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Business for sale in United Kingdom - Gf034-construction company for the rail sector-north east england

Asking Price: 495,000 £ Real Estate: Lease
Sales Revenue: 457,000 £
Net Profit: 200,000 £
Year Established: 1998
Employees: 11FT
# of family members employed: Not Disclosed
Location criteria:
United Kingdom/City of London/North East
Relocatable

Business types:

Construction

Business categories:

Heavy Construction ; Other Construction

Business description

this is a rare opportunity to acquire a small, well run independently owned construction company that works solely for the rail sector. They have worked in the rail industry for over 15 years and in that time have achieved a good name and reputation for their quality of work and their reliability.

 

the company normally works as a sub contractor with major construction companies such as network rail, balfour beatty, amey, lambert smith hampton, may gurney, to name but a few.  they do hold “link up” qualification which is audited by network rail to iso 9001 standards.  without being audited and achieving the accreditation the company would not be allowed to work in this sector of the industry. The link up qualification is becoming more difficult to acquire as the rail sector is not looking for any new contractors.

 

the company has a wide ranging portfolio of skills as they are called upon to do a host of different civil engineering conracts. These include, bridge repairs, station re-furbishment, fencing, level crossing works, track access requirements, general maintenance and supply of labour.

 

this is a well established and highly profitable business which has a continuous income stream from the rail sector. They have a team of time served and skilled tradesmen on board with a number of self employed sub contractors used for some of their larger jobs. The company takes on enough work to keep them fully occupied all year round with the prospect of extra work, should they wish to take it on. The business is easy to run and has their link up audit in place for 2011 ( awarded annually). The owners believe that they have taken the business as far as they can with their limited skills and there are great opportunities for new owners to grow this business. 

 

equipment:

 

all of the vehicles and equipment are offered within the sale price of the company, including, one transit pick-up, bobcat, seven ton truck, digger, concrete mixer, compressors, saws, and other machinery and tools.

 

key strengths:

 

this is a well established and profitable company with low overheads that has an excellent name and reputation within the rail sector. They are known as being a reliable contractor whose work is of the highest standard. They have been successfully audited for the past fourteen years and have their current “link up” accreditation in place. The link up accreditation is becoming increasingly difficult to obtain as the rail sector have enough accredited suppliers available and are not looking to take on any more companies at present.

 

 

they have a team of well paid, time served and skilled tradesmen in place and are never short of casual labour if needed for some of their larger contracts. The business has been developed in such a way that it can cater for even the most difficult of tasks. The company also operates throughout the uk.

 

growth and expansion:

 

the business has enjoyed steady growth over the years and the two partners have now reached a stage were they believe that it would be an ideal time for new owners to take the business forward to the next level. There are a number of initiatives that can help the business grow.

 

because this is a small independent concern, they do not take on or tender for the bigger jobs. This would need financial investment putting into the company to employ further tradesmen plus they would certainly need a quantity surveyor. This could then help them tender for lucrative maintenance contracts which at present are handled by other larger constructors.

Additional information

Additional information: Not Disclosed
Support & training: The partners would be happy to help with a smooth transfer of the company in any way possible and would be prepared to stay on for a period of time and work with the new owners.
Reasons for selling: They have now reached a stage were they genuinely believe it needs new owners to expand the business and take it to its next level
Financing available: Not Disclosed
Inventory / Stock value: Not Disclosed

Real Estate

Ownership: no
Lease: yes
Lease terms: Rent is £6,886 per annum with rates of £2,349 per annum. The lease is on a rolling three month contract.
Location: The two partners run the business from a small 1,500 square foot lock up industrial unit, which stores all the equipment. Rent is £6,886 per annum with rates of £2,349 per annum. The lease is on a rolling three month contract. They also work on a daily basis from their own homes where each has an office. The business is fully re locatable, as contracts can be anywhere throughout the UK.

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