Niche Precision Engineering Company SOLD

Reference Number: HB0205

Location:

Turnover: £1.1m

Status: SOLD

Business overview

–        An outstanding opportunity to acquire a highly successful CNC and precision engineering company with a niche specialism in analytical instrumentation and laboratory equipment.

–        The company has developed specialist skills in the production of highly complex components with the capability to machine, coat and heat treat complex profiles within extremely tight tolerances.

–        The company operates within the niche market of analytical instrumentation and laboratory equipment; it also undertakes work for the aerospace, defence and motorsport customers.

–        The company focuses on batch production of components to customers’ delivery schedules and Kan-Ban call-off, and has developed an outstanding reputation for quality of workmanship and customer care.

–        Despite a dip in sales during 2008 and 2009, the business is experiencing a significant growth with strong profitability and cash generation. Sales in the financial year 2010-11 surpassed levels seen prior to the recession and the business is on track to achieve sales of £1.2m in 2011-12.

–        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 the West Midlands UK.

Products and Services

–        The company produces highly complex precision engineered components using a range of materials including Stainless Steels, Aluminium Alloys and polymers.

–        The company places a priority on delivering quality first time and operates quality Management System in accordance with BS EN ISO 9001-2008.

Employees:

– 2 directors + 22 staff including 2 team leaders, 11 skilled engineers, 10 machine operators, 1 quality/admin and 1 store man/driver.

Premises:

– Leasehold premises in West Midlands UK

Reason for sale:

– To allow one of the two directors to retire. The operations director is however open to staying on in a management capacity for some time to come subject to agreed terms.

Financial overview

Year ending 31st March2010-112011-12
Forecast
Sales revenue£918,129£1,263,680
Gross profit£337,265£501,096
Percentage37%40%
Adjusted EBITDA£140,560£286,605
Percentage15%23%
SOLD

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