Leasehold Beauty Supplies Concern In Birmingham Price Reduced For Sale

Business description

The particular highlights of the business are:
• Ideally located concern offering excellent lifestyle.
• A well established business. This concern was one of the largest suppliers in the country but has curtailed operations recently due to retiring.
• Good loyal clientele.
• Fully equipped business and premises with favorable lease terms (see below).
• Turnover for 2010 was £795,000. (See financial summary below). This is very impressive considering the credit crunch.
• A business with great potential which has not been exploited because the owners are looking to retire.
• An easily run operation.
• Good loyal well trained staff.
• A good corporate purchase.


We are delighted to place onto the market this thriving Afro beauty products concern which has been established by the owners since 1975. They now wish to sell due to retirement.

This very good business opportunity provides a huge selection of wholesale and retail Afro and other hair products. It has one of the largest varieties of products in the country and is one of the largest suppliers nationally. Many Hair salons and other businesses are catered for.

The concern employs a full time driver who works 40 hours per week and is paid £18,000. There are also 3 assistants who are paid the minimum wage and work about 40 hours each. All the staff are experienced and are prepared to stay on after a sale.

The owners’ role is very hands on and he works full time.

The owner does not market the business extensively although there is a website.

As far as competition is concerned there are 3 other national competitors.
The client base consists of local businesses including hair salons and other complimentary concerns.

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Increasing the sales force and touting for new business.
• Increasing the product line
• Becoming more efficient with staffing levels
• Working more hands on hours and saving on wages.
• With the introduction of a website and e-commerce.
• With an enhanced website.

The owner would be available for a business familiarisation period of one week for the benefit of the new owners if required. The Owner would also be happy for an on the job observation period to assess the business prior to offers being made.

The turnover for year end 30th April 2010 was £795,000, 2009 was £1.09m, 2008 was £1,498,050 with a gross profit of £301,186 and a net profit of £100,000. The wages are £46,867 for this year. The present value of the stock is £250,000 and the fixtures fittings and equipment are worth £100,000. In 2007, the turnover for was £1,647,256. The potential turnover of the business within the next 2 years is forecast to reach £2,000,000 given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note Phoenix do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Phoenix will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.

Property information

Property:

Leasehold

Lease terms:

There is a flexible lease available with terms subject to negotiation. The owners of the business also own the freehold. The rental will be £40,000 for the first 2 years, then years 3, 4 & 5 it will increase to £50,000.
This will be followed by a rent review after 5 and every 3 years thereafter.

Leasehold rent:

£45,000 per annum

Location:

This superb business opportunity is situated in Birmingham. It is situated within a large industrial area with many other warehouses and businesses on the same street. It has good access being very convenient to the local area. There are many complimentary businesses nearby and the city centre is very close by. The motorway links to the rest of the country are important to the concern as it has national distribution of its products.

Premises details:

This very large and well equipped premise is in total over 15,000 sq feet and is in immaculate condition. There are electric/manual shutters and a CCTV system. The premises are over 2 floors and contain a very spacious show room area with 3 aisles, and a large store room. There are various entrances including a customer entrance and car park. On the first floor there are offices with 5 terminals and full software and operating system specific for this type of business. The other side of the building has offices, a conference room and toilets with staff facilities on the first floor.

Equipment with sale
All fixtures and fittings and equipment are included in the sale price and are valued at £100,000.

Business Operation

Competition / Market:

As far as competition is concerned there are 3 other national competitors.

Reasons for selling:

sale due to retirement.

Trading hours:

The business operates from Monday to Friday between 9am and 5.30pm.

Employees:

Owner run with a full time driver and 3 assistants

Years established:

34 years

Other information

Support & training:

The Owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Furniture / Fixtures value:

£100,000 (included in the asking price)

Inventory / Stock value:

£250,000