Opportunity to acquire or invest in a scrap metal recycling business
Business for Sale
Client FRP Advisory
Businesses for Sale
Business OpportunityProject Ridge represents a unique investment opportunity to acquire or invest in a long-established scrap metal recycling business with significant growth potential.
- The Company’s primary activity is the recycling of both ferrous and non-ferrous metals, whilst also being an authorised treatment facility for end of life vehicles.
- The Company's clients include both UK and international customers.
- The Company holds the relevant waste management licences, together with VOSA and local council licences.
- Current Management acquired the business in 2016.
- There is a loyal and experienced workforce of 14 members of staff.
- The sale represents an opportunity for a trade buyer or an investor candidate
- The annual turnover of the Company in the draft accounts for 2015 and 2016 was approximately £2.5m and £1.3m respectively.
- Management have attributed the decline in turnover in FY2016 to the previous owner originally winding-down the business for a Christmas 2015 closure, however, they have since rebuilt the client base which in turn has substantially increased the Company's revenues to £3m for FY2017.
- The management accounts for the four months to 30 June 2017 show turnover of approximately £800k with an estimated loss for the period at £140k.
- Whilst there are significant balances due to secured creditors in relation to the financed plant and machinery; trade creditors and HMRC are only owed relatively modest sums.
- The Company currently operates from a leasehold premises, with a lease that expires in 2026, at a rental cost of £48.5k per annum.
- The site is approximately two acres and includes; office space, workshops and an end of life vehicle depollution building.
The Company’s key assets include a fully operational metal recycling plant, the goodwill and existing customer base.
- The Company has bespoke plant and machinery equipment (most of which is subject to hire purchase finance).
- The Company also owns a selection of chattel assets including a tipping trailer, generator and an eddy current separator.
Sale process and further information
- Indicative offers are requested by 5.00pm on 18 August 2017.
- All interested parties will be required to sign a non-disclosure agreement before receiving access to the information data room. Please sign up and create an account at: https://datarooms.frpadvisory.com
- Once you have done so you will receive the data room password. Please then email Sukhdeep Somal and Ramandeep Sandher confirming so they can activate your data room access.
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DDI: 0121 710 1692
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