Commercial Cleaning Services Business in Central London

Reference Number: HES114

Location: London

Turnover: £620k

Status: SOLD

Business overview

–      Highly profitable and very successful commercial cleaning services business.

–      Clients are based in London’s City and West End.

–      With net profit of 21% and full year revenue for 2012/13 of £617k.

–      Projected turnover for the year end August 2014 is £620k with EBITDA of £135,400.

–      27 clients on rolling service contracts on 3 months’ notice plus 2 clients on 5 year fixed term service contracts.

–      Service contracts account for over 80% of revenue, and the business has exceptionally good client retention rates.

–      Clients come from a range of sectors but the company has a strong track record with banks and government organisations where the trustworthiness is paramount.

–      The company is registered with the British Institute of Cleaning Science, and has both ISO14001 and ‘Safe Contractor’ accreditation.

–      The business has been in operation since 1999.

–      Current sales pipeline opportunities if delivered will increase total business revenue by circa 46%.

–      There has been little real focus on business development in the last few years which offers a significant opportunity to a new owner.

–      The business has very good systems and processes in place that will be of significant value to the buyer in order to replicate the service levels and profitability.

–      The London office is a benefit for securing London-based contracts and of particular benefit for an out-of-area buyer.

 Products and Services

The company offers:

–      contract daily office cleaning for businesses in London’s City and West End

–      supplies of cleaning materials and other paper disposables

–      other specialist on demand services (e.g. carpet, window, computer cleaning),


–      Managing Director, Operations Director and administrator plus 60 part-time cleaning operatives.


–      A rented London office, on a one-month rolling contract, at £300 per month.

 Reason for sale

–      The Managing Director and principle shareholder are looking to retire.

–      The directors will provide a full hand-over to ensure the successful transfer of the business to the new owner.

 Financial overview

Year ending 31st August 2011 2012 2013 2014
Sales revenue £620,192 £599,364 £617,248 £620,000
Gross profit £555,901 £533,384 £550,745 £551,800
Percentage 90% 89% 89% 89%
Adjusted EBITDA £102,839 £106,448 £132,353 £135,400
Percentage 17% 18% 21% 22%

–      The adjusted EBITDA is stated after having charged the replacement cost for the vendors.


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