Opportunity to acquire a manufacturer of access equipment
Acquisition opportunity
BK Plus brings to market the opportunity to acquire a manufacturer of quality ladders and other access equipment, made to industry recognised standards. This long-established company is arguably the market leader in its field, supplying the domestic, trade and construction industries.
The company operates from leasehold premises in Gloucestershire and employees 49 staff.
The company has unencumbered plant, machinery, equipment and stock consistent with its trade (some stock is on consignment and/or likely to be subject to retention of title). The company also has a large customer base (inc. blue-chip) and has secured future contracts.
Reasons for sale
The company’s finances were substantially impacted by the COVID-19 pandemic, although the company was able to maintain an operating profit. Having utilised COVID-19 financial support, turnover began to return and operating profits were maintained. More recently, global raw materials shortages and increased costs are taking a significant toll on the company’s ability to continue to operate practically and financially. The company has been able to increase turnover through increased sales price. However, sales by volumes are reducing. In addition, in March 2023, a customer who previously ordered circa £1m per annum advised that it was taking manufacturing inhouse.
In response to these challenges, the company has implemented a number of restructuring strategies including debt restructure, reduction in workforce, and, other cost cutting. The company is currently behind in its payments to HMRC, trade suppliers and other creditors, and requires additional lending or investment if it is to be maintained as a going concern.
| Financial Information | Management accounts to 1 February 2023 to 30 July 2023 £ | Draft Accounts y/e 31.01.23 £ | Statutory Accounts y/e 31.01.22 £ | Statutory Accounts y/e 31.01.21 £ |
| Turnover | 4,629,008 | 9,046,584 | 8,768,270 | 7,100,418 |
| Gross Profit | 1,002,968 | 1,901,985 | 1,911,376 | 1,651,036 |
| Gross profit % | 21.7% | 21.0% | 21.8% | 23.3% |
| EBITDA* (adj. for sale and lease back of trading premises which occurred Jan 2022) | 220,600 | 385,271 | 255,818 | 368,742 |
The Process
Please note that this is an accelerated opportunity which could result in a sale of the company, or, its business and trade assets via an insolvency process. The opportunity could also be removed at any stage. Please register your interest as soon as possible. All interested parties will be required to sign a non-disclosure agreement (“NDA”) before being given access to additional information. Offers must be submitted in writing and accompanied by proof of funding, on or before midday on Monday 30 October 2023.
All contact on this opportunity should be with:
Louise Corbishley – 01922 922050 louise.corbishley@bkplus.co.uk
Richard Tonks – 01922 922050 richard.tonks@bkplus.co.uk
Register Interest
Contacts
All contact on this opportunity should be with:
