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Contract precision engineering

Reference
S11961
Turnover
£2m to £5m
Sector(s)
Engineering, Manufacturing, Miscellaneous
Region(s)
South East England, UK Wide
Added
24 September 2024

Business description

In short: 100% share sale. Consistent profitability since incorporation. Accredited to ISO 9001:2015. Experienced management in situ. Diverse customer base. Established with consistent profitability.

This contract precision engineer would make an ideal acquisition for a trade buyer looking to expand its UK footprint. The company manufactures high-precision parts and machines serving the marine, food, automotive, and renewable energy industries. It has a strong track record with over 260 customers. A core speciality is bespoke machining, fabrication, and finishing services, and it has a reputation for quality and technical perfection. Despite challenges like COVID and the lockdown, its profits and customers are stable.

The business operates from a 20,000 sq. ft. facility in the South West, with extensive machining options. It has manual lathes, mills, boring machines, and advanced CNC capabilities. An experienced and skilled team of over 26 ensures smooth operation and continuity.

Further details and the full information memorandum can be made available to interested parties.

Why selling:

A sale is instructed to let the Managing Director retire. This will also help the shareholders plan for succession after an initial handover. A skilled, long-serving management team can run the business and ensure a smooth transition to new owners. The vendors believe a larger group or new owner would be well-positioned to guide the next stage of growth.

Why the business could be interesting for you:

  • Profitable: Consistently in the black for 15 years.
  • 260+ customers: Providing a stable and diverse platform for growth.
  • Accreditation: ISO 9001:2015 accredited, ensuring product quality and traceability.
  • Comprehensive capabilities: Bespoke engineering with advanced machining, fabrication, and finishing options.
  • Experienced management team: Ensuring seamless continuity and future growth.
  • Turnover: £2.5m+ (2024 draft).
  • 3-Year Adjusted Net Profit: £144,731.
  • 3-Year Adjusted EBITDA: £238,367.
  • Growth potential: Established in key sectors with opportunities to expand geographically and into new markets.

Further opportunities:

  • Expand geographic reach: Enter new territories or expand existing ones.
  • Leverage existing customer base: Opportunities to introduce new services and products.
  • Acquire and integrate competitors: Potential to increase revenues through strategic acquisitions.
  • Target new sectors: Growth potential in emerging sectors like renewable energy.

If this looks of interest, please contact us. We will forward a company summary together with our non-disclosure agreement (NDA)/confidentiality undertaking for completion, signature, and return.

Financials

Turnover (£'000) Adjusted EBITDA (£'000)
2020 (Actual) 2,000 224
2021 (Actual) 2,180 222
2022 (Actual) 2,758 122
2023 (Actual) 3,000 483
2024 (Actual) 2,537 162

Reason for sale

Retirement sale. Succession. Ops team in situ.

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