Business description

Started in 1985, this family business has grown significantly year after year to its position as the leading heating maintenance company in East Yorkshire.

Initially the business was set up as a heating and maintenance repairs, but in 1989 the first maintenance contract was signed for the domestic market and they have never looked back.
There are now over 3,500 customers signed up on maintenance contracts as well as many other clients who use the companies services on a pay as you go basis.

As a service provider the company gives a round the clock all year round call out facility, all to customers within a fifty mile radius. Installation of new appliances is another facility and service the company offers, many of which then become maintenance customers.

Because of the nature of maintenance contracts, there is a large amount of money which is paid in as monthly standing orders or as cheques/cash paid in advance.This helps enormously in giving the business a strong cash flow situation.

Equipment:

There are 7 commercial vans which are leased, plus 2 cars used by the current Directors.
All other tools and equipment neccessary are included in the selling price.

Key Strengths:

Efforts have been concentrated on becoming the leading heating maintenance contract supplier in the area. This has been achieved by giving an enviable 24hr x 7 day per week service and also being competitive for the customer.

All of the engineers who attend call outs are CORGI approved.

Each maintenance contract includes a guaranteed next day service, normally the same day. It also includes, repairs, parts & labour with a yearly service performed on every domestic heating system. This is on all Gas, Solid Fuel & Oil appliances.

Interest free finance can also be arranged for customers through a third party.

Maintenance contracts account for circa £404,000 per annum. Circa 50% of this figure comes in from monthly standing orders and the balance of this figure comes in either from cash and cheques paid in advance. This gives a guaranteed monthly income and an extremly positive cash flow for the business.

Property information

Location:

The premises are a freehold property with current planning consent and comprise of a ground floor office of circa 2,400 sq.ft with Gas, Electric and Mains Facilities. There is parking available outside for 4 cars.

There is a first floor flat with current rental value circa £400 per month

Planning permission has been granted to extend the business premises and these plans have two years remaining on them.

Other information

Expansion potential:

Domestic contracts could be secured within the current catchment area simply by advertising in local media. However the real opportunity is to expand the business into the lucrative commercial market for contract maintenance. In this sector of the market there are 1000’s of businesses who are untapped and would bring far greater returns in the future.
Entering into this market would mean investment in extra engineers trained specifically for the commercial market, however the rewards would easily out strip the investment

Competition / Market:

Marketing of the business has mainly been with leaflet drops, these have taken place every two years or so. This is an effective marketing strategy which has been very successful in increasing sales and has showed a good return. The last effective mail shot took place over an 8 week period ,delivering 8,000 leaflets each day within a 50 mile radius of the head office.On average this brought in circa 20 new clients per day. The company has a website and the vendor recognises that investment in updating the company website would be a valuable asset. Marketing of the business has mainly been with leaflet drops, these have taken place every two years or so. This is an effective marketing strategy which has been very successful in increasing sales and has showed a good return. The last effective mail shot took place over an 8 week period ,delivering 8,000 leaflets each day within a 50 mile radius of the head office.On average this brought in circa 20 new clients per day. The company has a website and the vendor recognises that investment in updating the company website would be a valuable asset.

Support & training:

The current owner would be happy to fully assist with the training and handover.

Reasons for selling:

The present owner would like to purue other interests.