Kitchen Refurbishment Business Specialising In Replacement Doors Worktops For Sale

Business description

Kitchen Refurbishment Business Specialising in Replacement Doors and Worktops

Established for over twenty years and under the stewardship of the current Owners for the vast majority of that time, this business is firmly established as one of the leading kitchen businesses in West Sussex.

Well managed by its two owners, this business specialises in the renovation of kitchens – replacing cabinet doors and worktops, saving its customers the time, cost and inconvenience of a full kitchen replacement. Whilst that is its core business, more often than not a project, which starts as a kitchen facelift, snowballs into the additional replacement of the sink and the hobs and frequently into the design and supply of a fully fitted kitchen. So much so, that on average, half of the projects the business works on, are new kitchens.

Operating from well suited premises in a high profile location, this business’s very well presented showroom displays a wide range of door styles and colours as well as worktops, sinks, taps and appliances reflecting traditional, modern and contemporary tastes – all carefully chosen to meet the demand from the densely populated local catchment area of large and medium sized houses with a high proportion of retirement homes. Most orders stem from customers living within just a few miles of this business, minimizing the travelling time of salesmen and fitters.

The cornerstone to the success of this business is the excellent reputation it has for providing high levels of customer service. This business takes on jobs other companies can’t be bothered with – a small re-work to accommodate a new fridge freezer, for example. It believes in managing each and every project with a high level of personal contact, offering a high level of added value and 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, and customers taking advantage of the free design and estimating service enjoy a high level of presentation of their design concepts. After an order is placed, every element of the process is managed and coordinated on behalf of customers – whether it’s the replacement of a few doors and worktops or the design and installation of a new kitchen, 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. The business has no lesser an excellent reputation for its high levels of workmanship from its directly employed fitters.

Well established and trading for the ‘Owners’ needs’ rather than with continuous growth in mind, this business consistently achieves a turnover in excess of £500,000 and as high as £550,000 for the financial year ending October 2010, generating profits available to the Owners of the business of almost £60,000. 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 an ideal location. As one of just a few kitchen outlets in the surrounding area, and the only ‘renovation’ specialist, having been in its current position for many years, this business benefits from high levels of awareness amongst its very densely populated catchment area. Offering a service requiring a far lower level of potential spend than a newly designed fully fitted kitchen, customers feel more comfortable approaching this business to discuss their requirements – even though a high proportion of them eventually purchase a new kitchen.

The business’s showroom displays are of the very highest quality, carefully selected to showcase the very best of what is available as a result of very longstanding supplier relationships and reflective of the very high standards of workmanship every customer can expect. 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. It is estimated that approximately 80% of appointments are from recommendations and repeat business. So much so that the business is now replacing kitchens it installed ten to fifteen years ago.

This business delivers the very high 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. All staff are directly employed resulting in the business winning some projects even over more competitive quotes because of their control over quality.

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, particularly in the areas of marketing and advertising will have every advantage of building on an excellent platform. Operating primarily within just a few miles of its showroom, the business would certainly benefit from widening its geographical coverage. Whenever this business has advertised in new areas it has always generated an excellent response. Extending its advertising areas or even leveraging the excellent reputation the business has to open up additional outlets will undoubtedly have a significant impact on turnover and profitability.

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 October 2010 was approximately £550,000, generating gross margins in excess of £260,000 and a pre-tax net operating profit of approximately £60,000. .

The Asking price of £125,000 is for the sale of the assets and goodwill in the business excluding stock.

Business Operation

Competition / Market:

Having been established in the same location for over twenty years the business has little need of heavy investment in marketing and advertising, benefiting from high levels of residual awareness. The business maintains a minimal presence in local directories supported by the occasional local press ad primarily to maintain awareness. Having moved away from promotions revolving around product features, the business utilizes distributor discount promotions very effectively. The business also has a very effective website which performs very well in all of the major search engines for all appropriate search terms. A high proportion of the business's revenue is, however, due to its high quality product range, its excellent reputation for quality workmanship and service, resulting in high levels of repeat business and strong word of mouth recommendation.

Reasons for selling:

This is a genuine retirement sale.

Employees:

The two Owners are responsible for the day-to-day operation of the business supported by a showroom sales assistant, a part time office administrator, three directly employed fitters and one apprentice.

Other information

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.