Reference Number: HES114
– Highly profitable and very successful commercial cleaning services business.
– Clients are based in London’s City and West End.
– With net profit of 21% and full year revenue for 2012/13 of £617k.
– Projected turnover for the year end August 2014 is £620k with EBITDA of £135,400.
– 27 clients on rolling service contracts on 3 months’ notice plus 2 clients on 5 year fixed term service contracts.
– Service contracts account for over 80% of revenue, and the business has exceptionally good client retention rates.
– Clients come from a range of sectors but the company has a strong track record with banks and government organisations where the trustworthiness is paramount.
– The company is registered with the British Institute of Cleaning Science, and has both ISO14001 and ‘Safe Contractor’ accreditation.
– The business has been in operation since 1999.
– Current sales pipeline opportunities if delivered will increase total business revenue by circa 46%.
– There has been little real focus on business development in the last few years which offers a significant opportunity to a new owner.
– The business has very good systems and processes in place that will be of significant value to the buyer in order to replicate the service levels and profitability.
– The London office is a benefit for securing London-based contracts and of particular benefit for an out-of-area buyer.
Products and Services
The company offers:
– contract daily office cleaning for businesses in London’s City and West End
– supplies of cleaning materials and other paper disposables
– other specialist on demand services (e.g. carpet, window, computer cleaning),
– Managing Director, Operations Director and administrator plus 60 part-time cleaning operatives.
– A rented London office, on a one-month rolling contract, at £300 per month.
Reason for sale
– The Managing Director and principle shareholder are looking to retire.
– The directors will provide a full hand-over to ensure the successful transfer of the business to the new owner.
|Year ending 31st August||2011||2012||2013||2014
– The adjusted EBITDA is stated after having charged the replacement cost for the vendors.