Business description

This well established engineering supplies business was born in 1966 out of a family engineering firm dating back to the turn of the century. As such, the reputaion for quality of service and ability to source a wide range of quality engineering products is without parrallel.

Sourcing and supplying engineering products and consumables is the core business of this company. Serving a wide range of diverse companies in the region, the company prides itself on being able to supply any engineering product to anyone, anywhere on a timed delivery. They also operate a trade counter on-site to provide regular customers as and when they need.

An impressive and extensive range of “off the shelf” standard and specialist products is available to clients, including all of the following; fasteners, hand and power tools, protective clothing, pipe-fitting equipment, lifting gear, ropes and slings, and a range of steel stock. The main aim of the company is to fulfil order requests both speedily and within a competitive price structure.

This engineering supplies company can offer a single source service (a “One Stop Shop”) to the manufacturing industry, and an often-used source service.

Being a medium sized company gives a degree of flexibility within the market place, and gives added benefit for the clients. The business is also proud to be a member of the Federation of Small Businesses.

The company specialises in ascertaining the precise engineering supplies the client wants, and ensures those products are readily available when the client needs them. A capacity to single source for clients has thus developed and the product and service portfolio has expanded as a result. The client base includes over 60 key accounts, ranging from a large rail engineering firm, a recycling company, and a major shipping business.

The business has been steady for the last few years, and is well placed in background, location and lack of direct competition to capitalise on the on-going development in East London, including The Olympics, the regeneration of Canning Town, and the continuous building in the London Docklands and wider area.


Equipment:

The warehouse area is well fitted for the storage of a large number of product lines. There is a small work area for customising some of the products prior to supply, and general maintenance. The office includes a number of personal computers and printers for the running of the business. At the front of the unit, you enter into a trade desk area with cash register and order processing equipment.




Customer Service:

For more than 100 years the family name has been known for quality of service and workmanship. For over 40 years, the engineering supplies company has conscientiously focussed on delivering personal service, with flexibility, honesty, reliability, quality and good value. No order is ever considered too small, as clients always come first. The result is apparent in a sustained level of repeat business.

Key Strengths:

The reputation of this engineering supplies company has been built completely on customer satisfaction and word of mouth recommendations. An extensive client base has been established, many of which are currently in expansion. The business carries a wide range of products, and their knowledge and ability to source the right product at the right time and price is a major selling point. Their inherent flexibility, and responsiveness brings in new customers, and keeps them coming back time and again. The central location in a booming region is a fantastic plus point, and no direct competition to the company is an added strength.

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.

Property information

Property:

Leasehold

Lease terms:

The vendor owns a virtual freehold on the property, and is looking to lease the premises to a new owner at a very competitive level of circa £30,000 per annum. Rates are circa £12,000 per annum.

Location:

The vendor owns a virtual freehold on the property, and is looking to lease the premises to a new owner at a very competitive level of circa £30,000 per annum. Rates are circa £12,000 per annum.

The property comprises circa 2700 square foot of warehouse storage and workshop space on the ground floor, with a trade counter of circa 200 sq ft at the entrance to the building. There is a well finished mezzanine floor, which holds a further approx 1500 sq ft, with 500 sq ft of office space.

Other information

Expansion potential:

The sound financial turnover of the company could easily justify expansion of premises and staffing levels, which in turn could enhance efficiency and cost effectiveness. With a marketing focus, and a re-vamp of the current website, the business is well placed to start fulfilling direct sales also. An increase in efficiency by bringing the order processing and client database into the digital age with a modern customer relationship management system, would also see extra profits with minimal overheads. With the location near canning town, this business is extremely well placed for the influx of engineering and construction, including rail links, redevelopment of the local area and the 2012 Olympics.

Competition / Market:

The success of this engineering supplies company has been achieved without any formal advertising or marketing apart from a yellow pages listing. The products and service alone have grown the business. The company has produced a very well presented brochure which could be sent to new potential clients in the area. The company has a corporate website. The Advertising and Marketing of the business are key areas for focusing development and company growth.

Support & training:

The vendor will be delighted to spend time handing over the business to a new owner for continued success. The current Manager will also be happy to stay with the new owners long term should that be suitable.

Reasons for selling:

The vendor is proud of the direction he has taken the business, and the achievements made. He is now looking to semi-retire and enjoy time with his growing extended family

Trading hours:

Monday – Friday: 8:00 am – 6:00 pm