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Business for sale in United Kingdom - Id020-specialist professional audio electronics manufacturer-berkshire

Asking Price: 450,000 £ Real Estate: Lease
Sales Revenue: 600,000 £
Net Profit: 72,000 £
Year Established: 1990
Employees: 10FT
# of family members employed: Not Disclosed
Location criteria:
United Kingdom/City of London/Berkshire

Business types:

Manufacturing

Business categories:

Electrical and lighting products; Electrical Equipment, Appliances & Components ; Other Manufacturing

Business description

this highly respected specialist professional audio manufacturer was established by the vendor in 1990. Originally starting his career as an electrical engineer with bae systems in 1979, the vendor became self-employed in 1988 as a design consultant looking to build on his passion for professional audio engineering and begin manufacturing of his own range of equipment. After successfully producing some well respected pieces, and consulting on design with a multitude of firms, the vendor was approached early on by a company dealing in 2nd hand professional audio equipment to produce their own range of high-end pro-sound equipment, branded under their own name. The company now has the exclusive manufacturing rights to produce for this respected brand, and ships around 50 units per week, ranging in size and cost, from small racking units to large mixing desks destined for professional music studios worldwide. Over 80% of the units produced are for export. The business prides itself on producing electronics with the use of valves where ever possible in the design. Thus, they now have limited competition in the field and are sort after by those who look for a particular warmth and feel of sound that only the company’s range can provide. Over the past 20 years, the company has attained a streamlined process, with a highly skilled workforce who hand wire and assemble key components in a “through-hole” assembly process. The business has continued to invest in the latest tooling and manufacturing equipment to offer highly efficient processes with the attention to the highest of production standards and quality assurance. The ongoing exclusive contract, and highly specialized nature of the end product allows a very stable footing for the business, with a consistent revenue stream. The manufacturing is of the highest quality and with spare capacity there is great room for expansion from this base. Equipment: the warehouse production facility has racking and storage through-out. There are numerous tooled workspaces for both the assembly and testing of equipment. The company invested in an automated flow-solder, lead free solder machine with full ventilation. Customer service: the business has built a great partner relationship with the key pro-audio client. They offer exceptional turnaround and are flexible enough to make sure all orders are completed in a timely manner. With the storage of finished equipment packaged and ready for delivery on-site, the units get from production line to end user n the shortest possible time. The company supplies parts, spares and repair directly to the end user from their base, and via both telephone and internet orders. As always, this side of the business is administered with the utmost attention to detail, and quality of service. Key strengths: as one of the only manufactures of pro-audio equipment in the industry with a focus on utilising valves in the design, the business is unique in the marketplace, and has limited competition. Alongside the core design, the assembly process of the entire catalogue has been refined and streamlined to the point of high efficiency whilst maintaining quality at the top level. Growth and expansion opportunities: with the strength of streamlined manufacturing processes as detailed, there is great room for expansion into other contract manufacturing relationships in a wide spectrum of the electronics industry. There is the capacity and skills available within the business to accommodate this already. With further marketing of the core skills of the business, and developing an online presence away from the key pro-sound brand, the revenue streams can be greatly expanded on both locally and internationally.

Additional information

Additional information: Not Disclosed
Support & training: The vendor is happy to arrange a hand-over period. There is limited training required to manage this easy to operate concern, however he is open to discussions regarding a longer term design consultancy agreement.
Reasons for selling: The vendor is looking to enjoy his retirement after many successful years building this business.
Financing available: Not Disclosed
Inventory / Stock value: Not Disclosed

Real Estate

Ownership: no
Lease: yes
Lease terms: The rent is circa £32,000 per annum, with business rates of circa £11,000.
Location: The business moved to the present location on the A1 corridor in 1995. The unit is modern and well fitted on a small light industrial park. There is currently 1 year left on the lease, with an option to renew for a further 5 years. The unit occupies approximately 4200 sq ft. Partitioned with around 2000 sq ft devoted to workshop and assembly, 1600 sq ft for warehousing (currently sub-let to the key client), 150 sq ft for reception, and 450 sq ft for office space. The rent is circa £32,000 per annum, with business rates of circa £11,000.

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