Reference Number: HDM169
– Outstanding opportunity to acquire a highly established specialist subcontract component manufacturer and CNC machining company, based in the North East of England.
– The company uses CNC machining to produce a range of critical precision components to the most exacting of customer standards.
– The company provides its customers with an end to end manufacturing solution from the supply of raw materials through to the end finished component but also including all specialist treatments, protective finishing’s and coatings.
– As well as working with all types of mild steel, Inconel, Duplex and Titanium, the company specialises in manufacturing using exotic alloys like 625 and 825 and produces components for a wide range of industry sectors including oil and gas (sub-sea and offshore), valve manufacture and scientific instrumentation.
– Established in 2004 the company has NQA ISO 9100:2008 accreditation and has established itself as a leading sub-contract machining specialist to several of the UK’s leading valve manufacturers.
– The business has shown growth in recent years and is highly profitable. Revenues for the financial year to August 2013 were £2,628,968 with a gross margin of £1,117,080 (42%) and a Net Profit before tax of £765,794 (29%). Adjusted EBITDA for the same year is £783,138 (30%).
– 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 more aggressive marketing.
– The company has invested well in new equipment and technology to maintain its position ahead of the demands of all its niche sectors.
– The business operated at approximately 85% capacity last year on the basis of a double shift for 5 days a week. There is adequate space on site to double the amount of machining capacity.
– The company operates from leasehold premises consisting of 8,800 sq ft of manufacturing and office space and a further 1614sq ft of external storage space, in the North East of England.
– There is a highly skilled and well trained workforce of 14 staff led by a General Manager (non-shareholding) who has been with the business since inception.
Reason for sale
– The reason for the sale is that the Vendor wishes to retire. However he is committed to the appropriate handover to ensure a smooth transition into new ownership.
|YE: 31st August|