Novelty Gifts & Toys Company For Sale

Business description

Novelty Gifts & Toys Company UK Manufacture and supply


This reputable and very well established business was set up over 25 years ago and specialises in the manufacture and supply of small novelty gifts and toys to an established network of distributors within the UK and abroad. Typical products include keyrings, fridge magnets, air fresheners, purses and other such novelty gifts both musical and non-musical. Some of the components are sourced overseas and then the final product is handmade and assembled here in the UK. The business currently has some 50 product lines but this has been larger in the past and could easily be expanded upon if so required by a new owner.

The company owns the tooling for the key component parts which ensures the range is unique and of a high quality. Customer orders are hand assembled which enables the business to accommodate smaller orders and provide speedy turnaround.

The majority of revenues are generated via sales to the distributors. The company is regarded as a very well established and trustworthy supplier being the first to introduce musical products to a highly lucrative and key geographical region of the UK Souvenir market. They have a brand logo, packaging and style of product that is very well known to the gift trade within the UK.

Whilst the company have elected to supply through distributors their products can be found in some very high profile tourist organisations and retailers such is the quality and range of their offerings.

The business has grown organically over the years and enjoys good levels of profitability and has a loyal distributor network. It has low fixed costs and is simple to run. Staff are loyal and understand the business.

Equipment:

The business is relatively labour intensive but does have all the necessary tools and equipment required to carry out its duties effectively. It also owns the tooling for key components it has made externally.

Customer Service:

The business provides customers with a comprehensive level of customer service and this is evident in the loyal customer base it has established in over 25 years trading. It offers high quality products on a consistent basis with relatively short lead times. It can also cater for smaller order quantities. The business enjoys good levels of repeat business.

Key Strengths:

This business is a very streamlined and efficient operation that provides a niche offering to a captive customer base. The business has historical presence in the market and more importantly provides unique high quality products that are always in demand. It is cash generative, highly profitable and has an enviable presence. Product designs are copyrighted and the brand is instantly recognisable within the trade.
The business has low overheads and a sterling reputation. This is evident in the levels of advance and repeat orders it enjoys.

Key Opportunities:

As well as the above, the business could develop a more comprehensive paper catalogue to distribute and advertise more within select publications. It could also look to develop more trade accounts to increase volumes as at present it does no real marketing.

Financial Information:

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.

The business currently achieves turnover circa £172,000 per annum. Stock is in excess of £30,000 and is included within the asking price. The business has advance orders of circa £30,000 and is in a healthy position.

Property information

Property:

Leasehold

Location:

The business is located on a small industrial estate. The premises are rented and comprise office, workshop and storage facility. Total area is circa 2,500 square feet. Current rent is circa £300/month. The business could easily be relocated, if required.

Business Operation

Expansion potential:

There are many new opportunities available to grow the business as it is a truly scaleable operation. The market it serves is vast and the business could certainly expand its product offerings still further.

One way of achieving further growth would be through more internet based sales (the company currently has no internet presence) with the development of a trade only interactive website for customers as well as further investment within IT to improve business productivity still further. The website development opportunity is significant as this will showcase the company to yet more potential distributors both in the UK and overseas.

Competition / Market:

The business has never felt the need to advertise in the past. It does have a price list that it does send out to its distributors but would benefit greatly from the development of an ongoing marketing strategy that would include website development and additional marketing initiatives.

Reasons for selling:

The vendor is now looking to retire and spend more time with family and in his property abroad.

Trading hours:

Monday to Friday: 08:00am-17:00pm

Employees:

The vendor has put in place a good team of staff that enables him to work part time in the business. The business employs one full time manager, one full time operative, one part time operative and two part time home-workers.

Other information

Support & training:

The vendor will provide a comprehensive handover period to ensure a seamless transition and continuity of trading.