Long Established Natural Stone Flooring Retailer In Buckinghamshire For Sale

Business description

Long Established Natural Stone Flooring Retailer - with excellent levels of repeat business

Established over 18 years ago, this well known suppliers of high quality stone for flooring and tile has established an unrivalled reputation for quality with an enviable repeat client base from both the private and trade sectors. The business only supplies natural stone and is not involved in ceramics. As such, whilst the products offered can cater for aesthetic and economic requirements, it does tend to appeal to the more discerning customer.

The customers either find the company via the comprehensive website which receives enquires from across the U.K. and internationally, or mostly via the high levels of recommendations and referrals received daily. The products supplied by the business tend to be at the top of the list for Architects, Designers and Specifiers, whether they are engaged on a project for local high-net worth individuals and celebrities or business clients in the City. Corporate clients have included major retailers, spas, pub & restaurant chains. There has also been some very prestigious projects completed with the stones supplied by the company such as the crypt development at St. Martins in the Fields in Central London.

The business imports stones, marble and slates from across the globe with 11 key suppliers internationally, including those based in China, India, Spain, Italy, Germany, Portugal and France. Whilst most of these relationships go back over many years, the activity tends to vary depending on currency exchanges and the popularity of products. The owners of the business have strived to maintain relations through the ups and downs, so that suppliers are geared and delighted to supply when called upon.

Equipment:

The showroom is fitted to the highest degree as would be expected with a huge range of quality tiles, slates and marbles fitted and on display for customers to view and feel. The showroom also has the main management office, with all assets that would be expected including a BT versatility Telephone system, 4 x Desktop PC’s Photocopier, Printer, Fax machine and filling cabinets. Customer records and Financial accounts are held on a ‘Quickbooks’ platform.

In the warehouse and storage yard there are 2 x Diesel Fork-lift trucks, one of which has a JCB extending boom. There is also a Heavy Duty Circular Saw. For deliveries there is a HGV lorry with Hiab Crane. Overall plant and assets are conservatively valued at around £50,000.

Customer Service:

This business has exemplary levels of customer service from the moment of enquiry until final finish. Key management staff in the Showroom are obviously extremely knowledgeable about the products on offer and cater for all needs in a professional and polite way. Whilst the business does not employ tillers directly, they have recommended 3 teams of sub-contractors regularly over the years, whom in-turn have always supplied the highest levels of workmanship and recommendation. Thus, the entire service from start to finish leaves customers expectations more than surpassed, and has obviously supported the trade of the business over the decades.

Key Strengths:

The lengthy trading history in itself is obviously a great asset to the business, as in the reputation and well known trade name which is referred to and recommend by architects, specifiers and delighted previous customers that results. The central location is easily accessible, and close to affluent areas within easy access of the road network and London. The premises allow for a large amount of stock to be carried and shown on one site. Although the premises are flexible the overall overheads are relatively low, with strong gross profit margins possible.

Financial profile:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

For the last 3 years, the average Turnover is circa £411,000, with average Gross Profit circa £144,760. Net Assets are conservatively valued at circa £50,000.

Property information

Property:

Leasehold

Lease terms:

The premises are leasehold, which is currently on a flexible basis with minimal notice periods. Rent, inclusive of service charge, is around £30,000 per annum.

Location:

The premises are leasehold, which is currently on a flexible basis with minimal notice periods. Rent, inclusive of service charge, is around £30,000 per annum. The are business rates payable of approximately £5,100. In total, the premises occupies around 4,500 sq ft, with 1200 sq ft devoted to the showroom. The remaining is divided between the warehouse and storage yard.

Business Operation

Expansion potential:

The business is well placed for further growth under new management. There is a strong possibility that by re-expanding the advertising and marketing function, the client base can easily be expanded further. The vendors have also previously considered wither supplying related equipment or building ties with business that supply equipment such as bathrooms and kitchens, to offer cross referrals. Added revenue could also be driven from a direct sales approach to the building and construction sector as the market for new property developments and re-developments starts to expand again.

Competition / Market:

The business has taken regular advertising positions in local and national lifestyle magazines, including Period Living Magazine and building renovation magazine. There is a comprehensive website that receives many unique visitors daily both from the UK and internationally. Alongside the marketing efforts, a high degree of business comes from referrals by professionals involved in property development and recommendations from satisfied customers.

Reasons for selling:

The vendor of the business is looking to enjoy a well earned retirement after many successful years running the business.

Trading hours:

Monday – Friday: 8:30 am – 5:00 pm
Saturday: 10:30 am – 4:00 pm

Employees:

The business is operated on a day-to-day basis by the vendor who is Managing Director of the company. In support full-time is an Office Manager, Warehouse Manager and part-time driver. There is also a Company Secretary on site one day per week to offer consultancy and support regarding business administration. As described above, the business also recommends 3 teams of skilled tiling sub-contractors on a regular basis.

Other information

Support & training:

The vendor will consider a training and handover period of up-to 6 months for the successful transition of operations to new ownership.