specialist equipment for emergency & armed service
Market Sector | Specialist Equipment - primarily for the Emergency Services and Defence sectors worldwide
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Product Development | Fully Developed & Tested | |||
Business Stage | Pre Revenue - customers in place | |||
Investment | £250k | Patent | Yes - Registered |
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EIS Tax Relief | Yes | |||
Valuation | £1.00m | |||
Location | West Midlands | |||
The company are a natural spin out of an established business in Birmingham known for it's innovative design, manufacture and supply of highly specialised products in the personal safety, emergency services and defence markets.
Their most recent innovation, a personal cooling system, was developed in response to an enquiry from one of their key clients, who tried and tested it's functionality, also identified an alternative application and significant benefits, for users of chemical suits, particularly in hostile heat environments. It was quickly established that the opportunity presented by this spin off product, was considerable and a new company has been formed to commercialise this first, of a range of anticipated products. All associated IP has been transferred to the new company and a sector experienced management team is being recruited to exploit a pipeline of opportunities that can be evidenced.
The key markets & routes are well known and access/contact already well established in the sectors that are associated with the use of CBRN (chemical, biological, radiological, nuclear) protection suits and for staff working in high temperature areas. The product has shown not only durability but enables the user to maintain high performance levels for far longer periods in exacting environments.
The company has established strong relationships with a number of identified users and the largest supplier of CBRN suits are at advanced stages of negotiation to supply units within 3 months of manufacturing, leading to a sales profile of c2k units in year one rising to 12k in year 2, with sales into other sectors ramping up revenues to from £300k year one to £5m by year 3 and profits approaching £1.5m
| Sales | 303,000 | 2,286,000 | 4,299,000 |
| Gross Profit | 144,380 | 1,243,735 | 2,012,595 |
| Overheads | 341,036 | 624,001 | 706,581 |
| Net profit/loss | -196,657 | 619,734 | 1,306,014 |
A comprehensive business plan has been prepared indicating a funding requirement of £450k, of which £250k will be raised as equity immediately against a valuation of £1m. A regional VC is considering a match investment. The balance of £200k over the following 15 months may be debt or trade finance based.
The operation is scalable with controllable overheads in line with sales. The market for the product is sustainable and has all the attributes associated with long term potential that makes an exit via a trade sale to an existing supplier of industrial and military personal protective equipment a realistic probability.