Commercial Catering Equipment Supply and Maintenance Company for Sale

Reference Number: HHS066

Location: London and home counties

Turnover: £470k

Status: UNDER OFFER

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Business Summary

  • Outstanding opportunity to acquire a business for the supply, installation, service and repair of commercial catering equipment in the London and home counties area.
  • The sale offers an outstanding opportunity to an existing catering or electrical equipment or gas engineering maintenance business wishing to expand its client base and/or geographical coverage.
  • Clients include restaurants, hotels, housing associations, large corporations, the leisure trade and schools. Many of these clients are household names or major brands in the restaurant space.
  • Established in 1973 the company has built a strong and enviable track record, and a very loyal client base
  • Excellent reputation for high quality service and customer care
  • In the 12 months to 31st January 2017, the business has achieved a total revenue of £416k with an adjusted EBITDA of 17% at £71k.
  • The business’ turnover has been consistently within the £430k to £470k range over the last 5 years
  • 2018 is set see revenue up to £470k and adjusted EBTIDA at 11%.
  • The business serviced over 40 clients in 2017
  • Revenue is generated from annual maintenance contracts, currently £68k per annum or 16.3% of revenue, 72% or £304k of revenue comes from service and repair to client’s equipment and the remaining £45k (or 10%) from supply and installation of new equipment
  • The largest client accounted for 12.7% of 2017 turnover or £53,141
  • The top 10 customers account for 58% of revenue in 2017, whilst the top 20 accounts for 75%. There is a good spread of income from across the client base
  • The vendors both work part time in the business and business is now delivered by a very capable team of 4 engineers supported by an excellent admin team.
  • The vendors would be replaced by an able General Manager at a cost of £35k full-time.

Products and Services:

  • Supply, installation, service, maintenance and repair of commercial catering equipment and facilities

Employees:

  • 2 Directors with 4 full-time engineers and 4 part-time employees in admin and accounts

Premises:

  • Office premises in Essex with easy access to central London and the home counties
  • Rent and rates is £9,100 per annum

Reason for sale:

  • The Vendors wish to retire from this business and are committed to a full handover of the business to ensure a smooth transition into new ownership.

Financial overview

Forecast
Year ending 31st Jan20142015201620172018
Sales Revenue£453,325£433,385£469,276£416,845£470,000
Gross profit£172,466£174,889£192,734£206,649£205,000
Percentage38%40%41%50%44%
Adjusted EBITDA£37,970£35,904£54,119£70,841£51,510
Percentage8%8%12%17%11%

Adjusted EBITDA is stated having accounted for the vendor’s replacement cost.

SOLD

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