BPI helps engineering and construction business generate over £80,000

BPI has helped an engineering and construction business based in the North East generate an impressive boost to its cash flow through a quick and efficient surplus asset disposal sale.

The business decided to sell its assets as the equipment and machinery were no longer needed following the completion of a major project. The work undertaken by the business involves providing engineering and construction expertise to offshore wind turbines and oil platforms.

The asset sale included over 100 lots featuring machinery, vehicles, power tools and more. The client had previously worked with BPI over the past five years and was impressed with the outcomes – realising total combined sale proceeds of £250,000.  

The challenge

For over four decades, the construction firm has delivered market-leading skills and expertise worldwide, significantly transforming capabilities in the power, utilities, chemical, and renewables sectors.

Following the completion of several large contracts, they were left with surplus assets. They didn’t want to store the equipment as it would lead to additional costs with storage, maintenance and insurance. From an accounting point of view it would also result in depreciation of asset values. For this reason, they decided to sell the surplus assets to generate capital for reinvestment.

BPI’s asset disposal service and industry-leading auction platform offered them a quick and proven method of carrying out this process.

The asset disposal solution

They chose BPI to handle the process due to their positive experience of working with the team over the years, along with BPI’s track record of consistently surpassing expectations on sale proceeds.

Opting for an asset disposal sale aligned with their business needs by maximising returns on surplus machinery and equipment, freeing up physical space, and potentially avoiding additional storage costs. In addition, it complemented their ESG strategy by giving surplus equipment a new lease of life, as part of a circular economy.

By leveraging the expertise of BPI’s asset disposal specialists, the client was able to access a straightforward and easily repeatable method of dealing with their surplus plant and equipment.

Having previously partnered with BPI on end-of-contract sales, the construction firm was already impressed with the speed and efficiency of the asset disposal process. They were confident with handing it over to BPI because they knew that it would be completed in a matter of weeks.

This sale included

1) 2017 Volvo FM 26 Tonne Flatbed Hiab
2) 2015 VW Caddy Van
3) 2018 Containex 20ft x 8ft Welfare
4) Armorgard Site Safes
5) Centrex Dust Extractors
6) Arc-Gen Diesel Generators
7) Makita Tools

One lot that generated a significant amount of interest from buyers was the 2017 Volvo FM Euro 6 26-tonne flatbed rigid truck with aluminium sides and TAG axles. This much sought-after vehicle featured a Fassi 315, 31.5-tonne meter Hi-ab with seven hydraulic extensions and one manual extension, along with low mileage and only one previous owner.

BPI catalogued and photographed each asset for the online auction, managed all collections after the auction had closed. They cleared the client’s site of machinery and equipment within just three days!

The asset disposal sale results

The sale process had a very quick turnaround and was completed in just four weeks with a hammer total of £83,117, achieving over 50% higher than anticipated by the client.

For companies looking to quickly and efficiently maximise returns on surplus equipment, free up storage space, and avoid costs associated with holding onto excess assets, an end-of-contact surplus asset sale is the ideal solution. 

The success of this asset disposal sale and process can be attributed to BPI’s strategic approach. They effectively promoted the sale to a list of prospective purchasers and leveraged the efficiency of BPI’s auction platform, both of which were instrumental in driving the hammer total.

Richard Travis, Sector Specialist at BPI, says: “More of our clients are realising that selling assets at the end of a project is a very effective way of boosting cashflow, freeing up space and maximising returns on each contract. 

“Our continued partnership with this client highlights the trust and confidence in our ability to deliver a high-quality asset disposal service. We are excited to build on this success in the coming years and encourage any business with surplus assets to get in touch today.”

Testimonials

The owner of the engineering and construction firm says: “I could not be more pleased with the solution BPI provided and the outcome of the sale.

“We have partnered with BPI multiple times, and they consistently approach our end-of-contract sales with professionalism and a positive attitude. After surpassing our expectations again, I would highly recommend BPI to anyone looking to sell parts of their inventory and fleet.”

Need help creating space and generating cash flow? Get in touch today or contact 01924 245040.