Building Mechanical Services Company for Sale

Reference Number: HHM086

Location: South East UK

Turnover: £3.7m

Status: UNDER OFFER

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Business summary

  • Outstanding opportunity to acquire a well-established building mechanical services company located in South East England (Thames Valley).
  • The company offers a complete package of building mechanical services, pipework installation and prefabrication services including process systems for industry, laboratory gasses, pharmaceutical and HVAC building services.
  • Founded in 1986, the company is very well established and has long standing and secure relationships with their clients. This is demonstrated by a 95% rate of repeat business from existing clients.
  • The company’s client base comprises of a wide variety of businesses including large government trusts, hospitals and educational institutions. They have a framework agreement in place with a large vehicle manufacturing company, covering all their UK plants, and are the preferred mechanical services provider for this company.
  • The company has use of a fabrication workshop and undertakes the manufacture of small steel structures such as fire escapes and platforms, etc.
  • The company typically undertakes projects up to £2 million in value, subject to the duration of project, and are competent to operate as Principal Contractor on this scale of project.
  • They pride themselves on offering a competitive charging structure without compromising on quality craftsmanship and personal service.
  • Forecasted sales revenue for the financial year to July 2017 is £3.7m with a gross profit of £739k.
  • The company would be an excellent opportunity for a larger company in the same sector and looking for a stronger base in the South East, or for a company looking to diversify into mechanical services.

Services Provided

  • Air conditioning
  • Refrigeration
  • Ductwork – sheet metal
  • Ductwork – plastics
  • Kitchen ventilation
  • Local exhaust ventilation systems
  • Thermal sound engineering
  • Water treatment
  • Commercial heating and plumbing
  • Industrial process pipework
  • Prefabricated pipework and plant rooms
  • Lloyds Class 1 welding
  • Gas fitting
  • Underfloor heating

Employees

  • There are 3 shareholding directors and 24 employees as follows:
    • 1 Senior Project/Contracts Manager
    • 3 Project/Contract Managers
    • 1 Estimator
    • 1 Industrial Gas Supply Manager and Driver
    • 4 Foremen
    • 14 Operatives

Premises

  • 1700 sq. ft. office area
  • 1200 sq. ft workshop
  • 2900 sq. ft yard area
  • Rent of £26,460 per annum (excl VAT), plus £4,700 rates per annum

Reasons for sale

  • The two majority shareholders of the business are at retirement age and would like to exit following an agreed handover period.

Financial overview

Year End 31 July 2012-13 2013-14 2014-15 2015-16 2016-17 (Forecast)
Sales revenue £2,436,075 £5,304,412 £4,391,198 £3,946,268 £3,745,551
Gross profit £419,960 £1,049,344 £767,068 £676,598 £739,466
Percentage 17% 20% 17% 17% 19.7%
Adjusted EBITDA £171,834 £744,653 £458,158 £362,183 £381,351
Percentage 7% 14% 10% 9% 10%
UNDER OFFER

 

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