Kitchen Bedroom Manufacturer and Retailer For Sale

Business description

Long established
Fitted Kitchen & BedrooManufacturer & Retailer with superb development potential

This long established business was previously managed by the father of the current owner. He started the company more than forty years ago and it has a first class reputation as the craft based kitchen and bedroom specialist of choice in this affluent area to the North East of London.
The well equipped workshops are capable of producing a wide range of manufactured joinery products to the highest quality, crafted by time-served master craftsmen with a long tradition of excellence.
The business produces solid wood and MDF kitchens and bedrooms of the best quality, and due to low overheads, it is very price competitive. Furthermore, recognizing the pressure on family budgets, typically amongst an ageing population, it has developed an excellent refurbishment capability. This market concentrates on the replacement of doors, worktops, lighting and appliances: creating a completely new look but at typically 30% of the cost of a complete new re-installation. This market is far less competitive, and at the prices quoted a much higher sale conversion ratio is enjoyed – three out of every four quotes are confirmed as orders.
Through a mix of in-house and bought-in products, the company offers a vast range of colours and styles, catering for most tastes.
Customer Service

A high level of personal attention is given to all clients both at the selection and installation phase. An absence of high pressure sales techniques puts potential clients at ease.


Key Strengths

The business has a first class reputation which results in significant new business being generated through direct ‘word of mouth’ recommendation. A file of testimonials from delighted customers is kept.

The range of kitchen and bedroom furniture offered is extensive. A client’s budget will define whether construction is made from solid wood in a variety of types or from MDF, which can be finished to match a specific requirement.

The company operates from a serviced, low overhead location: the total rent/rates bill is circa £5,000 per annum. The premises are held on a one month notice period, meaning that the production facility could be readily relocated.



The business is debt free: operating profits and cashflow adequately meet all the overheads.
No bad debt exists since the following payment profile is adopted for all clients:

25% deposit on contract signing
50% payment on delivery to site
25% payment on completion

Property information

Location:

Based in Essex

Other information

Expansion potential:

The business is poised for expansion. To date no showroom has been felt necessary, however if a retail location was established, it would undoubtedly more than pay for itself. Suggested locations could include Chelmsford, Colchester, Brentwood, Braintree or Witham.


Key Opportunities

To date no strategic marketing plan including a website has been established. To broaden the appeal of the company and to fuel accelerated growth, it is felt that these activities will bring immediate dividend. This would also have the additional benefit of broadening the client base: currently most clients are located within twenty miles of the office.

One designer/sales person is employed. Additional investment in this area would again bring a speedy return.

The company’s focus is kitchens and bedrooms. However, there is now much market demand for home studies. The expansion of broadband internet availability throughout the country has led to a massive increase in home working. Many people find that the ‘kitchen table’ is not an ideal workplace yet are more than prepared to sacrifice an often under utilised bedroom. This could be another ideal expansion opportunity, which uses the same raw materials.

Competition / Market:

Some local advertising has taken place from time to time. A display advertisement in Yellow Pages is featured. From time to time lead generation companies are utilised. This is an area that would benefit from increased investment.

Support & training:

A period of handover and training will be provided to ensure a smooth transition to new ownership.

Reasons for selling:

The current owner is looking to dispose of his interest to enable him to focus on other business opportunities.