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Location: North London Asking price: ?500,000 TURNOVER: c?573,000 GROSS PROFIT: c?312,000 EBITDA: c?150,000 after management costs NET ASSETS ?zero Key Considerations ? Highly reputable Building Services company in the South of England ? Fixed term contracts with Social Housing Associations ? Limited competition in UK for Disabled facilities ? Widely known for prompt and caring customer service ? Skilled, experienced and well-trained staff ? Quality and immediacy of communications ? High levels of customer satisfaction and loyalty ? Excellent margins ? Multiple accreditations and well equipped to meet stringent legislation ? Excellent springboard for future growth including geographic expansion Business Profile The opportunity exists to acquire by way of a share purchase all of the issued capital in this property maintenance and building services company (?the Business?) In London and the south east, the Business has become one of the most successful and respected building services companies for its customers and clients, many of which have been customers since the first days of trading. It operates in the commercial and industrial services sectors including Housing Associations and Construction Companies. Alongside the more typical construction & maintenance activities such as electrical, mechanical or plumbing requirements, extensions, conversions etc, the Business has specialised in the installation or refurbishment of specialist Disabled toilet and Bathroom facilities. In addition to this specialism, the Business has developed a long term relationship with a blue chip UK company and has become such an essential part of the services and maintenance of its properties. The Business is a trusted building services company and is considered a UK leader in the Disabled facilities sector. It has built its name on superior customer service, highly skilled staff, top quality equipment, and unwavering reliability, and all with little marketing or direct sales. The Business is well established, prudently managed and with an enviable client & customer list. It is a leading UK specialist directly connected to UK legislation and commercial building guidelines in the provision of Disabled Facilities. It is extremely well placed to benefit from new owners who wish to build on this credibility and expand the Business? activities both geographically and in the scale of services. Until Covid hit, it was operating under a number of lucrative contracts with Housing Associations and Councils. Those contracts were suspended but have now re-opened. The business is poised to emulate previous years? turnover and has recently secured a contract for 3 years? worth ?400k approx. and a 10 year contract the vendor believes is worth in excess of ?10m over the period. Contracts The company has contracts with: ? Blue chip Housing Association housing to do some ?1million per annum worth of work;; ? Work with a South London Council for adaptations on tender basis ? Work with an East of England Council for adaptations on a tender basis ? Work with Disabled Housing Association disrepair works if needed and clearances ? Work with London Housing Association in its 3rd year with 2 years remaining with potential to extend for another 5 years (total 10 years) could push for more work (routine work approx. 14/15k per month inclusive vat) ? On the panel to work with Youth Association for bespoke larger works with significant scope to increase works. All relationships have significant scope to increase works. The business has the ability to easily achieve ?2m plus turnover within a couple of years and ?5m within five years Financial Information: In 2022 the turnover was ?572,737 and the EBITDA after allowing for a replacement general manager was c?15,000. The asking price is predicated on there being no cash and no debt at completion. The NAV is expected to be zero and there will be a ? for ? adjustment to the final sale price to reflect any movement away from this figure. The business is being offered for sale on a going concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. Asking Price The Vendors are seeking offers for 100% of the issued capital of the company in the region of ?500,000 assuming net assets of Zero and no cash and no debt. There will be a ? for ? adjustment to the final sale price to reflect any movement away from the zero net asset position.
For more information on CR213 - Property Maintenance Company Specialising in Disabled Sector talk to Turner Butler Limited (Business Broker)