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Project Kilo

Opportunity to acquire a Midlands based specialist engineering company

Acquisition opportunity

Acquisition opportunity BK Plus brings to market the opportunity to acquire a long-established engineering solutions provider based in the Black Country. The Company offers one of the few remaining (UK based) heavy steel fabrication and large part precision machining facilities.

The company has invested heavily in machining technology, project management, quality procedures, and experienced personnel, which has enabled them to undertake work in strict compliance with customers’ demands for quality, completion, and budgets. Customers include those operating in the nuclear, subsea gas and oil, defence, and aerospace sectors.

The company operates from 36,000 sq.ft leasehold premises in the West Midlands and employs 20 full time, skilled personnel. Facilities include a machine building shop, a large fabrication shop/space, and, large part precision machining capabilities (inc. CNC milling, turning, and boring) with up to 50 tonnes of capability.

Reasons for sale

Numerous factors have led to recent challenges. A major client of the company went out of business in 2023, which left the company with a production hole of £200,000 which it has struggled to replace at a consistent margin. In addition, along with general rising material and labour costs, energy bills have more than doubled in the last couple of years, costing an extra £100,000 per annum.

Whilst the company continues to attract high value orders from blue-chip customers, reduced margins/increased costs have left the company in a distressed financial position. Currently, the company is unable to pay staff, trade suppliers, and other liabilities.

Financial InformationDraft Statutory Accounts y/e 30 September 2023 £Statutory Accounts y/e 30 September 2022 £Statutory Accounts y/e 30 September 2021 £
Turnover1,931,5001,807,6501,590,362
Gross Profit899,526968,260395,318
Gross profit %46.57%53.56%24.86%
Operating Profit/(loss)(220)87,313(308,208)

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 5 April 2024.

All contact on this opportunity should be with:

Richard Tonks: 01922 922050 richard.tonks@bkplus.co.uk

Kim Richards: 01922 922050 kim.richards@bkplus.co.uk

Louis Cole: 01922 922050 louis.cole@bkplus.co.uk

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