established in 2004 by the current owner, the company has built up an excellent reputation for the supply of steel pipes, primarily to be used in gas and water applications(en10255).the business has grown rapidly over the past 6 years, with turnover increasing each year. The business predominately buys its pipes directly from uk agents/ importers although it can be sourced directly from the steel mill. These are delivered in bundles, split, and then sold on to suppliers, who then cut to requirements, and sell on to plumbers , heating engineers and fabricators etc. The pipes are generally for industrial use and are delivered ex-stock within 1-5 days. The business is easy to run, with low overheads and no seasonal fluctuation. Economic variances do not have any effect on the performance of the business. Equipment very little machinery is needed for this business. There are 2 x rigid 1224 threading machines, 2x chop saws, a fork lift truck (on rental) plus other hand tools, all included in the sale of the business. There is a 5 ton overhead gantry crane within the unit. Customer service: the majority of customers orders received are needed urgently. By holding good stocks, the company are normally able to supply within three working days. Being located in south yorkshire is an advantage as the pipes need to be delivered by specialist flat bed hauliers, of which there are a good number available within close proximity. The company holds mainly stock of, steel tubes in red and galvanised finishes, but also other types of steel tubes for the petrochemical industry. Key strengths: this small company has a good reputation, for supplying a quality product at a very competitive price within the uk profit margins are very good ,and there is excellent scope for growth for the company, both in the uk and overseas. Growth and expansion: the volume of business from a wide customer database has increased greatly over the past six years, with huge scope for further growth. The current owner has worked solely by himself at the business without any sales support or any major marketing spend. He realises that to take the business to the next level would need further investment to attract new clients. All aspects of the business are handled by the owner. All debts are factored out by the company and large savings would be made by handling the debtors in house there is still huge opportunity to increase the uk customer base and become more involved with existing customers. There is a need for the company to build its own web site and develop new sales leads. Key opportunities: the business model is a simple but effective one. It has low overheads, buys competitively and sells with good margins a product which is in constant need and demand. The company will progress further if it invests in extra personnel to obtain new clients and sales. There is a key opportunity within the next two years with the forthcoming, olympic games with stock holding of steel tubes at a premium.
