Reference Number: HCH254
Status: Offers invited
– An outstanding opportunity to acquire a profitable digital copy, printing and scanning business, based in London.
– The company provides large and small format, high quality digital copying, printing and scanning services along with extensive print finishing and collection & delivery.
– The company has an excellent reputation for quality and efficient service, which has enabled them to build an excellent level of client loyalty.
– Typical customers include contractors, architects, engineers, construction companies, property developers, and legal firms.
– Despite a drop in sales over the last few years, the business remains profitable achieving 24% (£80k) adjusted EBITDA in 2012-13 and is confident of achieving 37% (£145k) adjusted EBITDA in 2013-14.
– Significant synergy savings are possible for a trade buyer to increase profits by £60k.
– Circa 90% of the business is recurrent work from the existing client base, which leaves significant potential for the new buyer to expand the business through re-invigorated marketing.
– The company operates from one location to service clients across Central London
Products and Services
– The company offers large and small format, high quality digital copying, printing and scanning services coupled with extensive print finishing and collection and delivery.
– The company places a priority on producing highest quality, responding to customers 24/7, and delivering reliably on-time.
– The company is ISO 9001 and ISO 14001 registered.
2 directors + 4 full time staff (1 production manager, 2 operators and 1 driver) + 1 book keeper part time.
Two leasehold premises in London.
Total rent and rates: £18,400 per annum
Reason for sale:
There has been a level of downsizing of the business over recent years. Whilst the directors have turned the business around over the last 12-18 months, they feel that the company would be better managed by a new owner with more vigour and ambition.
The sale has been instructed to allow the directors to exit the business. However both are open to staying on in a management capacity for some time to come, beyond the usual handover period, subject to agreed terms.
|Year ending 31st March|
The adjusted EBITDA is stated after having paid the replacement cost of the vendors.
Significant synergy savings of over £60k are possible through consolidation of premises, management and administrative costs. Based on the 2013-14 forecast figures, this would enable the strategic buyer to achieve an EBITDA of more than £200k.
The resale value of the plant and equipment is estimated at £75k