Refrigeration and Air Conditioning Company

Refrigeration and Air Conditioning Company Ref.IA014 Location Nottinghamshire Asking Price £ 350,000 Asking price: £350,000 +work in progress Freehold purchase would be in addition to the asking price of the business Turnover for 2006 is circa £928,000 per annum. Gross Profit is circa £506,000. Currently there is circa £127,000 work in progress. Asking price includes: Impressive data base of satisfied and repeat a/c’s High quality supply chain Auto cad computer system 1 Mondeo hatchback 1 Mondeo Ghia X Saloon Misc. tools and equipment Profitable business Goodwill This business has been in existence since 1922 and was originally involved in cold storage. The current owner joined the company in 1950 and became the sole owner in 1992. During the past 15 years the emphasis of the company has changed. 90% of the work carried out is in air conditioning with the other 10% being in Refrigeration and Chiller installation. The company offer a complete vertical service from conception to design through to installation. The nature of this industry demands an excellent service and a 24 x 7 call out facility is available to all of its customers. The company prides itself in its technically skilled workforce and providing its customers with some of the finest brands of equipment available on the market. The business handled is 90% commercial work, which are often satisfied repeat clients, and 10% private, one off customers. Equipment: Apart from the tools and misc. equipment to install the air conditioning there are 9 vehicles which the company own. They are ; 2 x Transit Connect vans, 3 x Transit vans, 2 x Astra vans, 1 x Mondeo Estate car, & 1 x Mondeo Hatchback. The computer is an off the shelf system but with Auto Cad Software to enable design work be produced. Customer Service: Because of the nature of the business it is essential to offer a round the clock after service. Therefore at all times there is an engineer on call for emergencies. The company have built up a sound reputation for reliability and offer extended warranties of up to 4 years for customers provided the equipment is part of a maintenance contract with the company. The technically skilled engineers employed, offer an expert problem solving solution to their customers born out of field experience over the years. Key Strengths: This is a company that is tried and tested. The repeat business contracts they earn are with some of the most demanding Blue Chip companies and are testimony to the quality of work that is achieved. The business is stretched at present with more skilled labour needed to handle the business that is coming in every day. There is considerable work in progress throughout the year and if desired more work and contracts could be taken on. Turnover has risen in the past year by 27% and Gross Profit has risen by 27%. The current owner believes that this amount of growth could be increased with the correct development of the company.

This is a business that is built on solid foundations and could carry on making an acceptable profit for the foreseeable future. However with someone new to drive the company and more skilled engineers in the business, it could increase its turnover and profits with an immediate effect. This is effectively a family run business. Whilst there is a positive cash flow situation in the company, it is slightly hindered by the size of jobs it can accept, something which could be easily remedied.