| (REF: JH016) Tool and Plant Hire Business with Two Large Outlets |
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| Seller Reference: |
JH016 |
| B4S Reference: |
17652 |
| Asking Price: |
£955,000
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| Net Profit: |
£72,000 |
| Sales Revenue: |
£955,000 |
| Number of Staff: |
Send enquiry for more details. |
| Established For: |
Send enquiry for more details. |
| Ownership: |
Leasehold |
| Location: |
United Kingdom |
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This now well established and profitable tool and plant hire company originally began trading from a newly fitted site in South London in 1987. With limited competition the business rapidly grew to become a successful and sizable operation, and in 2007 the opportunity was taken to acquire another similarly developed tool hire operation operating from a large site in West London.
The operations at the new location continue to build on already long established tool hire business. With recent investment in the property, streamlining of operations and the placement of key staff, the new branch has shown steady growth, and puts the company in a strong position for future expansion and further investment.
The business hires heavy plant, tools and equipment to a huge range of customers, from local builders, contractors and tradesmen stopping by the one-stop shop on a daily or weekly basis, to larger blue-chip accounts and local authorities, whose teams use the plant and services when working in the area. There is a large database of trade accounts, with the majority of customers being smaller builders / developers employing up-to 10 people. This large and diverse range of customers gives the business a great deal of stability without the reliance on any one major trade account.
The revenue streams of the business are split across equipment hire, equipment sales and retail sales.
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Property: |
Leasehold |
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Lease Terms: |
West London
The premises occupies approximately 4000 sq ft of retail space, with around 300 sq ft of office space on a mezzanine floor. There is extensive parking, and outside storage space around the site. The lease was for 15 years, signed in 2007, with an 8 yr break due in 2015. The annual rent is around £32,000, with business rates payable of approximately £5,500 p.a.
There is a new 8 camera CCTV system in operation, and the premises are fully alarmed.
South London
The premises occupy a double fronted shop-unit. The vendor owns the freehold of one side of the building and rents the property back to the business. The other unit is leasehold. Overall the business occupies around 4250 sq ft, inc retail area of 1000 sq ft offices, workshop, storage yard and parking totalling 3250 sq ft. The combined rent is circa £25,000 per annum with business rates payable of approximately £5600.00 p.a. Again the premises are fully alarmed and protected by a 5 camera CCTV system.
The business also rents a plant yard of around 1500 sq ft for storage and maintenance located in-the vicinity of the South London premises at a rate of around £5,000 per annum inclusive of rates.
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Current Rent: |
The annual rent is around £32,000 & The combined rent is circa £25,000 per annum |
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Living Accommodation: |
No |
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The business has an informative web presence, with good search engine optimization, and as previously stated the vendors with their web support partner company have recently spent the last year developing a full e-commerce solution for the retailing of power tool and associated product lines. Whilst there has been significant advertising through directory and web links, the business has grown mostly through recommendation and referral from a prominent high street presence without significant competition. |
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The company is well placed for further growth. A full e-commerce system has been developed over the last twelve months and is about to come on-line, and with further marketing and potentially the employment of a sales and marketing manager much more business could be won across London and the south east, especially from larger clients and local authorities. With some further capital investment in equipment the company will be able to focus more on the larger accounts, thereby taking the business to the level of competing for more prestigious contracts alongside national hire chains. |
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The vendor is agreeable to a period of handover and training for the transition of operations to new ownership. |
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After 23 years building the business, the vendor is looking to take his retirement and pursue other interests including spending more time with his children. The company is in good shape for further growth, and the vendor believes that with new energy and increased investment the business can continue the steady rate of expansion and development. |
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Is this a home-based business? |
No |
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Can this business be relocated? |
No |
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Is this business part of a franchise? |
No |
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Monday – Friday: 7:30 am – 5:00 pm
Saturday: 8:30 am – 12:30 pm |
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As well as the vendor of the business whose primary role apart from overall management is looking after key account customers, the business employs a full-time Branch Manager, Assistant Manager, and a Driver / Workshop Engineer at the new premises. The original site has a full-time Branch Manager, Workshop Engineer and Driver. The business also employs part time people in the capacity of part time Plant/ Workshop Engineer, Business Manager and Bookkeeper.
The company has good links with local agencies to assist with additional temporary staff requirements during peak periods, or when special project requirements arise. |
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