Other industries

Skip Hire

Begun just four years ago, this business has rapidly established itself as a major provider of skip hire services within its local marketplace. Offering high quality skip hire this business covers South West London and the northern and eastern areas of Surrey stretching from Richmond, Surbiton and Kingston to the west across to Wallington, Banstead and Carshalton to the east and all towns and villages in between. Fully licensed, registered and insured waste carriers, this business offers a range of skip sizes varying from 4 yards to 12 yards servicing a wide range of domestic and commercial customers. The business has approximately 130 skips in all with the vast majority out on hire during normal trading times. Such is the demand for the services of this business it has recently cut down its geographical coverage to concentrate on fulfilling the demand there exists much more locally. This business has a strong commitment to its customers, providing a full and all encompassing service. Reliable and efficient, aside for the standard skip hire for a maximum of two weeks, this business also offers a ‘wait and load’ service and a ‘same day’ service whilst arranging ‘on-road permits’ where required. A grab service is also available. Certainly not the cheapest this business offers very competitive rates whilst still maintaining healthy margins. All waste is disposed of responsibly, and wherever possible recycled through local Waste Transfer stations. With its high profile presence within a highly concentrated geographical area this business enjoys strong word of mouth recommendation with a high percentage of turnover arising from a solid core of loyal, repeat customers, with some key customers requiring up to five skips per day. This is a well established business which has experienced healthy growth throughout its four years of operation – turnover has in fact doubled in each of its four years. With projected turnover of approximately £530,000 for the financial year ending July 2008, generating pre-tax net operating profits of approximately £90,000 this represents an excellent opportunity for an existing operator within this sector to increase their market penetration or a new entrant to acquire a leading player within a geographically highly concentrated marketplace. Key strengths: This is a very well established business with firm foundations for future growth. It is ideally located within a very affluent area containing on the one hand very large properties and gardens in some of the most prestigious areas of Surrey requiring high levels of maintenance through to the high volumes of terraced houses in and around the South West London area which are amongst some of the properties which change hands most frequently in the UK - often resulting in refurbishment and re-development either by developers or by the owners themselves. Everything about the business suggests an entity far bigger than it really is – from its large stock of varying sized skips and its management systems right through to its very well designed and highly effective website which portrays a very professional image of size and security including a fully operational online skip ordering system – a significant revenue generator and which positions this business in a different league from its local competition. Although operating a relatively short time compared with some of its competition, this business stands out by its excellent reputation for honesty and integrity but above all reliability – winning some contracts with regular customers not on its prices but on the high levels of service it offers. This business believes that satisfied customers will return – a philosophy endorsed by all employees. Drivers, the most customer facing side of the business are very polite and very professional – and one of the key reasons for the success of the business, and its fast growth. Key opportunities: At a key stage in this business’s development there is an excellent opportunity to build on the name and reputation this business has established and to develop the existing business levels and customer base of this company. With a strong demand for this business's services, a new owner contributing fresh ideas, enthusiasm, motivation and investment will have every advantage of building on an excellent platform. Currently run from a home office environment this business would significantly benefit from moving into dedicated premises and investment in the infrastructure of the business – both in human and physical resources. The business has recently reduced its geographical coverage because it can operate to capacity on a more localized basis. Demand is such, both from domestic and Account customers that this business is currently turning work away and refusing new Account applications. Investment in additional vehicles and skip capacity would enable this business to meet this increasing demand with an attendant impact on turnover and profitability. The current Owners believe a step change in the development of the business would arise through the acquisition of a Waste Transfer station, ideally located in the South West London area which would enable the business to establish another base for its activities at the edges of its current operational area as well as significantly increasing its margins by processing its own customers’ waste.

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