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Confidentially offered for Sale
Ref Number: HR01-ABS
Asking Price: £170,000
Location: Maidenhead, Berkshire
Asking. £170,000 inclusive of tools and equipment circa £70,000
Turnover for last financial year: circa £231,000
Gross Profit for last financial year: circa £172,000
The 7 reasons why you should buy this Tool, Plant & Equipment Hire Business.
- Little or no local competition.
- Long standing trading relationships with all major suppliers
- Full range of tools and equipment for most trade and DIY customers
- Superb Up to date website with full eCommerce and online ordering
- A long-established company with loyal customers and significant repeat business
- A Top-Quality Tool, Plant & Equipment Hire business with huge potential.
- All systems and processes are in place including asset management and accounts software.
Business Description:
The business is an independent company committed to providing its customers with a personal, friendly, and local service. This is a unique opportunity to acquire a well-known, local, and independent, Tool, Plant & Equipment Hire Business with huge scope for growth by increasing the product range, expanding delivery area and advertising.
The company operates locally (within 15 miles radius) and has been at the forefront of renting quality tool, plant and equipment to the local trade and DIY markets.
Originally established in 1985, the core business is hire of tools, equipment, and plant to Do It Yourself (DIY) and trade customers.
The business predominantly serves the DIY market (circa 75%), which means they are not reliant on just a few trade customers. Main benefits of this are –
1. The business has a monopoly in the area of tool, plant and equipment hire with literally no competition – the nearest Tool, Plant and Equipment Hire shop is 20 minutes away. People don’t want a three-quarter hour round trip to hire something.
2. Maidenhead is a commuter town with train services to/from London every 15 minutes, with fast trains to Paddington taking just 20 minutes. So huge growth is expected.
3. Growing market – driven by Cross Rail/Elizabeth Line, over 6,600 new flats and homes have been built or granted planning consent locally. The golf course development alone will see up to 2,000 new homes being constructed in 2025. There’s little or no space in most flats or apartments to store anything, even a step ladder, so hire is the only option.
4. This business is part of the “circular economy” where sustainability is a priority. There is a growing trend to “hire - not buy”, especially amongst the environmentally conscious younger generation and professionals.
5. With its nearly 40-year history, the business enjoys a great reputation and there is significant repeat business. from a loyal client base.
Systems and processes:
Asset Management software
The company uses an Industry leading asset management software to track the hired equipment.
Accounts and Invoicing.
The Company uses Sage for invoicing and accounts.
Website:
In the last two years significant sums have been invested in developing a fully e-commerce web portal so customers can book and pay for hires online 24/7.
Premises/Property:
The business operates from premises very close to Maidenhead town center and Rail Station. As it has been trading in the area for 39 years, the business is very well known and attracts a regular clientele from the town and surrounding area.
The business has a driveway and secure yard with storage, parking and good-sized offices which could even be used for another business.
The seller’s family owns the freehold, and they are flexible about selling the freehold or granting a new lease. The premises are exempt from business rates.
Staffing:
The company has two full-time staff, one part-time driver and one part-time bookkeeper. The hire shop is almost totally staff run and managed.
Advertising and Marketing:
The business has just completed building a superb and effective website with full eCommerce and online ordering. All seasonal adverts/brochures are designed, and marketing/advertising is underway. The company is planning to launch the new marketing campaigns in May 2024.
Opportunities for growth:
The business has the capacity to grow by more than 100% in its existing premises and with existing hire assets.
The successful purchaser could vastly increase revenue by hiring to trade customers – builders/developers, gardeners/landscapers, and decorators.
Profits could be significantly increased by an owner working full-time in the business and improve productivity and cost efficiencies.
Focus on large/national builders – there is a huge amount of homebuilding going on in the town and plans to build thousands more properties.
Cross Hire:
Add new assets – as the business often “hires in” equipment from other hire companies. This is known as “cross hire” and is well accepted in the hire equipment Industry. The business has a Cross hire insurance policy.
Increase staff.
To grow significantly the business needs more staff, but current revenues do not justify taking on more people.
Just two staff means when one is on holiday or off sick, the workforce is 50% down. A full-time owner/manager would be a valuable resource.
Reason for Sale.
The business is being sold due to the owner spending very little time there as he is the Founder and Director of another, much larger company which is much more demanding.
Support and training:
The vendors would be prepared to stay on and hand-over and are happy to provide training for an agreed handover period.
Next Step: To Register Interest, you will need to fully complete our Confidentiality Agreement form (NDA).
To Register Interest or to seek additional Information, please contact Abercorn Business Sales e-mail: expert@abercornbusinesssales.com or telephone: 0800-246-1313
Commercial Finance:
Abercorn Business Sales are specialists in highly confidential off-market business sales. Should you require commercial finance, we have a panel of leading commercial finance brokers with access to the whole market to enable you to source the best possible terms.
Call today on 0800-246-1313 or email at expert@abercornbusinesssales.com or visit our website www.abercornbusinesssales.com
Attention Business Owners. We are always in search of quality buyers waiting for you, so if you are thinking of selling your business or would like to acquire another business, please email us to discover the difference that is Abercorn Business Brokers.
For more information on HR01-ABS - Tool, Plant and Equipment Hire Business for Sale - Providing Top Quality Tool Plant & Equipment Hire for Any Project talk to Abercorn Business Sales