Our client is an installer and direct seller of orangeries and conservatories servicing clients across the UK with a particular focus on Bedfordshire, Buckinghamshire, Cheshire, Gloucestershire, Hampshire, London, Northamptonshire, Oxfordshire, Surrey and Warwickshire.
The company targets wealthy homeowners in prosperous areas, a market not renowned for a particular price sensitivity but one guided by quality and a desire to be fashionable.
Run as a family business, our client is celebrating its 10th year of consecutive trading with record sales figures.
Financial performance
The Turnover for 2023 was £570,137 with an Adjusted Net of £194,379
On each job, materials account for around 45% of costs while labour accounts for 22.5% of costs. The gross margin on the average installation carried out by the company is around 32.5% which gives the company superior cash generation abilities.
The new owner will benefit from an average weekly cash flow of £16,700 including VAT arriving in the company’s bank account every week in the last full FY.
Services offered
The company designs, supplies and installs bespoke hardwood and aluminium conservatories and orangeries.
The average job cost is £30,000 to £100,000.
A 25% deposit is taken at the time of sale. Clients then make between 2 and 4 timed tranche payments until the work is completed.
Over the past 10 years, the company has established close working relationships with its material suppliers and its subcontractor network. This has allowed it to keep its costs under control and retain a 43-48% gross profit margin.
Sales and marketing
The company’s website currently receives around 300 visitors a month and it is responsible for the generation of the majority of leads.
Our client is one of a handful of their supplier’s customers who benefit from a co-advertising scheme. Our client makes a minimal monthly contribution which is greatly topped up by their supplier and they receive leads exclusively in their designated area. Ads appear in Homes & Gardens.
The company benefits from direct referrals by customers who are delighted with the quality provided. Orders are received from existing customers who have moved property.
Without any formal sales training, the managing director of the company closes 25% of the enquiries received by the company.
Advancing your enquiry
We expect interest in this company to be high because of its target market, the quality of its service, and its level of profitability. We therefore invite all interested parties to contact us for further information.
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