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Rotating machinery engineering

Reference
S11898
Turnover
£2m to £5m
Sector(s)
Engineering, Manufacturing
Region(s)
West Midlands
Added
22 August 2024

Business description

A well established and strongly profitable engineering business, located in the Midlands.

The business predominantly maintains, repairs and refurbishes rotating machinery, typically used in manufacturing production lines, and food storage etc, including industrial gear boxes, electric motor rewinds, dynamic balancing and pump repairs. It also carries out some general machining work for pre-existing clients.

The company operates from a well-equipped premises, owned by a 3rd party, and employs more than a dozen staff in addition to the directors, who are happy to remain with the business in the medium term, but without the overall ownership responsibilities for the business.

Revenues have grown consistently and are expected to again exceed £2M in the current year, with a stable gross margin of c 56% and  delivering an adjusted EBITDA approaching £0.5M.

The Guide Price sought by the Vendors for 100% of the shares of the Company is £2.0M.  The business will be sold on a debt free, cash free basis to include a Net Asset Value at Completion expected to be in excess of £300k.  The balance sheet contains surplus cash, which the vendors expect to be added to the consideration on completion.

The company will be an attractive acquisition for both a larger trade buyer looking to extend its range of services, client base, geographical coverage  and / or technical capability and also those looking for a stable stand-alone engineering business, with a robust blue chip client base and significant further growth opportunities.

Financials

Turnover (£'000) Adjusted EBITDA (£'000)
2021 (Actual) 1,430 280
2022 (Actual) 1,480 300
2023 (Actual) 1,770 480
2024 (Actual) 2,080 450
2025 (Forecast) 2,100 480

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