Residential Flooring Wholesaler Contractor For Sale

Business description

This busy, established and successful carpet and flooring business has an extremely good reputation within the large area covered, dealing primarily with contract client housing associations, estate agents and private investors. All of the merchandise is from top quality manufacturers who offer excellent after sales support and the benefit of no middleman distribution cost, with no local competitor undercutting prices.

Since inception in 1999 this business has earned an impeccable reputation for its large range of quality carpet, wood and laminate flooring products, their knowledgeable skilled staff, convenient hours and competitive pricing. The Company continues to prosper from the very large client base with plenty of regular repeat business being obtained, enough to keep the eight vehicles and large team of 14 fitters constantly on the road, covering all areas within the M25 plus Kent and Essex.

The aim of the business is to provide value for money combined with outstanding quality and service. Flexible and personal advice is offered to all clients, quotes are inclusive of everything from fitting to any extra accessories. Repeat business from the multitude of clients is testimony to the business' unrivalled reputation for quality service.

This business maintains an extensive base of satisfied clients who appreciate the professional and friendly service given. The owner and staff pay great care and attention to the needs of their customers – from measuring and planning to final fitting – and honestly give realistic prices and timescales. This customer commitment has enabled the business to go from strength to strength in the period they have been trading.

The business’ success can be attributed to the professional management of the business and all of the hard work that has been put in over the years to meet and fulfil targets, always ensuring that jobs are effectively completed on time and never letting customers down

The vendor advises us that this is a good lucrative business for someone prepared to put the work in to build on this excellent base and gain the rewards.

Customer Service:

This Company supplies excellent products and first class customer service and after-sales service to all clientele. The floorings are delivered on time and expertly fitted with the minimum of disruption to customers; this ensures a constant level of repeat business.

Key Strengths:

An established company with high recognition, offering professional and friendly service from knowledgeable staff, with unrivalled stock availability means that this business is able to cater for everyone’s needs. In addition all contracts undertaken are completed on time and to the full satisfaction of the customer. The business is well respected for its honest and reliable approach, which has created a strong trading base, with many repeat customers and constant new referrals.

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 is financially stable with positive cash flow and enjoys a Strong Order Book.

The current turnover is circa £1,750,000 per annum, gross profit of circa £700,000, Net Profit circa £400,000, assets circa £90,000 and stock circa £275,000 included in the sale.

Property information

Property:

Leasehold

Lease terms:

The 25 year lease runs from 2006 with 5 yearly rent reviews. Current rent is £75,000 per annum with approximately £13,260 payable in business rates.

Location:

Based just off a main road in North London with easy access to motorways and main access roads of London and just minutes from Central London. The ¾ acre premises comprise a large secure yard with main door leading to the shop and reception area, office department to the rear of the trade counter, capacious warehouse to the side and beautiful large showroom (also designed with the residential end user in mind) on the first floor. The warehouse is fully racked with a roller shutter door for loading and unloading. There is also planning permission in existence for additional warehouse space of 2,500 sq. ft.

The 25 year lease runs from 2006 with 5 yearly rent reviews. Current rent is £75,000 per annum with approximately £13,260 payable in business rates.

Business Operation

Expansion potential:

This business offers an excellent opportunity for the successful buyer who is seeking a well-established business with the capacity to increase turnover, possibly expanding into other satellite locations, particularly targeting the residential end user market and developing new regional commerce.

This business is based in an affluent and highly desirable location, close to Central London and the West End and could certainly achieve increased sales and profits. The business would ideally suit an owner/manager who could build on this Company’s excellent reputation and relationships with both customers and suppliers.

Competition / Market:

The business has used very limited advertising in the past and an immense opportunity exists to build on the business’ reputation and implement further and more assertive methods of advertising to expose the business to even greater markets. Every homeowner could be targeted as a prospective customer and various methods could be used in this regard including the local press, leaflets, brochures and direct mail. A large percentage of new clients are derived from recommendations, the company regards existing clients as its best advertisers and has maintained an impressive base of satisfied repeat accounts and clientele, while continuing to attract both new referrals and customers. The business does not have a web presence as of yet, although it does possess the domain name of the business and there is no doubt that turnover and profits could increase using this additional medium. The current owner is in the process of developing a website and this is anticipated to be in place by March 2009. A professionally designed website would allow potential customers to view the extensive range of brand name flooring on offer, and would offer excellent potential for even greater turnover increase.

Reasons for selling:

The owner is currently running two businesses both of which are demanding more and more of his time and attention. To this end he has decided to concentrate more fully on his other business.

Trading hours:

Monday to Friday 7:00am – 6:00pm (with early finish of 2:00pm on Friday)

Employees:

The business does not use contract fitters but fully controls the quality of the end result by employing its own staff of high quality fitters possessing a great deal of experience and skill. In total there are 19 full time employees, namely 14 fitters, 1 warehouse manager and 4 office staff.

Other information

Support & training:

To be negotiated as required.