Business description

This is an excellent opportunity to aquire a well run and profitable business which specialises in commercial kitchen installations working to specific design criteria, supported by a superb project management team.

Well established, they supply all sections of the catering industry from one off items to full specialist kitchens. The company offers a full turnkey solution to their clients with designs produced on the latest 3D systems offering the client a drawing to the highest specifications.

The senior staff have over 30 years experience in their specialist field of catering equipment and assist their clients with all of their requirements. They offer their clients a reliable and effective proposition with an excellent after sales service earning a reputation within their field as one of the finest commercial catering operations around. This has led to company being responsible for the supply and instalation for some of the UK’s finest and leading venues, including sports stadiums, colleges, schools, hospitals, local authorities and prestigious businesses.

The business runs smoothly and is profitable with substantial work in progress plus contracts in hand. The business is varied with the public sector accounting for circa 75% of the work and the private sector accounting for the circa 25%. The current owners have built up solid business over the years and believe that new owners will benefit in years to come from the companies excellent reputation and first class business principles.

Key Strengths:

This is a well established and financially sound company with excellent historic trading figures

The business has a database of over 1,000 customers throughout the public and private sector, some of which are regular repeat clients. The company have been responsible for a number of high profile contracts throughout the UK and are continually tendering for new business.

The company has an excellent supply chain of reliable, first class manufacturers who they have worked with over the years. Within the company head office there is a demonstration kitchen for chefs and caterers who can test out products before they buy or give the go ahead. This is a unique facility which helps the decision maker to purchase the correct equipment for their catering facility.

This is a busy all year round business who are constantly looking for new opportunities. They have accreditations with the Hospital Caterers Association, the Local Authority Caterers Association, the National Association of Care Caterers and the Foods Service Consultants Society

There is a highly experienced team of staff who have over 30 years worth of knowledge within the catering industry to draw from. They are able to utilise 3D design systems, including a solid works software bespoke system which has been modified for their specific needs, allowing clients to get a better understanding of how the project will look on completion. The company are able to offer their clients a full project management facility allowing the client to relax knowing their business is safe in the hands of the experts.

Financial Information:

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.

The turnover is circa £2,200,000 per annum with Gross Profits of circa £520,000.

Property information

Property:

Leasehold

Lease terms:

Rent and service charge is circa £20,000 per annum with rates of circa £6,132 per annum. The lease period for the premises ends in 2012 with a review with an option to renew if required.

Location:

The business runs from a circa 5,155 square feet unit including circa 1,200 square feet offices and reception, on a busy industrial estate close by to a major motorway link.

The unit is on two floors with the downstairs housing the reception area, warehouse, technology showroom centre and staff room. There is a mezzanine floor at the back of the warehouse which is used for storage. Upstairs there is a main open plan office with a separate office for the two joint MD’s.

The premises are fully alarmed with the warehouse secured by steel roller shutter doors.
Rent and service charge is circa £20,000 per annum with rates of circa £6,132 per annum. The lease period for the premises ends in 2012 with a review with an option to renew if required.

Other information

Expansion potential:

Whilst the company are busy and continually tendering for new business, their resources are stretched to the limit. The owners have suggested that they are now dividing their time thinly between jobs. Further experienced personnel will be needed if the company wants to expand.

The company continues to be awarded contracts but could easily increase the work load by developing existing markets within the private sector through football and cricket clubs.

New owners can build upon the solid foundations that the business has laid down and with fresh enthusiasm and investment in the company they can increase the turnover and profits.

Support & training:

The owners would be happy to help out with a smooth transition of the business and help in anyway possible. They are prepared to help for a period of time to introduce the new owner to all of the major connections that the company deal with on a regular basis.

Reasons for selling:

This is a genuine retirement sale for two of the three directors.