J.B.S.C. LIMITED

Business Services

Funds Requested

£109,000.00

Offered so far

£0.00

Loan term

60 MONTHS

Auction Closed

2015-05-04

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About the Business

Company Name: J.B.S.C. LIMITED Company Number: 08816700
Business Type: Business Services Years Trading: 2-3 years
Business Location: STOCKPORT

About the Risk

Risk rating

C

Default rate

13.00%

Bad debt rate

5.33%

About the Security

Security Offered:

All Assets Debenture - Fixed and floating charge created over all assets of applicant company

Est. Equity: 0.00

Personal Guarantee - PG from director and shareholder

Est. Equity: 0.00

2nd Charge on Residential Property - Second priority legal charge over personally-owned residential property

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

JBSC Limited Trades as Frontline Security.

JBSC Ltd provide their customers with Static Security, Event Security and Stewards for all types of requirements. JBSC have an office based Manchester Central Convention Complex by the Managing Director Andy O’Halloran and Operations Manager Peter Burrell, between them have over 40 years of experience within the industry. Peter Burrell has recently joined JBSC.

JBSC are an established and dedicated security company that specialises in event safety, and have built up a reputation for making events and venues safe for the public, artists and professional suppliers by deploying highly trained and experienced security personnel where you need them the most. JBSC are dedicated to providing high quality, professional services, assisting clients with planning and positioning of all security staff to make the event or occasion run smoothly.

When you are inviting high numbers of the public to attend a venue or event, you need to ensure a safe environment for them and their Security teams provide that for you. They can offer you teams of qualified security officials to help control an event easily. Their teams will provide you with a professional standard of crowd management, access and egress control, theft prevention and ensure the safety of all visitors.

In addition to the events, they also have specialised response teams who are available for external hire. They consist of experienced individuals trained extensively in personal intervention and are fully capable of handling any situation that may need immediate attention.

In summary, JBSC is a locally established company working on a national level. They are providers of professional, friendly security personnel and event stewards to event organisers and venue owners to ensure the safety and security of both equipment and the people involved.

Andy O’Halloran has been involved in Event Security for nearly 20 years having originally gained his experience working for Manchester United Football Club. In 2001, Andy decided to branch out and form his own business, namely Frontline Security, Ltd and benefit directly from the contacts he had established within the industry. The Directors of Frontline were Andy and his wife Rachel.

Frontline Security traded profitably for over 7 years achieving, on average over that period, a turnover in the region of £400k and consistently producing an out turn of £50k profit. Frontline established itself as one of the main providers of Event Management Security staff for a couple of blue chip companies - Manchester Central Convention Complex (GMEX), and Vital Human Resources Ltd - besides also undertaking contracts to a lesser extent for around a dozen other companies, such as The Ambassador Theatre Group, Buy Art and the Contemporary Craft Fair.

Unfortunately, in 2013 one of the companies for whom Frontline undertook work went into liquidation which resulted in a bad debt being incurred, in the sum of £35k. With the small profit margins developed from this project, it left the Directors of Frontline little option but to also put their business into administration.

The Directors of Frontline acted in a very organised manner to minimise the damage incurred by the bad debt, and once all the affairs of the Company had been finalised they formed JBSC Ltd to carry on with the business of the former company.

JBSC started trading 16th December 2013 and completed its first years trading on 31st December 2014. Despite the disruption to the business caused by the bad debt, JBSC has managed to again produce a turnover of £400k and generate a profit of £59,871.

JBSC has already secured additional projects for the next 12 months and expects to see the turnover rise by around £50k, which in turn will improve the bottom line out turn.

Security

The loan is to be secured by way of Personal Guarantees given by the directors as well as an All Assets Debenture and a 2nd Charge on a personal property

The Directors have a combined estimate net worth of £ 57K, this is based on ownership of a property with an estimate value of £300k and equity of approximately £75k

The 2nd Charge will be on a personal property with an estimate value of £300k and an estimate equity of £75k

A debenture will be registered on both JBSC Limited and AP Security Limited (once the purchase has completed) . Currently, Bibbys Finance has a debenture registered against JBSC for its Invoice Factoring service, this is to be remove in the near future. An undertaking will be given by the Borrowers solicitor to ensure that a 1st priority debenture is registered against AP Security once the purchase has completed.

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Loan Offers

What is the loan for?

We would like the loan so that we can expand within the guarding sector to extend the services that we offer. We plan to do this by acquiring AP Security Limited. The proposed acquisition will also open up numerous opportunities that we currently cannot exploit.

The main aim is to continue providing a cost effective quality security solution to all their existing customers, but also to expand their services more and more by marketing their services and acquiring similar businesses to themselves. One such company they want to acquire is AP Security which is a business run by 70 year old Anthony Payne who is now looking to retire.

AP Security handles £350k of work, has a reliable and established work force and has for the last three years averaged a weighted profit output of £39k. The intention is to buy the business and streamline it slightly by saving on the salary taken by the current owner and dilute the number of operatives by integrating their own staff where able. They believe this will increase the profitability for this business alone to £70k, but between the two companies this will provide in excess of £100k profit. An agreement has been reached with the owner of AP Security to purchase the shares and assets of the business for the sum of £120k. This acquisition of a business in a similar market, which is also accredited within the industry body, makes perfect sense and will help take the JBSC business to another level.

In addition to aiming to generate new clients and acquiring AP Security, they will also aim to explore new ways of expanding and improving the company for the benefit of all their present and future clients.

JBSC currently employs 21 people on its payroll and utilise also the services of 3 freelancers and one subcontractor. With the acquisition of AP Security Ltd, this figure will increase by 8 further operatives.

Why consider investing?

Please note that the accounts shown on the Financials Tab are for JBSC Limited, you can find projections for the two businesses (AP Security and JBSC), as well as accounts for AP Security on the Overview Page.

Andrew O’Halloran and Rachel O’Halloran

The Directors have accrued 25 years of experience in this industry. They formed JBSC to benefit from the opportunities that existed resulting from our contacts and good reputation in the industry. They now provide a cost effective, professional service to all areas of retail, licensed and event security, aiming to specialise in the sporting, entertainment and exhibition industries.

Andy O’Halloran

A very ambitious and goal orientated individual with 20 years experience in all aspects of the security industry, very energetic and hard working, going direct to the heart of any problem, never giving up and motivating my team to share my goals and passion.

I like to push myself very hard and love to learn & develop new skills. I see my major strengths as my organisational skills, attention to detail, team leadership and boundless energy and enthusiasm.

A licensed Close Protection Officer & Door Supervisor with hands on experience of managing the planning and delivery of Island Site Status Events, successfully completing Counter Terrorist Training in the form of Project Argus, working with senior Greater Manchester Police leader’s in the delivery of serving government conferences. Trained advance driver with Specialist High Speed Pursuit and Escape & Evasion training.

Peter Burrell

Peter Burrell has recently joined JBSC, but has worked with Andy at Manchester United from 1995. Until last June, Peter worked for a company called Controlled Events Solutions. This company was formed by a management buyout of Special Projects Security when the owner decided to retire.

Peter worked in various part time roles including supervising the response teams on match day and heading up the player protection team for the entire playing staff. He also worked on the close protection team for the Glazer family during their acrimonious takeover of the club.

In 2008 he was appointed Security operations manager at the Echo arena in Liverpool. This was a new build exhibition and concert space in the Albert dock area. Peter headed up the Security & Stewarding operations for all events including the European City of Culture, MTV & MOBO awards along with concerts by many of the world’s top music artists.

In January 2013 the contract was awarded to OCS following a tender process and once the six month TUPE period had elapsed in June, OCS merged the Security and cleaning contracts manager’s jobs. At this point, Peter decided to take voluntary redundancy as discussions had already taken place between Peter and JBSC.

Since joining JBSC, Peter has taken onboard the line management responsibility for all staff and event operations, and is in contact with his old clients with a view to generating work for JBSC. Finally, bringing Peter onboard will free up time for Andy to oversee and manage AP Security.

Business Growth

JBSC have produced a year’s projections based on their existing database of clients and the two additional contracts they have recently acquired. These turnover figures will be improved, but for this business plan they have worked on what is in hand and secure, rather than any speculative forecasts.

Based on these forecasts they are anticipating a net profit of £31k, after taking into consideration the repayment of the business loan needed to acquire the AP Security business. The business loan acquisition costs are paid solely from the JBSC business which leaves the AP Security to trade without any additional liabilities but with a number of savings. Without taking into consideration any of the savings we are still forecasting a profit of £39.9k which gives a combined profit of £71.3k By saving on the current Managing Directors drawings and, as mentioned previously with the saving of one person’s salary, we expect to secure a combined company profit in excess of £100k.

DateAmountCapitalInterestReceived
05/06/2015£2,814.34£1,108.49£1,705.85
05/07/2015£2,814.34£1,125.84£1,688.50
05/08/2015£2,814.34£1,143.46£1,670.88
05/09/2015£2,814.34£1,161.35£1,652.99
05/10/2015£2,814.34£1,179.53£1,634.81
05/11/2015£2,814.34£1,197.99£1,616.35
05/12/2015£2,814.34£1,216.74£1,597.60
05/01/2016£2,814.34£1,235.78£1,578.56
05/02/2016£2,814.34£1,255.12£1,559.22
05/03/2016£2,814.34£1,274.76£1,539.58
05/04/2016£2,814.34£1,294.71£1,519.63
05/05/2016£2,814.34£1,314.97£1,499.37
05/06/2016£2,814.34£1,335.55£1,478.79
05/07/2016£2,814.34£1,356.46£1,457.88
05/08/2016£2,814.34£1,377.68£1,436.66
05/09/2016£2,814.34£1,399.24£1,415.10
05/10/2016£2,814.34£1,421.14£1,393.20
05/11/2016£2,814.34£1,443.38£1,370.96
05/12/2016£2,814.34£1,465.97£1,348.37
05/01/2017£2,814.34£1,488.91£1,325.43
05/02/2017£2,814.34£1,512.22£1,302.12
05/03/2017£2,814.34£1,535.88£1,278.46
05/04/2017£2,814.34£1,559.92£1,254.42
05/05/2017£2,814.34£1,584.33£1,230.01
05/06/2017£2,814.34£1,609.13£1,205.21 (7 days late)
05/07/2017£2,814.34£1,634.31£1,180.03
05/08/2017£2,814.34£1,659.89£1,154.45
05/09/2017£73,647.14£72,518.54£1,128.60
Total:£109,411.29£40,223.03