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Profitable Small Residential Developer In Preston

Preston, Lancashire, North WestIdentity protected

Available

Profitable small residential developer in Preston

About this business

A small residential developer in Preston, set up in 2023 and renting a small unit on an estate on the edge of town. It builds new homes on small sites and sells them through local agents, with a team of 4 managing land, design and building contractors. Turnover has stayed close to £2.1m each year, and EBITDA has risen from £539k to £594k, giving a strong margin of about 28%. The asking price is £2.1m, equal to one year's turnover. A buyer would need to keep a supply of sites coming through to hold that level of profit.

Key investment highlights

  • EBITDA of £594k
  • Margin of about 28%
  • Team of 4
  • Leased unit on an industrial estate

Reason for sale

The founders are selling to put their money into a larger housing scheme of their own.

Nothing flagged on the two questions buyers ask first

No flag

Revenue going backwards and one client being too much of it are the two things that end most deals in due diligence. Both are shown here up front, from the figures the seller supplied.

  • Revenue directionNo flag

    Turnover is flat year on year.

    • 2023: baseline
    • 2024 (-0.2%)
    • 2025 (-0.1%)
    • 2026 (-0.3%)
    • Peak 2023 to latest 2026: -0.7%

    4 years of turnover, 2023 to 2026, as supplied by the seller.

  • Client concentrationNot stated

    The seller has not declared what share of revenue the largest clients represent.

    No declaration supplied. Client concentration cannot be derived from accounts.

EBITDA margin widened from 25.5% in 2023 to 28.3% in 2026.

These are observations from the supplied figures, not a view on whether this business is worth buying. Nothing here predicts an outcome.

Computing valuation...

What happens next

Submit an enquiry to the seller. Once they approve it, you sign a non-disclosure agreement and gain access to the information memorandum, the financials and a secure deal room with the seller.