UK Contract Furniture Manufacturer & Importer For Sale

Business description

This well established business set up some 7 years ago and based in the North West of England are contract furniture manufacturers and importers selling primarily bar furniture, club furniture, restaurant furniture and pub furniture to the commercial market place. The business prides itself on offering one of the widest ranges to its clients and supplies tables, chairs, settees, stools etc. The business can provide furniture for almost all tastes and themes. Because of this the business has become a well respected supplier to the trade offering innovative high quality designs and products consistently and at very competitive prices.

This business has a proud record of innovation, investment in skills, processes and plant and machinery and has a highly skilled and reliable work force to call upon. Approximately 70% of sales are manufactured on site with the remaining 30% being suppied via suppliers located outside of the UK.

As already mentioned the business manufactures a variety of styles, colours, and finishes including tables, chairs and stools suitable for a wide range of sectors – Office, Retail, Banqueting and Leisure. This is done from its 9,000 square feet (internal) machine shop in Lancashire. The premises have been laid out very effectively ensuring that the business is able to meet the stiffest of Client deadlines. Lead-times are very short, consistency and quality of product is very high. Working exactly to customer requirements the business strives to ensure complete customer satisfaction at all times. This is illustrated by the high levels of customer retention the business enjoys.

It is understood there is a further 30% capacity within production based on current working patterns. With turnover for the current financial year expected to be approximately £800,000 and gross margins in excess of 65% this represents a significant opportunity to acquire a highly profitable business providing high quality workmanship and products to a wide range of industry sectors at a very competitive price.

Plant & Machinery/Equipment:

This business has a well-equipped and extensive workshop with all of the plant and machinery expected of a business of this nature, with sufficient capacity to ensure deliveries are met even in the event of mechanical breakdown. All of the machinery is wholly owned. A full inventory of plant and machinery is available on request and includes 2 vehicles( 1 Luton ,1 Long wheel based van) as well as forklift trucks etc. Estimated value of plant and equipment is circa £75,000.

Customer Service:

All the staff are fully committed to providing the very best levels of customer service and this is demonstrated by the high levels of customer retention the business enjoys and repeat business. The business prides itself on providing full traceability for all products and services to ensure customers requirements are met. These levels of customer services are further backed up by the business’s approach to staff training with all employees actively encouraged to develop new skills through NVQ qualifications.

Key Strengths:

This business prides itself on the quality of its workmanship, manufacturing a very high quality product at a very competitive price. It has an excellent and varied Client base and has developed enviable Client relationships built upon its ability to manufacture exactly to customer specification, fast turnaround times, the flexibility it offers when faced with changes in design or production schedules and having always met delivery deadlines on time and on budget. In addition to this it is able to provide clients with a very wide range of products, be it manufactured in-house or imported from their overseas supply partners with whom they have very strong relationships with.

Property information

Location:

The business operated from two sites on a prominent industrial estate within the town.

Main Site- Freehold single storey property value circa £200,000. (Owned by the vendors and business pays a annual rental of £12,000 p.a.) Site comprises 9,000 square feet production/machine shop area with storage area, offices, canteen, toilets and kitchen area. Also has an additional external canopied area circa 3000 square feet that is used for material storage. Rates are £6000 p.a. Parking available in front of building. Premises are fully alarmed and also has CCTV.

Site 2- Is located opposite the main site and is leasehold. This modern industrial unit is used solely for the import side of the business. Consists of circa 4000 square feet of ground floor storage with small office area plus additional mezzanine floor. The lease is for 6 years with a 3 year break. Current rent is £16,000 p.a. Rates are £8000. Parking available. Building is secure and alarmed.

Business Hours:

The business currently works a 4-day week with overtime available when required.

0730-17.45 Monday- Thursday
Closed Friday

Security:

Both premises are suitably alarmed and secure.

Other information

Expansion potential:

With a proven track record of supplying good quality product to the industry there is significant scope for this business to expand its customer base throughout the booming leisure sector. The import side of the business is still relatively young and there are many opportunities to expand this in line with website development and a more progressive sales strategy including the provision of an external sales presence and better marketing material. Additional opportunities include export as well as providing in-house upholstery of goods, an area which the business does not currently cover.

Competition / Market:

There is no doubt that this business would benefit greatly from a far more aggressive sales and marketing approach. The business is currently building a website and would benefit from the development of a more professional suite of sales and marketing media, be it brochures, leaflets and a targeted sales strategy. At present the business advertising within the traditional business directories (Yellow Pages).

Support & training:

The current owners are more than willing to assist in a period of support and training to ensure a smooth transfer of the business to new owners.

Reasons for selling:

The owners are looking to emigrate.