This business, which is a member of The Federation of Engine Re-manufacturers, was established over 60 years ago and provides all types of engine reconditioning. It specialises in the repair and manufacture of white-metal bearings for Vintage and Classic Engines.
It services the vehicle engine re-manufacturing community and has a diverse range of customers, including high prestige marque restoration companies, private enthusiasts, specialist service providers, commercial vehicle maintenance companies and other non-vehicle engine users. It also has significant expertise in the white metal (tin alloy) bearings arena.
Approximately 35% of its business relates to the vintage motor market, 44% to classic cars and the remainder to general commercial activities.
There are 8 employees including time served engineers and technicians with a wealth of knowledge of the requirements of this specialist area of engine remanufacturing. Both of the senior managers are prepared to enter into arrangements with the new owners to provide on-going support or at least assist with transitional arrangements, as are required by the new owners.
It operates from freehold premises comprising workshop space with mezzanine and offices totalling some 4,600 ft2. The Freehold property is also available (at a price to be agreed) should the buyers require it.
The opportunity is for an existing trade buyer to add this highly regarded business, which enjoys very strong repeat business, into their existing business, to increase product range, acquire customers or simply spread their overheads over increased sales.
It currently maintains its market position without any significant outward sales and marketing effort and it is expected that a new owner, with a more targeted marketing strategy, would make significantly more of the opportunities this company has to offer.
The market in vintage cars, which is not adversely affected by austerity, remains strong, especially as the Baby Boomer Generation, arguably the wealthiest generation ever, are hitting retirement and can afford the nostalgia of both vintage and classic vehicles.
The company is recognised worldwide by vintage car restorers, as well as many UK industries that rely on their engines, as being of premier quality in the services it provides.
The business operates at close to £400,000 of turnover and, on its current operating costs, generates a small profit. Excluding the freehold property, the Balance sheet at the last year end, had Net Assets of c. £50k on a debt free, cash free basis.
Offers are sought for the sale of 100% of the shares of the company. The business will be sold debt free, cash free, albeit the purchaser will be expected to purchase the surplus cash in the balance sheet at completion. The vendors will alternatively consider the sale of the assets of the business and offers are sought on this option if preferred by interested parties.