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Plumbing Business For Sale in Perth North Wa WA

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Essential Services Business - Growth Area - Coastal Location

Location:North Wa, Western Australia

Category:Plumbing, Business Services, Professional Services

Asking Price:Undisclosed

1100000

  • Sales revenue : $1,900,000
  • Net profit : $400,000
  • Furniture/Fixtures value : $300,000
  • Inventory/Stock value : $5,000
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location
  • Essential Services Business - Growth Area - Coastal Location

Business description

The provision of an essential service is always going to provide a business with an exceptional level of security and a reasonably steady income and this is certainly true of a business providing

  • Plumbing
  • Gas
  • Liquid Waste
  • Water testing

Virtually any new structure or extension, whether residential or commercial, will require plumbing to allow for running water, hot water, waste water drain off and sewage. And every existing structure with these amenities will require maintenance and repairs. In addition, crops and livestock require irrigation to keep them healthy.

With repeat clients across many sectors and with a contracts in place with many this business is in great shape.

With a history of a decade spent providing vital services and products to domestic, commercial, mining and government clients in the prosperous Gascoyne region of Western Australia, this is a thriving business which now requires a new owner with the vision and drive to continue its growth. From a husband and wife operation, this business has expanded to employ 10 staff (four full time, two part time and four casual). In 2015 turnover surpassed $1.8 million from its three categories of activity: construction, maintenance and waste removal, representing an increase of over nine percent on the previous year.

Since the founding owners employed a strategy of not turning away any type of work, it has adapted to the needs of its customers. The training provided to fill these roles has, over time, expanded the businesses in-house knowledge into areas a plumber would not generally handle. These include:

  • Water quality management (drinking water sampling, chlorination plants, RO units)
  • Hydrocarbon and environmental monitoring

The business is now a comprehensive “one stop shop” for any services required by a commercial business or a home owner, backed by the staffs’ vast knowledge, gained through extensive training and hands-on experience that no competitor can match.

This customer base is easily retained simply by providing a good standard of customer service – answering phones, supplying customers with a time at which workers will arrive and maintaining communication until the job is finished. Staff also ensure a high level of “house-keeping” on site, and are expected to leave the job site as clean as they found it. Simply by consistently adhering to these standards, the business has grown organically with very little promotion beyond the Yellow Pages, occasional newspaper advertising, and a very basic website.

Its customers include Rio Tinto, Water Corporation, Horizon Power, Australia Post, the Department of Housing and the Department of Finance; this latter relationship meaning the business handles all plumbing work for any government buildings in the region.

The business is one of two liquid waste transport facility businesses in the area, but nonetheless puts customers first by splitting trips to maintain low costs for essential travel.

While the business mostly provides plumbing and gas services, its consistently high levels of service support to several larger businesses has recently led to an approach by a small number to provide a broader service which has included management of other trades, including but not limited to electrical, air conditioning, reticulation, painting and even full job management of all trades. This represents one of several strategies for expansion which have been identified by the vendors and which are outlined in this report.

Key points

  • Provides plumbing, gas, liquid waste, water testing and hot water systems to mainly commercial customers
  • Established for over 14 years, over which time it has clearly established itself as the market leader.
  • Currently one of only 2 liquid waste disposal operations in the region.
  • Minimal competition in the plumbing sector.
  • Highly systemised and efficient business systems that utilises job logging software with staff reporting from on-site using iPads.
  • Situated in a prosperous region with existing mining, agriculture, fishing and tourism industries and the mining and oil and gas sectors.
  • Experienced, dedicated staff with an in-depth knowledge of clients’ requirements.
  • A loyal and longstanding repeat client base who are prepared to refer others, with 80 percent of revenue derived from sales to this sector.
  • Blue chip clients including the mining and government sectors.
  • Well developed systems and reporting in operation.
  • Exceptional post-settlement support: the vendors will work alongside the purchaser after settlement for four weeks without charge to ensure they’re completely familiar with the business and its client base. They’re then willing to provide telephone and email support for up to six months if required.

Other Information

  • Selling Assets: Full business assets form part of the sale and details will be provided
  • Is Business Relocatable?: Could be if needed
  • Real Estate: Well located premises that are fit for purpose. Workshop area of 1,700sqm and a further rented area of 1,500 sqm for storage and vehicles and workshop area. There is also an office area.
  • Years Established: 2005
  • Employees: 4 FT 2 PT 4 casual
  • Trading Hours: 7.00am to 5.00pm Monday to Friday
  • Support Training: Owners will provide full support and training to the new owners as required.
  • Reason For Selling: Owners want to move to Perth for children to attend school
  • Lease Terms: Main property owned by the vendors so lease is negotiable.
Sigma Business Sales
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