Leasehold Newsagent In The Heart Of Central Cardiff For Sale

Business description

The particular highlights of the business are:
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £390,000 with a net profit of £30,000. (See financial summary below).
- A business with great potential which has not been exploited because of low staffing levels.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business and ideal purchase for a family, couple or partnership.
- Low rent and rates.
- Very low overheads.
- Business enjoys superb local reputation
- The concern provides Newspapers, magazines, groceries, confectionary, tobacco, soft and hot drinks, toiletries and PayZone. The business also supplies Darts and Snookers accessories.

History
Phoenix Business Transfer Agents are delighted to place onto the market this High Turnover Newsagents in the Heart of Cardiff City Centre which has been established since the late 1800’s. The business has been in the hands of the current owner since 1994 and he now wishes to sell due to other business interests.

Services
This very good business opportunity provides Newspapers, magazines, groceries, confectionary, tobacco, soft and hot drinks, toiletries and PayZone. The business also supplies Darts and Snookers accessories.

Staffing
The concern employs one part-time member of staff.

Owners Role
The owner is involved in the day to day running of the business.


Marketing
No marketing or promoting of the business has recently been undertaken as the business is well known.

Competition
As far as competition is concerned there are similar businesses within the city centre.

Market
The client base consists of local residents, retail and office workers, city centre shoppers and tourists.

Opportunities
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 opening hours to include Sunday trading.
• Increasing the product line to include The National Lottery and off license.
• Becoming more efficient with staffing levels.
• With the introduction of a website and e-commerce.

Training and Handover
The owner would be available for an extensive training and handover period 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.

Financial Details
The present annual turnover is £400,000 with a gross profit of 28% and a net profit of £30,000. The wages are £8.00 ph. The present value of the stock is £16,000. The potential turnover of the business within the next 2 years is forecast to reach £500,000 pa 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.


Disclaimer
These details do not constitute part of an offer or contract.
The statements and descriptions given are made without warranties by Phoenix Business Agents Limited who it should be noted have NOT verified the information provided.
Purchasers should in all cases undertake financial due diligence using their own professional advisors before committing themselves in contract rather than relying on illustrations ,figures and information given on behalf of the seller.

Property information

Property:

Leasehold

Lease terms:

The original length of the lease was 15 years with 7 years remaining. The rent is £10,000 pa with a review in 2014. The lease may be renewable or negotiable for longer term if required. The rates are £7,383 pa.

Leasehold rent:

£10,000 per annum

Location:

- Situated in the busy City Centre area of Cardiff, close to St. David’s Hall Shopping Centre.
- Part of a parade of shops.
- Excellent parking facilities.
- Surrounded by a densely populated residential area with schools and other local amenities.
- High levels of passing trade
- Good volumes of traffic and pedestrian flow
- A commercially thriving area.
- Well linked with the A470, A4161, A4234 and M4.
- Cardiff Castle, Cardiff Bay and the St. David’s Hall Shopping Centre all lie close by.
- Area enjoying much growth and re generation.
- A lifestyle area
- Excellent local demographics for this type of area.

Premises details:

The property is terraced and is part of a parade of shops and is approximately 700 sq ft. The front is branded with an attractive glass front. There are manual shutters. The main customer service area is carpeted with a middle aisle and shelving and racking to the walls. It is very well presented and is very conveniently laid out. To the rear is a store room. There are a toilet and staff facilities.

First Floor
On the first floor there is a tattoo studio currently generating £13,000 pa in rent which is not included in the net profit figures quoted. The tattoo studio is not under contract or lease and can easily relocate if the new owners don’t want it to continue trading on the premises. This can be easily arranged prior to the handover to new owners.

Equipment with sale
All fixtures and fittings and equipment are included in the sale price and are valued at £10,000.

Business Operation

Expansion potential:

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 opening hours to include Sunday trading.
• Increasing the product line to include The National Lottery and off license.
• Becoming more efficient with staffing levels.
• With the introduction of a website and e-commerce.

Competition / Market:

As far as competition is concerned there are similar businesses within the city centre.

Reasons for selling:

now wishes to sell due to other business interests

Trading hours:

Monday to Saturday: 6.30am to 7pm. Sunday: Closed

Employees:

The concern employs one part-time member of staff.

Years established:

Established since the late 1800’s

Other information

Support & training:

The owner would be available for an extensive training and handover period 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.

Furniture / Fixtures value:

£10,000 (included in the asking price)

Inventory / Stock value:

£16,000