Derbyshire Freehold Manufacturer And Supplier Of Educational Toys For Sale

Business description

HEADLINE SUMMARY

DERBYSHIRE
MANUFACTURE AND SUPPLY OF EDUCATIONAL TOYS TO THE PRE SCHOOL SECTOR
• Established 38 years
• Turnover £394,870 (2011)
• EBITDA averaging £150,200 per annum over the last 5 years
• Freehold £775,000 + Shareholders funds
• Reference: 1156DE


BUSINESS SUMMARY

This consistently successful company has developed an excellent reputation in the hand made manufacture and supply of educational toys. Trading from its freehold base on an industrial estate within the East Midlands, customers are located throughout the UK, and are mainly drawn from businesses involved in the educational market. Around 25% of production is exported. Goods are either manufactured to particular customer specifications, or are made in-house from a very wide range of patterns and designs and sold directly from stock. Sales are also supplemented through internet orders.

Our client has enjoyed a successful trading history spanning the last 38 years. During this period, the business has generated significant and consistent profits. The customer base is well spread and the business benefits from a stable, well qualified staff, with exceptionally low rates of turnover. In financial terms the balance sheet is very strong, with a consistently high EBITDA figure ensuring excellent earnings for a new buyer. Over the last 5 years the EBITDA has averaged over £150,000 annually.

Over recent years the company has both consolidated its position within the market place and developed a number of new customers. Trading conditions have seen a reduction in turnover over recent years, but overall gross margin has been increased, costs reduced, and net contribution maintained at around £140,000 per annum over the last two years. Overall, the market for educational products is both stable and inelastic.

The company would be an ideal purchase for a similarly sized or larger corporate with a good knowledge of the educational resource industry and with an acquisitive growth strategy. Such a purchase would give access to mature repeat customer base, a company with solid financials and a reliable staff compliment with a management hierarchy in place. The business could also appeal to a rival firm, or alternatively, a company operating within an allied industry, such as games, seeking additional market penetration and product ranges.

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DISCLAIMER: Viewing is essential to fully appreciate this business and strictly by appointment only through the agents. N/B: All Negotiations must be conducted through Advent Business Sales. These details do not constitute part of an offer or contract and properties are offered subject to being sold, let or withdrawn without notice at any time and without liability for any expenses incurred by applicants. All statements and descriptions are made without responsibility or warranty by us, vendors or lessors. Intending purchasers must check for themselves (Misrepresentation Act 1967).

Property information

Property:

Freehold

Business Operation

Expansion potential:

The focus of the company in recent years has been directed towards servicing existing, well established, and profitable trade clients. The company has not made vigorous attempts to tap into the wider market or to extend coverage to additional providers of educational resources.

The following markets could be explored by a buyer:

• Retail
• Early learning
• Larger chains
• Web based sales
• Adult jigsaws

Marketing at present is limited to a traditional company website, along with the production of an annual catalogue, showcasing the company’s range. Typically, however, orders have mostly been generated through recommendation and referral. Focus on business development activity generally should easily increase the company’s share of a sizeable market.

A buyer with existing trade contacts or with a sales infrastructure already in place could increase the market penetration considerably. In addition, there would be opportunities to cross sell an existing product range into our client’s quality customer base.

Other information

Related documents:

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• Sales particulars

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• EPC