A provider of wood logs

Based in the West Midlands.

The business produces high-quality fire logs and retails them locally through online sales.

The business is also part of the domestic renewable heat incentive (RHI), which will bring in a guaranteed income of over £500k per annum for the next 10 years.

Benefits from 223 active customers, 70% of which provide reliable repeat business.

The business has eight Hargassner 199KW, all of which have 10 years remaining on the RHI Scheme.

There is a dragon boiler on site which could be used to generate circa £80k in additional revenue.

Strong reputation in the company’s region due to the quality of its products.

95% of sales are derived from e-commerce, with an online visitor conversion rate of 76%.

Scope to grow substantially by investing in a marketing team.
Could invest in a further two 500KW boilers, which could increase efficiency by 50%. The owner has boilers for sale with 11 years remaining on the RHI scheme which could be purchased and relocated to the business’s site.

A member of the Renewable Energy Association.

Secure income via the RHI regime.

Operates from leasehold premises.

YE24 turnover of £483k with an adjusted EBITDA of £48k.

Average gross profit margin of 79% between YE21 and YE23.

Our client is offering the business for sale to pursue other, unrelated business ventures.

Offers invited.