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Multi-Disciplined Construction and Building Services Company
Public & Private Sector

Ref. GF050

Location : West Yorkshire

Asking Price : £1,300,000 inc Net Assets

Turnover : £3,710,000

Net Profit : Undeclared

Gross Profit : Undeclared

EBITDA : £480,000

Net Asset : £135,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Leasehold (freehold option is available)

Asking Price: £1.3Million (inc Net Assets circa £135,000)

Asking price includes:

Turnover for circa £3.71 Million p.a.
Adjusted EBITDA (pre director drawings) circa £480,000 p.a.
Net Tangible Assets circa £135,000 (inc. plant and vehicle fleet)
Preferred Contractor to many blue chip clients
NICEIC/Construction Line/Safe Contractor/CHAS/ISO9000
Successfully traded for circa 30 years
Impressive senior management team
Sage Accounting and back office systems
Superb large blue chip customer base
Strong future order book
Handover
Significant goodwill
Website

Business Profile

This very successful and highly regarded company was set up by the current owners some 30 years ago and developed into a multi-faceted construction company with all the necessary accreditations and internal skills to serve its highly desirable client base. Almost all of their work is in the commercial sector and covers health, social housing, education and insurance sectors (including flooding). They have on-going framework agreements in place with many of its customers.

The company has considerable experience in the insurance sector and was worked with many insurance companies and their clients for many years.

The business has become a bit of a specialist in the fields it operates in and works closely with architects and clients alike to provide a full turnkey operation, whether it be new build, refurbishment or restoration in both occupied and unoccupied buildings. Scope of works includes building, electrical, mechanical, plumbing, water damage, decoration, restoration and refurbishment.

The company and its significant staff (encompassing many trades) have excellent internal skills and are able to undertake a wide range of contracts, varying from simple maintenance to larger new build and refurbishment projects with values ranging from £1,500 up to circa £600,000.

The company has developed a reputation for dealing with projects in controlled environments (commonplace within the health and education sectors) . The team is highly experienced and qualified with a strong corporate platform and the added benefit of strong technical support and project management skills. It is this customer driven approach which has helped them forge excellent long terms relationships and framework agreements with much of its blue-chip customer base.

The business is enjoying very impressive growth at time of going to market and this trend is expected to continue. Sales for the current year are expected to be in excess of £5Million (circa 20% uplift year on year), with profitability also up. There is no reason this trend will not continue as the business has all necessary infrastructure in place.

The business has a good asset base including staff, plant, equipment and commercial vehicle fleet, not to mention the option of the freehold premises. It utilises Sage accounting software, leading estimating packages and has access to the Insurance companies costing software that enables them to price jobs quickly and effectively as an approved contractor.

Customer Service:

This business provides exceptional levels of workmanship and clients receive a professional and efficient service. All staff are suitably qualified. The company prides itself on meeting and often surpassing its obligations. It is this dedication to its customers that has helped it build a very impressive client bank. This commitment to customer service is demonstrated through its many accreditations and memberships including:

• ISO9001 and ISO14001 registered
• CHAS/Safe Contractor/Considerate Contractor
• All employees CSCS compliant
• NICEIC

Key Strengths:

The company has been developed in order to cater for a diverse range of clients with particular and exacting needs. The infrastructure is in place including staff (be it managers, administrators, professionals and tradesmen), accreditations and internal processes. Because of this the company is able to offer a consistent high level of service and has built up an impressive reputation on the back of this. The many strengths of this business include:

• Profitability
• Infrastructure in terms of senior staff, in-house tradesmen, specialist knowledge, partnerships, framework agreements
• Non-reliance on major shareholders
• Asset base, no debt
• Large prestigious blue chip customer base with long term relationships (including insurance driven sectors).
• The reputation, longevity and position in the market
• Multiple revenue streams
• Current trading pattern and future opportunities in the sectors it serves

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.
The business is financially stable, asset rich, debt free and enjoys excellent long standing relationships with major organisations that have ensured consistent levels of business for almost 30 years. The current year is seeing impressive growth and this trend is expected to continue in line with growth in the sectors it serves and the company’s reputation going from strength to strength.

Turnover circa £3.71 Million p.a.
Typical Adjusted Operating Profit/EBITDA circa £480,000 p.a. (pre director drawings)

Net Tangible Assets circa £135,000 (inc. plant, equipment and vehicle fleet)

The Asking Price:

Asking Price of £1.3 Million is for the sale of 100% of the Issued Share Capital in the Limited Company based on Net Asset position being £135,000. The asking price is based on a debt free cash free scenario. Current asking price excludes the freehold properties but vendor happy to sell if new owner so requires.

Advertising and Marketing:

The company enjoys high levels of repeat business, word of mouth recommendations and referrals so has never had the need to advertise. It does have an informative website  but does no advertising/marketing at present.

Growth and Expansion:

The business was set up by the current owners to earn a living and has since evolved into the highly successful operation that exists today. The business has never really had to chase work, benefitting from very high levels of referrals and ongoing business with its existing clients, be it through framework agreements or recommendations, not to mention insurance driven claims.

Whilst it currently services its existing customers (public and private sector) with large property/facility estates to manage there is huge scope for expansion both within the existing customer base and beyond.

The construction and building services sector is currently strong and the trend is expected to continue with many private organisations and public sector bodies outsourcing this function, due to increasing legislation and health and safety requirements. This business is ideally positioned to service this need moving forward.

As a result of the recent pick up in the industry the company has just recently taken on a part time Business Development Manager to start looking at new opportunities, particularly in new build, as the business has all the core skills already in place to attack this market. This should reap rewards for the new owner moving forward!

Premises:

The business operates from ideal modern premises on a well-known business park. Total area is circa 5,500 square feet.

The business owns the freehold and the vendor is happy to sell the freehold with the business or for the new owner to set up a suitable lease, subject to negotiation. Please note the current asking price excludes the freehold property. We are advised the freehold is worth circa £450,000.

Business Hours:

Monday –Friday 0900-1700
On site as required

Employees:

The business has built an impressive team from top to bottom, so much so that the business runs smoothly with or without the 2 majority shareholders. In saying that both still work in the business full time through choice.

The business has put in place a very capable Financial Director who runs the business on a day to day basis supported by a comprehensive team of Surveyors (Building QS, Electrical QS, Onsite, Desktop etc.), Health & Safety Manger, Office Administrators and Insurance Claim Handlers.

The business also employs circa 55 full time tradesmen (including supervisors etc.).

Support and Training:

The vendors are happy to provide a comprehensive handover to ensure a smooth seamless takeover. This should be a relatively simple handover as the business already has senior staff in place.

Reason for Sale:

Planning exit strategy.

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