Bespoke Joinery Operation In Hampshire For Sale

Business description

Established over forty years ago, this business is one of the leading manufacturers of joinery products for builders, developers, architects, contractors and private individuals in the Hampshire area.

The quality of the workmanship provided by this business is outstanding. Whether its a staircase, a window frame, door or a door frame, expert craftsmen manufacture them to the highest standards. This business specialises in creating top quality products which are tailormade to individual customer requirements. Many of the workforce are longstanding and appreciate the benefits good quality workmanship brings to the business.

Ideally located in a modern industrial unit with easy access to the M27 motorway, a unit acquired by the current owner several years ago, the premises are very well equipped. With the workforce skilled in expert manufacturing methods, and with an excellent reputation for stunning workmanship ensuring items are finished to the highest standards, the business can boast a loyal Client base. Often this business receives orders for work without being required to cost it in advance, reflecting the trust customers have in this business.

Turnover has been at a consistent level throughout – around the £300,000 mark. With a gross profit slightly in excess of £60,000 for the financial year ending September 2010, generating an adjusted net profit of approximately £15,000, this represents an excellent bolt on opportunity for an existing operator in the sector or an excellent start up position for a new entrant looking for a foothold in the joinery sector.

Plant and equipment:

The workshop is equipped with all of the plant and equipment normally associated with a modern, efficient joinery operation including a planer/thicknesser, a circular saw, par machine, ripsaw, two spindle moulders, a tenon cutter, a cross-cut saw and a small band saw.

A full inventory of plant and equipment is available on request.

Key strengths:

This business has a good, loyal, well trained and highly qualified workforce capable of consistently manufacturing to a very high standard. The workshop is modern and very well equipped. Skilled staff and excellent equipment ensures jobs are turned around very quickly and at very competitive prices.

Much of the customer base exists from the very beginning of the business, clear evidence of the high quality workmanship and competitive prices offered by this business.

Key opportunities:

With a strong demand for its services and capacity to increase turnover, a new owner would contribute fresh ideas and outside influence to build on an excellent base.

The sale of this company presents a rare opportunity to acquire an extremely well organised and very well established business. Started by the current Owner over forty years ago – and therefore very traditional and perhaps a little tired, particularly in relation to business development, there is genuine and demonstrable scope for further growth of the business.
Whilst this business has a strong, loyal Client base this business is very much ‘reactive’ responding to requests for quotes – having rarely chased business in the past. There is therefore significant scope to leverage the excellent reputation it has built up to forge more partnerships with other architects, builders, developers and contractors active in the South and consequently increase turnover substantially. The introduction of a website which the business doesn’t currently have would enable the business to showcase its products and services.

Customer service:

Working closely with clients to fulfil orders and delivering bespoke products of the highest quality on time, is the main focus of this business. Doing everything possible to enhance its excellent reputation providing a personal, thorough, efficient and friendly service, every effort is made in order to satisfy the customer's requirements, on budget and on time.
This business has expert, highly skilled craftsmen and offers that most important commodity - reliability. Offering value for money as well as a dedication to customer satisfaction, it has attracted and continues to attract new referrals and maintain an extensive base of very satisfied customers.

Clients:

The extensive client base includes small and larger builders, developers as well as private individuals within a fairly localized area close the business’s workshop – but has the capability to deliver anywhere in the UK.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

For the financial year ending September 2008, turnover was in excess of £335,000 generating a gross profit of £127,200 and a pre-tax net operating profit of over £70,000. In more recent times, the business has suffered in the recession but the fundamentals of the business are very sound and with a more pro-active approach to sales and marketing, previous levels of turnover are easily achievable.

The Asking Price of £115,000 is for a sale of the assets and goodwill in the business with plant, equipment and stock valued in the region of £15,000.

Property information

Location:

A modern unit on a large, light industrial estate, this business occupies premises of approximately 2,500 square feet, the overwhelming majority of which is dedicated to the workshop. The estate is within easy access of the M27 motorway offering easy access to all parts of the southern home counties.

The workshop is fully equipped with modern efficient plant and machinery including fixed and portable machines, extractor systems, equipment, benches and stock.

The freehold of the premises is available in addition to the Asking Price and has recently been conservatively valued in the region of £190,000. Rates are approximately £7,000 per annum.

Business Operation

Competition / Market:

With a large proportion of its turnover generated via the most cost effective form of marketing ‘word of mouth recommendation’ and having established an excellent reputation for high quality workmanship the business has undertaken little or no advertising in recent times.

Reasons for selling:

This is a genuine retirement sale.

Employees:

The Managing Director/Owner is responsible for the day to day management of the business, supported by two highly skilled joiners and an office administrator.

Other information

Support & training:

The owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners.