Business description

With over thirty years’ experience in the sector – and under the stewardship of the current owners for the last ten years or so, this business is one of the world’s leading specialists in the manufacture and repair of any type of glassware required for industry, having built an excellent reputation for quality and accuracy, based on its high levels of skill, expertise, experience and unequalled customer support.

This small team of highly skilled craftspeople produces high quality glassware at realistic prices using glass blowing and manipulation techniques. Working with types of glass such as soda, borosilicate and quartz, and as an agent for one of the UK’s leading distributors of laboratory and scientific equipment, this business is capable of meeting all of its customers’ needs in Laboratory equipment and Chemicals. Frequently involved in prototype and developmental work and custom glass fabrication, order quantities can be from one to thousands.

This business can boast some of the best production facilities available in the UK including specialist multi-headed gas torches, high-precision glass holding lathes and high temperature annealing ovens.

To maintain its pre-eminent position in the marketplace, this business has continuously invested in staff development. Such are the high levels of skill required, all of its glassblowers are trained in-house for at least five years. And only with a further five years of practical experience are they considered sufficiently skilled to tackle the most complex of orders this business is frequently required to fulfill. Not surprisingly, this business can name a wide range of long standing and loyal customers including some of the biggest names in the chemicals, pharmaceuticals and petrochemicals sectors worldwide amongst its regular Clients, as well as leading Universities in the UK - .with orders stretching some months ahead always in place for some of the largest and most high profile industrial customers in the world. Its laser engraving service is in no less demand – with virtually any non-transparent material capable of being engraved including aluminium, carbides, ceramics, silicon, stainless steel, titanium, some plastics and wood with almost any application possible from aircraft components right through to promotional merchandise.

One of the few companies in the UK with these unique capabilities, this business has performed consistently well throughout its many years of operation. With turnover of approximately £820,000 for the 2008/9 financial year generating gross profits in excess of £400,000 and pre-tax net operating profits of almost £165,000 after Directors’ remunerations, depreciation and amortization, this represents a rare opportunity to acquire a very well established, highly specialist, manufacturing business with an extensive, loyal customer base and an unrivalled reputation for quality.

Key strengths:

This is a very well established business, very well known throughout the industry. Over the many years of its operation this business has invested heavily in its plant and equipment and its staff. Consequently its production facilities are as good as any available within the UK - at least on a par with, if not better than those available at any of its competitors. The excellence of the production facilities is equally matched by the skills, experience and expertise of its dedicated workforce – with over 130 years of combined experience available to meet even the most demanding of requirements. This business prides itself on ‘getting the job done’ and most importantly, doing it well!

This business is well known for its problem solving capabilities and takes great pride in its involvement in new product development. No job is too large or too small. It offers high levels of customer service, is extremely competitive, flexible and responsive to customer requirements.

This business has an extensive, loyal customer base attracted by high quality design and production offered at a competitive price. Not surprisingly, with low overheads, excellent production capabilities and an extensive, loyal customer base generating high margin regular work, this is a very profitable business.

Key opportunities:

There is an outstanding opportunity to build on the existing services and customer base of this company. With a strong demand for its products and services combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources, particularly in relation to sales and marketing, will have every advantage of building on an excellent platform.

Whilst a new owner would enjoy a very healthy return on investment simply by ‘farming’ the existing customer base there can be no doubt that the recruitment of additional sales resources would enable this business to increase its geographical coverage and its penetration of what is an extremely lucrative marketplace with an attendant increase in turnover and profitability.

Plant and machinery:

This business is equipped with all of the plant and machinery normally associated with a leading specialist glass engineering plant including several small, medium and large furnaces, cutting and grinding machines, glass holding lathes, torches and various hand tools.

The engraving side of the business is equally well equipped with two YAG lasers, a CO2 laser and a water cooler and circulator.

A full inventory of plant and equipment is available on request.

Financial Information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover for the 2008/9 financial year was slightly in excess of £820,000 generating a gross profit of £406,700 and a pre-tax net operating profit of £164,500 after Directors remunerations, depreciation and amortization approximating to £92,000.

The Asking Price of £1,225,000 is for a sale of the shares in the business based on a Balance Sheet value of approximately £580,000 including the freehold of the property.

Property information

Property:

Freehold

Location:

The business operates from premises acquired by its Owners several years ago.

Conservatively estimated to be worth £300,000, the premises total approximately 5,000 square feet across three floors – with 4,500 square feet split almost equally between the Basement and Ground Floors housing the laser engraving shop and stores and the Glassblowing Workshop respectively, with the remaining 500 square feet given over to Administrative and Managerial offices located on the First Floor.

Rates are approximately £4,000 per annum.

Shown on the Balance Sheet, the premises are included in the Asking Price for the business – however the owners would consider a lease, rent and term to be agreed, subject to negotiation.

Other information

Competition / Market:

As well as a Field Sales Representative calling on laboratories to pick up and respond to briefs, this business regards existing clients as their best advertisers and has a large base of satisfied repeat customers, attracting new ones through the most cost effective form of marketing – word of mouth recommendation. The business also has a very well designed and informative website that performs very well in all major search engines for all appropriate search terms.

Support & training:

The owners are happy to assist with a handover and training period to ensure a smooth transfer of the business to new Owners. Two of the owners – both of which are very active on the production side of the business would welcome the opportunity to remain within the business as Glassblowers.

Reasons for selling:

One of the Owners wishes to retire.