Gross Revenue: $1,840,929
GF049-South Yorkshire-£395000-Construction & Civil Engineering Company
Specialist Construction & Civil Engineering Company
Food & Drink/Energy/Clay/Water Treatment/Chemical & Steel Industries Ref. GF049 Location : South Yorkshire Asking Price : £395,000 This very successful and highly regarded building and civil engineering company was set up by the current owner back in the early 1980s and has for many years primarily served large manufacturing companies on a local, regional and national scale. Almost all of their work is in the commercial/industrial sector. Many of their clients are instantly recognisable Blue Chip Companies in the food and drink sector, the energy sector, the heavy clay (inc. brick) industry, steel industry and in the chemical industry. The company has considerable experience in the heavy clay industry having constructed new kilns for the brick and clay pipe industries, and regularly carries out maintenance and refurbishment of refractories to kilns and heat treatment furnaces. The business has become a bit of a specialist in these fields and works closely with in-house client or independent structural engineers to offer a full design and build service to their clients, this gives it a real edge in the market. The company and staff 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 in industries as diverse as Textiles, Engineering, Food, Clay and Retail. Project value is up to a maximum of circa £500,000. In-house capabilities include: Bricklaying C.I.T.B. Licensed Drivers Concreters Drain Layers Ground Works Joiners Plasterers Roofers The company has excellent knowledge of many of its clients’ factories and industrial premises, in many cases better than the client themselves having worked with them for several decades, and as such provides essential industrial maintenance services covering all trades. Typical work undertaken includes concrete floor repairs, roofing repairs, structural work and joinery works. The company also provides the following services utilising trusted sub-contractors whom it has worked with for many years: Ceiling, Cladding, Flooring, Tiling, Painting and Decorating, Steel Fabrication, Foundations The company has forged a reputation for being able to tackle jobs of a more complicated nature and staff enjoy the variety of work which they encounter in resolving problematical jobs. It is this “can do” approach which has helped them forge excellent long terms relationships with their highly desirable blue chip customers. The business is enjoying very impressive growth at time of going to market and this trend is expected to continue. The business has a good asset base including freehold building, plant, equipment and commercial vehicle fleet.
Facilities: The business operates from ideal premises and comprise a large fully equipped joinery shop (circa 3,500 square feet), workshop (circa 3,500 square feet), offices (circa 1,500 square feet), stores (circa 330 square feet) and land for parking/storage (circa 13,000 square feet).
The site is a mix of freehold and leasehold. The business owns the freehold for the joinery shop- we are advised current market value is circa £180,000. This is included within the current asking price. The vendor owns the other premises separately and the company pays him an annual rent circa £16,000 p.a. Rates are circa £10,000 p.a.
The vendor is happy to sell all the freeholds as part of the sale or set up a suitable lease with the new owner, subject to negotiation. He would also consider the business being relocated.
Competition: The business enjoys high levels of repeat business, word of mouth recommendations and referrals so has never had the need to advertise. It does have a basic yet informative website that could be updated but does no advertising/marketing at present.
Growth & Expansion: The business was set up by the current owner and his wife to earn a living. The vendor still has that approach and is very risk averse which, by his own admission, may have stifled growth over the years. The vendor has set a maximum contract limit of £500,000.00, and has many times (and continues to) turned down the opportunity to quote for larger jobs, which regular clients would have been keen to award to them.
Whilst it currently services some 20 very large blue chip customers with large property/facility estates there is huge scope for expansion both within the existing customer base and beyond as the vendor has not actively chased additional work from its current customers or new ones for that matter.
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.
With a more proactive sales and marketing function a new owner could significantly increase revenues and turnover within the business, both with existing and new clients.
Support & 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 Selling: Planning exit for retirement.
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