Design Led High Quality Kitchen Design And Installation Business For Sale

Business description

Established in the area for nearly twenty years and occupying its current very well suited premises for the past three, this kitchen design and installation business operates at the very top end of the market.
Well managed by a Husband and Wife team, design is at the very core of this business. This business does not represent any particular kitchen range or manufacturer having moved away from the way businesses in this sector normally operate many years ago. Instead the business works with smaller tried and trusted joinery companies – each one specifically chosen for its ability to meet the specific needs of each and every project and the craftsmanship involved in providing the very best cabinet-made furniture.
Each particular project is individually designed to fulfill each specific Client requirement with functionality, quality and style the basis for every commission. – an approach which has ensured this business has remained a firm favourite amongst its immediate catchment area of mainly up-market large and medium sized houses in the local towns and villages which include the residences of some of the highest net worth individuals in the country. Whilst most orders stem from customers living within just a few miles of this business – this business has undertaken projects on behalf of Clients across all areas of South West London, right across Surrey and Hampshire and even as far afield as France as customers with second homes have chosen this business over and above more local alternatives.
The cornerstone to the success of this business is the excellent reputation it has for providing high levels of customer service. This business believes in managing each and every project with a high level of personal contact and Client communication. It offers a high level of added value, working very closely with its Clients to ensure they get exactly what they want from their kitchen. Every enquiry is treated with the utmost care and professionalism with the business taking great care to explain exactly what is required to achieve the highest level of quality in design, fabrication and installation. After an order is placed, every element of the process is managed and coordinated on behalf of customers – from the initial design right through to completion enabling the customer to benefit from the unrivalled technical knowledge and experience this business has in choosing products and accessories to create the finest designer kitchens including wall and ceiling finishes, plumbing, electrical installations, appliances and any related structural issues.
Well established, this business consistently achieves a turnover in excess of £540,000 generating profits available to the Owners of the business in excess of £120,000. As such it represents an excellent opportunity for a new entrant to enter the kitchen design market or an existing operator to secure an additional very well managed business in a prime location with an excellent reputation and good growth prospects.


Key strengths:
This business operates from a very attractive showroom in a pretty village location. It is a destination outlet – ensuring that the vast majority of visitors to the showroom are serious potential customers. One of just a few kitchen outlets in the surrounding area and having been established in the area for many years, this business benefits from high levels of awareness amongst its highly affluent target audience.
This business clearly knows its marketplace and has developed a compelling offering to match. Whilst its displays are merely representative – the business believes in the integrity of the home and that styles can become dated and therefore represents no particular range or manufacturer – they are of the very highest quality and carefully selected to showcase the very best of what can be achieved. It delivers the very highest levels of customer service expected by its Clients and has developed an enviable reputation for the quality design of highly functional, modern, technical and elegant kitchens.
Above all however this business is strong on design always seeking to harmonize the kitchen with the rest of the home, borrowing from its features and using similar materials in its designs, trading on its excellent, longstanding relationships with cabinetmakers, fabricators and suppliers to deliver the very best end results. As a result the business is in the enviable position of not having to chase work – pricing for profit as opposed to ‘buying’ the work in, with a high level of repeat business and strong customer recommendation.

Key opportunities:
With a strong demand for the services of this business, combined with a capacity to increase turnover, a new owner contributing fresh ideas, enthusiasm and motivation will have every advantage of building on an excellent platform.
Design led and offering very high levels of customer service, at times this business can be stretched. The recruitment of additional designers or Project Managers – trained to work in the very successful method of the business would enable the company to significantly increase its sales. There is also the possibility of replicating the current concept and leveraging the excellent reputation this business has built by opening additional outlets in other areas of high densities of homes in other up-market areas of South and South West London, Surrey, Sussex and the other southern Home Counties.
To date this business has solely targeted the residential sector. There can be no doubt that significant growth in turnover and profitability can be achieved by establishing relationships with the designers, architects, builders and developers that are involved in the prestigious building and refurbishment projects that are currently underway and planned for the future in the surrounding areas of this business.

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.

Turnover for the financial year ending March 2009 was almost £550,000, generating gross margins in excess of 50% and profits available to the Owners of the business of approximately £124,000.

The Asking price of £290,000 is for the sale of the shares in the business based on a net asset value of £19,000.

Property information

Property:

Leasehold

Lease terms:

Rent is approximately £6,000 per annum. Rates are approximately £3,800 per annum.

Location:

Not surprisingly for a design oriented business the showroom was carefully chosen for its designer appearance and is very well presented to demonstrate its design flair.
Approximately 700 square feet, the premises are currently secured on a ‘tenancy at will’ agreement but it is understood there is strong likelihood a formal lease would be granted to a buyer of the business, subject to status.
Rent is approximately £6,000 per annum. Rates are approximately £3,800 per annum.

Other information

Competition / Market:

Having been established in the area for so many years and in the past having featured in the major consumer press including Homes and Gardens and the leading kitchen design and lifestyle magazines, this business has little need of advertising benefiting from high levels of residual awareness and repeat business from loyal customers. What advertising the business currently undertakes is limited to community activities – local Parish magazines and local glossies for example and more targeted marketing via carefully nurtured relationships with local estate agents etc. The business has a very well designed and easy to navigate website that performs very well in all of the major search engines for all appropriate search terms as well as a similarly impressive corporate brochure. Since this also covers other business activities outside of kitchen design it may be more appropriate for a new website to be built with the help of images from the kitchen side of the business. . By far the most effective marketing of the business however comes from its excellent reputation for high quality workmanship and customer service resulting in high levels of repeat business and strong word of mouth recommendation.

Support & training:

The current owners will provide all necessary training and all relevant contacts to ensure a smooth transfer of the business and continuity of trading.

Reasons for selling:

The current Owners wish to pursue other business interests.