Business For Sale

UK Exporter of Pipeline Products to the Water/Sewerage & Oil/Gas Industries

Ref: GD063
Location: Manchester(Yet fully relocatable), England
Asking Price: £350,000
Annual Turnover: £796,000

Annual Net Profit: £167,000
Gross Profit: £259,000
Premises Type: Not Included

Business Description

Business Profile

This specialist UK company set up by the current vendor some 20 years ago specialises in the supply of pipeline equipment to the export market, primarily to the water/sewerage and oil/gas industries. Equipment include pipes and pipefitting made from a variety of materials as well as specialist machines, plant and equipment.

Over the last five years the business has focuseed on the Caribbean where the business has establsihed a sterling reputation for supplying reliable products and for providing a consistent level of service. This has resulted in the business enjoying substantial ongoing business which is both sustainable and offers significant opportunties for growth.

Most of the products the company supplies are from major UK manufacturers , but also increasingly from associates in India. The business has developed its own product that is already being sold in volume(at higher than average margins) and also has a number of other such products that are at different stages of development.

The company is debt free and enjoys a strong/potential order book for the future. It enjoys very good profit margins, has very low overhead and enjoys positive cashflows such is the nature of its work.

The company’s clients are primarily water authorities and contractors. In some cases the business deals direct and in others through an established and trustwortthy network of local agents. The business also has some clients/ contacts in th Middle Eest that are ripe for future expansion.

This represents a significant investment opportunity to a new owner in a vast and growing market sector.

Customer Service:

The business prides itself on the levels of customer service it provides. It is for these reasons that it enjoys very longstanding and fruitful relationships with both its customers and suppliers. This backed up by the fact all the products the business supplies meet the relevant standards.

Key Strengths:

• Profitability

• Speed of response

• Reliability

• Market Knowledge

• Unpatented technical knowledge

• Quality of materials

• Customer base

• Positive cashflow

• Low overheads

• Supplier relationships

• Growth

Growth and Expansion:

This business operates within a field with ongoing demand anticipated for the short/medium and long term. It is currently servicing a very small part of this market both in terms of share, customer base and geographical spread. It currently does no proactive advertising or marketing. It has no internet presence. Growth is inevitable. It is understood a new owner with new levels of energy, investment in resource and marketing could significantly increase the levels of business within a short period of time. Alternatively such are the relationships already in place that the business would expect to continue growing at its current levels if a new owner so required.

Key Opportunities:

The opportunities to a new owner are huge. The current vendor has concentrated on a very small area in global geographical terms to date (namely the Caribbean) to do business. Many of the products he is able to source are required throughout the world so there is a huge opportunity for a new owner to target a wider geographical region. In addition to this the business has just recently started to source product direct from some suppliers in India and this represents a massive opportunity to not only improve upon the already impressive profit margins but to compete in new markets and expand the product offering still further.

Confidentiality Form / NDA

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Turner Butler

Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
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