Hampshire Property Management IM

165784

HAMPSHIRE PROPERTY MANAGEMENT LIMITED

INFORMATION MEMORANDUM

A SPECIALIST IN RESIDENTIAL BLOCK PROPERTY MANAGEMENTAND MAINTENANCE SOLUTIONS

Hampshire Property Management Limited | Information Memorandum

FINANCIAL HIGHLIGHTS

250

200

150

100

Turnover £'000

50

-

YE21 Stat

YE22 Stat

YE23 Stat

100 120 140 160 180 200

- 20 40 60 80

Gross Profit £'000

YE21 Stat

YE22 Stat

YE23 Stat

35

30

25

20

15

10

5

Shareholder Funds £'000

-

YE21 Stat

YE22 Stat

YE23 Stat

2

Hampshire Property Management Limited | Information Memorandum

CONTENTS

FINANCIAL HIGHLIGHTS 2

EXECUTIVE SUMMARY 4

SERVICES 6

CLIENTS AND MARKETING 8

CLIENTTESTIMONIALS 9

MANAGEMENTAND STAFF 10

GROWTH OPPORTUNITIES 11

FINANCIAL INFORMATION 12

GLOSSARY OFTERMS 14

DISCLAIMER 15

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Hampshire Property Management Limited | Information Memorandum

EXECUTIVE SUMMARY

OVERVIEW

1.1. Hampshire Property Management Limited is an apartment block management and maintenance specialist serving the Hampshire county and immediate surrounding area.

1.2. Henceforth, Hampshire Property Management Limited will be referred to as ‘HPML’ or ‘the Company’.

1.3. The Company employs its own dedicated maintenance team, which enables it to react as soon as possible to any emergencies and further enhances its relationship with clients.

HISTORYAND OWNERSHIP

1.4. HPML benefits from a wealth of experience dealing with residential block management and maintenance, with its reputation for providing an excellent service having been developed since its inception in 2009.

1.5. The shareholding of the Company is divided equally between Nigel Spencer, the Director, and Neville Goddard, the Partner. The Director runs the management side of HPML and the Partner manages the maintenance team.

1.6. Having built up the business over the course of 14 years, our Clients are now offering the Company for sale to facilitate plans for retirement.

SERVICES

1.7. Priding itself on the quality of its offering, HPML offers comprehensive block management services, including collecting service charges and paying relevant contractors. The Company is also responsible for undertaking annual budgets and arranging the completion of annual accounts.

1.8. HPML offers a comprehensive service, with a dedicated team in place to handle any maintenance issues, including:

• Block cleaning • Window cleaning • Bin cleaning • Gardening and landscaping

• Painting and decorating • Lift maintenance engineers • Ground work

1.9. The Company is a member of the Property Redress Scheme (PRS), which demonstrates its attention to detail and commitment to providing exceptional services.

CLIENTS AND MARKETING

1.10. HPML provides its services to circa 39 blocks, all of which contain residential tenants. The Company works closely with residential property owners to provide exceptional service standards.

1.11. Sales leads are generated organically with minimal reliance on proactive marketing, presenting a strong development opportunity.

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Hampshire Property Management Limited | Information Memorandum

EXECUTIVE SUMMARY

MANAGEMENTAND EMPLOYEES

1.12. HPML is managed by the Director and Partner, Nigel Spencer and Neville Goddard, who are supported by an efficient and dedicated team of four.

1.13. Our Clients are willing to provide negotiable handover periods of up to three months to ensure the continued smooth running of the Company throughout the transition to a new owner, if required.

LOCATION

1.14. HPML is currently operated from the shareholders’ home offices, with all staff operating remotely.

1.15. As such, the Company is being offered as a fully relocatable opportunity, with scope for operations to be effectively managed from any location across the UK, supporting its smooth integration into a buyer’s existing operations.

GROWTH OPPORTUNITIES

1.16. There is considerable scope for HPML to encourage growth through the implementation of a structured and varied marketing campaign, which utilises traditional and digital marketing methods.

1.17. This could include updating the current website and initiating search engine optimisation and other activities, which could enhance the Company’s prominence within the sector and drive increased sales.

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Hampshire Property Management Limited | Information Memorandum

SERVICES

OVERVIEW

GROUND RENTAND SERVICE CHARGE COLLECTION

2.1. HPML specialises in block management and general maintenance of blocks, providing a professional and tailored service to suit each block’s current and future needs and requirements. 2.2. Benefitting from over 70 years’ combined experience in the sector, the team has extensive knowledge of Hampshire’s building stock, planning policies and the Hampshire property market as a whole. 2.3. The business manages and maintains numerous apartment blocks, multi-tenanted properties and developments across the region, working with and advising clients on how best to leverage their property portfolio.

2.7. As part of HPML’s financial management service, each

managed block has its own designated bank account. All service charges and ground rents are collected at agreed timescales with a complete financial statement of all income and expenditure available on request.

CLEANING SCHEDULES

2.8. The Company organises regular cleaning of windows and communal areas using local and trustworthy cleaners. A schedule is placed on a notice board in the communal areas and signed after every visit.

REGULAR MAINTENANCE INSPECTIONS

2.4. The Company offers a wide range of core services to aid with its overall offering of block management, including:

2.9. HPML designs effective preventative maintenance schedules for each managed block. This includes monthly inspections of the building and communal areas, with any fault identified, reported and rectified promptly.

• Ground rent and service charge collection • Cleaning schedules • Regular maintenance inspections • Gardening • Communication

2.10. The Company employs its own maintenance team, which allows it to react immediately to any emergency.

• Building insurance • Health and safety • Annual accounts • Major works

PROPERTY MAINTENANCE SERVICES

2.11. HPML offers a comprehensive range of maintenance services, arranging different contractors to undertake scheduled work, including:

2.5. Demonstrating its attention to detail and commitment to providing excellence, HPML is a member of the Property Redress Scheme (PRS). 2.6. The Company is fully up to date with all conditions under the Landlord and Tenancy Act in issuing the compliance to act, as well as putting into place the requirements under parts of the Planning Regulations.

• Block cleaning • Window cleaning

• Bin cleaning • Pest control

• Painting and decorating • TV and satellite work • Lift maintenance engineers

• Ground work • Block pavers • Gardening and landscaping, including grass cutting, weeding, tree surgery, hedge cutting and general green rubbish collection

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Hampshire Property Management Limited | Information Memorandum

SERVICES

COMMUNICATION

ANNUAL ACCOUNTS

2.12. The Company maintains regular communication with clients, with an administration team always available to answer any queries.

2.16. The Company maintains detailed records of all income and expenditure on each property, with this updated and checked regularly. At the end of each financial year, the financial records are audited by an independent accountant and copies of the accounts are provided to each leaseholder.

2.13. Clients are encouraged to opt into a paperless

communication service, to aid with HPML’s efforts to be more sustainable.

MAJORWORKS

BUILDING INSURANCE

2.17. HPML can provide consultation on all major works under Section 20 of the Landlord and Tenants Act, including liaising between clients and appointed contractors. The Company previously successfully managed the undertaking of insulation, cladding and rendering of walls and the replacement of roofs on one of its properties.

2.14. All block insurance policies are placed through the Company’s approved insurance brokers and copies of certificates are displayed on communal notice boards.

HEALTHAND SAFETY

2.15. HPML considers the health and safety of residents to be a priority and ensures that all necessary checks and certification are up to date. This includes a fire and risk assessment and monthly electrical and safety checks.

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Hampshire Property Management Limited | Information Memorandum

CLIENTS AND MARKETING

OVERVIEW

3.1. The Company acts on behalf of property owners, focusing on providing management and maintenance services for apartment blocks. HPML works with 39 blocks in total, many of which utilise a number of various services offered.

3.2. By providing a consistently high standard of service, the Company has ensured the longevity of its relationships with clients, with several key relationships spanning over 12 years and two key clients having been in place since HPML’s inception.

3.3. A breakdown of income by client is displayed in the below table.

Client

Sales (Last FY)

Length of Relationship

A

£19,680

12 years

B

£13,111

1 year

C

£5,460

7 years

D

£4,680

10 years

E

£5,796

14 years

F

£4,410

14 years

G

£3,495

2 years

H

£3,495

2 years

I

£3,495

1.5 years

J

£2,112

6 years

3.4. Having cultivated a strong reputation within its sector, HPML generates sales leads organically through word-of-mouth referrals and website enquiries.

3.5. As such, there is considerable scope for a new owner to implement a structured and varied marketing campaign to achieve additional expansion.

3.6. The Company’s current website can be viewed at the following address:

www.hampshire-property.cwiccer.co.uk

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Hampshire Property Management Limited | Information Memorandum

CLIENTTESTIMONIALS

“I cannot say enough good things about the way Nigel Spencer and his team at HPML have worked with us through a wide variety of difficult situations that have arisen during the time they have worked with us as our property managers. My recommendation would be without hesitation to sign them up before they no longer have availability. We learnt through bitter experience with the first firm of property managers we hired, after the new board was formed, the huge difference between a good and bad property management company.”

“Your professionals give the grounds and interior common spaces the attention they need and deserve. It’s good to have a property management team that can be seen to be working well.”

“Many thanks for sorting out my enquiry very quickly and to my entire satisfaction. Your service to the residents in our apartment block is a real step up from what would be called “normal” these days.” “We’d just like to say what a pleasant surprise it was to find [the employee] at [their] work in the garden when we returned early from holiday. [They have] made a quite splendid job of looking after things here. You must consider [them] to be a most valuable asset! Please thank [them] for doing such a competent job!” “I am really impressed with what has been achieved. It shows what can be done when management companies really care about their residents. It’s not an easy journey, but is a worthwhile one. One resident I spoke to told me she used to spend £25 per week on electricity but now only spends £7 per week. What we now need is for all the other management companies to take a leaf out of HPML’s book and improve the lives of the residents in their areas.” “I add my thanks and praise for HPML and the effective and professional way it has dealt with the property since its instruction.”

“I am very satisfied with all the services and work it has provided so far.”

“Thanks for your care of the estate and clearly making a difference.”

“Again thank you for your hard work this year, it is quite noticeable the difference in management.”

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Hampshire Property Management Limited | Information Memorandum

MANAGEMENTAND STAFF

OVERVIEW

Role

Experience

4.1. HPML is currently managed by Nigel Spencer, the Director, and Neville Goddard, the Partner, with support from an experienced and dedicated team. 4.2. The Company currently employs six members of staff, including the shareholders, and benefits from low staff turnover, enabling it to retain a high level of in-house expertise throughout its time in operation. 4.3. The longevity and quality of HPML’s staff have ensured the continued strength of the business and played a key role in maintaining client relationships.

Director Nigel Spencer Partner Neville Goddard

14 years

14 years

Maintenance

14 years

Maintenance

13 years

Admin Assistant

9 years

Admin Assistant

7 years

4.4. The Company’s staff are outlined in the adjacent table, with an organisational chart detailed below.

4.5. The Director runs the management side of HPML and the Partner manages the maintenance team.

HPML

Director Nigel Spencer

Partner Neville Goddard

Admin Assistant (x2)

Maintenance (x2)

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Hampshire Property Management Limited | Information Memorandum

GROWTH OPPORTUNITIES

OVERVIEW

5.1. As a prominent provider of residential property management and maintenance solutions, HPML is well-positioned to benefit from further development under the impetus of new ownership.

5.2. With no proactive marketing in place currently, the Company still receives interest from new clients. There is a potential of £3,888 per annum to be gained from the onboarding of one new client with 18 units.

BUSINESS DEVELOPMENT

5.3. As a well-established business within the property management industry, HPML presents an ideal opportunity for organisations to integrate its properties into their existing portfolio whilst expanding their market share and building relationships with new clients.

5.4. Similarly, acquiring the business would enable buyers with properties based outside of the South East region to expand within the UK, increasing their overall market share.

MARKETING

5.5. Having experienced organic growth since its foundation with minimal reliance on proactive marketing activity, there is significant scope for HPML to focus on this area of the business to achieve additional expansion.

5.6. The recruitment of a dedicated Business Development Manager could enable the Company to identify and approach potential clients, whilst enabling management to focus on other areas of growth.

5.7. Developing the website with the implementation of search engine optimisation (SEO) and pay-per-click (PPC) advertising could generate increased traffic to the site and enhance the client conversion rate.

5.8. Utilising social media platforms may provide additional avenues through which enquiries can be made and keep the Company in line with its competitors.

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Hampshire Property Management Limited | Information Memorandum

FINANCIAL INFORMATION

PROFITAND LOSS

6.1. The table below details the Company’s profit and loss.

Profit and Loss

YE21 Statutory YE22 Statutory YE23 Statutory

Turnover

216,252

201,504

214,129

Cost of Sales

(49,659)

(36,643)

(36,643)

Gross Profit

166,593

164,861

177,486

Gross Profit Margin

77%

82%

83%

Administrative Expenses

(166,838)

(146,399)

(173,057)

Other Operating Income

-

2,152

2,513

EBIT

(245)

20,614

6,942

Depreciation

4,223

3,298

2,113

EBITDA

3,978

23,912

9,055

Directors' Salaries

3,600

3,600

3,600

Adjusted EBITDA

7,578

27,512

12,655

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Hampshire Property Management Limited | Information Memorandum

BALANCE SHEET

6.2. The table below details the Company’s balance sheet.

Balance Sheet

YE21 Statutory YE22 Statutory YE23 Statutory

Fixed Assets

Tangible Assets

11,749

8,451

6,339

Current Assets

Debtors

89,780

74,180

63,405

Cash at bank and in hand

25,612

1,194

16,610

Creditors:Amounts falling due within one year

(60,110)

(30,194)

(38,291)

Net Current Assets

55,282

45,180

41,724

Creditors:Amounts falling due after one year

(38,333)

(28,333)

(18,333)

Net Assets

28,698

25,298

29,730

Capital and Reserves

Share Capital

1,000

1,000

1,000

Profit and Loss Account

27,698

24,298

28,730

Shareholder Funds

28,698

25,298

29,730

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Hampshire Property Management Limited | Information Memorandum

GLOSSARY OFTERMS

Abbreviation

Definition

EBITDA

Earnings before interest, tax, depreciation and amortisation

HPML / the Business

Hampshire Property Management Limited

PPC

Pay-per-click

SEO

Search engine optimisation

YE

Financial year ending 31st July

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Hampshire Property Management Limited | Information Memorandum

DISCLAIMER

This Information Memorandum (“the Document”) is provided solely for use by the recipients in considering their interest in acquiring the Company, either wholly or in part.

This document has been issued on the basis that it falls in the exemptions to Section 21 of the Financial Services Markets Act2000 (“FSMA”) set out below. It is directed only at:

This Document is not a prospectus and does not constitute or form any part of any offer or invitation to subscribe for, underwrite or purchase securities, nor shall it or any part of it form the basis or be relied upon in any way in connection with any contract relating to any securities. The sole purpose of this Document is to assist the recipient in deciding whether it wishes to proceed with a further investigation of the Company. It is not intended to form the basis of any investment decision or decision to purchase the Company. The information contained in this Document is selective and is subject to updating, expansion, revision and amendment. It does not purport to contain all the information that recipients may require. No obligation is accepted to provide recipients with access to any additional information or to correct any inaccuracies which may become apparent. Recipients should conduct their own investigation and analysis of the Company and of the information contained in this Document, and are advised to seek their own professional advice on the legal, financial, taxation and other consequences of providing funding to the Company. This Document includes certain statements, estimates and projections with respect to the anticipated future performance of the Company and as to the market for the Company’s products. Such statements, estimates and projections reflect various assumptions made by the Management of the Company concerning anticipated results, which assumptions may or may not prove to be correct. No representation is made as to the accuracy, reasonableness or completeness of such statements, estimates and projections. Knightsbridge Business Sales Limited (“KBS”) has not independently verified any of the information contained or opinions expressed herein. Neither the Company, nor KBS, nor affiliated partnerships or bodies corporate, nor the directors, shareholders, managers, partners, employees or agents of any of them, makes any representation or warranty, express or implied, as to the accuracy, reasonableness or completeness of the information contained in the Document.All such parties and entities expressly disclaim any and all liability for, or based on or relating to any such information contained in, or errors in or omissions from, this Document or based on or relating to the recipients’ use of the Document. This Document is confidential being for use only by the persons to whom it is issued and who have signed the required form of confidentiality agreement.Accordingly, the contents of this Document, including the Personal Data (as defined in UK data protection legislation, being the Data Protection Act 2018, General Data Protection Regulation 2016/679, the Privacy and Electronic Communication (EC Direction Regulations 2003) and any replacement legislation coming into force from time to time, together with any codes of practice or other guidance issued by any competent regulatory authority) herein, and any other information, Personal Data or opinions subsequently supplied or given in connection with the proposed sale will constitute information pertaining to the Company (“Confidential Information”) and may not be published, reproduced, copied or disclosed to any person other than the professional advisers to the recipient of this Document having a need to know and who are aware that it is confidential, nor used for any purpose other than in connection with the proposed acquisition. Notwithstanding any other provision or obligation in this Document, the signed confidentiality agreement shall apply in all respects to the Confidential Information and in the event of a conflict between the signed confidentiality agreement and this Legal Note the confidentiality agreement shall prevail. In the event that the recipient does not continue with his interest in the Company, this Document must be returned to KBS. The recipient will keep the Confidential Information supplied or given to it or its agents or advisers in connection with the proposed sale safe and secure so as to prevent any unauthorised person having access to it, and the recipient agrees that the information is proprietary to the Company and it has no rights to it except as set out in this notice. Neither the receipt of this Document by any person nor any information contained in it or supplied with it or subsequently communicated to any person in connection with the proposed funding of the Company constitutes, or is to be taken as constituting, the giving of investment advice by KBS to any such person. Recipients of this Document shall not be deemed to be clients of KBS and KBS shall accordingly not be responsible to such recipients for providing the protections afforded to clients of KBS or for providing advice in relation to any transaction or arrangement referred to herein. Each such person should make its own independent assessment of the merits or otherwise of acquiring the Company and should take its own professional advice.

• Persons having professional experience in matters relating to investments as described in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Financial Promotion Order”);

• High net worth companies, unincorporated associates, partnerships or trusts or their respective directors, officers or employees as described in Article 49(2) of the Financial Promotion Order;

• High net worth companies, as defined in Article 49(2); and Certified sophisticated investors as defined in Article 50(1).

The content of this document has not been approved by an authorised person and that approval is, unless this exemption or any other exemption applies, required by Section 21 FSMA. Recipients should note that reliance on this document for the purpose of engaging in any investment activity may expose them to a significant risk of losing all sums invested or of incurring additional liability. If recipients are in any doubt as to the action they should take, they should consult an advisor authorised under FSMA specialising in advising on investments of the kind set out in this document. The distribution of this document in certain jurisdictions may be restricted by law and therefore persons in possession of this document should inform themselves about and observe any such restrictions.Any such distribution could result in a violation of the law of such jurisdictions. No shares or other securities of the Company have been or will be registered or otherwise qualified for sale or resale under Federal or State laws in the United States of America or Canada. Neither the US Securities and Exchange Commission nor the Securities Commission of any State of the United States has approved or disapproved the shares of the Company or passed on the accuracy or adequacy of this Document. Each recipient doing business in or organised under the laws of the United States of America or in areas subject to its jurisdiction represents that it is an institutional investor, expressing an interest for its own account and agreed not to purchase, distribute or sell any of the Company¹s securities or any interest therein except in compliance with the above laws. The Shareholders expressly reserves the right to alter or terminate the process and to accept or reject any preliminary or final offers at any time, in either case, without giving reasons therefore. In furnishing the Document, the shareholders undertake no obligation to provide any additional information or to update this Document or to correct any inaccuracies in this Document which may become apparent. In no circumstances may recipients or their officers, employees, agents and professional advisers make contact with the Management, employees, clients, agents or suppliers of the Company until permission to do so is given in writing by KBS.

CONTACT DETAILS

For further information regarding this opportunity, or to arrange a meeting, please contact a member of our team below:

KNIGHTSBRIDGETEAM

01204 555 056

Phone:

leanne.boulding@knightsbridgeplc.com

Email:

(Strictly by appointment through the Offices of Knightsbridge Business Sales)

15

KBS House 5 Springfield Court Summerfield Road Bolton Greater Manchester BL3 2NT

T: 01204 555 050 E: buy@knightsbridgeplc.com www.knightsbridgeplc.com