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AL252 - Class 4 MOT Centre

Product Code: AL252

Location: West Sussex

Asking Price: £65,000 or £74,000 with new/upgraded DVSA connected equipment Business highlights include:

Established 15 years Excellent client base Great opportunity for someone who wants to start their own garage business £65,000 or £74,000 with new/upgraded DVSA connected equipment Purchase before September 2021 and enjoy the strong MOT seasonal demand as a result of the 6 month MOT extension Adjusted profit before drawings £50,000 plus Equipment Value £25,000

Business Profile: This well established MOT centre is located in one of West Sussex’s largest towns, just 5 minutes’ drive from the town centre. It has been a test centre for 15 years with a great reputation and superb Google review scores. The garage is well equipped; Dedicated Class 4 mot lane Boston emissions machine – fully connectable to DVSA* Brand new Roller brake tester – fully connectable to the DVSA* Revamped reception with new furniture

The business has an active database of approximately 2,500 customers.

The vendor will help and supply one of their tester’s on hire if needed for a maximum of 6 weeks from sale.

*Please note new DVSA regulations now require any test station sold to a new owner, for the emissions machines & roller brake testers to be connected to their central data base. The vendor for the higher price will ensure all equipment is fully compliant, so offering a turn key operation. For the lower price, the equipment would have to be changed by the new owner at a cost of around £9k.

Premises: Situated on a modern industrial estate, the lease has 12 years to run at cost of £15k a year. Rates payable are £5,200 (pre pandemic). The building is approximately 1600 sq. feet and with some re-profiling of the reception/office areas would yield enough space for a 2 poster ramp so enabling MOT repairs and other repair work to be carried out.

Employees: As the business is part of a large group, the business would be sold without employees unless specifically required – the latter by negotiation

Competition: There are 6 other significant MOT centres in the town, but given its size and likely car park of circa 30,000 testable vehicles this is certainly not over supply.

Financial Performance: Because of the pandemic, annual sales comparisons over the last 2 years are difficult. In its last 2 pre-pandemic years (2018/19) it was generating sales of £90,000 -100,000 per year which would give an owner-operator a profit of c£50,000 before drawings.

Potential: With the ability to open a repair bay alongside the MOT lane, this is a great opportunity for someone to start up on their own and then expand. Converting the MOT lane to one man operation could yield another £20k a year in profit before drawings

Reason for sale: The group wants to focus on its much larger repair & MOT branches.

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