Independent Software Vendor – Road Haulage Sector

Reference Number: HFM078

Location: East Anglia UK

Turnover: £676K

Status: SOLD

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Business Summary

  • Opportunity to acquire an innovative provider of business management; transport management and telematics software and hardware products to the haulage and distribution industry.
  • There is a high level of renewable income and products are mainly provided on a subscription based / SaaS model.
  • The core customer base is long standing and relationships are very strong.
  • The company has completed a number of significant haulier-to-customer integration projects across the client base meaning clients are very “entangled”.
  • Significant recent development has created a refreshed product set with some exciting USPs, putting the business in a strong position to compete.
  • There is a strong and experienced development team, capable of working up to enterprise level, led by a visionary Product Development Director.
  • Currently based in East Anglia with a nationwide client base.
  • History:
    • Founded in 2003 as a systems integrator offering services to mid-sized clients, launched first haulage product in 2007.
  • Increased haulage and distribution offering and client base from 2010.
  • Restructured over 2013/14 including disposal of systems integrator business to create the focussed and niche haulage and distribution provider of today, which is ready for growth.
  • The sale represents an exciting opportunity particularly for a complementary software or telematics provider or installer. Equally the business could offer a serious capability for a 4PL, large haulage or distribution business or pallet network wanting to add a significant competitive advantage through technology and high levels of efficiency.

Products and Services

Natively integrated products and services include:-

  • A haulage and distribution business order and transport management system.
  • A mobile/in-cab application connecting drivers to end-to-end workflow and back-office operations.
  • A vehicle tracking and driver behaviour system.

Employees

  • The Product Development Director heads a very strong team of seven, including a Finance Manager, a Lead Developer Architect and a Lead Product Support Specialist.

Premises

  • The business is located in a prime position in 892 sq.ft. of leasehold offices with car parking. It includes the use of a separate communal kitchen, staff area and board room. A break in the lease has been agreed for January 2018.
  • The total accommodation costs including rates and utilities are £2240 per month.

Reason for sale

  • After disposing of one arm of the business and restructuring to focus on products rather than services, it was decided that only one of the three Directors/Vendors, the Product Development Director (now the MD), would be required long-term and that new ownership would better enable growth and further development.
  • The new Managing Director would look to continue his involvement with the business under new ownership and has led the business for most of 2015 with only a very light touch from the other directors.

Financial overview

Year ending 31st March2013201420152016 Forecast
Sales revenue£1,096,791£1,222,972£836,168£676,387
Gross profit£185,922£607,081£411,316£365,311
Percentage17%50%49%54%
Adjusted EBITDA-£295,215£290,151£120,137£211,916
Percentage-27%24%14%31%
SOLD

 

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