Business Summary
Turnover for last financial year circa £760,000 p.a.
Gross Profits circa £274,000 p.a.
Adjusted Net Profits in excess of £116,000 p.a.
Additional New Internet Sales Revenue
Ongoing pipeline of future works
Gas Safe Registered
OFTEC Registered
HETAS Approved
Solid fuel showroom (stock circa £6,000)*
Many years historical trading
Fleet of 4 vans
Fixtures and fittings
Limited competition
Training and handover
Websites & Ebay Shop
Goodwill
Business profile:
This business was set up approximately 20 years ago by the current vendors, and provides a comprehensive and fully accredited range of installation and maintenance services, within the domestic heating market. Within this time the business has forged a sterling reputation based on knowledge and technical expertise backed up with comprehensive accreditations and approvals and a friendly yet proffessional approach.
As accredited HETAS, GAS SAFE and OFTEC Registered engineers this company provide a reliable range of services to a diverse range of customers within both the private and public sector be they Local Authorities, Housing Associations, Landlords or Private households. All services comply with Current Building Regulations and Safety Standards, they include:
• New Gas, Oil and Solid Fuel heating installations
• Full service and maintenance programmes
• Boiler Replacements
• Link-up systems (Solid fuel to oil or gas)
• Spare parts
• Chimney sweeping
• Technical fault finding and reports
• Chimney checks and Pressure tests to BS6461
• Chimney re-lining, using both pump lining and twin wall methods. (flexible and rigid)
• Information and advice
• Solid fuel service and maintenance
The business has literally thousands of satisfied clients thoughout Cheshire, Lancashire, Merseyside and Manchester. It enjoys good levels of work from variuos councils and housing associations and private individuals. Furthermore it has just recently got involved again in the governement funded initiatives for heating improvements in private and rented homes. The scope to expand the business in this sector is significant as it has previously undertaken this type of work on a much larger scale.
In addition to the core business above the company has not long developed a specialist solid fuel division that can supply any product associated with solid fuel heating and solid fuel link up systems to gas and oil including exclusive solid fuel stoves, boliers, flue pipes, flues and spare parts. Sales are generated via the divisions unique website and via its own Ebay shop, as well as via a small showrrom facility on site. This part of the business is currently in its infancy and currently accounts for less than 10% of the current sales revenues.However these figures are NOT included within the figues quoted above as it has not yet completed its first trading year. (sales for first year are anticipated to be circa £60,000).
Equipment:
The business has a comprehensive computer software package to run the business and has an interactive E-Bay shop. It also has a fleet of 4 company vans as well as a range of plant and equipment. All vehicles and equipment are included within the sale.
Customer Service:
This business has an excellent reputation based on providing high quality products, service and advice. The business has all the relevant accreditations and registrations in order to carry out its duties. The company prides itself on presenting the highest standards of technical advice and service followed by an after sales service second to none. This is demonstrated by the extremely high levels of referrals and repeat business the company enjoys.
Key Strengths:
• Superb reputation and position in market
• Technical knowledge and quality of workforce
• Superb range of customers including large public sector organisations with large housing stocks
• Ongoing workload and future revenues from servicing, maintenance, repeat business and long term programmes
• Accreditations
• Profit margins
• Low fixed costs
• Limited competition, on the solid fuel side
Property Details
Other Business Details
Premise Details:
The business operates from ideal rented premises situated in a well know industrial estate close to the town centre. The business ahs been here for 17 years. There is a general office, solid fuels showroom, workshop/warehouse and dispatch area as well as toilet, kitchen area and additional office on mezzanine. Total floor area is circa 2,200 square feet. Outside there is ample car parking. There is no lease in place at present but it is understood a new lease would be made available to a new owner if so required. Current rent and rates are circa £1100/month.
Competition:
The business does very little in the way of traditional marketing preferring to rely on word of mouth recommendations and referrals to generate work. In saying that it does have two websites (one for the main business and one for the solid fuels side) as well as an Ebay shop. In addition to this it does also receive exposure through its accredited bodies and their own publications, directories and websites.
Expansion Potential:
There are many opportunities still available to continue growing this successful business operation. The majority of the businesses clients are located throughout the North West and as such the business has literally thousands of satisfied customers. All customer information is available on a database which is ripe for further development to maximise servicing and maintenance revenues further on systems already installed.
As already mentioned the business has just recently re-entered the government funded initiatives for heating improvements in residential properties (by request I hasten to add) and is already seeing a significant amount of new work come in via this route. There is huge scope to expand this side of the business further to cope with this demand as the company’s supply partners would like to direct further works their way.
Solid fuel fires and wood burners are becoming more and more popular due to rising fuel costs and this represents a new segment for the business to develop. It already has a unique internet based division to service the supply to this sector that is in its infancy but already showing good growth. The company has extensive knowledge of the solid fuel merchant network in the UK and could certainly tap into this market further if the resource was available to manage it.
The business is always establishing new relationships with councils and several new partnerships should provide significant growth opportunities to a new owner.
Business Operation Details
Trading Hours:
Monday – Friday: 0800-1600
Support & Training:
The current owners will provide all necessary training and all relevant contacts to allow continuity of trading. The directors are more than happy to stay on for an extended period if so required, subject to separate negotiation. They may also consider a longer term appointment with the new owners if need be
Miscellaneous Details
Reason For Selling:
One of the vendors is looking to retire and it is proving difficult for the business to keep up with the opportunities being put its way with the resources available. Both directors believe the business would benefit from an injection of resource to maximise its profitability and take the business through its next period of growth
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