Scaffolding Contractor Specializing In General Building For Sale

Business description

This business was formed in the late 1980’s and since then has grown into one of the largest scaffolding companies locally, primarily servicing the London area within the M25. Avoiding the ‘new build’ market the vast majority of its turnover arises from the general building, refurbishment and painting and decorating trades. Having been involved in the scaffolding business since leaving school, the current owner has utilized all of his experience and knowledge to develop an operation enjoying significant growth, particularly in the most recent years, as a result of providing high levels of customer service and reliability, all at a competitive rate.
With a very large and diverse customer base, this business provides a comprehensive scaffolding erection and hire service for all types of requirements from the individual who simply needs a platform for an extension, to the large company that requires scaffolding for maintenance or refurbishment purposes. Typical contract sizes can range from £2,000 for a small works project with a mid range project valued between £10,000 - £15,000.
This company is a very service oriented, customer driven business and offers a professional reliable and efficient service to all of its customers. It goes out of its way to understand its customers’ requirements and sets out to exceed their expectations – something it always achieves as demonstrated by the significant levels of repeat business and recommendations it receives. All of its work is split between the trade and domestic arenas – with an approximate 60: 40 split in favour of the trade. Such is the demand for the services of this business it is almost constantly booked up for weeks if not months ahead.
As much as this business is customer driven it is equally, if not more so, committed to safety and safe working practices. As such, its Health and Safety policy requires that all equipment is very well maintained and that employees carry out their work in a safe, correct and professional manner with the highest regard for the safety and well being of all persons and property. As a company it ensures its policy and commitment to safe working practice is maintained at all times.
This is a business demonstrating significant growth. Turnover for the financial year ending March 2007 was approximately £585,000 generating gross profits in excess of £200,000 and pre-tax net profits of almost £100,000 excluding Directors remunerations. Turnover for the 2008 calendar year is set to reach £1 million with a commensurate profits increase. As such, this represents an excellent acquisition opportunity for an existing operator to extend their penetration of this very lucrative marketplace or alternatively for a new entrant looking to establish a foothold in this sector.
Key strengths:

This well established, well-respected business enjoys an excellent reputation within the industry for reliability, honesty and integrity. It is open with its Clients letting them know of any issues or difficulties with a project well ahead of time rather than letting them down. It is well known amongst its Clients for being cost effective, efficient and working well within time constraints to ensure contracts are completed fully to the Client’s satisfaction. As a result the business has grown significantly in recent times with high levels of repeat business and new customers drawn to it as its reputation has grown.

The Company has grown considerably in recent times and achieved sound financial strength. Many of its customers have been dealing with this business from Day One!

The business has a good level of stock – an appreciating asset in the current climate. It can also boast a loyal, highly skilled and experienced workforce of 19 full time staff – 17 of which are scaffolders who ensure projects are carried out in a safe and organised manner. A site survey is always carried out prior to any job being undertaken and written quotations are supplied to clients detailing pricing and exact requirements. The business prides itself on its level of expertise and the high levels of customer satisfaction it achieves.

Key opportunities:

There is an outstanding opportunity to build on the existing products, services and customer base of this business. With a strong demand for its service combined with a capacity to increase turnover, a new owner contributing fresh ideas, enthusiasm, motivation and investment will have every advantage of building on an excellent platform.

This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth not least of which is to invest more in advertising – by leveraging its excellent reputation for reliability, efficiency, honesty and integrity this business could expand by increasing customer awareness, particularly as there is never any shortage of potential customers looking for a competitive quote.

Quality Assurance:

The Company owns vast stocks of scaffolding equipment, which is consistently maintained to an extremely high standard, prior to being dispatched to site.
Plant and equipment:

The business has all the necessary plant and equipment normally associated with a business operating in this sector comprising approximately 100,000 feet of scaffold tube, approximately 20,000 fittings, 5,000 boards, approximately 60 x 27 foot beams, 60 x 20 foot beams and 20 x 13 foot beams, 150 assorted ladders and 40 assorted wheels and ropes.

The business also owns two 7.5T lorries, two half back vans, two Escort vans and 1 x Ford KA van.

Property information

Property:

Leasehold

Lease terms:

Stock when not on site is held in a yard leased from the Local Authority totaling 1,350 square metres in all, split almost equally between a large hangar, yard space and a number of outbuildings. The original seven year lease has five years remaining. Rent and Rates total £17,463 per annum.

The yard is located within easy reach of the M40 and M25 motorways offering excellent access throughout London and the South East.

Location:

The business is currently managed from a Home Office environment and as such this part of the business is easily re-locatable.

Other information

Competition / Market:

Having been established for twenty years and with a significant loyal, repeat Client base ensuring the business is frequently operating to capacity this business has had little need for marketing and advertising in the past – not even appearing in the major directories such as Yellow Pages or Thomson’s. Perhaps its most prominent advertising presence is its signwritten vehicles acting as mobile advertising hoardings within its local marketplace. The business does not even currently have a web presence, which would certainly help to take the business on to the next level. By far the most cost effective marketing for this business however is the strong word of mouth recommendation, testimony to the excellent reputation this business has built up.

Support & training:

The current owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners

Reasons for selling:

This is a genuine retirement sale. After twenty years in this business the current Owner believes the time is right to pass it on to new Owners to build upon the excellent foundations already laid.