Heating, Ventilation & Air-Conditioning Maintenance & Installation Company for Sale

Reference Number: HGS173

Location: South East England

Turnover: £880k

Status: UNDER OFFER

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Business Summary

  • Outstanding opportunity to acquire a heating, ventilation and air-conditioning (HVAC) installation and maintenance company in the Greater London area.
  • In the 12 months to 31st March 2016, the business has achieved a total revenue of £802k with an adjusted EBITDA of 21% at £167k.
  • This turnover was up 15% on the previous year and turnover growth has averaged at 15% per annum over the last 4 years.
  • The 2016/17 forecast turnover is expected to be circa £880k with an adjusted EBITDA of over £180k (21%).
  • The business serviced over 90 clients in 2015/16. The largest client accounted for 11% of 2015/16 turnover.
  • The business revenue is generated from on-going maintenance contracts, repairs and projects for contracted clients and new installations for new clients.
  • Approximately 80% of revenue is generated from clients on maintenance contracts.
  • The top 11 customers with maintenance contracts account for 53% of revenue in 2015/16 and the maintenance contract element accounts for 25% of that revenue.
  • The business was started in 1993 and has a strong and enviable track record for year-on-year growth for those 23 years of trading.
  • It has a very loyal client base with some very established household names included in a premium set of business customers.
  • The business primarily services commercial buildings and offices, leisure businesses, hotels and schools in London and the Home Counties.
  • The business is run day-to-day by a very capable team of 5 engineers headed up by a highly experienced General Manager, supported by an administration and finance manager.
  • The vendor/director will be happy to provide a full hand-over to ensure the successful transfer of clients and contracts.
  • The sale offers an outstanding opportunity to an existing HVAC, Energy Management or electrical services business wishing to expand its client base and/or geographical coverage.

Products and Services

  • A provider of heating, ventilation and air-conditioning solutions (HVAC) to commercial properties. Services include design, installation and contracted maintenance and repair.

Employees

  • 1 Director with 1 full-time General Manager, 5 full-time engineers and 1 full-time admin and accounts manager.

Premises

  • Office premises in South East London with easy access to central London.
  • Rent and rates is £9,800 per annum and a one-year lease with 6 months remaining and 3 months’ notice.

Reason for sale

  • The Vendor/Director wishes to retire however he is committed to a full handover of the business to ensure a smooth transition into new ownership.

Financial overview

 
Year ending 31st March20132014201520162017

Forecast

Sales Revenue£557,568£704,578£698,157£801,958£883,000
Gross profit£176,657£233,531£255,734£279,307£308,000
Percentage32%33%37%35%35%
Adjusted EBITDA£60,480£99,873£134,137£166,676£183,000
Percentage11%14%19%21%21%
  • Adjusted EBITDA is stated having accounted for the vendor’s replacement cost.
SOLD

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