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Heating & plumbing merchant

Reference
S11830
Turnover
£10m to £25m
Sector(s)
Electricity, gas & water supply, Engineering, Service industries
Region(s)
South East England, South West England
Added
23 July 2024

Business description

The company is a highly regarded independent plumbing and heating merchant, operating across South England via a number of strategically located trade counters and showrooms, and nationally via its successful e-commerce site.

Having established a significant client base and secured a strong market share within its core operational areas, the company is primed to experience steady growth over the coming years, with its efforts to enhance its offering
to meet its clients’ evolving requirements ensuring that it continues to stand apart from its competitors.
The shareholders are now offering the company for sale as part of their retirement plans, whilst ensuring that a structure is in place to support the company on its projected growth trajectory.

Highlights

  • The company offers an extensive selection of hundreds of products, benefitting from a strong relationship with a leading national buying group, which enables it to secure highly competitive pricing and maintain excellent margins. 
  • Operates nationally, predominantly working with clients in the repairs, maintenance and improvement (RMI) market. 
  • Currently works with over 670 active clients and benefits from excellent retention rates, with 90% of clients providing repeat business and several relationships spanning over 20 years. 
  • Operates from a number of ideally located sites in South England, allowing it to provide rapid support for clients in the region, which has enabled it to secure a significant market share. 
  • Highly experienced and dependable management and operational teams in place, possessing the skills required to dependably manage and grow the business, post-sale.

Financials

Turnover (£'000) Adjusted EBITDA (£'000)
2020 (Actual) 17,824 1,604
2021 (Actual) 20,095 1,725
2022 (Actual) 21,044 1,876
2023 (Actual) 21,560 1,320
2024 (Forecast) 18,671 906
  • Achieved turnover in excess of £21.5 million in YE23, with an adjusted EBITDA of £1.3 million. 
  • Turnover projected to reach £18.6 million in YE24, with an adjusted EBITDA exceeding £900k. The drop in recent years is a result of general market conditions and the restructuring of the business. 
  • Benefitting from a significant and diverse client base, the company has no reliance on any key clients to generate revenue. 
  • Maintains consistently strong gross profit margins, averaging 26% across the last five years. 
  • The growth of the company’s e-commerce site in recent years has made a significant impact on revenue, with online sales now accounting for 36.56% of turnover.

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