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Warm air industrial heating

Reference
S6317
Turnover
Less than £0.5m
Sector(s)
Engineering, Service industries
Region(s)
North West England
Added
18 July 2019

Business description

Installation of new and reconditioned warm air heating systems; service and repair to those systems; and supply of spare parts for gas, oil and LPG warm air heaters.

The business has been operating for over 50 years and has developed a strong reputation in its sector. These services are currently provided by a team of Gas Safe engineers. The team consists of one engineer and one trainee, overseen by an Operations Manager.

Highlights

  • A total of 203 clients have used our services in the past 12 months, of which 161 are currently on service contracts.
  • The customer base is well established with numerous customers having been a customer for well over a decade –indeed 45 clients who used the Business back in 2002 were also a customer in the last 12 months.
  • The Business’s largest client in the last 12 months has 4 sites and has spent c. £188,000 over the last 3 years.
  • In addition to the customer relationships, contracts and other IP, stock and fixed assets that would be included in the Sale. Stock has a current stock value of c. £25,000 (excluding VAT). Plant/machinery has a current value of c. £12,000 (excluding VAT).

Financials

Turnover (£'000) Adjusted EBITDA (£'000)
2016 (Actual) 566 127
2017 (Actual) 324 -2
2018 (Actual) 399 33

Opportunities

  • Service contracts - The service contracts are a key aspect of the business as these not only maintain turnover throughout the quieter summer months, but also generate repair and installation work throughout the year.The Directors believe that there is an opportunity to sign up more contracts from existing customers as 42 of the 203 customers who used the Business last year do not have a service contract.Current service contracts range from £100 to £9,000 per annum. Taking an average of £500 per contract for those 42 potential customers, this would increase turnover by £21,000. However,turnover would increase by significantly more than that as service contracts generate a high level of additional repair and installation work.
  • Dedicated sales manager - A dedicated sales manager would be able to source new customers requiring installations, repairand servicing work.

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