Executive coach hire business
For sale (ref: SCF0288) - added 15 March 2010
This excellent coach hire company has been long established by one family and is a major player in both of its regional markets in Staffordshire. £2m turnover.
The business runs 14 coaches from a city base and 12 from a rural base. Turnover is also split between the two locations with the first generating £1.4m and the second £629k.
The business offers private hire for which they are the preferred supplier for a number of companies and organisations. Their reputation means they are always on local tender lists and could easily double their turnover in summer months with access to a larger fleet.
Contract work is mainly with local authorities to provide school transportation. Currently there are 23 contracts or around 3 years duration with mixed expiry dates. This work accounts for around £750k of the annual income.
The combined financial figures for both sites are:
Turnover £2,057,000
Gross Profit £613k
Adjusted EBITDA £384k
Revised Net Asset Value £420k
This business gives an existing operator an ideal opportunity to enter two successful markets (city & rural) that would otherwise be costly to enter. The existing owners are willing to remain as required bringing their skill and pride in the brand to the new owners and ensuring its continued success.
Property Details: Leasehold
Asking Price: £1,400,000
Turnover: £2,087,000
Location:
The main site is just north of the city centre and convenient for all major road links. The branch site is in a rural location on a more modest scale. Full details are available on request.
Premises Details:
The business operates from one urban and one rural site. Both have ample space for storage of the vehicles operated from them along with required office space.
Reason For Selling:
The majority shareholder is looking to retire.
This business offers a new owner the opportunity to acquire a major player in two markets, that otherwise would be very difficult and costly to enter.
A larger coach group could exploit these local markets by the introduction of extra capacity at peak times, as well as enjoying the economies of scale associated with such a purchase.
Furthermore as the business enjoys a large weighting towards private hire and has a number of contracts due for price review, there is considerable flexibility to offset fuel price increases and maintain current profitability.
The existing owners are willing to remain as required and will bring their obvious skill and pride in the brand to ensure the purchaser achieves maximum benefit from the acquisition. They are keen to see its continuing success.
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