Project Kodama is a highly reputable supplier of premium biomass woodchip fuel, as well as an installer of Solar PV systems, battery storage and biomass boilers, and an operator of biomass district heating networks, for commercial and private customers.
Biomass boiler operators understand the importance of top-quality woodchip fuel. As such, these customers are prepared to pay competitive prices for the quality product as supplied by the group, which will enable it to increase its market share and enhance its bottom line profits.
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The business is primed to take advantage of the uplift in renewable technologies. This has been driven by the UK Government’s Renewable Heat Income scheme, which encouraged the uptake of such technologies amongst householders, communities and businesses throughout the UK.
The business has 8.3MW biomass heating networks in Scotland, generating over 59 Gigawatts per annum in renewable heat. This equates to 7.9m tonnes of CO2 savings.
Our clients are offering the group to the right investor to facilitate continued growth under the impetus of a new owner. They intend to remain in their current roles, post-sale, and work with the buyer to drive further growth of the business. Offers invited.
The partial sale would take out existing funders and provide an earn-out for the shareholders, who will remain contracted to drive rapid growth and development over the next 1-5 years and beyond.
Key Highlights
– The Group has two new biomass heating network projects worth circa £1m. The Solar PV division has a lucrative order book worth over £600k and growing weekly.
– All of the group’s active customers supply ongoing, repeat business, with it receiving continued acclaim within its sector and establishing itself as a market-leading supplier.
– Serves customers in the residential, public, commercial, industrial and domestic sectors.
– 65% of the group’s turnover can be attributed to dependable income streams.
– Knowledgeable and experienced management structure in place, all of whom intend to remain to ensure growth is achieved.
– Operates from freehold and leasehold premises.
– Immediate opportunity to scale its Solar PV business through further investment and recruitment.
Financial Highlights
– Consolidated turnover of c£3m in YE22 with an EBITDA of c£410k.
– YE23 outturn turnover of c£4m, increasing to £4.1m and £4.2m in YE24 and YE25, respectively.
– 225% projected increase in EBITDA between YE21 and YE25.
– Average gross profit margin of 33% over the last two financial years.
