Foundry Castings and Pattern Makers Company for Sale

Reference Number: HHH019

Location: West Midlands, UK

Turnover: £885k

Status: Offers Invited

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Click to download Non Disclosure Agreement

Business summary

  • Outstanding opportunity to acquire a profitable, well established foundry business located in the West Midlands UK.
  • Leading, independent and privately owned foundry with a long standing, experienced workforce, and a solid client base. Established in 1983.
  • Debt free with a strong balance sheet and track record of reliable sales year on year.
  • Good client spread with a high level of repeat sales. 80% of business comes from their regular customers. The top customer in 2016 represented only 15% of revenue.
  • Capacity for increased sales with augmented online marketing and sales team.
  • Producer and supplier of aluminium, non-ferrous, steel, stainless steel and iron-alloy castings.
  • Provides a comprehensive service designing and manufacturing bespoke components for a variety of industries throughout the UK and Europe.
  • Onsite pattern making and machining facilities, offering a complete component service, enabling production continuity to ensure products of the highest quality.
  • Components are produced in batch quantities of 300-400 as well as small numbers of prototype and development castings.
  • Established and close working relationships with other foundries, allowing the company to provide products outside their current offering, making them a one stop shop for all customer requirements.
  • Quality management is ISO 9001 accredited
  • All foundry staff are fully trained and compliant with company processes to ensure compliance with ISO requirements. Managed by an experienced foreman capable of running the business day to day.
  • Many high-profile projects undertaken in the UK, which has resulted in positive write ups in relevant trade journals.
  • Located in a desirable area of the UK, the company is ideally placed close to main road routes with easy access to motorways, rail and air links, and easy access to London.
  • The sale represents an excellent opportunity for a larger foundry group with a need to expand capacity or a precision engineering or machining group with a regular requirement for cast components, or for an investor an opportunity to acquire a profitable debt free business with management capability in place and a solid basis and market for growth.

Services Provided

  • Pattern shop
  • Foundry
  • Machine shop
  • Castings (sand & Metal)
  • Materials

Employees

  • 2 shareholding directors and 17 employees as follows:
  • 1 Foreman
  • 1 Health and safety officer
  • 1 Payroll administrator
  • 1 Accountant
  • 1 Pattern maker
  • 1 Fettler shop charge hand
  • 1 Furnace man
  • 7 Foundry operatives
  • 3 Fettlers

Premises

  • The company’s site comprises of three buildings with a total area of 13,600 sq.ft
  • Leased premises. Rent – £28,000 per annum

Reason for sale

  • Following more than 30 years of successful trading, the shareholders are seeking to exit to pursue retirement plans. Subject to terms, they are prepared to offer a consultancy period following completion of sale to facilitate a smooth handover.

Financial overview

YE 31st Dec 2013 2014 2015 2016 2017
Forecast
Sales revenue £944,396 £965,529 £866,113 £879,979 £885,000
Gross profit £241,346 £254,983 £225,248 £253,151 £269,000
Percentage 26% 26% 26% 29% 30%
Adjusted EBITDA £74,619 £76,119 £54,446 £78,707 £103,000
Percentage 8% 8% 6% 9% 12%
  • Adjusted EBITDA is stated having accounted for replacing the directors
Offers Invited

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