certainly benefit from an increase in its workforce, enabling it to compete for more projects, increasing its capacity, turnover and profitability and reducing its leadtimes.

There is also the opportunity to expand the scope of works this business undertakes expanding into the ‘tanking out’ and waterproofing of basements and buildings for example. There is also the possibility of expanding the breadth of systems for which this business is a Nominated Contractor – many of which it currently uses and is experienced in, but hasn’t as yet taken the next logical step of achieving the appropriate ‘accreditation’ status.

Marketing and advertising:

Established for more than twenty years, with a loyal, repeat customer base and work consistently stretching months ahead this business operates without any major marketing or advertising initiatives, not even appearing in any of the major directories. It enjoys by far the most cost effective form of marketing, strong word of mouth recommendation, testimony to the excellent reputation the business has within the industry.

The business does not currently have a website and it could be argued that this would enable it to showcase its capabilities to a much wider target audience increasing the number of projects for which it would get an opportunity to tender.

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.

Turnover for the financial year ending August 2006 was £427,800 generating gross profits slightly in excess of £200,000 and a pre-tax net operating profits before Directors’ remunerations of £112,000.

The Asking price of £340,000 is for a sale of the shares in the business based on a net asset value of £10,000 (excluding the significant level of cash there is within the company which currently appears on the Balance Sheet

Management and staff:

The current Owner/Managing Director is responsible for the day-to-day running of the business supported by 5 full time tradesmen specialising in Asphalt and Felt roofing with a group of 4 subcontractors specialising in Pitch Roofing and 1 other multi-skilled tradesman undertaking a variety of tasks across all areas of the business. The business also calls upon other sub contractors as and when required.

Plant and equipment:

This business has all the equipment normally associated with a business of this size operating in this sector including a 7.5T tipper lorry, two asphalt machines, various asphalt and bitumen pots, ladders, scaffolding, hand tools etc.

A full inventory of plant and equipment is available subject to the normal Confidentiality formalities.

Premises:

The business operates from a leased yard of approximately 250 square metres with office accommodation by way of a serviced cabin on-site. The site has 24 hour access with no noise restrictions.

The lease is flexible with the business having security of tenure. Rent is £328 per month including Rates.

Support and Training:

The current Owner is happy to assist with all necessary hand over and the training to ensure a smooth transfer of the business to new Owners.

Reason for sale:

This is a genuine retirement sale.

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 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk