Adjusted EBITDA £1.1M
Based in the Midlands and operating since 2005 and providing refrigerated van rental, with an excellent reputation in the market, the business has a fleet of over 450 vehicles of which the majority are in long term rental hire (3 to 5 years) which represent around 75% of total income. Mercedes 314 and 315 cdi Sprinter Vans make up most of the fleet with more than 85% of the fleet being on 2020 or ‘younger’ plates.
Sales have been traditionally generated through referral, word of mouth, direct sales and repeat orders but now increasingly from website enquiries. The business has close to 100 long-term hire customers, with foodservice / food delivery accounting for c 80% of turnover, and pharma and food/water sampling most of the balance. All Customer contracts are on fixed prices, other than variables for RFL or excess mileage.
In addition to the directors there are 4 members of staff. Key features of the business include:
- An excellent, long-established reputation with a high-quality, modern fleet;
- A high-quality customer base with no dependency on any single customer;
- Contracts in place which guarantee substantial future revenue;
- A low fixed-cost business model by virtue of the use of out-sourcing;
In FY 2022, Sales were £4.4M generating an Adjusted EBITDA of £740k. In the FY 23 and 24 sales are forecast to grow to £6M then nearly £8M generating an Adjusted EBITDA of £1.1M in 2023 and £1.5M in 2024. Net Assets are expected to be c. £1M on a debt-free (excluding HP), cash free, adjusted basis. The fleet has wdv of £7.4M and HP finance of c £6.3M. The owners, who are now ready to retire having given nearly 20 years to the business, are available to provide consultancy support for a period up to 24 months (on terms to be agreed), if required.
The owners seek offers for 100% of the shares of the Company.
This well established and solid business represents an excellent opportunity for a trade or private buyer to acquire a long-established, successful player in a growing market. For a buyer with ambition and a strong Customer service philosophy, there is plenty of scope for growth.
Location: Midlands Annual Sales: c. £6M
Contact Peter Wilson
Info@anderson-shaw.co.uk 02476 100476
Anderson Shaw Reference - ASCFL/VANS