Business Offered For Sale: On-Site Paint Spraying, Cladding & Shop Front Repairs.
Harrisons Business Recovery and Insolvency Limited anticipate being appointed as Administrators of a Company based in South East England which provides on-site paint spraying, cladding and shop front repairs and seek a buyer for the Company’s business and assets. Detailed below is a summary of the pertinent facts of the position:-
Business Background and Structure
The Company has been trading for almost 10 years, having been incorporated in early 2008. The Company was formed by the current Directors, who are also equal shareholders in the business.
The Company specialises in on-site paint spraying and has undertaken work for numerous blue-chip customers throughout its trading history.
The Company trades from rented premises that currently also houses an associated business which, for the avoidance of doubt, is not subject to the anticipated Administration proceedings.
The Company has recently experienced significant cash flow difficulties which have been brought about by a culmination of two key factors. Over the course of the past twelve to twenty-four months the Company has secured funding from numerous loan providers to assist working capital however due to the extent of the Company’s borrowings over the period, the repayment amounts are significant and this has severely impacted the cash flow. Additionally, the Company has recently experienced a substantial bad debt in excess of £230,000 whereby the customer is withholding payment. Given the already increased pressure on the Company’s cash flow due to its loan commitments, the additional burden due to the customer’s refusal to pay has resulted in the Company’s financial position becoming untenable.
Whilst the Company is considered a viable proposition going forward, the Company cannot afford to pay its historic debts in addition to meeting its current obligations.
Accounts for the year ended 31 March 2016 show the Company achieved turnover of approximately £1.78m resulting in a net profit of approximately £189k. Comparable figures for the year ended 31 March 2015 are £1.56m and £96k, respectively. The Directors advise that turnover since March 2016 has at least remained in line with 2016 figures and in the past 12 months of trading turnover should be in the region of £2 million albeit no management accounts have been produced. The Directors anticipate that the business would be able to generate a minimum turnover of £1.80 million in the next twelve months.
Management Team and Staff
The Company employs two full time staff members in addition to the current Directors who have extensive experience in the sector. In addition, the Company utilises approximately 35 sub-contractors who work exclusively for the Company.
- Office Furniture & Equipment
- Plant & Machinery
- Paint Stock
- Extensive Potential Order Book
The existing director has stated a potential interest in purchasing the business and assets of the Company.
A pre-packed sale via the Administration process would be an attractive and viable option and it also lends itself as a bolt on to an existing similar business. Staff rights would most likely be subject to the Transfer of Undertakings (Protection of Employment) Regulations (‘TUPE’) in such sale.
Should you wish to make further enquiries with a view to ultimately making an offer for the business and assets then please advise GTC Appraisals Limited, Agents acting on behalf of Harrisons Business Recovery and Insolvency Limited in writing (e-mail is acceptable at firstname.lastname@example.org) Please note that all potentially interested parties will be required to sign a non-disclosure agreement prior to any further information being released.
Deadline for Offers
Closing date for interest parties to note any initial interest is Monday 9 October 2017 at 5:00pm, this must be supported with evidence of available funding. Potential purchasers will then have the opportunity to complete due diligence, final offers are to be received by 5:00pm on Tuesday 10 October 2017.
We require an immediate sale of the business and intend to complete a pre packed sale of the business shortly after.
For further information in relation to this matter please contact:
T: 0161 435 6036
Business For Sale: On-Site Paint Spraying, Cladding & Shop Front Repairs
T: 0161 435 6036