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Biomass Woodchip Pellet Manufacturer In Roche For Sale

Roche, Cornwall
Asking Price:
£2,500,000 Furniture / Fixtures included
Sales Revenue:
£2,250,000
Cash Flow:
Available on request

Veritas Business Sales are delighted to offer for sale this outstanding Biomass Woodchip Pellet manufacturing business which is located in Roche in Cornwall. The company has continually invested in new plant and machinery along with fixtures & fittings which are part leased and part bought and paid for and included within the sale price which is a huge plus for any new purchaser as additional funds will not need to be spent for some time. The business is owner operated and employs the help of 9 highly experienced full time members of staff which will shortly increase to 12 as production increases. What’s being offered is a fully equipped production plant where they produce woodchip heating pellets from locally sourced wood waste that would have been destined for landfill. The pellets are used in both domestic and commercial biomass boilers and are not only more cost effective than oil or gas but also help reduce carbon emissions. The market potential for this type of fuel is being driven by uncertainty about Brexit and new data on climate change. During 2018 the company successfully installed and received accreditation for 7 megawatts of biomass boilers which will be used for wood drying and will generate an additional £85,000 per month in RHI revenue. The company currently uses a drum dryer for wood drying which does not attract RHI payments so the fuel used is now generating an income. As production increases the annual turnover will be in the region of £2.25 million with a GP of approximately (40%) and this will only increase as the Government has committed, under the Climate Change Act of 2008 to ensure that 15% of our energy is produced through renewable means by 2020. We believe that there is huge potential to increase what is already a thriving business as production cannot keep up with the demand. The business enjoys a really strong reputation within the local community and beyond and as such has a high level of regular and repeat trade as well as the benefit of a contract with forest fuels to take all remaining production. This is a superb opportunity to purchase an established and expanding business which is a great base to build upon and as such early viewing is highly recommended as this business is not to be missed.

Property information

Property:

Leasehold

Lease Terms:

Original term: 25 years
Remaining: 20 years
Reviewed: 5 years
Rent: £87,000 plus VAT pa
Rates: £30,000 pa

Leasehold Rent:

87,000 plus VAT per annum

Location:

This respected Biomass Woodchip Pellet Manufacturer occupies large leasehold premises near the town of Roche which is centrally positioned and gives easy access to all major roads. The A30 link road that runs through the middle of Cornwall is just 2 miles away , St Austell 6 miles and The City of Truro is 20 miles away.

Premises Details:

Two substantial single-storey premises (65m x 40m) and (30m x 25) comprising:

Ground Floor
Entrance to workshop through roller-shutter doors.
Open plan offices with canteen and sink drainer Storeroom.
Gents W/C and hand wash basin.
Ladies W/C and hand wash basin.

Factory
W/C with wash basin.
Testing room with testing equipment and shelving.
Large open plan factory area comprising of the necessary equipment to manufacture Biomass Woodchip Pellets which includes: Chinese badged heavy duty hydraulic chipper, purpose built 4 burner biomass boiler, hammer mill for dry material, rotary pellet making machine, powered rotating insulated drying vessel.
Etc. (A full list of the factory inventory is available with the details).

External
Car parking for (20)

Business Operation

Expansion Potential:

Massive

Reasons for selling:

Other interests

Trading hours:

Monday – Friday – 7.00am – 5.00pm
Saturday – 8.00am – 4.00pm
Sunday – closed

Years established:
6 years

Contact Information

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  1. What will happen?

    We will pass a copy of your enquiry information, along with the name of the business you enquired on to finance specialists Rangewell. They will contact you in due course about financing your business purchase.

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