Freehold Retail and Trade Plumbing Supplies Business For Sale

Business description

This company was established in 1984 since when it has become one of the very best suppliers of all plumbing materials and ancillary items in the region. While the business is happy to supply tiles, lights, mirrors and other complementary items it does not provide design facilities for the retail customer.

Its business split is fifty percent trade and fifty percent retail giving a well-balanced customer base and a strong client databank.

The business trades from two sites. The first being a substantial freehold property that is owned by the business and will be included as part of the sale. The second outlet is also freehold but owned by the director and could be bought or leased depending on the requirements of the purchaser. The purchase of these premises would be subject to separate negotiation and its value has not been included in the asking price.

The business has excellent supplier relationships that provide good discounts and twenty-four hour delivery standards. The operation holds around half a million pounds worth of fast moving stock. The presence of some competitors in the area has proved to be beneficial to the company that has better facilities, wider range of products and excellent staff.
They have never compromised on gross margins to achieve their strong trading position. Customers who are involved in new build projects or site development generate less than ten percent of the turnover. There has therefore been no drop in sales.


Technology



The business runs a software package called Profit IT Plus which handles everything from stock control to bar coding and invoicing

Customer Service:

The business has a well-established trade customer base to complement its retail clients. Their loyalty is due to the wide range of products and ancillary items, competitive pricing and experienced and knowledgeable staff who have been with the company for some time. Items that are not in stock can be delivered within twenty-four hours.

Key Strengths:

Excellent premises and location
Well established
Financially sound
Strong customer base
Wide catchment area
Quality staff

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The company enjoys a turnover in the region of £2,750,000 with gross profits being about £700,000. Adjusted net profits and further financial information will be made available on request and subject to ongoing negotiations.

Property information

Property:

Freehold

Location:

The main trading premises are located on a new business park close to the town centre. They were custom built eight years ago and consist of a large showroom and admin area of around two hundred and sixty six square metres. This is supported by offices on the first floor of circa one hundred and seventy two square metres and a substantial warehouse covering circa three hundred and sixty two square metres with the mezzanine adding around another one hundred and sixty five square metres.
The second premises can be found in a primary retail area of a local town. It is a double fronted building on three levels with a yard and small warehouse. The ground floor covers circa forty-five square metres. The first floor, which is given over to two showrooms, is around fifty-nine square metres. With the kitchen adding circa twelve square metres. The storage area is approximately fifty-two square metres. This property carries a monthly rental of £950:00. The freehold may be available for an additional sum of Two hundred and eighty thousand pounds.

Other information

Expansion potential:

The business has already started to make progress with online selling and has invested in a comprehensive website. There is much more that can be done in this area to maximise the additional profit stream.
There are also additional savings that could be made by more effective buying that a trade buyer could leverage.

Competition / Market:

The business is active in keeping its profile high. It advertises in the local press, Yellow Pages and has its own web site. It regularly carries out direct mailshot campaigns and letter drops and the company driver carries brochures and does random site drops when ever a building project is spotted during the course of normal deliveries.

Support & training:

There will be a full and professional handover for a period to be agreed as part of the overall sales negotiations.

Reasons for selling:

The key director has decided to take early retirement and move abroad.