BUSINESS FOR SALE - A BUSINESS SPECIALISING IN SUB-CONTRACT ENGINEERING, BASED IN THE EAST MIDLANDS (“THE COMPANY”)

A well-established ISO 9001 approved sub-contract engineering company with a wealth of experience, supplying a large cross section of industries, including; Mining, Agricultural, Automotive, Hydraulic Equipment and Domestic Appliance Manufacturers, by providing milling, turning, grinding and pressure testing facilities.

The Director is looking to conduct a sale of the shares, or business and assets, of the Company. The Company is a business specialising in sub contract engineering, offering services across the UK. The Company operates from 3 units in the East Midlands area; 1 unit being sub-let to a 3rd party, whilst 2 of the units is where the Company trades and operates from. The units are long leasehold premises with c.34 years remaining on the lease (with rents received of £15.6k per annum).

The Company services include supplying a large cross section of industries such as mining, agricultural, automotive, hydraulic equipment and domestic appliance manufacturers. The services that the Company provide include; milling, turning, grinding and pressure testing facilities. The Company have added increasingly more modern machinery to their capacity, recently purchasing new generation equipment, giving them the ability to offer advantageous prices to customers no matter what batch sizes they require.

Assets available for sale include; 11 multi spindle automatic machines, debtors, order book of current and future jobs, stock, fixtures, fittings, computer equipment, and other plant & machinery.

Turnover per the management accounts for the period 1 May 2021 to 16 February 2022 was c.£420k, and earlier years’ statutory accounts show c.£468k for the year ended 30 April 2021.

The Company has 8 employees.

To protect the Company’s goodwill and trade, it is proposed that any sale will need to be completed within a relatively short timescale and, as such, this opportunity is only likely to be available for a short period of time.
Following receipt of expressions of interest, and a signed Non-Disclosure Agreement, brief sales particulars will be provided via a data room. Offers for the purchase of the business and/or its assets as a going concern, by way of sealed bids, need to be sent to PKF Smith Cooper by 12 noon on 18 March 2022, together with evidence of funding.

When submitting your offer, please provide contact details of your solicitors and evidence of funding to expedite matters.

If you are interested in pursuing this opportunity further, please contact one of the following for additional information:

Dean Nelson
+44 (0)1332 332 021
Dean.Nelson@pkfsmithcooper.com

Dean Nelson
+44 (0)1332 332 021
Dean.Nelson@pkfsmithcooper.com

PKF Smith Cooper, St. Helen’s House, King Street, Derby, DE1 3EE

This document is directed only to Recipients who may be interested in making an offer that would qualify for exemption under Article 62 (Sale of a Body Corporate), or to Investment Professionals as defined by Article 19 and High Net Worth Entities as defined by Article 49, of the Financial Promotions Order 2005. No other persons should rely on this document.

The purpose of this document is to assist Recipients in deciding whether to investigate the above opportunity. It is not intended to form the basis of any transaction. Recipients must make their own independent assessment of the opportunity and should obtain independent professional advice. The information in this document has not been independently verified by PKF Smith Cooper, which does not give, nor has it any authority to give, any representation or warranty (express or implied) as to its accuracy or completeness.

PKF Smith Cooper is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business and consumer credit activities.