Renewable Energy Company Commercial and Domestic Biomass Supply, Design
South Wales, Central London, United Kingdom
Seller Reference: CS006
Asking Price: £100,000
Net Profit: Undisclosed
Sales Revenue: £296,000
Number of Staff: 2
Established For: 10  Years  0  Months
Ownership: Leasehold
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  Business Summary   
  This business sale represents a fantastic opportunity to enter a true growth market with limited competition, and the backing of several European manufacturing companies at the forefront of the renewable energy industry, not to mention the UK government (who have committed some £1.5Billion to this sector up to 2020). This business delivers renewable energy solutions from leading manufacturers to both the commercial and domestic sector.

The company was formed after the founding director invested in a renewable energy solution for his home and identified a market opportunity for a higher quality, bespoke service. The company now provides design, installation and maintenance services to both commercial and domestic biomass customers. They have recently expanded into a dedicated purpose built unit providing sales, office and training facilities to its clients.

The company was initially operated as a life style business, servicing the local market. However, growth has accelerated in recent years and customers are now seeking out the company’s quality services from further afield across Wales and into western England.

The business serves both the commercial and domestic markets specialising in the design and installation of biomass heating and power generation. This is through the installation of wood pellet boilers, wood chip boilers and log boilers and stoves on a commercial, industrial and domestic scale.

They are exclusive UK Distributors for 4 European companies who manufacturer this equipment and offer the following core services and revenue generators:

Supply and Installation
Biomass advice and consultancy
Servicing and Warranties
System design and innovative solutions
Training (in their own state of the art training centre)
At present there is an unprecedented level of interest and investment in the renewable energy sector. The UK government has committed some £1.5 Billion into the scheme up until 2020. Homeowners, developers and businesses are realising that energy use is a focal point for all areas of society and that investment in renewable energy sources is now a must.
  Property Information   
  Property: Leasehold
  Living Accommodation: No
  Location: The business operates from a purpose built state of the art leasehold facility providing attractive modern offices and showrooms in a countryside woodland area. There is a separate small storage building and large car park at front. The existing lease is for 5 years. Current rent is circa £7,200 p.a. and we are advised the business benefits from small business relief with regards rates.

The premises are a real sales aid for the business and also offer excellent value for money, low running costs (as you would expect from an energy efficient building!!) and are located in a fabulous rural location. Services include electric, water main, septic tank sewage, space heating/DHW by biomass system and broadband.

The freehold is owned by the vendors separately to the business and the business could be re-located if the buyer wished.
  The business has a highly informative website and suite of brochures and marketing literature. It also does some limited direct marketing and mailshots targeting key off-grid geographical areas through area specific community and business mediums. It benefits greatly from word of mouth recommendations and referrals as well as via its membership bodies.
  Growth Potential   
  The renewable energy market is seeing unprecedented growth at present and this is expected to continue in the short, medium and long term in light of rising costs for traditional fuels, dwindling supplies and environmental pressures. This business is ideally positioned to take full advantage of this and there is no reason why its current growth rates will not continue moving forward. The vendor believes there is the potential to increase turnover 100% over a 2 year period with increased profit margins.

The renewables sector will continue to develop and grow as acceptability and dependency on fossil fuel declines. Governmental strategies will continue to support this sector going forward. As already mentioned the UK Government alone has committed circa £1.5 Billion to this sector up until 2020.
  Support and Training Offered   
  The current owners would be happy to provide full training and support at handover to ensure a seamless transistion of ownership. This should be a relatively simple process as the remaining Technical Director has excellent knowledge.

The vendor may also be prepared to stay on within the business for a further period of time as a consultant should a new owner so require, subject to negotiation.
  Reason for Selling   
  The owners are planning their exit strategy due to pending semi-retirement. They also have other non-conflicting business interests they wish to pursue.
  Other Details   
  Is this a home-based business? No
  Can this business be relocated? Yes
  Is this business part of a franchise? No
  Summary of Business Hours   
  0830-1700 Monday to Friday

Saturday by appointment
  Summary of Staffing   
  The 2 major shareholders/directors (a husband and wife team) work in the business on a day to day basis. One director is very much strategic whilst the other is more responsible for the administrative duties. The business also has a Technical Director (minor shareholder) who is responsible for installations and planning and one other full time employee.

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