Precision Engineering for sale in West Sussex

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Specialist Precision Engineering Company

West Sussex, England

  • Leasehold Price: £450,000
  • Annual Turnover: £440,000
  • Annual Net Profit: £107,000
Seller Reference: IH038
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Business Description
Seller Reference: IH038
Request Details
Business Description
Location: West Sussex
Premises: Leasehold
Asking price: £450,000 + Net Assets
Business highlights include:
Turnover circa £440,000 per annum
Adjusted Net Profit circa £107,000 per annum after management costs
Net Assets circa £300,000 (mostly cash)
Comprehensive website
Fixtures & fittings
Skilled & motivated personnel
Modern & comprehensive factory units
Exceptional staff
Significant Goodwill
Business Profile:

Established by the vendors in 2003 this highly equipped and very well established and reputable business provides a comprehensive range of highly specialised precision engineering fine limit sheet metalworking products and services to a variety of clients in the manufacturing sector internationally.

The company specialises in the manufacture and supply of high quality and high added value fabricated metal parts and whole assemblies using a variety of materials including aluminium, mild steel, stainless steel and zintec steel. The company supplies both large and small products that are manufactured on both a bespoke basis and also made for stock and called-off by customer requirement.

The business has been developed over time with significant re-investment in the company, its quality/inspection systems, equipment and its premises. The company can boast a substantial level of up to date plant and machinery including latest state of the art machining centers and back office systems. It specialises in manufacturing for many sectors including the packaging industry, aerospace, automotive, construction, oil & water.

Though almost exclusively a UK supplier, the company does supply to the USA via a UK customer.

The business has its own internal inspection procedures to ensure customers receive only the highest quality products and services. This internal capability enables the business to take on varied and challenging high profile projects for blue chip end users.

The business has over time designed and developed many products that are the results of solving complex technical problems for its customers and retains significant intellectual property assets as well as being the obvious choice for customers requiring spare parts, replacement assemblies or even fine art sculpture & installations.

From first contact to completion the onus is geared towards complete customer satisfaction.
The business is committed to ensuring manufacture is to the required standards of excellence, as you would expect from a company with such infrastructure.

The company has the highest standards but will never be beaten on price, operations are geared perfectly for the optimum economic return on all resources – whether people or plant. Even so, the company is one where all employees are happy to work and to work hard, as evidenced by their commitment and years of loyalty.

Equipment/Capacity:
Whatever the metal, mild steel, stainless steel or aluminium, the company can cut it, bend it and weld it.
The company has a comprehensive portfolio of equipment and plant, including:

• 3 metre Guillotine cutting up to 5 mm stainless steel, and 6 mm mild steel, with 1 metre and 3 metre bending capacity.
• Rolling
• Pressing
• Polishing
• Machining capacity
• Laser Cutting
• Tig, Mig and Arc welding in all materials specs by our Coded welders.

Finishing
Many products can be supplied with a special finish, including; painting, plating, silk screening, engraving, polishing and powder coating.

Customer Service:
This is a key area of strength for this business. The company is a quality driven organisation and has never failed to successfully meet a customer’s requirements.

The company is managed by the vendor, taking care of day to day customer relations; this together with speed of response, price and consistent quality of product ensures significant levels of repeat business as well as new business creation through client testimonials and word of mouth within the market it services.

Key Strengths:
The company is financially strong with a very good asset base and operates from ideal Leasehold premises. It enjoys strong financial performance and it consistently generates impressive profits.

The business is a multi-skilled operation that can undertake a large variety of projects due to the infrastructure it has in place. Both large and small component quantities can be produced side by side. The internal skills are high and the company’s reputation is very strong.

The business is established and profitable with a broad and diverse client base and has regular customers returning year after year. The business retains a high level of historical clients. It has superb internal quality systems and an excellent health and safety record.
The company has earned an outstanding reputation for its honesty, integrity, technical ability, service and reliability.

Growth and Expansion:
The business is well positioned to take maximum advantage of growth markets as they occur such is its ability to provide a diverse range of products and services in house with quick turnarounds. It has the infrastructure already in place to cater for significantly more work whether large or small scale.

It also has the ability to enter new markets should a new owner so wish as it has a sterling reputation in place. It is already seeing growth in terms of new enquiries as its recent marketing activities find new customers around the UK.

The business currently operates a one shift pattern. There is no reason why this cannot be expanded should a new owner look to put more resource in place.

The company has no relationships with in-country agents to take advantage of the potential for overseas sales, this effort could be increased and it is believed would yield excellent results.

Key Opportunities:
This is an outstanding opportunity to build on the existing products, services and customer base of this leading company. With a strong demand and impressive profitability, combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy levels will have every advantage of building on an excellent platform to take this business to its next level.

The business maintains a significant number of satisfied customers, who appreciate the company's superior products and skill sets, attention to detail, value for money and service.

There are many excellent avenues for growth, especially within the current operations capacity. Continued dedicated sales and marketing effort would yield significant levels of additional business and profitability as, the business has been proactive in its approach to sales and marketing in more recent times but as yet has no formal sales team.

Advertising and Marketing:
The business could benefit from a more strategic internal medium/long term sales and marketing planning. It has a basic yet informative website but does very little in the way of proactive marketing.
In saying that the website ranks very well on Google for explicit searches for the specialised products that the company manufactures.

Employees:
The 2 directors/vendors work part-time in the business on a day to day basis. One director assists the manager of the business in dealing with the customers and the other is responsible for financial & administrative duties but the day to day business is run by an experienced production manager.

The company employs:
2x Directors/Vendors
1x Production Manager
1x Welders
1x Subcontractor as required

Business Hours:
The business currently operates 8:00am - 5:30 Monday to Thursday and 8:00am – 1:00pm on a Friday

Premises:
The business operates from fully equipped leasehold premises that are located on an older, well-known business park in the heart of West Sussex. The premises benefits from a recent new roof and are circa 3,600 square feet ground floor area with workshop, toilets, offices and canteen.

The premises also has a yard with ample storage, turning and parking area of circa 10,000 square feet.

The premises offer excellent value for money and are located in a semi-rural location, very close and in easy access of main trunk roads, Gatwick Airport and nearby motorways.

The premises are leased on an informal arrangement which can be made more secure for a new owner if required and we are advised that rent is circa £2,200 per month and rates are circa £6,000 per annum.

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.

2020 was a year affected by Covid. The business was shut for a period and then operated at part-capacity. However since October 2020 it has come back strongly and its annualised numbers are:

• Turnover is c£440,000 per annum
• Adjusted Net Profit after allowing for replacing the owners is circa £107,000 per annum
• Net Assets are circa £300,000 of which the majority is cash

Reason for Sale:
The owners are planning their exit strategy due to retirement.

Support and Training:
The current owners would be happy to provide full training and support at handover to ensure a seamless transistion of ownership. One/both may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.

Asking Price:
The asking price of £450,000 plus an amount equal to net assets is for 100% of the of the issued capital of the business on completion.
Tenure:
Leasehold
Support and Training:
The current owners would be happy to provide full training and support at handover to ensure a seamless transistion of ownership. One/both may be prepared to stay on within the business for a further period of time should a new owner so require, subject to negotiation.
Leasehold Term:
The business operates from fully equipped leasehold premises that are located on an older, well-known business park in the heart of West Sussex. The premises benefits from a recent new roof and are circa 3,600 square feet ground floor area with workshop,
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