Retail Confectionary Company Supplying Mobile Retail Units For Sale

Business description

Retail Confectionary Company Supplying Mobile Retail Units to Major Public Events

A rare opportuntiy has arisen to aquire a very well established business with excellent proiftability, very limited competition and a superb reputation in the markets it serves so well. This confectionary business was set up by the current vendor back in 1971 and in that time has grown to be the major supplier of retail confectionary to the UK events market.

The company has 10 mobile sweetshops/chocolatiers that serve the public at a whole host of events from Crufts to The Cheshire Show. These units are driven to the show, sited and manned by the business and are totally self contained. The units themselves are in excellent condition, highly presentable and professional and carry the company’s instantly recognisable logos.

The business has a very impressive client base and has ongoing contracts to attend many major shows and events, most of which are on an annual basis. It has been at many venues for over twenty years such is the quality of service this company provides. The vendor has negotiated excellent supplier relationships with both confectionary manufacturers and wholesalers and this is eveident in the impressive gross profit margins it enjoys.

The business is a member of The National Market Federation

Equipment:

The business owns 10 mobile units. Of the 10 units 8 are operational at any one time with 2 being used as spares as required. 6 of the units are towable, the remaining 4 being fully motorised vehicles. Typical price for a brand new unit is circa £72,000.

Customer Service:

The business prides itself on providing its customers with a reliable good quality offering. Units are always positioned on time and are very presentable and well stocked. Staff are polite and courteous and pricing is fair. This company ethos is reflected by the high number of referrals and repeat business the company enjoys.

Key Strengths:

• Reputation
• Market presence (Almost 40 years successful trading)
• The Brand
• Ongoing customers/Repeat business levels
• Quality of the units
• Buying power
• Very limited competition
• National presence

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 in excess of circa £100,000 per annum with an impressive gross profit margin of circa 70%. All the mobile confectionary units and all other equipment and vehicles are included within the sales price. Current market value of these assets circa £384,000. Full asset list is available upon completion of NDA. Typical stock levels are circa £10,000. This business generates good profits for the owner and enjoys excellent levels of customer loyalty. There is very limited competition and the scope for expansion is great as the vendor does not chase any work. Historically the business has generated sales of circa £250,000 p.a. and there is no reason why a new owner with new levels of energy cannot achieve these figures again.

Business Operation

Expansion potential:

The business has enjoyed consistent sales over the last few years through choice. The vendor has made the decision not to chase new work. The business could easily accommodate sales of circa £500,000 with the current infrastructure in place and the demand is certainly there with public events and shows growing year on year.

Competition / Market:

The business has never felt the need to advertise preferring to rely upon word of mouth recommendations and referrals to attract business. In saying that all its units are fully liveried with the company’s name and logos so they enjoy very high levels of “free” exposure at the events they cater for.

Reasons for selling:

The vendor is wishing to retire.

Trading hours:

As required.

Employees:

The vendor works within the business and has a full time operations manager. It then has a large pool of part time and casual staff (circa 20-30) who it utilises to man the mobile shops.

Years established:

1971

Other information

Support & training:

The current owner would be happy to provide full training and support at handover.He would even be prepared to stay on for a further 12 month period, subject to negotiation should a new owner so require.

Relocatable:

This business can be relocated.