Opportunity to acquire a mechanical and electrical infrastructure and building services company with a nationwide client base in London and the main UK metropolitan areas.
In the 12 months to 31st October 2016, the business has achieved a total revenue of £1.99m with an adjusted EBITDA of £283k.
The Gross Profit, Net Profit margins and Adjusted EBITDA have increased year-on-year.
The 2017 forecast turnover is expected to be £2.98m an adjusted EBITDA of £542k or 18%.
There are a good number of desirable clients (13) and the turnover is strong and growing. Clients are mostly drawn from transport and construction sectors in the major UK cities.
Our client is the only mechanical and electrical services partner with a Framework Agreement with its largest transport sector client; this will roll-out over 4 years and see 72 projects at a value of £9.6m to our client. Additionally there is also the possibility of a 2 year extension to the framework.
Its largest client is a major UK constructor heading up large scale projects across the UK’s major cities and conurbations. Our client is a preferred supplier to this large group.
The business was started in 2003 and has grown at a strong but steady pace from a very secure client base. It therefore has an enviable track record for year-on-year growth for those 14 years.
They have an excellent reputation and are highly regarded for being small and reactive and getting the job done. It has a very loyal client base because of its reputation and their sector specific experience is highly regarded.
Our client’s strength lies in Project Management and Delivery using sub-contractor services. It is a small organisation size for projects of this scale and relies instead on sub-contractors. This makes it very lean and agile.
The new framework agreement moves the business to a new level and our client has the people, processes and structure to deliver these well and this secures a guaranteed revenue stream to the business.
This business will be of interest to other infrastructure services companies wishing to acquire contracts, client base, sector experience/track record and revenue. It also represents a good investment for a “micro-Private Equity” firm, or group of sector experienced investors, looking to build a portfolio.
Products and Services:
Mechanical and electrical infrastructure and building services to constructors and infrastructure owners.
A Managing Director with 1 full-time Contracts Manager, 1 full-time Senior Projects Manager, 1 full-time Sites Supervisor, 1 part-time HR, 2 full-time electrical engineers/operatives and 1 part-time FD. The MD, Contracts Manager and the FD are the share-holders in the company.
Office premises in Plymouth of 100 square meters, plus two storage facilities, in Plymouth and one in London.
Rent and rates is £12,200 per annum plus a £5,220 service charge per annum. The lease has 2 years and 6 months remaining and 3 months notice.
Reason for sale:
The Vendors/Directors wish to focus on other unrelated business interests however they are committed to a full handover of the business to ensure a smooth transition into new ownership.