National Road Testing Company SOLD

Reference Number: HCM208


Turnover: £424k

Status: SOLD

Business overview

–      An outstanding opportunity to acquire a highly successful national road testing company that specialises in providing measurements of the strength and skid resistance of any paved surface including but not limited to roads, car parks and cycle and bus lanes, throughout the UK

–      The company offers SCRIM and Deflectograph road condition testing surveys and has three highly specialist vehicles that perform these surveying functions throughout the year

–      Having been aware of a gap in the market and the availability of two appropriate vehicles, the owners established the business in 2010. The business generated revenue of £161k in its first year, £284k in its second 8 months of trading (year end date was adjusted) and will generate £423k in the year 2012-13 (confirmed work)

–      Margins are high and the business converted a 23% net profit before tax (NPBT) in 2011-12 (8 months) and is forecast to achieve a 29% NPBT in 2012-13 which converts to 41% adjusted EBITDA

–      Work is committed to the business with often a medium to long term lead time so it is easier to plan resources and have confidence in levels of revenue and profits

–      The business is completely portable with vehicle storage/security as the only facility related issue as the vehicles are of high value

–      There is significant potential to grow the business as the current owners only currently run the SCRIM and Deflectograph vehicles on a single shift basis with no weekends and no winter work.

–      The financial performance to date has been achieved with only two vehicles but a third SCRIM vehicle has recently been acquired by the company which will obviously be a key enabler to achieve further growth. This vehicle will be on the road by March 2013

–      It would easily be possible to bolt on other revenue and profit generating functions like traffic management and out of season work including visual condition road surveys, white lining, white line testing and salt gritting, with a relatively modest investment

–      The business is cash positive and has no borrowings

–      The barriers to entry for other competitors in this market are high due to the cost and lack of availability of the specialist vehicles

–      The owners have developed a robust customer contact and work scheduling process which is easy to manage and would be easily transferrable into new ownership

–      The company has a short flexible lease on 2235 sq ft of vehicle storage and office  premises conveniently located close to the A1

–      There is a pool of contract staff who are loyal to the company and who have been trained in the appropriate road surveying skills

–      Now that the company has established itself with most of the relevant users of road surveying in the UK, there is little dependency on the current owners who are limited to mainly administration of vehicle usage and doing late notice work driving the SCRIM or Deflectograph vehicles

–      The SCRIM and Deflectograph vehicles are maintained to the highest possible standards on a rolling maintenance programme

Services Provided

The company offers SCRIM and Deflectograph road condition testing surveys. Measurement data can be supplied raw or processed and is provided in a variety of industry standard formats including Excel spreadsheet, HMDIF and RCD.


Leasehold premises for vehicle storage in the Nottinghamshire region (not a compulsory part of the sale).

Reason for sale:

The current owners feel that they have taken the business as far as they can within the infrastructure/resources that they feel comfortable in managing.

Financial overview


Year ending 29th February


(8 months)




Sales revenue



Gross profit






Adjusted EBITDA







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