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Established Signage Company
Digital & Screen Printing to Estate Agency Market

Ref. IY123

Location : Northamptonshire/E Midlands

Asking Price : £175,000 Inc. Net Assets

Turnover : £409,000

Net Profit : Undeclared

Gross Profit : £162,000

EBITDA : £110,000

Net Asset : £42,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

Next Step, Please submit Confidentiality Form/NDA Online 

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Asking Price: £175,000 (Inc. Net Assets)

Premises: Leasehold

Asking price includes:

Turnover circa £409,000 per annum
Gross Profit circa £162,000 per annum
Net Assets circa £42,000
Leasehold property
All plant and equipment
Stock
Huge customer base circa 500+
Full turnkey solution
Training and handover
Low overheads
Website
Goodwill

Introduction:

Turner Butler has been appointed to invite offers of purchase for this established and highly reputable signage company that has excellent infrastructure, huge national customer base and impressive profitability.

Business Profile

This very well established business was set up some 30 years ago by the current vendor and is now considered one of the leading UK suppliers in its field. The company offers the full range of high quality digital and screen printing signage services but has chosen to specialise in the design, manufacture and supply of estate agency boards as its core revenue stream. This area of the business accounts for some 80-90% of current revenues and the business supplies nationwide.

The company has built up a very large customer base throughout the UK. Customers include national brands right through to small independents, be they estate agents or sign makers who use this company for the expertise in this particular niche sector. It has excellent spread with in excess of circa 500 existing customers. This is the core of the business but the company also has the ability to provide specialist signage and banners that are digitally mastered and professionally manufactured.

The company has invested in technology (plotters, laminators, software design packages etc.) and equipment over time to ensure it can provide a comprehensive turnkey solution with high quality images and quick turnaround times. It typically services some 50 clients each and every month.

The company are regarded as a very well established and trustworthy supplier and because of this enjoys impressive levels of repeat business, having enjoyed steady organic growth. There are only a few other companies operating in the UK who can provide this level of service.

The business enjoys healthy levels of profitability and has a loyal customer network. It has a good asset base, low running costs and is simple to run. Staff are loyal and they understand the business.

Equipment:

The owners have invested in plant and equipment over the years to ensure it provides high quality products efficiently manufactured. It utilises t software packages and has good quality plotters, laminators and digital print machines.

Key strengths:

• This business is a very streamlined and efficient operation that provides a complete turnkey offering to a captive customer base. The business has historical presence in the market and more importantly provides high quality products that are always in demand.
• Speed of response is second to none.
• Consistent levels of business and profitability
• The business has low overheads and a sterling reputation. This is evident by the fact it has a huge desirable customer base and enjoys excellent levels of repeat business.
There is constant high demand for its products leading to consistently strong financial performance, making this Company an exceptional investment opportunity.

Key Opportunities:

There are many new opportunities available to grow the business as it is a truly scaleable operation. The captive market it serves is large and the business could certainly expand its product offerings to more traditional signage/print media should a new owner so wish as the demand is there, as is the in house infrastructure.

One way of achieving further growth would be through more proactive sales activity (the company currently has no external sales representatives or agents and limited internet presence). Just a small proportion of sales come from traditional signage, there is a large commercial presence locally that always requires signs and banners.

Financial performance:

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 achieved turnover of circa £409,000 per annum last financial year.
Resultant gross profits circa £162,000 per annum.
Adjusted EBITDA (pre director drawings) circa £110,000 p.a.
Net Assets circa £42,000 (includes , plant and equipment, stock , debtors, trade creditors etc.)

Equally impressive figures have been posted over previous years as the business enjoys high levels of repeat business from its loyal customer base.

There is huge potential to develop this business further. As already mentioned, the vendor is pretty much reactive in their approach to business these days and there is scope to maximise additional opportunities that exist within its current customer base and beyond.

Asking Price:

The Asking Price of £175,000 including Net Assets is for 100% of the issued capital of the company, assuming Net Asset position of circa £42,000. The final selling price will have a £1 for £1 adjustment to reflect any rise or fall in this benchmark Net Asset figure at completion.

Advertising and Marketing:

The business does very little in the way of self-promotion and marketing, preferring to rely on repeat business and referrals to generate sales. However it does have its own website and does some advertising via Google. There is further scope to increase its exposure should a new owner so require.

Growth and Expansion:

There are many many new fields that can be entered into within digital print technology should a new owner wish to diversify. The skill set /infrastructure is already within the company to do this.

Premises: 

The business operates from leasehold premises located on a well-known industrial estate with excellent access to the road network. Circa 2000 square feet with additional mezzanine circa 1500 square feet. Rent to be circa £18,500 p.a.

The sale currently excludes the freehold property. However the vendor may consider selling the freehold should a new owner so require, subject to negotiation. Freehold value circa £225,000.

Business Hours:

Mon – Fri - 8.30 – 4.30pm

Employees:

The vendor works within the business more on a strategic basis and tends to oversee the operation. The business employs 2 full time production staff who understands the business as well as a part time office manager.

The business is relatively simple to run. Staffs are a real asset and can multi-task and complete a variety of tasks.

Support and Training:

The current owner would be happy to provide full support at handover. The full time staff would make the transistion relatively straightforward.

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