Specialist Metal Fabrication Company SOLD

Reference Number: H09261


Turnover: £315k

Status: SOLD

Business overview

–      An outstanding opportunity to acquire a successful metal fabrication business with a niche product and established trade and wholesale client base, located in Kent.

–      Established in 1993, the business has been run by the current owner for 12 years.

–      The business remains profitable and cash generating despite the current economic climate.

–      The business deals with trade and wholesale customers with a wide spread of clients.

–      With a ready-made client list including wholesalers, large fencing contractors, civil engineering companies and government and local authorities, this business represents an excellent opportunity for an architectural metalwork or steel fabrication business to acquire significant additional revenue, new clients, a skilled workforce and valuable equipment.

-        > 90% of the business is recurrent work from the existing client base, which leaves room for the new buyer to expand the business through re-invigorated marketing.

Products and Services

-        The company’s products include:

-        Custom built gates, posts and railings for trade and wholesale customers,

-        Railings and fence posts for security fencing,

-        All types of security gates from hoarding gates to sliding gates.

-        Street name plates and overhead barriers.

-        The unique selling point is their ability to produce gates of any size and specification on an extremely fast turnaround.

-        Their service extends purely to fabrication rather than the design, erection and installation of gates and fencing.

Employees:                The owner + 1 admin and sales staff + 4 full time fabrication staff.

Premises:                   Leasehold premises.

5 year lease starting 1st January 2009 with a 6 month break clause.

Rent: £37.4k / year. Rates: £10.8k / year


Reason for sale:        The owner wishes to retire.

A full hand-over and training is offered subject to agreed terms.

Financial overview

Year ending
30th September
2006-07 2007-08 2008-09 2009-10
Sales revenue £435,612 £479,749 £344,300 £315,000
Gross Profit £125,152 £141,710 £115,049 TBA
Percentage 29% 30% 33%
Adjusted EBITDA before director's taking's £44,869 £57,912 £31,934 TBA
Percentage 10% 12% 9%

* An annualised saving of £33,000 will be achieved in 2009-10 due to two redundancies made in July 2009.


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