this specialist and highly respected engineering supplies company was originally established by the vendor’s father in 1950. From the beginning, this company focused on supplying the precision engineering marketplace, both locally to the aerospace sector, and further afield across london and the south east to fabrication, maintenance and service engineers. With a loyal, stable and knowledgeable team of staff, the company is the go-to choice for a reliable and efficient service, with the technical back-up needed by qualified engineers in the field. Alongside the main supply of engineering products, the business can offer additional services in-house which general suppliers and competitors cannot, such as providing technical drawings. Being part of an aggregated buying group comprising of over 100 small to medium size companies, the company can purchase supplies at very competitive rates, and compete with other national engineering and tool merchants on price, whilst offering an un-paralleled level of customer service. The business currently supplies to over 600 customers, with further additions daily from direct calls, or from the 2 trade counters that the company operates. All customer records are fully computerized allowing for an efficient service, and the opportunity for targeted marketing. The business supplies to some major international engineering companies in the aerospace and related support sectors, along with a diverse range of smaller specialist firms. Whilst the business follows the 80:20 rule, and 20% of the customers make up 80% of the revenue, the database is wide and deep which offers a stable level of orders, revenue and profits. The business operates from a central warehouse headquarters, where staff handle enquires and orders over the phone, along with managing the day-to-day operations of the company. There is also a trade counter on site at the hq. The company also has a 2nd premises, closer to a 2nd major international airport, where the trade counter can offer goods to local call-in customers. The range of products supplied is very extensive, and the company has a huge level of stock with which to satisfy most orders rapidly. Amongst key brands the company are authorized distributors of major brand tools, including: sandvik, mitsubishi and bott storage, they stock a comprehensive range of measuring and hand tools, fasteners, safety equipment, cutting fluids and lubricants enabling them to become a one stop shop for engineering and industry. The relationships are very strong with some of these suppliers, and as a key authorised dealer, any enquires that the supplier company receives are re-directed to the company, so that they can complete the order. Equipment: the business operates with an industry standard integrated back-office system for stock control, customer relations, internal communication, sales order processing, sales ledger and invoicing. The business utilises credit card payment services and equipment supplied by lloyds tsb. Customer service: customer service is central to the businesses success, and the company ethos of surpassing expectations and offering a reliable, knowledgeable and courteous service at all times has resulted in the company retaining clients, in some cases for over 50 years, and winning new accounts from recommendation. The business operates an out of hours emergency call service, and with such a level of stock and excellent supplier relationships can turnaround most orders in a very timely manner. Key strengths: the history and trade name is obviously a great asset to the business. With established customer relationships, and a wide and deep database of clients the business enjoys stable levels of trade, with excellent data for further expansion. The locations of the operations offer ease of access for the specialist precision and aerospace engineers, and the reputation, stability and training of the staff are a great asset to the business which adds to the bottom line, and keeps customers coming back. Being part of a large buying group, the business can compete with larger general merchants, and keep margins at a reasonable level for driving profit. Growth and expansion opportunities: the vendor has already invested in a separate e-commerce solution, which has started to generate new revenue streams, and support the core business. With marketing to related sectors, the business could easily expand the client base. There are also opportunities to win further approved dealer status with differing suppliers and oems, and expand on the in-house services such as welding, fabrication and technical drawings. The business did expand a number of years ago by the acquisition of a welding and fabrication business, which was originally located at the 2nd premises.
| Ownership: |
no |
| Lease: |
yes |
| Lease terms: |
The rent is around £28,000 per annum, with business rates of around £10,000.
The current rent is approximately £17,000 per annum, with business rates of around £8,000. |
| Location: |
Located in West London, and close to the M25 / M4 and M40 motorways for ease of access, the current lease was signed in 2001, and there is 1 year remaining on a fully renewable 10 year lease. The rent is around £28,000 per annum, with business rates of around £10,000. The business occupies around 2,200 sq ft of space, with an extra 600 sq ft mezzanine floor. The majority of space is devoted to warehousing and storage. Behind the small trade counter area at the entrance to the building is the main management office, occupying approximately 650 sq ft, and a further directors office of around 250 sq ft.
2nd Premises
The 2nd property is located to the South of London, close to the M20 motorway. The premises occupies around 2000 sq ft, with 400 sq ft of office space, and trade counter and a mezzanine floor of around 400 sq ft used for staff facilities and storage. The current rent is approximately £17,000 per annum, with business rates of around £8,000. |
