Specialist Precision Cutting Tool Supplier

Reference Number: HDM220

Location:

Turnover: £2.2m

Status: SOLD

Business overview

–      An opportunity to acquire a highly established supplier of carbide cutting tools & associated equipment.

–      The company has been providing a range of Tooling Solutions to the Engineering Industry for over 30 years.

–      The company specifies and manufactures special tooling needs for a customer’s specific application often including reducing manufacturing costs through increased productivity.

–      The company is a main importer for many of the world’s leading cutting tool brands which are often provided as part of an added value package including advice on manufacturing techniques and component cost reductions.

–      The main product items include Precision Boring tools, Milling Tools & Inserts, Solid Carbide Cutters, Turning Tools & Inserts, Part Off & Grooving systems, Drill Taps & Reamers, Knurling Equipment and Threading Systems.

–      Sales Revenues in the financial year to June 2013 were £2.1m with Net Profit before Tax of £87,658 and adjusted EBITDA of £128,665

–      The majority of orders come from the existing customer base and the majority of new business comes through the companies own website or through the product partner websites. There is therefore significant potential for the new buyer to expand the business through more aggressive marketing.

–         The company has 7 full time and 2 part time staff and operates from one location in South East England with convenient access to the motorway network.

–         The 2500 sq ft business premises is owned by the vendors but are not part of the assets of the company so whilst any buyer could acquire these premises as part of the purchase it is not a pre-requisite.

–         The directors (70 and 63 years old) were in semi-retirement but some key staff departures have necessitated the directors return to full time involvement as well as causing some stress within the business. Their desire is therefore to sell the business rather than continue to participate in the long term.

Financial overview

Year ending 30th June

2011-12

          2012-13 

Sales revenue

£2,305,338

      £2,175,489 

Gross profit

£631,226

£611,137

Percentage

27.4%

28.1%

Adjusted EBITDA

£95,511

£128,665

Percentage

4.1%

5.9%

SOLD

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