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Description

Roofing Contractor. Long and well established business offering unique, genuine 25 year guarantee on work. Gross margin 58% Net profit £60K ebitda and drawings. Net assets £92K. Retirement sale, declined £500K of business in last year!

LAKEY & CO BUSINESS BROKERS (OFFSHORE) LTD.

VBS LIMITED

*** Long and well established business in high growth sector

*** Superb opportunity to expand and diversify

*** Excellent trading record

*** Gross margin of 58.6%

*** Net profit of £60,535 before Director's drawings, interest and depreciation

*** Net Assets of £92,327


The Business: We are very pleased to offer for sale one of Guernsey's major roofing contractors, VBS Limited. The company has been in the hands of the present owner since 1992 and has acquired an enviable reputation for quality workmanship and excellent service.

The Location: The business operates from a site adjoining the Barras Lane complex in the Vale. There are two offices owned by the company, with a very large storeroom and the land being rented on a renewable annual lease at £600.00 per month. The offices are fully serviced and three phase electricity is installed in the store room.

The Business Operations: The company has three main trading aspects: flat roof installation, guttering installation and general roof repairs and maintenance. VBS has excellent relations with all the Island's main building contractors and undertakes a large amount of work on their behalf. Guernsey States, C I Traders and the Housing Authority are also major ongoing customers.

The company's unique selling point is the ability to offer a genuine 25 year guarantee to its flat roof customers. This guarantee is fully underwritten by a major UK insurer. The royalty fee that the company pays to utilize the advanced technology of its UK supplier is more than offset by the business engendered from the safeguards, quality and durability perceived by the consumer. With the main thrust of the company's marketing being flat roof installation there is an excellent opportunity to engage in cross selling the company's gutter and roof maintenance facilities at the same time.

The company is a member of the Federation of Master Builders and is BBA accredited. Its volumes of guttering are sufficient to justify the ownership of a sophisticated and expensive machine that produces guttering in house and highly cost effectively.

The company has five vehicles and a large amount of scaffolding and ancillary equipment included in the sale.

The Competition: Although there are several medium and small roofing businesses on the Island, none enjoy the advantages of the VBS guarantee.

The Administration: The company is fully computerized and uses Quick Books as its main accounting tool.

The Staff: Our client has six long serving staff, all of whom are interchangeable within the company's three disciplines.

The Prospects: The company has prospered with the minimum of marketing and sales effort. It has a large bank of loyal customers which is continually added to by referrals from satisfied existing customers. There is a first class opportunity to expand the business by diversifying into pitched roofs and general building as well as being more proactive on sales and marketing. Our client, after 15 years of success, wishes to scale down his commercial activities and has been gradually winding down over the last two years. Indeed, he estimates that he has declined business worth in excess of £500K in the last year. He is happy to assist in a smooth handover.

The Finances: The net assets of the company, at 31st. December, 2005, amounted to £92.327. Turnover was £524,793 with a gross profit of £307,607, giving a net profit of £60,535 before depreciation, Director's drawings and bank interest. Debtors, creditors and cash balances will be adjusted at the time of the sale.

PRICE: Offers in excess of £100,000 plus stock at valuation


Viewing: No direct approach may be made to the business. For an appointment to view, please contact the Sole Agent, Lakey & Co Business Brokers (Offshore) Ltd. on 01481-258885.

DISCLAIMER

Lakey & Co draw the attention of prospective purchasers and those acting on behalf of prospective purchasers to the following:

1. These Particulars do not constitute any part of an offer or a contract.

2. All statements contained in these Particulars are made without responsibility on the part of Lakey & Co or the Seller.

3. None of the statements contained in these Particulars is to be relied on as a statement or representation of fact.

4. Any intending Purchasers must satisfy themselves, by inspection, or otherwise, as to the correctness of each of the statements contained in these Particulars.

5. Seller does not make or give, and neither Lakey & Co, nor any person in our employment, has any authority to make, or give any representation or warranty whatever, in relation to this transaction.

6. We have asked the Seller to provide copies of all documentation (including leases, lease hire and similar rental documentation, guarantees and leases) to the Seller's advocates where they are available. This information will be supplied to you by the Seller's advocates on request. In the meantime, we have relied on information provided by the Seller, and are not responsible for the accuracy of that information. Where information contained in these Particulars is fundamental to the transaction, you should notify us accordingly, and we shall endeavor to obtain documentary confirmation before you proceed further and in any event incur expenditure.

7. While these Particulars are provided in good faith, we are not surveyors or accountants, and we have not tested any fixtures, fittings, equipment, services or other facilities, and cannot say if they are in working order or suitable. You should rely on your own inspection and that of your surveyor. Similarly, you should rely on you own investigation of the accounts, and that of your accountant.

8. Property dimensions are given for guidance only, and you must satisfy yourself as to the accuracy of the measurements.

9. The ownership or use of fixtures, fittings and equipment may be subject to permission from or payment to other parties (e.g. landlords, hire companies, etc.).