this unique manufacturing business has developed a large niche over the years. Originally started in 2004 as a partnership, the current owner re-established the operation under a new company name, on the same site, in 2009. The business press 1.5 million units per annum increasing to 3 million per annum on double shift operation, the products are distributed to clients in both the u.k. And europe. The industry produces over 80 million units per annum and this business is in a very strong position for future growth and development with limited competition. The business is unique in the marketplace, by having the facilities to record and master on-site, before transfer to the production plant in adjacent units. With a great reputation for flexible service, and fast turn-around for orders of all sizes, the company is the one of choice for a number of record labels of all sizes through-out the u.k. And europe. The operation is grouped across 4 units on one light industrial park in north london. Currently production is run daily on a single shift. However, there is capacity to increase to a 24 hour shift pattern, which would increase efficiency as well as output, turn-over and profit margin. The business is able to fulfil smaller orders via an established website with automated on-line ordering. This offers customers the ability to upload audio tracks and artwork to the website for full vinyl production. With constant demand from professional musicians, d.j.’s and distributors, the business is well positioned for stable profit levels with great potential for growth. Currently 70% of the business is u.k. Based, with 30% in europe. The european market for vinyl records is large and growing. The business is now in the competitive position to take advantage of the potential to develop further inroads into the european market. Equipment: the business is in the enviable position of owning 8 “toolex alpha” automated steam presses, originally produced in the 1980’s. With a stock of spares, and a small engineering workshop on site to keep them in operation. These presses are extremely hard to acquire now, and in themselves limit the competition, and the ability for new entrants to the marketplace in support of the presses is a large alan ygnis boiler. In the factory the business also owns full cooling, vacuum and ventilation systems, a metal detector, a granulator, a label oven, a hydraulic former and fork-lift truck. In the fully equipped studio, the company owns the following:- neumann vms70 cutting lathe neumann rack-mounted limiter neve mixing desk massenburg 8200 eq tc electronic m5000 digital mastering system, tubetech smc2b valve compressor tannoy and nearfield speakers hhb cd player, panasonic dat player apple mac g4 computer technics sl 1210 deck next to the studio is the mastering area. Within the company owns:- 8 europa films baths & rectifiers 2 pre-plating baths & rectifiers 1 silvering booth with 2 silvering guns 2 back polishers 1 trimer 2 centring machines 2 forming machines 1 compressor in the main office there is seating for 5, with a dell server and 5 dell p.c.’s. The it network includes printers, scanners and specific custom designed software, computerised customer relationship management and accounts software. Customer service: the business prides itself on friendly and flexible service. The office can handle direct orders and queries immediately. With the simple to use on-line ordering in place also, and fast turnaround from order to delivery, the business has a great reputation with customers of all sizes. The focus on the quality of mastering, and finished product means there are limited returns. The business also picks up orders where the competitors fail to meet demand, with production overruns regularly placed by others in the industry. Key strengths: the uniqueness of the offering, and ownership of the specific production plant in a once huge industry is obviously a key strength limiting the ability of new competitors to enter the market, and the competitiveness of those already in the sector. Being a true one-stop shop for the whole production cycle on-site is without competition, as is the flexibility of production runs available. Located close to the motorway network, and with key distribution partners in place in the u.k. And europe, the business can fulfil all types of orders easily. Growth and expansion opportunities: with limited competition, and a competitive price point already, the business is achieving success in developing international business. With extra marketing, and the gaining of some larger orders, the factory can achieve even greater efficiency by moving to a 24 hour cycle, thus avoiding the 1 hour lead time to start the boiler each morning. There is also potential to streamline some of the processes, and expand on the already popular on-line presence to new markets. The overheads across the four units are relatively high due to the short-term nature of flexible office contracts. On-site storage could be greatly reduced, and moved to distributors or cheaper off site warehousing.
