High End Contemporary Kitchen Design And Installation For Sale

Business description

Now in its eighth year of trading, this business is firmly established as a leading kitchen design and installation business in its local marketplace.

This is a very design oriented business, operating from very well suited premises – a modern showroom packed with attractive displays that would not be out of place in the High Street of any large town. Specializing in creating for its customers, highly functional, contemporary, technical and elegant kitchens, this business operates towards the top end of the market as a distributor of one of the top kitchen manufacturers in Germany. As well as being the top retailer in the UK for its German range on more than one occasion in the last few years, the business also represents one of the leading manufacturers in the UK.

This is very much a full service business with high levels of customer service an intrinsic part of the offering. Every enquiry is treated with care and professionalism and customers taking advantage of the free design and estimating service enjoy the highest level of presentation for their design concepts. After an order is placed, every element of the process is managed and co-ordinated on behalf of customers – from the initial design right through to installation, enabling the customer to benefit from the unrivalled technical knowledge and experience this business has in choosing products and accessories - even lighting and flooring - to create the finest designer kitchens. Spend per customer approximates to £20,000 including appliances.

With a product range that is unmatched in a very wide catchment area and operating in a sector of the market that generates significant margins and is largely untouched by downturns in the economy, this is a business that will undoubtedly go from strength to strength. This business achieved a turnover of almost £710,000 for the financial year ending February 2011 significantly up from the previous year, reflecting the increasing presence the business has in its local marketplace. It generated gross profits of almost £108,000 and profits available to the owners of the business in excess of £60,000. As such it represents an excellent acquisition opportunity for any existing operator looking to extend their coverage in the marketplace or for a new entrant to the sector looking to acquire a rapidly growing ‘starter’ business.

Key strengths:

This business operates from a very well designed, attractive, modern showroom. Situated at the front of a small industrial estate on the outskirts of a major town, the business benefits from a combination of high levels of passing traffic, low overheads, easy access and customer parking.

This business has a very distinctive product range that is very different from the normal kitchen offering. As a consequence this business draws customers from miles around. Well established, the business also benefits from high levels of awareness and has built an excellent reputation for superb customer service and in particular attention to detail and professional standards. Such is its product range and local reputation the kitchens of this business are frequently referred to and included as a major feature in the estate agents’ details for properties being marketed for sale.

Even if there are minor changes to a project the business does everything possible to stick to its original quote. As a result the business enjoys high levels of customer satisfaction and customer loyalty – even to the extent that the business is currently fitting second kitchens for some of its customers. In high demand, the business currently has an order book with an average order period stretching two months ahead.

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, motivation and enthusiasm will have every advantage of building on an excellent platform.
Having secured planning permission, the business will extend the current premises significantly within the next period of time, which will enable it to increase the range on display and even possibly allow it to move into living room furniture, bedrooms and bathrooms, markets it has occasionally dabbled with in the past.

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 February 2011 was almost £710,000 generating gross profits of approximately £108,000 and profits available to the owners of the business in excess of £60,000.

The Asking Price of £165,000 is for a sale of 100% of the shares in the business based on a Balance Sheet value of £65,000.

Business Operation

Competition / Market:

The business advertises regularly in the local ‘run of paper’ press advertising, as well as features in locally distributed glossy lifestyle magazines. The business has a very well designed, informative and easy to navigate website that performs well in all of the major search engines for the most appropriate search terms, but by far the most effective form of marketing for the business is the strong word of mouth recommendation and repeat business it enjoys, testimony to the high levels of satisfaction the business engenders.

Reasons for selling:

The current Owner feels the time is right to pass the business on to new Owners to build on the excellent foundations already laid.

Employees:

The Owner is responsible for the day-to-day operation of the business supported by two directly employed fitters and a part-time administrator/project manager. The business also employs a wide range of tradesmen as and when required for all of the ancillary trades such as electricians, plasterers etc.

Other information

Support & training:

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